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Floods cost ThaiBev billions

Floods have cost Thai Beverage Plc (ThaiBev), the country’s leading beer and spirits maker, several billion baht, the biggest financial loss for whisky billionaire Charoen Sirivadhanabhakdi in more than a decade.

The damage comes from three areas: tangible assets, loss of business continuity and loss of new business opportunities both at home and abroad.

Five factories in Ayutthaya province will take at least a year to restore.

Thapana Sirivadhanabhakdi, ThaiBev’s president and chief executive, said 2.3 billion baht worth of the damage comes from the main plant of the Oishi Group, its non-alcoholic beverage subsidiary, in Pathum Thani’s Nava Nakorn Industrial Estate.

That factory has been flooded since Oct 17. Water has destroyed the bottling equipment on the ground floor, and restoration will take up to six months.

As well, a beer factory in Ayutthaya’s Bang Ban district and a drinking water plant in Wang Noi district have been isolated by the floodwater.

Beverage transport from Ayutthaya to Bangkok has slowed to a crawl, taking up to six to eight hours after only two hours pre-crisis.

Delivery from ThaiBev’s Kamphaeng Phet factory to Bangkok has risen to 10 hours from 61/2 hours before.

However, shortages of drinking water and beer are improving after ThaiBev met with modern retailers about allowing direct deliveries to their logistics hubs.

ThaiBev has moved its sales and logistics sites to Chon Buri province from Vibhavadi Rangsit Road in Bangkok’s Laksi district to avoid flood problems.

Three committees have been set up to oversee business restoration _ one each to oversee business continuity, flood relief and flood recovery operations.

Mr Thapana said thousands of its workers have been affected by Thailand’s worst flooding in 69 years, but there are no plans to lay off any staff.

ThaiBev yesterday sent out trucks throughout Bangkok to sell Chang drinking water straight to the public until next Thursday.

A total of 1.08 million bottles are expected to be sold, with all proceeds to be donated to the Chaipattana Foundation to assist flood victims.

Source: Bangkok Post

ThaiVest Editorial Team

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