ThaiBev’s hard drinks business threatened by sky-high taxes, lacklustre sales

It’s trying to beef up its non-alcoholic segment.

ThaiBev’s core alcoholic beverage business is under threat from sluggish sales and additional excise taxes, pushing the group to turn to its non-alcoholic segment for growth.

According to OCBC, Thai Bev’s long-term growth plan involves a greater focus on its non-alcoholic business and a stronger push for international expansion.

ThaiBev has recently acquired Sermsuk’s trademark ‘est’, while it is also increasing its foothold in Myanmar, Vietnam and Malaysia.

“We also view the group’s international expansion via its beer segment as strategically important to reduce its single country risk in light of the modest growth expected for the spirits business and Thailand’s economy
ThaiBev has a viable long-term growth story and we anticipate catalysts to arise, but more visibility will be needed to give confidence,” stated OCBC.