PROSPECTUS THAI BEVERAGE PUBLIC COMPANY LIMITED ...

Part 2 Issuing CompanyThai Beverage Public Company LimitedSpiritsThe Company is the main player in the local spirits market. The primary competition of theCompany is from community spirits producers and contraband producers and from imported premiumbrands produced by the international players. Imported spirits are subject to an import tariff of 60% ofthe import price including excise tax, municipal tax, contributions to the Health Promotion Fund andcontribution to Thai PBS. Since the Government ceased granting concessions to produce spirits in1999, any company that meets specific qualifications may receive a license from the Government toproduce and sell spirits. As a result of this liberalization, over 6,000 additional spirits producers haveentered the local market since 1999. In the brown spirits segment, the Company’s brands primarilycompete with 100 Pipers (produced by Pernod Ricard), among others. Although these rival brands aresold nationwide, their small distribution networks and higher prices limit their presence primarily toBangkok and other urban centers.The following table sets forth the sales volumes and market share of local white spirits, localbrown spirits and imported spirits sold in Thailand during the period indicated:(Unit: Million liters except percentagedata)SalesVolumeYear Ended December 31,2003 2004 2005Share %SalesVolumeShare %SalesVolumeShare %Local white spirits:The Company (1) ....................................... 374.8 60.6% 380.5 59.1% 375.1 57.1%Others (2) .................................................... 52.7 8.5% 69.5 10.8% 83.9 12.8%Sub-total ............................................... 427.5 69.1% 450.0 69.9% 459.0 69.9%Local brown spirits, admix whisky:The Company (3) ....................................... 85.2 13.8% 101.9 15.8% 113.9 17.3%Others (4) .................................................... 79.1 12.8% 60.1 9.3% 49.7 7.6%Sub-total ............................................... 164.3 26.5% 162.0 25.2% 163.5 24.9%Blended / standard Scotch whisky (5) ......... 23.8 3.8% 29.2 4.5% 31.4 4.8%Premium imported spirits (6) ...................... 3.2 0.5% 2.7 0.4% 2.6 0.4%Total................................................ 618.7 100.0% 643.9 100.0% 656.6 100.0%____________________Source: Canadean(1) Key products include Ruang Khao, Pai-Thong and various brands of Chinese herb spirits.(2) Key products include community spirits.(3) Key brands include Sangsom, Mekhong, Mungkorn Thong and Crown 99.(4) Key brand includes Master Blend(5) Key brands include 100 Pipers, Johnnie Walker Red Label and Spey Royal.(6) Key brands include Johnnie Walker Black Label and Chivas Regal.Part 2 Page 69