According to Nikkei Asia, Thai Beverage (ThaiBev) is diversifying into the dairy and non-alcoholic beverage sectors, targeting the halal market in Malaysia and Indonesia amid declining beer and spirits sales.

Photo: Chang beer – ThaiBev’s flagship product (Source: Ken Kobayashi)

Financial reports show that the company’s beer revenue fell by 2.5% and spirits revenue dropped 1.8% in the fiscal year ending September 2025, while net profit decreased by 6.8%. The decline is primarily attributed to slower economic growth, a slow recovery in tourism after the pandemic, and changing alcohol consumption habits, especially among younger consumers. In addition, new regulations in Thailand, such as the revised Alcohol Control Act—which took effect on November 8, 2025, imposing tightening rules on the sale and consumption of alcohol—have added pressure on the company.

In response, ThaiBev is shifting investment toward non-alcoholic products. Of its 9-billion-baht budget for the new fiscal year, 4 billion baht is allocated to non-alcoholic beverages and 1 billion baht to the food and restaurant segment, while the remaining 4 billion baht continues to support beer and spirits. A key part of the strategy is expanding the production of halal-certified dairy products through its subsidiary Fraser & Neave (F&N), which owns a large cattle farm in Gemas, Malaysia. ThaiBev aims to serve the demand for halal food and beverages in Malaysia and Indonesia, as well as the broader Muslim consumer market in ASEAN and globally. At the same time, ThaiBev introduces low-alcohol and low-calorie products, such as Zato, to attract younger consumers. While the outlook for the beer and spirits market remains limited, the dairy and health-focused beverage sectors are considered a promising growth avenue for the group./.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam