Beer brand dispenses with ads in Thai debut

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