Danish brewer Carlsberg AS (CABGY.PK) on Friday said it has entered into a strategic partnership agreement with Thailand-based brewer Singha Corp. to form a joint venture.
As per the agreement, the joint venture will oversee the marketing, sales and distribution of Carlsberg's international beer brands in Thailand, while Singha's brands will be launched in selected markets outside of Thailand through Carlsberg's international network.
Singha, which was formerly known as Boon Rawd Brewery Co., Ltd., produces and markets beer and beverages in Thailand. It is the owner of the best-selling Thai beer brand, Leo Beer, as well as the very popular Singha Beer brand. Singha exports its Singha beer to nearly 50 countries worldwide. The company also markets soda and drinking water, ready to drink green tea, and various energy drinks, as well as offers fish snacks.
Copenhagen-based Carlsberg noted that combining its international premium brands with Singha's very strong local portfolio of brands enables the latter to further strengthen its number one position in that market.
Roy Bagattini, senior vice president Carlsberg, Asia said, "The Thai beer market represents a great opportunity for Carlsberg and we are excited to be partnering with such a strong and dedicated team and one of the most successful beer companies in Asia."
Santi Bhirombhakdi, CEO of Singha, added, "Teaming up with Carlsberg... will not only allow Singha to strengthen its premium portfolio in Thailand, but also expand the global presence of Singha beer outside Thailand. We are looking forward to growing our businesses together and exploiting the potential that this exciting partnership will deliver."
Singha noted that its strategic partnership with Carlsberg has potential to open doors to new markets, particularly in Europe where there are plenty of untapped potential. The company also expects that there is significant growth potential for both parties in the future under the umbrella of this partnership.
Carlsberg, which is aiming for expansion to boost business, in August increased its ownership of Baltika Breweries in Russia by 12.05% to 96.77% through a voluntary offer.
In Denmark, Carlsberg shares are currently trading at 518 Danish kronor, down 3 kronor or 0.58 percent.
