Thai Beverage / F&N

Thai Beverage / F&N: SCB visited Myanmar and met the management of F&N, who controls Myanmar Brewery. House note that the country’s extended isolation has led to a shortage of basic consumer items and a thirst for beer. Going forward, think Thai Bev is likely to acquire F&N’s F&B business in a restructuring. Assuming the restructuring, estimate Myanmar could represent 47% of Thai Bev’s beer vol growth in 2013-17. Myanmar brewery currently has 83% of market share in Myanmar’s beer industry. Previously Heineken was barred from investing in Myanmar due to the EU sanctions. Myanmar Brewery was therefore lodged in F&N’s F&B business. Overall, note that Myanmar is at a nascent stage as a consumer play and Thai Bev stands out among Myanmar consumer opportunities. In 2013-17, estimate about 15% of Thai Bev‟s beer revenue growth could be driven by Myanmar.