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    Carabao’s winning formula – Energy

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    Efficiency, reliability and sustainability are important priorities for Carabao Tawandang’s production – and Krones meets them all.
    • Khun Kamoldist Smuthkochorn, Chief Operating Officer of Carabao Tawandang

    Grandeur, strength and a healthy dose of power – All of that is epitomised by the water buffalo on the label of Carabao’s energy drink. And it fits in neatly with the brand strategy of the Thai company Carabao Tawandang, whose portfolio meanwhile includes some other beverage categories as well. For over ten years now, the enterprise has relied on Krones technology for filling its products.

    People in Thailand used to associate the name “Carabao” with rock music because the eponymous band had been taking the country’s music scene by storm since the 1980s. In the early 2000s, one of the band’s members decided to launch an energy drink brand together with some business associates – and the Carabao Tawandang enterprise was born. According to Carabao, its energy drink is meanwhile Number One on the domestic market. The company’s portfolio also includes beverages like vitamin and sports drinks and water. The latest addition is Carabao beer, which is filled by a sister company in Chai Nat – likewise on Krones lines.

    The range of drinks offered has changed over the course of time, as has the company’s production set-up. “We started off on a small scale, but our drink quickly became a huge success and demand kept on rising, which pushed the line from a local manufacturer to its capacity limits. When we went looking for a vendor of high-speed machines a little over ten years ago, we came across Krones,” says Khun Kamoldist Smuthkochorn, COO at Carabao Tawandang.

    High capacities and reliable line performance have remained essential requirements for Carabao’s production operations to this very day. That is because the company sells its drinks not only on the Thai market, but also in more than 40 different countries around the globe. Its factory in Bangpakong, where a total of eight Krones lines are meanwhile up and running, has an annual output of approximately two billion containers. The latest addition is a 74,000 containers; per hour canning line installed in 2021.

    One of Carabao Tawandang’s distinctive characteristics is their clear-eyed, forward-looking mindset. So, it is hardly surprising that Chief Operating Officer Khun Kamoldist Smuthkochorn promptly answered the various questions he was asked by the Krones magazine team. Together with him, we outline below the challenges the beverage market is facing and how Krones has helped Carabao achieve their ambitious goals.

    People all over the world relish Carabao’s energy drinks. But what challenges does this international sales approach entail for the production operation?

    Our products can be bought in 42 of the world’s countries. And every single one of these target markets has different preferences like favourite beverage types. Consumers in Asia, for example, often go for traditional flavours, while people in Europe and America want mainly innovative and fruity variants. Needless to say, we want to optimally cater for all the different target groups – so we customise our portfolio appropriately. But that’s not all! Another challenge is the container types. Not only do they have to meet consumers’ preferences, they must also comply with local regulations. That is why we fill our drinks both in cans and in glass bottles of various sizes.

    So it’s absolutely vital for us to be able to rely on a technology that helps us manage this wide range of different products. For more than ten years now, Krones has been our reliable partner, always there to support us. In addition to a flexible manufacturing operation, top-class product quality and compliance with high standards are also of crucial importance for us.

     

    What exactly has Krones’ support for Carabao looked like so far?

    We installed a total of eight new Krones lines – both for glass and cans – between 2017 and 2021. That was key for our global expansion because it has enabled us to meet the markets’ rising demand at a consistently high level of product quality.

    The fiercely contested energy drinks market, in particular, presented us with some challenges, like raising brand awareness and standing out from other brands. And with Krones’ help, we’ve made it! We’ve achieved quantifiable progress in production efficiency and cost reductions. So, we are now in a better position to serve new markets even more efficiently.

     

    Was there a particular project that has left a lasting positive memory in your mind?

    Well, yes actually. We started that project roughly eleven years ago. In response to rising market demand for Carabao products, we’d decided to build a new plant incorporating state-of-the-art filling and packaging solutions from Krones. There was one major challenge, though: Space was at a premium.

    But Krones found a solution: They planned a two-storey filling hall. However, that was quite tricky because the depalletiser and palletiser were to be installed on the ground floor, with all the other machines accommodated on the floor above. Krones therefore built the depalletiser with 7.2-metre-high columns. Thanks to this innovative design, it was possible to lift the bulk-glass pallets, for example, from the ground floor to the floor above, where layer by layer is then swept off the pallet and fed into the line.

    Another project that springs to mind was a canning line upgrade. In this project, Krones checked the configurations and capacities of the individual machines, and that enabled us to increase line output by an impressive 23 per cent, from 60,000 to 73,800 cans per hour, and meet rising market demand. This canning line is meanwhile among those with the highest output for energy drinks. What’s more, we’ve now incorporated Line Management for central coordination of all filling and packaging processes.

     

    So much for past achievements – Now, let’s look ahead: What is Carabao Tawandang’s agenda for the future?

    One of the main aims we intend to pursue is sustainability. And here too, we’re on the same wavelength with the Krones team who support us with fit-for-purpose solutions. You see, Krones’ focus on sustainable production is instrumental in helping us along in our own activities. To give you a few examples: Krones machines achieve very good values for energy and media consumption, so obviously we benefit from corresponding cost savings. Sensors and data-analysis tools in the machines enable us to monitor important parameters in order to guarantee compliance with environmental regulations. What’s more, we make sure that the amounts of raw materials, consumables and supplies needed are determined, monitored and continuously optimised so that we can prevent surplus production and minimise resource consumption and the volume of waste generated.

    All these examples have had a positive effect on the overall yield of our manufacturing, filling and packaging processes and were one of the reasons why we achieved a good result in the S&P Global ESG Score, which in turn has boosted our brand image.

     

    We’re pleased to hear that our technologies proactively contribute towards achieving Carabao’s sustainability targets. How would you describe your partnership with Krones?

    Our partnership with Krones is invaluable because it is an alliance extending beyond projects pure and simple. We’ve developed a mutually supportive relationship with the teams at Krones. No matter whether they work in sales, the technical departments or in after-sales service, they’re always there to help us with their service-driven mindset and expert knowledge.

    And we very much appreciate that the Krones teams invariably make every effort to translate line layouts and technologies into successful shopfloor reality. And that’s not all! They really emphasise on-the-job training: They take our operators by their hand and share invaluable expert knowledge, which helps our staff operate the machines properly and makes sure that we always meet our markets’ requirements.

     

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