Logistics unit set for Carabao Dang
Carabao Tawandang has formed its own logistics company for Bt500 million to handle its Carabao Dang energy drink after its distributor was taken over by Thai Beverage, the brewer of Chang beer.
“Our Carabao Dang business is now going in a new direction after our former distributor Serm Suk, which has been working with us for almost 10 years, entered a major restructuring under Thai Beverage, which may result in a change in its distribution contract with us in the near future,” managing director Sathien Setthasit said yesterday.
Tawandang DCM will give the company a firm logistics base to overcome the intense competition in the local energy drink market and to penetrate promising Asian markets.
The company expects to achieve Bt6 billion in sales this year.
The distribution contract with Serm Suk expires next month.
“We also launched an expansion plan for the next two to three years with the opening of our energy drink facility in Myanmar. The plant will be under a joint venture with a local investor there and will serve the coming Asean Economic Community.
“It will be the manufacturing base for exporting Carabao Dang to other markets in the region, including Bangladesh, China and India,” Sathien said.
Carabao Dang is second in the local Bt20-billion energy-drink market with a share of 20 per cent. Osotspa’s M150 leads with 60 per cent.
Carabao Dang, in both bottles and cans, is shipped to more than 34 countries in Asia, the Middle East and Africa.
The company over the past two years has spent more than Bt400 million to increase its production capacity by 40 per cent from 70 million bottles per month to 100-110 bottles. It plans to extend its production line to make functional drink products in the near future.
