The group has also introduces ready-to-drink (RTD) spirits, such as the Kulov Max 7 vodka and wine cooler, which also caters to the growing niche market segments that prefers convenience.
Meanwhile, the beer market in Thailand remains to be competitive. ThaiBev continues to engage in experiential platforms of event marketing to gain brand recognition and market share.
The management remains positive on its marketing efforts and cited gains in the recent quarter. Domestic volume growth increased by 8% y-o-y, outpacing industry growth of about 4% y-o-y. It now looks to build up the next generation of direct sale agents from the current 1,100 sales team.
Overall, the group experienced cost pressures in 2H18, due to high raw material costs, as a result of increased malt prices.
In Vietnam, Sabeco’s management is confident of the executional improvements ThaiBev has made since taking over, transforming the brand through revamped marketing activities and integration with employees.
In a Thursday report, analyst Lucas Teng says, “Sabeco can be expected to develop further enhancements in the longer term, such as the optimisation of production facilities and synergistic benefits of procurement with Chang Beer.”
On the other hand, the analyst expects the group’s food business to continue the momentum of store expansion growth.
“While we note that malt prices have dropped since the start of the year, ThaiBev continues to ramp up its marketing efforts in the beer segment in a competitive environment, which will affect the rate of margin improvement,” says Teng.
As at 12.05pm, shares in ThaiBev are trading at 82 cents or 3.5 times FY19 book with a dividend yield of 3.1%.
