Presented by Kwang - Brewers Association · PDF fileMarket Size = 970,600 hectolitres Microbreweries = 10,000 hectolitres Key Players – Asia Pacific Breweries Ltd (Tiger Beer, Hi

Presented by Winston Kwang

© 2008 – 2009 BeerStyle Distribution. All rights reserved.

BeerStyle Distribution4, Jalan SembilangSingapore 576864

[email protected]

O f A i f bOur focus on American craft beersCurrently imports and distributes Flying Dog beersbeersStrategic partner with Beerfest Asia Pte Ltd to promote craft beers in Singaporeto promote craft beers in SingaporeExport partners in Philippines and Australia are Global Beer Exchange Inc. and Innspireg pPty Ltd respectivelySub‐Distributor is PT Surya Ceria Perdana for dIndonesia


ASEAN nationsASEAN nations‐ Singapore‐ Malaysiay‐ Thailand‐ PhilippinesIndonesia‐ Indonesia

‐ Brunei‐ Vietnam‐ Cambodia‐ MyanmarLaos‐ Laos


Singapore IndonesiaSingapore Indonesia

Population 4.9 million (Aug 09’ est.) 240.2 million (Jul 09’ est.)

Religion Buddhist 42.5%, Muslim % T i t 8 % Hi d

Muslim 86.1%, P t t t % 14.9%, Taoist 8.5%, Hindu

4%, Catholic 4.8%, other Christian 9.8%

Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%

GDP per capita (ppp) US$ 51 500 US$ 3 900GDP per capita (ppp) US$ 51,500 US$ 3,900

Top 3 Export nations(2008)

Malaysia 12.1%, Indonesia 10.5%, Hong Kong 10.3%

Japan 20.2%, US 9.5%, Singapore 9.4%

Top 3 Import nations Malaysia 11 9% US 11 8% Singapore 16 9% Top 3 Import nations(2008)

Malaysia 11.9%, US 11.8%, China 10.5%

Singapore 16.9%, China 11.8%, Japan 11.7%

Economic strengths Trading Hub, machinery and equipment , consumer

Oil and gas, electrical appliances, plywood, textiles and equipment , consumer

goods, pharmaceuticals and oil refining

appliances, plywood, textiles and rubber


Market Size = 970,600 hectolitresMicrobreweries = 10,000 hectolitres

lKey Players –Asia Pacific Breweries Ltd(Ti B H i k A h B ’ St B ABC E t St t)(Tiger Beer, Heineken, Anchor, Baron’s Strong Brew, ABC Extra Stout),Also imports Erdinger and Sol. Guinness Stout brewed under license

Carlsberg Singapore Pte Ltdg g p( Imports Carlsberg Green label, Carlsberg Gold, Carlsberg Special Brew, Kronenboug 1664 /Blanc , Tetleys and Corona Extra)

Pacific Beverages Pte LtdPacific Beverages Pte Ltd(Imports Stella Artoi, Hoegaaden White, Leffe Blonde and San Miguel beer



S k t / H k t & Supermarkets / Hypermarkets & Convenience StoresMajor beer brands & some gourmet beers. For Belgian & German specialty beers Hoegaaden / Duvel / Chimay and Paulaner / Erdinger / Warsteiner / Konigbeers, Hoegaaden / Duvel / Chimay and Paulaner / Erdinger / Warsteiner / KonigLudwig are some brands that are available. Coffee Shops / Food CentersTiger beer, Heineken & Carlsberg. In the minority are Singha, Chang, Becks & T iTsingtaoPubs / Bars / Nightspots / RestaurantsTiger/Heineken & Carlsberg. In the minority are Erdinger, Stella Artois, Hoegaarden, Singha , Victoria Bitter and Fosters. Brussels Sprouts & Oostersg , g , pserves specialty Belgian beers while Brotzeit & Brauhaus serves specialty German beers.HotelsTiger/Heineken & Carlsberg Some gourmet beers (bottle form)Tiger/Heineken & Carlsberg. Some gourmet beers (bottle form)


C d A l G th R t (CAGR) f Compound Annual Growth Rate (CAGR) from 2004 to 2008 is 3.7%. Total revenue for 2008 is US$ 602 4 million US$ 602.4 million. Increased sophistication & education among locals lead to them being more exploratory in the alcoholic drinks they consume.Positive performance expected for beers with the upcoming opening of two Integrated Resortsthe upcoming opening of two Integrated ResortsDomestic beer volume to increase about 10% by 2013.2013.


