Small-scale producers and beer producers have praised the cabinet’s decision to approve significant changes to the 2022 supervisory rules governing the production of alcoholic drinks, opening the door to the widespread sale of create beer in kegs.
They think the changes will give businesspeople more opportunities to business liquor, and they’ll also give beer consumers more choices.
The Excise Department under the Ministry of Finance proposed a document minister rules on drinking tea production on May 13 that the cabinet approved in process.
The change aims to update the output criteria and requirements, thereby lowering access barriers for new producers, especially those who make ale or spirits on small-scale and in the local communities.
The action is in line with the government’s plan to boost local producers ‘ profitability, increase group income, and encourage the use of private agricultural products.
Important changes to the rules include streamlining procedures for operators to create medium-sized wine businesses, simplifying the licence process for medium-sized producers, and implementing solutions for legalizing community distilleries in rural areas.
One of the most significant shifts allows art beer producers and breweries to spread their products statewide in bottles with designs and sizes in accordance with Excise Department regulations. It was a previously unobtainable choice that was a major impediment to smaller brewers looking to expand their operations.
These on-site brewery production facilities may be referred to as “fresh beverage breweries” under the new law.
The regulation is anticipated to boost regional suppliers ‘ innovation and development while also supporting commerce and cultural imports tied to distinctive regional products.
By providing wastewater treatment systems that adhere to environmental protection standards, the revised rules will also help the establishment of small and medium-sized distilleries closer to 100 meters from a common water source.
Finally, entrepreneurs don’t need to run a small-scale manufacturing site for a year in advance to create a medium-sized manufacturing site.
Benefit the local economy
Prapawee Hemathas, a partner in United People’s Brewery and the owner of Group B Beer, a reseller of craft beer, welcomed the alterations, claiming producers and sellers have long demanded that some restrictions been lifted, especially one that only applies to the premises of breweries.
She stated that the rules will help the local craft beer sector because more and more people will be able to purchase premium art beer products, and it will also allow for new high-calibre entrepreneurs to enter the market.
She also shrugged off concerns from anti-alcohol networks, who claim the regulation will encourage more beer consumption.
She said that those who don’t drink alcohol still, by nature, refrain from alcoholic beverages.
She claimed, however, that the new law may lower craft beer prices.
” The prices may decrease a little, but not too much. Taxes that are imposed on brewers account for the majority of the production cost. Often, craft beer production must be outsourced to abroad, forcing brewers to pay taxes throughout the entire production process, according to Ms. Prapawee.
According to her,” While local brewers will be able to produce their own beer under the new rule, prices will not decrease significantly.”
The new rule will continue to encourage more brewer competition, and consumers will have more affordable and competitive options for beer.
Other production costs, she said, will be taken into account for the import of labor, packaging, and other materials for beer production.
Small-scale brewers are inconvenient compared to larger-scale producers. She said that the alcohol tax calculation is based on the price and alcohol content.
Small-scale craft beer brewers, which have a number of retail locations, are required to pay five times as much in taxes, according to her.” Large-scale manufacturers can sell large quantities in convenience stores at lower retail prices so their calculated taxes are lower.
The excise tax on alcoholic beverages in Thailand, including beer, spirits, and wine, combines ad valorem ( based on value ) and specific ( based on volume ) taxes.
The prices vary depending on the amount of alcohol consumed, the alcohol content, and whether it is imported or produced domestically.
Additionally, Ms. Prapawee noted that because of their unique clientèle, craft beer producers are unlikely to be able to compete with large-scale producers of beer.
” Craft beer brewers produce high-quality products, which cost more to produce. She said that consumers of craft beer are typically premium customers who also consume wine and spirits and make more money than regular beer consumers.
She added that there are currently about 30 small-scale brewers registered and that the majority of them are ready to sell their goods once the new law becomes effective.
The key is for them to establish a brand and gain trust from consumers, she said, adding that the well-known brewers will have a competitive advantage because they are already well-known.
” In a free market, competition will ultimately determine everything. She said that the competitiveness will depend in large part on the quality of the products, reasonable prices, and marketing strategies.
” Craft beer brewers still have a lot to learn. Before distributing products, they will have to find customers away from their breweries.
She also demanded that other restrictions be lifted, such as the alcohol advertising ban and the alcohol sale time rule.
opportunities for trade
Owner of a nearby distillery Taweechai Thongrod agreed with the opinion that the new regulation will give customers more options for alcoholic beverages and give local entrepreneurs more business opportunities.
According to Mr. Taweechai, the current requirement for a minimum investment of 10 million baht is also eliminated under the new rule.
You can now sell 500 liters of draft beer for sale if you have 1 million baht to invest in building a brewery. This was merely an unfulfilled dream in the past.
He added, however, that it is unlikely that the new rule will help to lessen the dominance of large-scale manufacturers.
It’s difficult to say whether this will end monopoly. However, he said,” We can say that more money will be expected to be generated and distributed in local communities,” while expressing support for efforts to ban alcohol sale advertisements.
One license fits all, exactly.
However, the measure was met with mixed reviews from Taopiphop Limjittrakorn, a People’s Party MP from Bangkok, who described it as a minor and protracted step in the wider effort to liberalize the local alcohol industry.
He claimed that” this new move feels like offering mere crumbs” given that the new Liquor Act has already been passed in January.
He claimed that the updated Liquor Act’s broader intent, which opened up the industry and supported small producers, is in conflict with the new regulation.
He noted that one problem is that producers are still restricted to kegs and are not permitted to bottle their goods under the new regulations.
He suggested that the government issue” a single license” that permits the production of all different alcoholic beverages, including beer and spirits.
Beer’s production process is comparable to that of alcohol, according to the article. Why wouldn’t it be possible to produce all different alcoholic beverages in a single factory? He continued,” Both beer and liquor taxes can be paid separately,” adding that the regulation should also permit craft beer brewers to bottle their own products.
He added that the Excise Department should be solely tasked with issuing permits for the production of spirits and collecting taxes.
He claimed that the department should not set the legal limit on how much alcohol should be produced. The department should only concentrate on quickly issuing licenses so that it can collect taxes. That ought to be its main function.
There are other laws that regulate them, according to Mr. Taopiphop, as well as the potential health and environmental issues and the size of the breweries.
He downplayed the possibility that the new rule might encourage breweries to expand, creating more social issues for the nation.
He claimed that there are still a few small-scale breweries and that it is the government’s responsibility to take steps to regulate them.
He acknowledged, however, that the new rule would have more economic benefits, arguing that craft beers cost more than regular beers. ” When the production of craft beer is simpler, more employment will come along. He predicted that “new entrepreneurs will emerge”.