Prime Minister emphasizes fair opportunities for small-scale and community producers
In a significant step for Thailand’s economy, the House of Representatives has passed a bill aimed at enhancing liquor production by small-scale entrepreneurs. Prime Minister Paetongtarn Shinawatra stated that this legislation would break the stranglehold of the country’s alcoholic beverage oligopoly, providing a boost to the rural economy.
The Community Liquor Bill facilitates licensing for individual entrepreneurs, cooperatives, and farmers’ groups to produce and trade a variety of liquor types. It saw overwhelming support with 415 out of 420 lawmakers voting in favor. The legislation now moves to the Senate for further deliberation.
This new initiative is poised to challenge the longstanding dominance of industry giants Thai Beverage and Boon Rawd Brewery in Thailand’s beer and spirits markets.
Moreover, a streamlined licensing process is expected to benefit restaurants and pubs looking to develop niche alcoholic beverages tailored for the millions of international tourists visiting Thailand each year.
Previous efforts to ease the entry of small producers included the removal of minimum capital and production capacity requirements in 2022.
According to a recent report, domestic alcoholic drink sales in Thailand reached 2.97 billion liters, valued at $16.3 billion in 2023, with beer accounting for approximately 55.8% of the total value and spirits making up 36.1%.
Once approved by parliament, several ministerial regulations will be established before authorities can start issuing permits, as stated by Chanin Rungtanakiat, a member of the governing party and head of the bill’s steering panel.
If the Excise Department and other relevant agencies act swiftly, the bill could be enacted by October, according to Taopiphop Limjittrakorn, a leading opposition member who has been advocating for the disbandment of the liquor monopoly for years.
Although some principles championed by Taopiphop were included in this bill, he remains committed to promoting what he calls the Progressive Liquor Bill.
Reflecting on his past, Taopiphop noted that it has been 2,917 days since his arrest for brewing craft beer at home almost eight years ago. He expressed gratitude for the collaborative efforts with his counterparts to bring the bill to fruition.
Boon Rawd, Thailand’s first brewery established in 1933, is family-owned and recognized as one of the wealthiest in the nation. ThaiBev, another major player in the industry, is led by one of Thailand’s richest individuals, with a substantial market share in both the beer and spirits sectors.
As of February 2022, Boon Rawd held a commanding 57.9% share of the beer market, followed by ThaiBev with 34.3%, according to industry research.
