Fine Wines/Champagne and Spirits in Thailand

PROSPECTS

“Sin tax” hikes negatively affect demand

In 2017, the government introduced a new tax structure for alcoholic drinks and tobacco, officially called the Excise Tax Act BE 2560 (2017). The revision of the tax structure aims to provide efficiency in tax collection by basing calculations on retail price, while the previous system was based on ex-factory or CIF (cost, insurance and freight) prices.

Foodservice threatens retail sales

While demand is projected to grow over the forecast period, consumption may shift towards the on-trade channel, as drinking high-quality, prestigious alcoholic drinks at social gatherings becomes increasingly prevalent among Thai consumers. Younger professionals with high income levels can be expected to upgrade to luxury brands to represent their lifestyle status.

Internet retailing to expand but remain small

Other fine wine and luxury whiskies are expected to remain the main contributors to category value sales in the forecast period. This is underpinned by the wide range, availability and popularity of other fine wine and luxury single malt and blended Scotch whiskies.

COMPETITIVE LANDSCAPE

Pernod Ricard Thailand uses sports and music events in its marketing

Pernod Ricard (Thailand) includes Chivas Regal, Glenlivet, Martell and Ballantine’s in its portfolio. The company aims to differentiate itself with long-standing Corporate Social Responsibility (CSR) campaigns, which are well received by local consumers.

Players launch bartender competitions

Bartender competitions were popular events used by players to promote their products in 2019. Chivas Regal organised “Chivas Masters” in April 2019, seeking talented bartenders to compete and create a one-of-a-kind cocktail drink inspired by the bartender’s own character in order to become Thailand’s representative in the world bartender championship in the UK.

Limited edition with a local twist attracts consumers

Johnnie Walker marked its 94th anniversary celebration in Thailand by launching Johnnie Walker Blue Label Bangkok Limited Edition with a luxurious bottle design featuring an elephant walking through recognisable buildings situated in Bangkok, reflecting the city’s vibrant ambience and rich cultural heritage with its depth of flavour.

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