Business Structure

Business Structure

The Group is a holding company engaged 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 bottles and aluminum cans, down to the 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.

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CBD Production, Marketing, Selling, and Distribution of Products under the Group’s Trademarks

CBD engages in marketing, production, and manufacturing of the popular Carabao Energy Drink worldwide, ensuring that all our products are aligned with our high standards to achieve maximum customer's satisfaction. Our state-of-the art production facilities at Bangpakong, Chachoengsao Province, can currently manufacture 2.5 billion cans and 2 billion bottles per year. The factory is strategically placed next to Carabao’s glass bottle factory and aluminum factory – enabling a very lean and streamlined production line.

CBD currently produces a variety of consumer drinks in various flavors and sizes to satisfy a diverse range of consumers in multiple countries. In addition to the core energy drink products, CBD also produces sport drinks, water, 3-in-1 coffee, and RTD coffee.
All our products are managed under one portfolio as part of our Group’s business plan with our energy drinks making the majority of our revenue from domestic and overseas sales. CBD from our Thai Headquarters produces, and exports finished products to our business partners worldwide, and allow them to market, sell, and distribute our products to consumer group in their designated countries (Distributorship).

The Group’s upstream integration into packaging material production not only improves the product quality and enables flexibility in production, but it also reduces the risks associated with reliance on third party suppliers. Machinery, equipment, and supporting systems with advanced technologies, strategically placed in our own industrial cluster, allows Carabao Group to better manage our production costs and benefit from economies of scale throughout the early stages of the value creation chain starting with our own packaging materials i.e. glass bottles and aluminum cans, all the way to the finished products.

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APG Glass Bottle Production and Sourcing

APG produces and sources glass bottles used in the production of Carabao energy drinks and other beverages. Current production capacities under APG could accommodate approximately 640 tons of molten glass per day or the equivalent of 1.3 billion “Carabao Dang” brand’s amber glass bottles per year.

The majority of APG’s operations capability will be used to serve the production of the Group’s product portfolio – mainly producing amber glass bottles for our energy drinks and procuring clear glass bottles from local suppliers for our sport drinks. Any excess capacity will be utilized to produce and sell glass bottles to third parties to maximize operational efficiencies and cost management purposes. Furthermore, by integrating ESG into our way of doing business, APG is installing 5 megawatt solar panels to enable the company to generate electricity from renewable energy sources by 2021.

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DCM Distribution Channel Management for Domestic Markets

DCM manages the Group’s distribution channels in Thailand, covering our own branded product portfolio and offers distribution services to other third parties in both food and non-food categories. Key distribution channels under DCM’s management include traditional trade channels, via both the multi-tiered agent system and our own distribution centers, and cash vans, as well as all modern trade channels.

Distribution centers and cash vans enable Carabao Group to gain direct access to retailers. Our DCM has successfully developed strong customer relationships ensuring that our database of relationships continue to bear fruit and allows us to use their data for a more comprehensive analysis of turnover related information such as size, pattern of purchase order, and payment for the individual products. The information we derive from these relationships brings immense value to our Group in helping to build and strengthen our own retail network and deploy our marketing and sales plans in an effective result-based fashion. At present, our DCM operates 31 distribution centers and 326 cash vans to reach approximately 180,000 retailers nationwide.

Marketing and sales policies laid down for the Thai market has evolved over time in response to the changing business environment. Our plans continue to focus on seamless integration of on-line and off-line advertising, below the line marketing activities, and retail network building in each province, using our team of over 1,500 people located in all the major commercial zones in Thailand.

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ACM Aluminum Can Productions

ACM was established as a joint venture to produce aluminum cans used in the production of Carabao energy drinks and other beverages. The factory is situated on a 31-rai plot of land which is large enough to install up to 2 production lines – but is currently only utilizing 1. The factory currently has the capability to produce approximately 1 billion cans per year.

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APM Packaging Materials Productions and Sourcing

APM produces and procures three types of packaging materials including carton boxes, OPP labels, and shrink film used in the sales of the Group’s energy drinks and other beverages. APM is targeting an annual production capacity of 100 million carton boxes, 28.6 million square meters of OPP labels, and 4,400 tons of shrink film per year through our production facilities.

The majority of APM’s production capability will be used to serve the production of the Group’s product portfolio. Any excess capacity will be utilized to produce and sell packaging material to third parties to maximizing operational efficiencies and cost management purposes. Furthermore, by integrating ESG into our way of doing business, APM aims to use recycled film as a key raw component in the production process.

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ACV New Product Development

Asia Carabao Venture Co., Ltd. engages in new product development under the functional drink segment as well as other beverages to be developed under the joint venture’s brands.

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AWD Brand Owners and Marketing Management of Functional Drinks

AWD was established as a joint venture, indirectly held by the Company via our local subsidiary ACV. AWD engages in new product development under the functional drink segment as well as other beverages to be developed under the joint venture’s brands. The aim is to expand our domestic consumer base towards a health conscious generation by leveraging the characteristics of Mr.Vuthithorn Milintachinda (“Woody”), one of Thailand’s most well-known celebrities who leads a health-conscious lifestyle and is considered to be a powerful influencer on social media. Mr.Vuthithorn holds a 15-percent stake in AWD.

AWD launched the first vitamin C drink from the Group in the domestic market for the first time under the Woody C+ Lock trademark in lemon and orange flavors in March and June 2020, respectively. The company has also introduced and began to export Woody C+ Lock to overseas markets including Myanmar and Laos.

The collaboration between the Company and Mr. Vuthithorn brings in multiple business opportunities to launch new products to tap in a new segment of consumers that are seen to be more health-conscious and social media oriented. This perfectly combines the marketing capabilities of Mr. Vuthithorn and the Company’s positioning as a world-class beverage manufacturer with an extensive distribution network nationwide.

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ICUK Marketing, Selling, and Distributing products under the Group’s portfolio to the United Kingdom Market and the Countries outside Asia

ICUK is a joint venture held indirectly through our overseas subsidiaries, namely CHHK and CVHLUX. ICUK engages in marketing, selling, and distributions of our energy drinks under the Group’s portfolio in the UK markets and certain countries outside Asia. Finished products are now manufactured by the Group’s production arm in Thailand and exported according to demand. Having successfully listed our energy drinks in increasing amounts of grocery store chain across the UK, ICUK has expanded into the online sales through Amazon UK. This move was necessary with the COVID-19 outbreaks in the UK and travelling restriction being imposed in March 2020. Sales via online channels contributed to approximately 15.0 percent of the volume sold in UK.

The company puts marketing and sales policies into actions more effectively through our subsidiaries. Business plans are created in joint effort with our business partners, and we also provide them with marketing support and sales tools to enhance product visibility but. Partners can make use of our global marketing platforms i.e. the sponsorship of Chelsea Football Club (CFC) and the sponsorship of the English Football League (EFL) – Carabao Cup to increase recognition of our brand. As a result, a growing network of distributions have been built and our products have enormous potential in the countries we are present today with plans to further grow in the near future.

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CBMG Data Management Services

Carabao Marketing Group Co., Ltd. provides data management services – including data analytics, data integration, data classification, and big data management.