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:
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 Manufacturing, Marketing, Selling and Distributing of Energy Drinks and Electrolyzed Drink under Own Trademark
Carabao Tawandang Co., Ltd (CBD) is a wholly owned subsidiary that manufactures, markets, sells and distributes energy drinks under Carabao Dang trademark, electrolyzed drink under Start Plus trademark and other drinks that the Group may decide to produce and distribute in the future.
CBD produces 2 types of energy drink including bottled drink under trademark “Carabao Dang” volume 150 ml and non-carbonated can 250 ml and carbonated can 325 ml under trademark “Carabao”. Presently, the marketing activities, sales and distribution of bottled energy drinks are limited within Thailand, can canned drinks are mainly promoted in overseas markets to conform to market conditions and consumers’ behavior in each country.
The Group build factories and install new production lines following expansion of vertically integrated production capacity to support demand of energy drink in domestic and overseas markets. The expansion has been gradually implemented to commercial production process since Q2/2017. Upon completion in Q1/2018, the Group will have installed capacities at approximately 1,400 million cans and 1,800 million bottles per year under operation of CBD. Mainly, canning line and bottling line are relocated to the new production center located at Bang Pakong district, Chachoengsao province. In addition, CBD has installed capacities for bottled electrolyzed drink 250 ml. at approximately 110 million bottles per year.
APG Manufacturing and Procuring of Glass Bottle
Asia Pacific Glass Co., Ltd. (APG) is a wholly owned subsidiary that manufactures and procures glass bottles for energy drinks and other drinks. APG boosted up its production capacity to 620 million ton glasses per year or equivalent to amber glass bottles for 150ml energy drink at quantity of 1,300 million bottles per year, which is increased from 50 million bottles per year. The increasing capacity is implemented to commercial production in Q4/2017 to reduce dependency on amber glass bottles supplied by external party of which the cost per unit is higher, and to support the demand of energy drinks under Carabao Dang in Thailand. APG will uses excess capacity (if any) to manufacture and distribute glass bottles to external party under prices and terms of general trading that bring highest benefit to the Group.
APG provides clear glass bottles for electrolyzed drink from external parties, without any manufacturing in the Company. APG is not responsible for supplying aluminum cans for CBD.
DCM Managing Distribution Channels
Tawandang DCM Co., Ltd., a wholly owned subsidiary, manages distribution channels of products which include branded products by our own manufacture, branded products by 3rd party manufacture and 3rd party products for distribution within Thailand. Major distribution channels are through traditional trades by multi-tiered agent and through distribution center and cash vans, and modern trade. At present, DCM has 31 distribution centers and 333 cash vans operating throughout main trading area across the country, under its own management. DCM started to distribute 3rd party products since November 2015. At the end of 2017, there are 24 SKUs of 3rd party products for distribution including general consumer products and liquor, increasing from 13 SKUs in the previous year. All products sold and distributed in the country are through DCM. Meanwhile, distribution of the products overseas to both existing market (Non-China markets) such as CLMV countries, Afghanistan, Yemen and new market such as China are conducted through CBD where by coordinating with trading partners in each country.
ACM Manufacturing and Procuring of Aluminum Cans
Asia Can Manufacturing Co., Ltd. (ACM) is a joint venture between the Company and Showa Denko Group with shareholding 74% and 26% respectively, having objective to manufacture aluminum cans for energy drinks and other drinks.
Aluminum can factory is located on 32-rai land of APG, total usage space 22,000 square meters, available for installation of 2 production lines of aluminum cans. ACM will install manufacturing machinery of aluminum can for 1 production line. The machinery capacity is equivalent to 1,000 million cans per year for energy drink can of 250ml size. The installation is expected to be completed in Q2/2018 and the commercial operations will start in Q4/2018. This will reduce dependency on aluminum can supplied by external party and support the growth of energy dinks under Carabao trademark in overseas market
Subsidiaries Incorporated Outside Thailand
The Company jointly invested with Intercarabao Private Limited (“ICSG”) by acquiring shares in ICUK (indirectly) through 2 news subsidiaries namely CHHK and CVHLUX. ICUK has set forth business and management plans by management team consisting of people with adequate knowledge and long-time experience in food and beverage business from world class firms. The objective is to introduce energy drink under Carabao trademark to overseas market, starting from United Kingdom where the energy drink market is one of world’s top five, and to expand business network to many other countries in addition to Asia with differentiation strategy to stand out of the crowd of energy drinks. For example, making connection between quality and image of the product to football. This is achieved by becoming sponsor for leading football teams i.e. Chelsea Football Club Limited (CFC) for 5 years, when the season ended in 2021. The Company is the principal partner for the first 3 seasons and global partner for the 4th and 5th seasons respectively. Another sponsorship is in English Football League (EFL) for 3 seasons where the season ending in 2020, English Football League (EFL) is one of major football program in UK joined by over 90 football clubs nationwide. The program was renamed to Carabao Cup throughout the contract term. Furthermore, Reading Football Cub (RFC) is another leading football club that the Company supports. In term of products, we focus on product differentiation coupling with expansion of distribution to cover markets on continual basis. ICUK sales and distributes products through traditional trade and modern trade in London and many major cities. Over 20,000 locations across UK are our sales points where we can reach target groups. The Company plans to expand distribution coverage through modern trade based on the image of the product as a sponsor of football league and sponsor of the world football club.