PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

Part 2 Issuing CompanyThai Beverage Public Company LimitedAttractive growth prospects in existing marketsThe Company believes that its markets for beer and spirits are growing and that the Companyis well-placed to capture this market growth as well as growth in related markets. According toCanadean, the Thai beer market grew at the compounded annual growth rate (CAGR) of 9.3% perannum from 1999 to 2007 in terms of sales volume. The Company expects such market will continuegrowing due to an expanding customer base and an increasing consumption per capita trend. Inaddition, the Thai spirits market is also growing. The sales volumes of its brown spirits have grownrapidly in recent years, which offset the declining demand for lower-priced Chinese herb spirits. TheCompany is well positioned in the spirits market as the Company is one of the leaders in both whiteand brown spirits in terms of sales volume. The Company expects that it will have an increase inmarket share of drinking water and soda water markets. Currently, the actual utilization of itsproduction capacity is lower than that of the designed production capacity.Strong brand recognitionThe Company believes that many of its products are well-known in Thailand, with areputation for quality, taste and “Thai” character. Chang Beer product is one of the highest consumedbeer in Thailand. The Company’s portfolio of popular local spirits, including traditional white spirits,Chinese herb spirits and brown spirits are consumed widely by Thai people. Sangsom is theCompany’s flagship spirits brand and is well recognized in Thailand for its international quality.Mekhong is a traditional rum with a long heritage in Thailand. The Company’s production processesgives its leading brands a unique flavor, which differentiates its products from those of itscompetitors. In addition, the Company continuously increases its brand recognition in Thailand andabroad with strategic marketing investments in various aspects, including a sponsorship of leadingsports teams such as Everton.Extensive distribution network and well-established relationships with distributorsThe Company has more than 900 salespersons, over 4,000 vehicles and approximately 400warehouses, which enable the Company to distribute its products of various brands through anextensive distribution network of approximately 400,000 points throughout Thailand. In addition, theCompany has long-standing relationships with its agents and distributors. The Company believes itsdistribution system is one of the most established and far-reaching networks in Thailand. TheCompany has integrated distribution network for beer and spirits and it sees significant potential tofurther leverage its distribution platform to sell other products, such as non-alcoholic beverages, to themarketplace. Although the Company currently does not distribute a significant quantity of third partyproducts through its network, the Company possesses a capability to do such activity if attractivebusiness prospects arise. In addition, the Company has a team responsible for its premium beveragesin order to establish relationship with various distribution channels, namely hotels, restaurants, barsand foreign liquor stores in order to prepare them for its new products launched in the future,especially the products that are priced higher than those the Company currently sells. Such team willbe responsible for developing relationships with various distribution channels to promote its products.High quality production facilitiesThe Company’s breweries have state-of-the-art production technology in terms of quality,efficiency and environmental management. The Company has expanded the production capacity of itsKamphaengphet brewery, which was completed in 2007. The said brewery is one of the largest andmost modern breweries in Asia. The Company’s breweries aim to produce beer with the highestquality that meets international standards and its facilities are sufficiently flexible to support a varietyof brands with minimal additional investment. In addition, the Company’s distilleries are wellestablishedthroughout Thailand and have a long history of producing high quality spirits. TheCompany’s 18 domestic distilleries were recently refurbished and are operated by an experiencedPart 2 Page 30