Bangkok trip to study Thai Beverage

It was a very fruitful trip to bangkok as along the way, i did some market research on Thai Beverage.

The Chang brand in Thailand symbolizes their local brand just like Tiger Beer which signifies Tiger Beer in Singapore.

Apart from operating their beer business, they also own 89.259% of Oishi Group.

Oishi group operates a wide variety of beverages from green tea, black tea and coffee.

Source: http://www.oishigroup.com/en_brand_beverage.php

Its beverage business resembles Pokka.

Oishi group operates about 6 types of different Japanese restaurants in Thailand.

Source: http://www.oishigroup.com/en_brand_restaurant.php

Oishi group distributes food to convenience stalls in Thailand

Source: http://www.oishigroup.com/en_brand_food.php

Oishi group also operates catering and food delivery services in Thailand.

Source: http://www.oishigroup.com/brand_delivery.php

Thai Beverage owns 64.66% of Serm Suk Public Company which manufactures and distributes beverages throughout Thailand.

"Our strong point is our distribution system," said Parinya Permpanich, marketing/sales operation director, adding that Serm Suk has five bottling plants and 48 branch offices throughout the Kingdom. The company has 1,200 sales trucks, 150,000 coolers and more than 200,000 retail outlets and eateries that are ready to support the est product line, Parinya said.

Source: http://www.nationmultimedia.com/business/Serm-Suk-seeks-No-1-spot-for-est-cola-in-3-years-30193574.html

Thai Beverage is able to utilise the wide distribution capabilities of SermSuk. Oishi Group on the other hand is able to enjoy cost efficiency by carrying Chang, est Cola beverages in its restaurants, and also widening Thai Beverage distribution network.

Thai people will continue to consume products by these companies. Thai Beverage is trying to maintain the monopoly and, recently it purchased F&N stakes in an attempt to expand the Chang beer business within Singapore and other parts of Asia.

The upward growth potential of the company is limitless. However, the current debt to equity ratio may be a worry after the acquisition of 29% F&N.

The combination of Thaibeverage, Oishi Group and Serm Suk is perfect. This is the perfect stock to invest in.

But it is not a good time to go in now because they recently took a loan from a Singapore bank.