Thai energy drinks billionaire Sathien Sathientham, co-founder of popular energy drink Carabao Dang, has set his sights on beer brewing. He has invested BHT4 billion ($115 million) to construct a brewery in central Thailand, aiming to seize 3% of the domestic beer market, estimated at BHT257 billion, within the first year of operations.
This substantial investment is being channeled through Tawandang Brewery, a company which currently runs several brewpubs around the Thai capital. The initial batch of beer is anticipated to be ready by the end of the year. Distribution will be handled by Carabao Group, the company he co-founded. Carabao has a subsidiary to make packaging materials and a joint venture with a Japanese partner to manufacture cans.
With this venture Sathien, who recently changed his surname from Setthasit to Sathientham, will be entering a beer market dominated by Boon Rawd Brewery and ThaiBev, the country’s two major brewers.
A February 2022 report by Krungsri Research showed that Boon Rawd (Singha and Leo beer) currently controls a 57.9% share of the beer category. Singapore-listed ThaiBev (Chang beer) controls 34.3%.
However, recent developments to break up the Thai beer “duopoly”, spearheaded by brewer-turned-politician Taopiphop Limjittrakorn, could herald opportunity for Carabao’s beer to achieve that 3% market share.
Romtham Sathientham, Sathien’s son and the managing director of Carabao, is confident that the distribution of these products carries minimal risk. This is because of the customary practice in Thailand of retailers paying upfront for alcohol products. Also, distribution of the beer will utilize Carabao’s existing sales structure.
Sathien is a prominent figure in the Thai business world, ranked 26th on Forbes’ list of Thailand’s 50 richest individuals. He is currently vice chairman of Carabao Group, which he founded 2002 with his friend and folk singer Yuenyong Opakul and business partner Nutchamai Thanombooncharoen and took it public in 2014.
His other son Veeratham is CEO of retail player CJ Express, which Sathientham will also be expanding by 600 outlets next year. His daughter Tientham is managing director at TD Tawandang, which operates more than 5,000 Tookdee convenience stores.
