Carabao Public Company Limited is principally engaged as a holding company to invest and hold shares in other companies. Shareholding structure and the investee companies are as follows:
Remark: Information as of 31 December 2016
(1) The remaining 49% equity interest is held by Intercarabao Private Limited ("ICSG"). a non-related party to the Company and subsidiaries
The subsidiaries duly incorporated in Thailand
The group of subsidiaries duly incorporated in Thailand is established to reinforce the “Carabao Dang creating value for life” policy and in doing so engaged in a vertically business operations of manufacturing, marketing, selling and managing distribution of energy drinks and other beverages. Energy drinks are under Carabao Dang trademark. The Group’s business operations can be summarized as follows:
CBD Business of manufacturing, marketing, selling and distributing energy drinks and other beverages
Carabao Tawandang Co., Ltd., or CBD, which is a wholly owned subsidiary of the Group, manufactures, markets, sells and distributes energy drinks under Carabao Dang trademark, electrolyte drinks under Start Plus trademark, 3 in 1 coffee under Carabao 3 in 1 Rich Aroma and Carabao 3 in 1 Espresso trademarks, RTD coffee under Carabao Robusta and Carabao Espresso trademarks, drinking water under Carabao trademark as well as other beverages the Group plans to manufacture and sell in the future. Note that the productions of 3 in 1 coffee, RTD coffee and drinking water are outsourced to the respective 3rd parties (OEM).
CBD manufactures energy drinks in 2 distinct formats including a 150ml bottle format under the Carabao Dang trademark and a can format under Carabao trademark, both 250ml non-carbonated and 325ml carbonated versions. In 2016, CBD managed its installed filling capacities of 1,080 million bottles and 350 million cans. The bottled energy drinks are marketed, sold and distributed locally whereas the majority of energy drinks made available in other countries are customary in can to match market conditions and consumer preference in those countries.
The present filling productions managed under CBD has difficulties in modifying and installing new machines due to limitation of spaces available in the area. Such a physical constraint has caused CBD’s considerations to build a new production site at Bangpakong, Chacheungsao province, comprising two factories that are designed to accommodate up to 10 bottle filling machines and 6 canning filling machines. CBD is expected to lift its capacities to approximately 1,535 million bottles and 800 million cans per year, respectively, upon completion of such expansion projects.
On the other hand, CBD has its installed capacities of approximately 110 million bottles per year for electrolyte drinks under Start Plus trademark. The product is entirely sold in the Thai market.
For distributions of the branded energy drinks and electrolyte drinks in Thailand, CBD first sells to DCM and DCM in turn will manage to distribute the products for sales to certain 1) agents in traditional trade channels 2) retailers directly through its own fleet of cash vans and 3) modern trade. For export sales of energy drinks under Carabao trademark, CBD sells to the importers, agents or local distributors and they will subsequently distribute the products to retailers in their respected countries.
APG Business of manufacturing and procuring glass bottles
Asia Pacific Glass Co., Ltd. or APG, which is a wholly owned subsidiary of the Group, manufactures and procures glass bottles for the manufacturing of energy drinks and other beverages of the Group. APG procures glass bottles from third party suppliers as well as owns an amber glass bottle manufacturing plant with a furnace capable of manufacturing up to 310 tons of molten glass per day. Thus, APG manages its installed capacities of approximately 650 million bottles of energy drinks under Carabao Dang trademark per year.
In order to support demands for the bottled energy drinks that have tendency to grow, both domestically and internationally, APG started to expand its installed capacities of amble glass bottles. The expansion is expected to be commercially operational by early 2018 and allow APG to lift its installed capacities to 620 molten glass per day or approximately equivalent to 1,300 million bottles of energy drinks under Carabao Dang trademark per year.
DCM Business of managing distribution channels
Tawandang DCM Co., Ltd. or DCM, which is a wholly owned subsidiary of the Group, manages product distributions for the Group through various channels in Thailand i.e. traditional trade and modern trade as well as the provincial distribution centers with 337 cash vans and over 500 dedicated headcounts across the country as at year ended 2016. DCM also provides distribution services for the 3rd parties since November 2015. In 2016, there were 13 products DCM distributed for the 3rd parties. Details are set out in the 3rd-party products for distributions section.
ICUK The subsidiaries duly incorporated outside Thailand.
The Company joint venture with Intercarabao Private Limited (“ICSG”), which has no association of any kind with the company and their sub-companies for making investments by holding share in ICUK indirectly through 2 subsidiaries namely CHHK and CVHLUX. ICUK has a strategic business plan along with proficient management team with international experience in the food & beverage industry from leading global companies. ICUK has the objective of taking energy drink under Carabao trademark to overseas market, starting with the United Kingdom, one of the five world’s largest energy drink market.
In the future, ICUK might consider further opportunities to expand the business in to European markets. ICUK will begin its marketing activities with the objective of raising brand awareness and building brand saliency among target consumer. One of the way it has sought to differentiate from others is through the partnership with Chelsea Football club and Carabao Club. At the same time, ICUK are working to increase its distribution channel coverage.
In the end of 2016, ICUK has distributed energy drink under Carabao trademark through over 8,000 stores in London and South East of the United Kingdom and has future plan to increase distribution channel to leading Modern trade in the United Kingdom.