Carabao aiming to raise export value to Bt4 bn within 3 years
CARABAO GROUP targets exports of its eponymous energy-drink products at more than Bt4 billion in three years, or half of its Bt10 billion total sales, by branching out to Europe, the United States and China.
“We have recently set up our own company in Guangzhou in China to be responsible for importing and distributing our Carabao energy drink products over there,” Sathien Setthasit, chairman and chief executive officer, said yesterday.
The group is also expanding to European markets with its carbonated energy drinks, using sports marketing through Reading Football Club, a professional English football club that plays in the Football League Championship.
Under a one-year sponsorship deal, the Carabao logo will appear on the home team’s jersey starting next season.
“We plan to export about 50 containers monthly to England and expect our sales in the market to reach Bt500 million to Bt600 million annually within three years,” Sathien said.
The Carabao carbonated energy drink comes in a 325-millitre can.
The flavour has been adjusted to match the preference of European consumers. It is different from the products sold in Thailand and neighbouring countries.
Via a local distributor in the European markets, the group expects Carabao to be available initially in England and Spain. The products will be distributed through the football club and general retail outlets.
Carabao has the highest market share in Cambodia.
The company believes Carabao has strong potential to grow in the European markets.
The group’s energy-drink sales in Cambodia reached about Bt700 million in the first six months of this year. It also expects sales in Myanmar to climb to between Bt400 million and Bt500 million for the entire year.
“We expect our total exports of Carabao energy drink to reach Bt3 billion by the end of this year, up from Bt2.4 billion posted last year,” Sathien said.
Domestic sales will be relatively flat this year at about Bt5 billion.
Carabao Group will invest Bt500 million to Bt600 million this year to double its Samut Prakan plant’s capacity to 700 million cans of energy drinks per year. The expansion will be operating by the fourth quarter. The output will be only for export.
The overall energy-drink market was stagnant last year at Bt30 billion. Carabao enjoyed 22-23 per cent of the market.
The lack of growth in the domestic energy-drink market had pressured the group to shift its attention to the international markets.
“We have listed on the local stock exchange and we are now ready in both capital and human resources. The company’s ambition is to promote Carabao as a regional beverage brand within three years,” Sathien said.
