Row over beer sparks political debate in Thailand

A POLITICAL row in Thailand is pitting the government against small businesses over a lucrative drink – alcohol. 

The tussle revolves around an opposition-led proposal to liberalise the production and sale of liquor and beer, which is tightly regulated in the country. Supporters of the changes argue that local producers have been dominated for years by a duopoly of large companies.

The government relaxed some entry barriers to the liquor industry this week, though activists say the tweaks are not enough. For fermented beverages, a minimum capital requirement of 10 million baht (S$377,096), and production capacity of at least 100,000 litres per year will be removed, among other changes.

Wichit Saiklao, founder of Chit Brewery, a licensed local producer of craft beers, said the revised rules will have a “positive effect”, but will not ensure broader fairness in the industry.

Thailand, long a tourist haven, has a large liquor market. In 2020, 461 billion baht was spent on alcohol, according to data from Bank of Ayudhya. But estimates show that at least 92 per cent of the country’s beer market that year was controlled by just two companies: Boon Rawd Brewery and Thai Beverage (ThaiBev). It is a similar picture in the spirits market, with ThaiBev dominating the majority of domestic sales.

Political opponents of the military-dominated government led by embattled premier Prayuth Chan-Ocha have seized on the issue ahead of next year’s national elections.

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Paetongtarn Shinawatra, a leader in Thailand’s largest opposition party, Pheu Thai, wrote on Twitter that the government’s new laws continue to block small producers and the “potential of the Thai people”. Posting images of her father, former premier Thaksin Shinawatra – who remains popular among poorer Thais – she said her party would liberalise rules further if elected into power.

A more progressive liquor bill, spearheaded by the opposition Move Forward Party, was shot down by a three-vote margin a day after the government’s revised regulations were announced.

Large beer companies have so far steered clear of the debate.

For now, campaigners are pushing on. “Drink with grudges, but never despair. Next election, elect a confident representative of the people,” Pannika Wanich, a spokesperson for a political group called Progressive Movement, posted on Instagram this week. BLOOMBERG