Tiered excise tax is ThaiBev’s biggest concern: analyst

The beverage firm said the proposed implementation is discriminatory.

Despite seeing potential growth from its reform, ThaiBev’s major headwind is the proposed implementation of a tiered excise tax depending on corporate size.

Analyst, CGS-CIMB, said this in a brokerage report, adding that the company might face potential downside risks such as macroeconomic environment dampening volumes, or higher-than-expected SG&A spend dampening margins.

But as the beverage firm looks to drive liberalisation of the liquor industry, ThaiBev said it can navigate the new regulator regime well due to its experience and expertise in the industry.

Depending on the scope of reform, ThaiBev sees areas of growth from relaxing of rules in alcohol sales hours, online sales, and advertising control. 

It will also monetise its strong distribution channel by catering to brands that complement existing product portfolios.