Heineken boosts promotional budget in Thailand

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BANGKOK--Thai Asia Pacific Brewery, the local producer of Heineken beer, will spend $8.1 million on marketingthis year, up from $6.7 million in 1998. One-third of the 1999budget will go to media advertising, with the remainder splitamong promotion, sponsorship and distribution.

"Despite the economic slowdown, we need to keep spending toinvest in the brand and marketing activities," says Thai AsiaPacific Brewery Marketing Manager Robert Bree.

The intense competition among Chang ("Elephant"), Leo andSingha in the low- and mid-price segments of the beer markethas not dented Heineken's sales in the premium segment, according to Mr. Bree.

The brewery claims Heineken has an 8% share of the totalmarket and 60% of the premium segment.

The brewery launched its latest TV commercial, called"Rivals," in mid-May. Leo Burnett Co. created the $400,000campaign.

Heineken has invested $27 million in Thailand to doublelocal production capacity from 50 to 100 million litersa year.

Copyright May 1999, Crain Communications Inc.

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