BANGKOK: Thailand's second-largest hypermarket operator is
launching a mass-market beer to take on entrenched rivals for a slice of
Thailand's estimated 45 billion baht (US$1 billion) market.
Big C Superstore is backing Champ beer, which is attempting to break new
ground by offering an in-house beer brand that targets mass-market
drinkers.
However, the absence of an advertising campaign to support the launch
has surprised the industry.
It appears that Big C is counting on its 29 stores around the country to
drive sales of its new label.
Champ is the first beer on the market not owned by brewers Beer Thai and
Boon Rawd, which monopolise the low-end segment.
It will be pitched directly against the pair's popular respective
brands, Chang and Super Leo. Champ will be priced at 30 baht (US 65
cents) for a 640cl bottle, making it the cheapest of the low-end beer
brands available.
Chang sells at 33 to 34 baht, while Super Leo retails at 35 to 38 baht a
bottle.
Rivals have been quick to downplay Champ's entry, citing poor
distribution and the lack of an advertising campaign to build the
brand.
"Eighty to 90 per cent of beer is bought outside supermarkets. People
who buy beer need it very cold," said Spa Advertising senior executive
client service director Trachoo Kanchanasatitya. Spa handles the 200
million baht-a-year Leo Beer account. A few months back, Leo Beer spent
$1 million to upgrade its image and shift its focus away from
provincial workers to younger affluent drinkers, with the help of
celebrity model Methinee Kingpayom.
Industry observers believe the Leo Beer's relaunch and other challenges
would make it difficult for Champ to carve serious inroads into a market
dominated by Chang, which commands an estimated 60 per cent of the
market, and Super Leo, which claims 17 per cent. Boon Rawd beers, Singha
and Leo hold another 17 per cent.
"Perhaps they will try for one to two per cent of the market, but the
impact will be very limited. Unless there's communications to promote
the beer, it will fail."
Beer Thai adviser and official spokesman Thanit Thamsukati said the
effect of Champ's entry would "not be great". He added: "The in-house
strategy is difficult. Distribution and the brand name are very
important."
The industry is keenly watching the progress of Champ and its attempt to
break into the highly competitive mass beer market.
"You never know," commented one observer. "The mass market goes for
pricing and convenience, and this strategy may increase home
consumption. Just add some ice, as is common in Thailand, and you're
away."
