PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

Part 2 Issuing CompanyThai Beverage Public Company Limitedgroup because the Company believes that people within this age range consume more beer and spiritsper capita than other age groups and each more likely to remain loyal to a brand. The Companybelieves that beer and spirits brands have longer product life cycles than brands in many otherconsumer product sectors and the strength of beer and spirits brands tends to last over a long period oftime, especially if the Company is successful in creating the brand loyalty for its customers.Sales and Distribution. The Company believes that its sales and distribution network, as ofJune 30, 2008, which comprised over 2,600 agents, approximately 400 warehouses and a fleet of over4,000 vehicles, is one of the largest networks for consumer products in Thailand. The Company’sdistribution network is integrated for beer, drinking water, soda water and spirits. Through theestablished distribution relationships, the Company sells and distributes its products throughapproximately 400,000 points of sale in Thailand.Distribution. The Company’s distribution network is divided into 8 distribution regions. Asof June 30, 2008, the Company’s distribution network included 93 branch offices. Each branch officeincludes distribution and sales personnel and a branch manager who are responsible for the sales,distribution and marketing within its territory. The sales representatives in the branch offices workclosely with the sales agents and direct sales teams to support product deliveries, coordinate withofficers from the Excise Department, follow-up on orders and manage inventory levels in theterritory. The Company’s branch offices also serve as a payment center for the agents to makepayment for the products they purchase and distribute.The Company typically delivers its products from its production plants to the warehouses bytruck. Sales agents can either arrange their own transportation to pick up products at the warehousesor have the Company delivered products to their locations. As of June 30, 2008, the Company owneda fleet of over 4,000 vehicles. From time to time, typically during the Thai New Year and variousThai festivals, the Company uses the services of contract trucking companies to supplement itstransportation operations.In 2007, the Company’s products were sold through approximately 400,000 outletsthroughout Thailand. The Company sells its beverage products throughout Thailand, directly andindirectly, to:• hotels, restaurants, bars and small and medium-sized retail outlets, for on-premiseconsumption;• general vendors; and• modern trade channels, such as hypermarket and supermarket chains, for off-premiseconsumption.The Company uses three channels of distribution to reach these points of sales which areagents, direct sales and modern trade channels.Agents. The Company has over 2,600 agents to distribute the products throughout Thailand.On average, the Company has a long established relationship with its agents for more than 10 years.The Company determines the optimal number of agents within an area by considering, among otherthings, market demand, number of retail establishments, the capacity of the agents and geographicfeatures.The relationships with customers and the agents have been key factors in the growth of theCompany’s beer and spirits brands. The Company has built strong relationships with its agentsthrough its 93 branch managers and eight regional managers. The Company’s managers motivate theagents by setting sales volume targets with target prices that correspond to the demand in the salesarea that the agent covers and that are aligned with the Company’s profit targets.Part 2 Page 45