Engkanto Brewery, an award-winning pioneering craft beer brewery based in the Philippines, has taken a significant leap forward in expanding its international presence by beginning exports to Thailand in early May.
Engkanto’s entry into the growing Thai craft beer market is made possible via a partnership with Thai distributor Smiling Mad Dog Co., Ltd., which also represents a range of other international craft beer brands. So far, Engkanto’s initial exports have included unique offerings like its Paint Me Purple Ube Lager, the local favorite Mango Nation Hazy India Pale Ale (IPA), and its multi-awarded High Hive Honey Ale—all part of the brewery’s effort to bring the rich flavors and diverse cultural heritage of the Philippines to a wider audience.
Founded in 2017 by Ian Paradies, the brewery was inspired by Paradies’ desire to broaden the range of beer options accessible to Filipinos. Engkanto Brewery achieves that today by offering a diverse range of lagers, ales, and IPAs. Engkanto also has expanded its operations to include a state-of-the-art facility located in Carmona, Cavite from its humble start in a small Makati-based brewery. Today, the brand has achieved an astonishing twentyfold increase in daily production compared to its initial amount.
The brewery’s work has already paid off in some ways, with it winning the Gold Medal and title of Country Winner in last year’s World Beer Awards and the latest Australia International Beer Awards 2023.
According to Engkanto Brewery Managing Director Ricard Basora, the partnership between the brewery and Smiling Mad Dog started off with a simple introduction. “We were officially introduced by a friend of mine that works in the industry,” said Basora. “We started talking and we visited them in Seabrew Bangkok 2022, the biggest fair for craft beer in the region. We had good alignments.”
“In fact, Smiling Mad Dog wasn’t thinking of distributing any more brands this year,” revealed Basora. “But they wanted to push through after trying our product.”
Ripe for a beer revolution
Engkanto’s entry into the Thai market is especially timely. Up until late 2022, Thai regulations stipulated that in order to obtain a brewery license, a minimum capital investment of 10 million baht ($286,000) and an annual production capacity ranging from 100,000 to 1 million liters was required. Critics of the regulation have deemed it a protectionist policy favoring larger beer makers like Boon Rawd Brewery and Thai Beverage, makers of the Singha and Chang brands which control over 90% of the Thai beer market.
The loosened regulations make the country ripe for a craft beer revolution.
Engkanto’s export of its unique lagers is also fitting considering evolving craft beer preferences. A 2019 survey found that 35.3% of Thais prefer lager as their craft beer, with golden ale coming in second at 29.4%.
It will also help that Engkanto Brewery’s offerings are compatible with the general Southeast Asian palate, according to Basora. This means the brand will readily offer its portfolio of low-bitterness, refreshing, easy-going beers fit for the region’s warm climate.
The brand’s seasonals embody its Southeast Asia-friendly offerings perfectly. First is its Paint Me Purple Ube Lager, which is infused with native ube, desiccated coconuts, imported malt, and hops. The creamy, dessert-like lager offers a medium body, subtle fragrances, and flavors of ube and coconut. The second seasonal is the Hop Coolture Pale Ale, a reimagination of the classic Engkanto Pale Ale driven by the tandem of Strata and Mosaic hops, intensifying further with Cryo Pop, Yakima Chief’s distinct hop blend showcasing stone fruit notes of peach, apricot, and nectarine, complemented by tropical fruit, citrus tones, and a hint of darkness.
are among its most popular offerings today
Growth in the market
Engkanto Brewery’s expansion into the Thai market is helped by an anticipated boost in production. According to Basora, the brand has already planned out the next three expansion phases for its Carmona facility.
“Actually, our Thai distribution is comparatively small compared to what we do in the Philippines,” Basora said. “But we expect to keep growing this over time. We are also looking to open other markets so hopefully, the share of export orders will keep growing.”
The Engkanto Brewery team is more than aware of the challenges that will come with expansion. Even Basora readily admits that the Carmona facility’s increased production is still small compared to the beer market standard.
Engkanto Brewery will also have to balance out multiple avenues of growth. While the overall market sells products at 20% on-premise and 80% off-premise, Engkanto Brewery is different. Though e-commerce played a significant role during the COVID-19 pandemic, today’s Engkanto Brewery sales are now almost 50% on-premise and 50% off-premise—with social gatherings playing a huge part in on-premise sales.
Despite the challenges ahead, however, the Engkanto Brewery team still remains undeterred. “Our primary goal is to establish ourselves as the epitome of quality beer in the Philippines and become a leading figure in the region,” concluded Basora. “We want to educate our customers that imported doesn’t automatically mean better.”
Basora even reveals the brand aspires to become a prominent figure in the Southeast Asian craft beer scene by penetrating various markets and showcasing its exceptional brews in major capitals and popular tourist destinations.
In terms of expanding production capacity, Engkanto Brewery is also delving into contract brewing, recognizing the growing interest among consumers. They aim to further explore this avenue in the coming years, leveraging the reputation of their award-winning brewmaster Michael Jordan.
Overall, Engkanto Brewery’s decision to export to Thailand represents more than just a simple business expansion. It also signifies a unique cultural exchange, encouraging a deeper appreciation of Filipino traditions and flavors in the international craft beer community. Standout offerings such as the Ube Lager serve as a bridge between the vibrant culinary cultures of the Philippines and Thailand, as it introduces the wider world of beer enthusiasts to the allure of Filipino flavors in a novel and unexpected way.