PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

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Part 2 Issuing CompanyThai Beverage Public Company LimitedIn March 2006, the Company launched Chang Light, a 4.2% alcoholcontent beer formulated to capture the growth in the lower alcoholbeer segment. The Company distributes Chang Light in green bottles,which is a characteristic of premium beer. The suggested retail priceis Baht 39-40 per 640 milliliter bottle. The Company distributes andsells Chang Light through its distribution network, primarily in urbanareas. In 2007 and the six-month period ended June 30, 2008, ChangLight accounted for 0.3% and 0.3% of the Company’s total beersegment sales volume respectively.In April 2008, the Company launched Federbräu which is a premiumbeer with 4.7% alcohol content and its target group is high purchasingpower consumers. Federbräu has been guaranteed by two reputablebrewery institutions, TUM-Forschungszentrum Weihenstephan andTechnical University Berlin, VLB, that its brewery process is inaccordance with German Purity Laws “Brewed According to GermanPurity Law 1516”. The suggested retail price is Baht 59-62 per 640milliliter.The following table sets forth the Company’s sales volumes of Chang Beer, Archa Beer,Chang Beer Export, Chang Draught, Chang Light and Federbräu for the periods indicated:Unit: Million litersSix-Month PeriodYear Ended December 31, Ended June 30,2005 2006 2007 2008Chang Beer............... 806.9 814.4 637.1 315.9Archa Beer ............... 4.4 85.0 295.7 102.2Chang Beer Export... 5.9 6.8 7.0 6.1Chang Draught ......... 7.0 14.1 13.5 5.5Chang Light.............. - 2.8 3.3 1.2Federbräu………….. - - - 0.1Total ....................... 824.2 923.0 956.8 431.1Beer Packaging. The Company sells the majority of its beer in 640 milliliter glass bottles dueto the consumer preference in Thailand for large bottles, as they are perceived as the best value formoney and are most suitable for consumption at home. Smaller bottles of 330 milliliter are popular inon-premise establishments, especially among urban consumers. Cans are particularly popular withsupermarket vendors, primarily because cans require less shelf space than an equal volume of bottles.The Company analyzes sales data on a regular basis in an effort to develop a mix of productpresentations that best satisfies its consumers.Part 2 Page 37
Part 2 Issuing CompanyThai Beverage Public Company LimitedThe following table sets forth the sales volume for each type of packaging for the Company’sbeer products for the periods indicated:SpiritsUnit: Percentage of sales volumeYear Ended December 31, Six-Month PeriodEnded June 30,2005 2006 2007 2008640 ml glass bottles.... 82.9 83.3 83.3 80.6330 ml glass bottles.... 0.8 0.8 0.8 1.1330 ml cans ................ 15.4 15.0 15.1 17.5Kegs (draught beer).... 0.8 0.9 0.8 0.8Total 100.0 100.0 100.0 100.0The Company believes that it is one of the leading spirits producers in Thailand. TheCompany produces, distributes and sells white spirits, Chinese herb spirits, fermented spirits andbrown spirits (rum and whisky) in Thailand and also exports its spirits to more than 20 countries.Most of the Company’s brown spirits are technically a type of rum because they are made frommolasses, but Thai consumers often associate rum with whisky and vice versa. In 2007 and the sixmonthsperiod ended June 30, 2008, the Company’s revenue from sales from spirits was Baht52,940.2 million and Baht 28,718.5 million, representing 52.7% and 56.2% of the Company’s revenuefrom sales, respectively. During 2007 and the six- months period ended June 30, 2008, the Companysold spirits of approximately 446.4 million liters and 212.2 million liters, respectively. During the saidperiod, the Company’s spirits sales volume outside Thailand represented less than 6.3% and 5.3% ofthe Company’s revenue from sales, respectively. The Company distributes and sells its spiritsthrough its distribution network, which utilizes its distribution agents, direct sales and modern tradechannels to reach the customers.White Spirits, Chinese Herb Spirits and Fermented Spirits. The Company major productsconsist predominantly of white spirits and Chinese herb spirits (Compounded spirits). Moreover, theCompany also produces fermented spirits. In 2007 and the six-month period ended June 30, 2008, theCompany’s revenue from sales of white spirits, Chinese herb spirits and fermented spirits was Baht27,769.5 million and Baht 14,739.7 million, representing 52.5% and 51.4% of the Company’s totalrevenue from sales of spirits products respectively. During the said period, the Company soldapproximately 329.5 million liters and 150.4 million liters respectively, of white spirits, Chinese herbspirits and fermented spirits. The Company produces six main brands of white spirits, three mainbrands of Chinese herb spirits and one main brand of fermented spirits. White spirits, Chinese herbspirits and fermented spirits are low-priced economy segment spirits. The consumer base for the whitespirits, Chinese herb spirits and fermented spirits is predominantly people living in rural areas. Thewhite spirits are distilled liquors without any mixture or color, which the Company produces in fourdifferent degrees of alcohol: 28, 30, 35 and 40 degrees. The Chinese herb spirits are distilled liquorsmade from blended ethyl alcohol (or white spirits), Chinese herbs, sugar and caramel, which theCompany produces in three different degrees of alcohol: 28, 30 and 35 degrees. The Company’sShinobu sake is a local fermented spirits with a lower alcohol level than white spirits. The Companysuggested retail price for a 625 milliliter bottle of its white spirits and Chinese herb spirits is rangingfrom Baht 50 to Baht 80, depending on the degree of alcohol.Ruang Khao white spirits had a market share of approximately51.3 of the total spirits sold in Thailand in 2005, based on salesvolume, and accounted for 66.0% and 62.2% of the Company’sspirits sales volume in 2007 and the six-month period ended June30, 2008 respectively.Part 2 Page 38
Page 1 and 2: (Translation)PROSPECTUSTHAI BEVERAG
Page 3 and 4: Thai Beverage Public Company Limite
Page 5 and 6: Part 1 Executive SummaryThai Bevera
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