M k Si 6 6 8 h liMarket Size = 1,636,800 hectolitresKey Players –

Multi Bintang Indonesia Tbk PTMulti Bintang Indonesia Tbk PTBintang Pilsener & Heineken. Guinness Stout brewed under licenseMarket share of 70% .

Delta Djakarta Tbk PTAnker beer, Anker Stout, San Miguel beer & Kuda Putih.Carlsberg Green label brewed under license. Bali Hai brewed by affiliate.

Market is dominated by above two companies. They are largely untouchable and also benefit from strong distribution networks across untouchable, and also benefit from strong distribution networks across

the country.


Supermarkets / Hypermarkets & Mini‐martsIn 2008, these were more popular channels for distributing alcoholic drinks. Local beers with alcohol content of 5% or less. Only imported beer is Corona.5 y p

Pubs / Bars / NightspotsBintang pils Heineken Anker pils Carlsberg San Miguel & Bali Hai Main Bintang pils, Heineken, Anker pils, Carlsberg, San Miguel & Bali Hai. Main imported beer is Corona. Weihenstephan, Erdinger, Leffe Blond, Hoegaarden White and Chimay available in very small quantities in some establishments.

Hotels / RestaurantsSame as above.Same as above.


d l h fCompound Annual Growth Rate (CAGR) from 2002 to 2007 is 6.9%B l l t l d d t k Beer volume sales to slow down due to weaker purchasing power and high dutiesOpportunities for imported beer limited but exist Opportunities for imported beer limited but exist in the food service sector and duty free storesBeers are projected to head towards product Beers are projected to head towards product premiumisation, imports includedLocal manufacturers to focus on off‐trade salesLocal manufacturers to focus on off trade sales


SINGAPORE

Excise Duty is calculated as S$ 8 lit f l h l

INDONESIA

Value added tax of 10%S$48 per litre of alcoholValue added tax of 7%Example( 355ml bottle of beer @ 5 5% abv)

Tax Income of 1.5%Import duty of 40%Luxury tax of 40% for up to 5% beer @ 5.5% abv)

= 0.355 x 5.5% x 48 = S$0.94

Off‐premise pricing

Luxury tax of 40% for up to 5% abv, 150% for abv>5%Sarina PT importer fee of 45 000 IDR or $4 50 a casep p g

S$3.65 x 1.07 x 1.15 = s$4.50

On‐premise pricing

45,000 IDR or $4.50 a caseBeer excise rate

1% abv – 5%abv = IDR 2,500S$ 3.40 x 1.07 x 3.5 = S$12 – S$13 5.1% abv – 15%abv = IDR 10,000


fThe sole importer responsible for handling imported alcoholic drinks is the state agency

ll d hcalled Sarinah PT. Current import duties for alcohol can be as high

f l d has 150% (of cost). Including other taxes, importer could be taxed up to 300%.


Supermarkets (US$)

Pubs / cafes (US$)(US$) (US$)

Bintang Beer 1.12 3.25Carlsberg 1 52 3 75Carlsberg 1.52 3.75Corona 3.55 5.58Fl i D / N t li bl 8Flying Dog / Hoegaarden

Not applicable 8.10

Supermarkets (US$)

Pubs / cafes (US$)

Tiger 2.13 7.00Carlsberg 2.34 7.00Hoegaarden 3.20 8.50Erdinger 3.26 8.50Duvel 5.67 11.35Flying Dog 3.20 8.50

