APBL - Tiger Beer Begins Local Brew in Thailand

Appended, for information, is a copy of a Press Release issued by Asia Pacific Breweries Limited this morning.

For Immediate Release
6 July 2004

Tiger Beer Begins Local Brew In Thailand

Further extending its leadership position as a premium Asian beer, Tiger Beer is now brewed in Thailand by Thai Asia Pacific Brewery Co. Ltd (TAPB), making Thailand the 7th country to brew the popular beer. TAPB is an associate company of SGX main board-listed Asia Pacific Breweries Limited (APB).

Since its launch in Singapore in 1932, Tiger Beer has made inroads into many markets around the world. Today, Tiger Beer is available in more than 60 countries including the United Kingdom, the United States and the Middle East.

Pleased that Tiger Beer is another step closer towards achieving its goal of becoming a major Pan-Asian beer brand, Mr Koh Poh Tiong, Chief Executive Officer, APB said, "Brewing Tiger Beer in Thailand adds one more piece to the Asian map for the growth of the brand."

Tiger Beer has a strong following in Asia - it is the market leader in Singapore and one of the leading brands in Vietnam and Cambodia. It is also widely enjoyed in many European cities such as London, Manchester, Dublin, Glasgow, Berlin, Copenhagen, Stockholm and many others. Currently, APB is also intensifying its marketing efforts in USA which has seen recent demand for Tiger Beer rise.

Tiger Beer is not new to the Thai beer market as Singapore has been exporting it to Thailand since the 1930s. In view of Thailand's improving economic progress, its sizeable beer market and growing affluence of its population, APB and TAPB have decided that it is now timely to brew Tiger Beer in Thailand and enlarge its foothold in this community.

"TAPB has already successfully gained about 80% of the Thai premium beer market with Heineken beer. Our next step, therefore, is to grow the premium beer segment and we believe that we can achieve this by brewing Tiger Beer locally. Heineken and Tiger Beer together have formed a formidable partnership that has been successful in many countries. Together, they will be able to enlarge the premium beer segment by converting mainstream beer drinkers; while retaining our dominant share of the segment," explained Mr Koh.

Apart from extending the brand further, Mr Koh explained that the move is also strategic in enabling TAPB to counter competition in Thailand. Mr Koh said, "Competition in the Thai beer market is intense and ongoing. In order for TAPB to grow further in this market, we need to continually evaluate market needs and constantly review and improve our beer brand portfolio to enhance the drinking experience of our customers. We believe that Tiger Beer has the potential to grow and enhance TAPB's product mix in this market. When we brew Tiger Beer locally, we are operating within the community and that places us even closer to the hearts of our Thai consumers. On top of that, they will enjoy a fresher brew that comes directly from our brewery in Thailand."

Brewing Tiger Beer at the TAPB brewery, located at Nonthaburi, will maximise its brewing capacity which was doubled recently in February this year to 2 million hectolitres.

Now that Tiger Beer is no longer just an imported brand in Thailand, it will be re-positioned to give the brand a higher level of awareness encouraging trial in Thailand. On Tiger Beer's marketing campaign, Mr Chris Kidd, Director, Group Marketing, APB said, "We believe that Tiger Beer will appeal to young adults who seek adventure, have achieved some level of success and appreciate the better things in life. Tiger Beer seeks to offer the Thai beer drinker a different experience that will set him apart from the rest of the crowd."

The Brewed-In-Thailand Tiger Beer will yield the same high consistent quality the beer is famous for. Only the quality hops from Germany; the yeast specially cultured for Tiger beer from Holland; and the finest barley from Australia will be used.

Tiger Beer will be available at over 10,000 outlets including convenience stores, grocery shops, hypermarkets, restaurants, coffee-shops, food-courts, pubs, and bars in Thailand.

Tiger Beer has an impressive pedigree with over 30 international awards to its name. In 1998, Tiger Beer won top honours at the Brewing Industry International Awards (BIIA) in the UK. The BIIA is considered the 'Oscars' of the beer brewing industry. In April this year, Tiger Beer won the Gold medal in the European Style Pilsener category of the 2004 World Beer Cup, a competition which is considered "the Olympics of Beer Competitions" by the industry.

-End

Submitted by Anthony Cheong Fook Seng, Company Secretary on 6 July 2004 to the SGX