Milking it: ThaiBev pours 18 billion baht into dairy, drinks expansion

ThaiBev Group plans to invest 18 billion baht in 2025, more than doubling its annual investment, focusing on strengthening its non-alcoholic beverage and dairy businesses, including establishing a dairy farm in Malaysia.

ThaiBev Group, led by CEO Thapana Sirivadhanabhakdi, announced a significant investment increase to 18 billion baht for the fiscal year 2025, which spans from October to September 2025. This figure is a substantial rise from the usual annual investment of about 7 billion baht. The primary focus of this increased budget is on expanding the non-alcoholic beverage sector, aiming to solidify the group’s leadership in the ASEAN region’s beverage and food industries.

Following the transfer of all shares in Frasers Property or F&N in Singapore to TCC Assets, ThaiBev plans to integrate F&N’s business operations with its own. This strategic move is expected to enhance the group’s competitive edge in the non-alcoholic beverage and dairy product segments. Previously, these segments contributed 7% of ThaiBev’s total revenue, but the integration is projected to increase this share to 20%.

An 8 billion baht portion of the investment will be allocated to establishing a large dairy farm in Malaysia. This major investment is scheduled for the fiscal year 2025. The remainder of the budget will be directed towards building a dairy and green tea factory in Cambodia, aiming to diversify income streams and expand market reach.

Cambodia beer market

In addition to non-alcoholic beverages, ThaiBev sees significant potential in the beer market in Cambodia, which is one of the fastest-growing and the fourth-largest in ASEAN by sales volume, with an annual consumption of about 10 million hectolitres. The group has started construction of a beer production facility in Cambodia, expected to be completed in early 2026. The initial production capacity is projected to be 50 million litres once operational.

The investment will also extend to the restaurant business and sustainable development initiatives, said Thapana.

“ThaiBev is building on the success of its PASSION 2025 plan by driving sustainable growth towards PASSION 2030. This operational plan aims for continuous growth over the next five years by distributing products with robust capabilities, enhancing delivery efficiency, and competing effectively in both cost and service quality.”

Under the PASSION 2030 plan, ThaiBev will also focus on digital transformation to drive growth. The group aims to expand the use of technology and digital systems, including implementing automated sales systems. This approach is intended to elevate competitiveness, speed, and efficiency in production processes, operations, and distribution, ensuring comprehensive and seamless market coverage.

For the first three quarters of 2024 (October 2023 to June), ThaiBev reported sales revenue of 217,055 million baht, marking a 0.5% increase from the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at 38,595 million baht, a 2.2% growth from the same period last year.

Despite acknowledging the current reduction in consumer spending, ThaiBev remains optimistic about an imminent improvement, driven by government economic stimulus policies, including the 10,000 baht cash measure aimed at boosting economic activity, reported KhaoSod.