Time to POP CAP on Thai craft beer industry

Criticism of the law on this issue is spreading fast, as more Thais question whether the brewing industry should be opened to small and medium enterprises.
There is growing scepticism too over whether regulations promulgated in 2000 on brewing beer for sale unfairly favour giant breweries by imposing a barrier of high-capital requirement. To receive a brewing licence, a company must have paid-up capital of at least Bt10 million.
But there is still some room for pubs that brew their own beer, 15 of which are now registered in Thailand, with the stipulation that they produce no less than 100,000 litres and no more than 1 million litres per year.
The brewing question was raised during Prime Minister Prayut Chan-o-cha’s press conference this week, only to be thrown back in the face of reporters.
“That’s out of context: anyone who breaches the law should be punished,” snapped Prayut.
Home-brewing is outlawed in Thailand, which is perhaps surprising given that our consumption of beer is the second-highest in Southeast Asia. The practice is legal in other big-drinking countries, such as the US, Australia and Japan. 
Beer sales in Thailand were worth Bt150 billion last year, up from Bt140 billion in 2015 and in line with a long-term trend. The overwhelming majority of stocks sold are produced by just a few giant breweries.
Author Wanchai Tantiwitthayapitak has questioned why Thailand has only two major beer-makers while other countries are endowed with a slew of brands along with locally made craft beers.
“I have seen that in several nations, making beer is a normal activity, not an illegal one,” Wanchai posted recently.
Given that disparity and the seeming disproportionate protection for industrial brewers, does Premier Prayut have the right to dismiss questions over Thailand’s policy on beer-making?
Like any other business, brewing needs a competitive market with many players. Consumers also need choices that meet different and often localised tastes. 
The Thai law could also blocks the innovation inherent in making craft beer – innovation that has helped the alternative brews gain a large share of the market in the US, contributing to state coffers through taxation.
Many Thai craft-beer brands are forced to produce their brews abroad and then import them into the country, though this means the state benefits via import tariffs.
Craft beer is generally made with organic ingredients – sometimes derived from fruit or natural products native to its production base. Achieving the distinct and subtle flavours is difficult, according to experts.
If supported and promoted by the government in the right way, Thai craft beer has the potential to become a top export. 
Industrial beer makers could also pitch in by supporting brewing start-ups under the government’s Pracha Rath (People’s State) scheme. The industry is fizzing with potential, but only if Thai authorities can remove the legal stopper.