The Obstacles Of Low - Alcohol Market In Thailand

by Michael Kotendzhi | Food & Drink

Low-alcohol beers are launching in Thailand and creating a fuss to the local related authorities to revise the taxes collecting across the categories by different ABV levels. The local Finance Ministry, Health Ministry, and Excise Department are proposing to increase taxes on low-alcoholic beer as a middle category between non-alcoholic beverages and alcoholic drinks.

In Thailand, alcoholic beverage taxes are rating at 28% and low-alcoholic beverage taxes are complying with the same category as carbonated beverages at 14%. The level of levies are reviewed under the Thai Public Health Ministry and proposed to create a segregated category specifically for low-alcohol beverages. The ministry is not just looking to raise the taxes on the category but also to establish the regulations on bans and restrictions.

Additionally, the concerns raised in low to no alcoholic drinks such as the marketing, advertising, labeling, and packaging. As the naming may conflict with the current laws in place, the authority is setting out the rules because the non-alcoholic drinks are still brewing by an alcohol company. The confusion may cause misleading and mis-advertising.
The surge in sales of low to no alcohol beverages definitely proves its worthiness to the global consumer market that the Asian beer giants like Asahi and Kirin will soon introduce their lines of low to no alcoholic beverages. 

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.