A beer-loving lawmaker once arrested for illegal brewing is hoping that his party’s election win can give him a long-awaited shot at breaking up a US$14bil (RM64.3bil) alcohol duopoly of two of the country’s wealthiest families.
Brewer-turned-politician Taopiphop Limjittrakorn has been fighting to overhaul strict regulations for years, taking on Boon Rawd Brewery and ThaiBev, which have long had a stranglehold on the production of alcohol.
He is a member of the progressive Move Forward party, which is pushing to form the next government after winning the most seats in the May 14 general election.
It reached a deal on Monday with prospective coalition partners that include measures to “abolish monopolies and promote fair competition in all industries, such as alcoholic beverages”.
Although the single-largest party, the prospect of a Move Forward-led government is still uncertain due to a built-in constitutional provision that favours military-linked parties.
“The progressive Alcohol Bill is not only a Bill, it is a political project,” said Taopiphop, 34, who was re-elected in a Bangkok district, in an interview at his bar.
“Now, I’m gathering all the stakeholders in this policy to make it happen as smoothly as I can because I realise that we are not the opposition any more. We are government.”
Boon Rawd, which makes Singha and Leo beers, and ThaiBev, the brewer of Chang beer, did not immediately respond to questions from Reuters.
Boon Rawd, Thailand’s first brewery founded in 1933, is privately owned and controlled by the Bhirombhakdi family, the country’s 15th richest, according to Forbes.
ThaiBev was founded by Charoen Sirivadhanabhakdi, ranked by Forbes as Thailand’s third-richest person with a net worth of US$14bil.
If Move Forward is able to lead the government and open up the alcohol sector, the two companies may see short-term effects on their performance because of new competitors, said Damien Yeo, consumer and retail analyst at research firm BMI.
“Over the long run, both ThaiBev and Boon Rawd have plenty going for them that will help them maintain a healthy lead over any potential new competitors,” Yeo said, pointing to both firms’ better understanding of the market and regulatory issues.
More than half of Thailand’s alcoholic drinks market, valued at about US$14bil in 2020, is beer.
Boon Rawd controls 57.9% share of the beer market and ThaiBev 34.3%, according to a February 2022 report by Krungsri Research. — Reuters
