On 13 May 2025, Thailand’s Cabinet approved in principle a draft ministerial regulation aimed at liberalizing the production of alcoholic beverages and enhancing opportunities for small-scale and community-based alcohol producers. The initiative, proposed by the Excise Department under the Ministry of Finance, reflects the government’s policy to stimulate local economies and promote cultural-based soft power through community liquor production.
The new draft regulation seeks to eliminate key regulatory barriers that have historically hindered entry into the alcohol production sector, particularly for small-scale and community-based enterprises, such as “community liquor” producers.
The key provisions of the draft regulation shall be as the following:
1. Expanded sales channels for small breweriesThe draft regulation allows small breweries, including Brew Pubs and craft beer producers, to sell beer stored in kegs off-site, nationwide. Previously, such sales were restricted to on-site or provincial-only distribution. The proposed amendment aims to level the playing field by granting small brewers access to broader markets, thereby increasing their revenue potential and competitiveness.
2. Relaxation of Locational Restrictions for Production Facilities
To address challenges faced by producers located far from water sources, the draft regulation relaxes current restrictions on the siting of small and medium-sized distilleries. Facilities will be permitted within 100 meters of public water sources, provided that they install and operate wastewater treatment systems that effectively prevent environmental pollution. This provision is intended to enable greater participation from rural or geographically constrained communities.
3. Immediate Establishment of Medium-Sized Factories
Under the existing regulations, prospective medium-sized liquor manufacturers are required to operate as a small facility for at least one year before upgrading. The draft regulation abolishes this requirement, allowing qualified producers to establish medium-sized distilleries immediately, thus accelerating commercial growth and investment in the sector.
This legislative reform aligns with the government’s broader economic strategy to promote local industry, increase community income, and add value to domestic agricultural products. It also reflects an effort to harness local wisdom and traditional knowledge as part of Thailand’s soft power agenda.
The Excise Department is currently preparing additional amendments to further dismantle outdated restrictions and support the development of the community liquor sector.
While the Cabinet granted approval in principle, the draft regulation must be formally issued as a ministerial regulation in order to take legal effect.