Singapore Indonesia

Sh lf Lif P f bl th P f bl thShelf Life Preferably 12 monthsBorn on dates are fine also

Preferably 15 monthsBorn on dates are fine also

Country of origin Required for off‐premise Not necessary

d l d d f ff d f ffABV displayed Required for off‐premise Required for off‐premise

Medical certificate No Yes


S lSalesRestaurants & wholesalers –Andy LeePubs /Bars, Clubs & Supermarkets –Winston Kwang

AdministrationAccounts , Invoicing & Order taking –Catherine Tan

Warehouse3rd party warehouse (operated by Ben Foods), our craft beers are put in cold storage of 15 degree celsius (57.2 degree Fahrenheit)g 5 g (57 g )

LogisticsHome Delivery –Winston KwangAll other Deliveries –Outsourced to Ben Foods


Marketing ActivitiesActivities

Juice Magazine Full Juice Magazine Full page advertisement in July issue 2008

Flying Dog Party @Forbidden City in July 2008 with Indochine Group

FHM Magazine review of Flying Dog beers in August 2008(see right)


Marketing Activities

P i i d i

Activities

Participated in Singapore Beer Festival 2008 in September 08’.Time Out magazine Time Out magazine rated In‐Heat Wheat Hefeweizen as top 10 beers at the festival beers at the festival



In October 2008 we

Activities

In October 2008, we penetrated into Carrefour supermarkets / hypermarkets, the world’s 2nd largest retail store .g

Obtained listing for Flying Dog Snake Dog IPA, Gonzo Imperial Porter, Doggie Style

l l d hpale ale and In‐Heat Wheat Hefeweizen

In November, we took out a full page advertisement in full page advertisement in local newspaper “TODAY” to promote Flying Dog beers in Carrefour Hypermarts(see right)(see right)


Marketing ActivitiesActivities

In November 2008, we made an official launch of Flying Dog y g gbeers at Carrefour Suntec City



In November 2008

Activities

In November 2008, we celebrated with Time Out magazine at Butter Factoryat Butter Factory



In April 2009 Flying Dog

Activities

In April 2009, Flying Dog & Stone beers appeared in the Singapore Business Times / 8 Days Business Times / 8 Days magazine



We participated in

Activities

We participated in Beerfest Asia 2009 (29 April – 02 May).All American beers All American beers that we showcased during the fest were completely sold out.p y



Flying Dog beers

Activities

Flying Dog beers appear in Wine & Dine magazine in August 20092009.



Together with

Activities

Together with Carrefour, we participated in Asian Food Delights Fair Food Delights Fair 2009 in late August.


Milestones

Flying Dog listing in

Milestones

Flying Dog listing in Carrefour, the only USA craft beer present in any major present in any major supermarket in Singapore. One year on, sales have hit 158 , 5cases .


PUBS / BARS RESTAURANTS


RegionalMilestonesMilestones

Appointment of subAppointment of sub‐distributor PT Surya Ceria Perdana in Jakarta Indonesia Jakarta, Indonesia. They plan to expand Flying Dog beers into Bali in 2010.

Beerstyle Distribution to look into probability of penetrating into Vietnam & Thailand in 2010.


For the period June to August 2009, local sales have increased 125.15% compared to h d lthe same period last yearBeerstyle Distribution intends to have 3

h b d d f h fanchor brands and a variety of other craft beers (about 6 brands) in much smaller quantitiesAll brands in our portfolio must be American

f bcraft beers


fWe are passionate about craft beersAbility to bring a brand immediately to the

kmarket (Singapore)Despite no A&P funding, we are still able to

lpenetrate several on‐premise accountsFocus on brand awareness, avoid niche areas

l d l b ldOnly Singapore importer to deliver beers cold to retailers and consumers

BEERSTYLE Distribution


Documents

Presented by Kwang - Brewers Association · PDF fileMarket Size = 970,600 hectolitres Microbreweries = 10,000 hectolitres Key Players – Asia Pacific Breweries Ltd (Tiger Beer, Hi