business structure
The Group is a holding company engaging in manufacturing, marketing, selling and distributing energy drinks and other beverages in a vertically integrated manner starting from upstream productions of key packaging materials i.e. glass bottle and aluminum can down the chain to bottling and canning of finished products as well as distribution channel management both domestically and internationally under the World-class Product, World-class Brand vision.
The Group holds a number of subsidiaries directly and indirectly under the following shareholding structure
CBD Productions, Marketing, Selling and Distributions of Products under the Group’s Trademarks
CBD engages in productions, marketing, selling and distributing energy drinks, sport drinks and other beverages that the Group may be of interest to commercially endeavor in the future for both domestic and overseas markets. Installed production capacities under CBD could accommodate approximately 1,560 million cans and 1,800 million bottles per year since April 2018. CBD has relocated production facilities and all related commercial activities from Bangbo, Samutprakarn province, where there is a considerable level of limitation in terms of size and future expansion to the current site situated in Bangpakong, Chachoengsao province, where glass bottle factory and aluminum factory are situated since August 2018.
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.
CBD currently manages to produce energy drinks in various formats not only from packaging materials perspective but also the content mixed so as to satisfy different preferences of consumer behaviors in the countries where our products are present. Further to our core energy drink products, CBD also utilizes its own capabilities for production of sport drinks. Meanwhile, water, Coffee 3 in 1 and Coffee RTD are all produced by local manufacturers under terms and conditions of the contracts. Such branded products are managed as one portfolio according to our group business plans, respective demands among other economic and competitive setting factors.
In addition to production activities, CBD also manages from the Thai operation base to export finished products to our business partners, who are responsible for marketing, selling and distributing our products to consumer group in their designated countries (Distributorship).
Upstream integration into packaging material productions reduces the risks associated with reliance on third party suppliers. Machines, equipment and supporting systems with advanced technologies, coupled with adjacent location under the industrial cluster concept, potentially serve us as the basis for better managing production costs and economies of scale throughout the early stage of value creation chain from packaging materials i.e. glass bottle and aluminum can to finished products.
APG Glass Bottle Productions and Sourcing
APG engages in production and sourcing of glass bottles as packaging materials used for energy drinks and other beverages. Installed production capacities under APG could accommodate approximately 640 tons of molten glass per day from December 2017 onwards.
The installed production capacities are mainly used to make amber glass bottles as packaging materials used for energy drinks of the Group whereas clear glass bottles for sport drinks are procured from local suppliers. Any excess capacities shall be utilized to make and sell glass bottles to outside parties for the purpose of efficiencies and cost management program to the best interest of the Group overall.
DCM Distribution Channel Management for Domestic Markets
DCM engages in managing distribution channels in Thailand, covering our branded product portfolio including the products we produce on our own account i.e. energy drinks and sport drinks (Branded products by our own manufacturer) and those we outsource respective productions to third party suppliers i.e. water, 3-in-1 coffee and RTD coffee (Branded products by 3rd party manufacturer) and other products we may be of interest to commercially endeavor in the future. Additionally, DCM is also in charge of distributing products for third parties in both food and non-food categories (3rd party products for distribution). Key distribution channels under DCM management span are a) traditional trade channel, through both the Multi-tiered agent system and our own distribution centers and cash vans as well as b) modern trade channel.
Distribution centers and cash vans help witness our substantial progress made towards increasing level of direct access to retailers. At the present, DCM operates 31 distribution centers and 326 cash vans to reach approximately 180,000 identified retailers nationwide.
Marketing and sales policies laid down for the Thai markets have evolved in response to the dynamics. They are recently reshaped to focus on seamless collaborations between on- and off-line advertising, below the line marketing activities and retail network building in each province, using our own pool of over 1,500 headcounts grounded all over the major commercial zones in Thailand.
ACM Aluminum Can Productions
ACM established as a joint venture engages in production of aluminum cans as packaging materials used for energy drinks and other beverages. The factory is landed on a 31-rai plot which is sufficiently large to install up to 2 production lines. Currently, ACM has commenced a single line of productions capable of approximately 1,000 million cans per year from November 2018 onwards.
ICUK Marketing, Selling and Distributions of Products under the Group’s Trademarks for the United Kingdom Markets and the Countries outside Asia
ICUK as a joint venture held indirectly through our overseas subsidiaries namely CHHK and CVHLUX engages in marketing, selling and distributions of energy drinks under our trademarks in the UK markets and certain countries outside Asia. Finished products are manufactured by a third party under terms and conditions of the contract. ICUK has successfully managed to list our energy drink products live on shelves of the increasing number of grocery chain stores and other format of modern trade channels from 2017 to date.
The Group puts marketing and sales policies into actions more effectively. With that being said, business plans are created in joint effort with our business partners, and we also provide them with marketing support and sales tools to the extent necessary to not only substantiate product experiences but also make a chief use of our global marketing platform i.e. sponsor to Chelsea Football Club (CFC) and English Football League (EFL) to the advantage of promoting recognition of our strength in market positioning. As a result, a growing network of distributions could be built and our products have enormous potential in the countries we are present today and may plan to pursue for growth prospect in the future.