PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

Part 2 Issuing CompanyThai Beverage Public Company Limitedapproximately 780,000 tons. The Company believes that the increase of its molasses storage capacityallows it greater flexibility in its purchasing and helps to mitigate price volatility.Rice. The Company uses rice in both the production of beer and spirits. The Companypurchases its rice requirements in Thailand from qualified suppliers. In 2005, the Company purchasedapproximately 58,020.0 tons of rice for its beer production from two suppliers and approximately1,347.0 tons of rice for its spirits production from two suppliers. In 2006, the Company purchasedapproximately 61,460.6 tons of rice for its beer production from two suppliers and approximately405.9 tons of rice for its spirits production from two suppliers. In 2007, the Company purchasedapproximately 62,610.6 tons of rice for its beer production from two suppliers and approximately418.3 tons of rice for its spirits production from two suppliers.Yeast. The Company cultivates its own yeast supply at its yeast culture center and maintainsadditional supplies at its breweries and distilleries.Concentrate. The Company add concentrate formula produced from Thai herbs to its ChangBeer and Archa Beer. The Company produces beer concentrate in an amount that is sufficient for itsannual production.Water. Water is an important input in the production, although it represents a small portion ofthe Company’s raw material costs. Water must be treated both before its use in the production processand before disposal. The Company obtains the water supply from several sources, such as deep wellslocated in its breweries and distilleries, rivers adjoining the Company’s plants, lakes and reservoirsand public utility companies. The Company monitors the quality, taste and composition of the water ituses, and treats it to remove impurities and to comply with its own quality standards and applicableregulations. Advances in technology have reduced its water consumption per liter produced. All of theCompany’s facilities have water treatment facilities and a conservation/productivity program. Thewater collection in the Company’s production facilities complies with the prevailing local laws for themanagement of hydro resources. In 2007, the Company used approximately 14,142.6 million liters ofwater at its breweries and distilleries, 32.7% of which the Company sourced from deep wells and67.3% of which the Company sourced from rivers, lakes and reservoirs. In 2007, the Company usedapproximately 6,196.3 million liters of water at its breweries to produce 1,055.6 million liters of beer,12.0 million liters of soda water and 50.4 million liters of drinking water, and approximately 7,946.3million liters of water at its distilleries to produce 407.2 million liters of spirits.In September 2004, the Government announced that in addition to the standard prices fordeep well water, in various provinces, including Ayudhya, Nakornpathom, Samutakorn andPathumthani where Cosmos and Bang Ban breweries and Sangsom, Red Bull, Sura Bangyikhan andUnited Products’ distilleries are located, it would impose a conservation fee of Baht 8.5 per cubicmeter. In 2006 and 2007, the Company paid water conservation fees in the amount of Baht 31.3million and Baht 26.3 million respectively. Further price increases of deep well water or restrictionson the use of deep well water may cause the Company to consider alternative sources of water toproduce its beer, spirits, water and soda water, such as the use of river water. This alternative sourceof water would require substantial investment and time necessary to implement and install additionalwater treatment facilities, but would give the Company the ability to use additional water sources forbeer, spirits, water and soda water production and allow the Company to choose the proper types ofwater for different operations.Fuel oil. The Company uses fuel oil as a fuel source for its boilers at its breweries anddistilleries. The Company purchases fuel oil on a spot basis. In 2007, the Company purchasedapproximately 72.5 million liters of fuel oil for its breweries and distilleries.Packaging MaterialsPart 2 Page 57