Financial Times

APB officials fly to Colombo after buying into local brewery
Two senior officials of Singapore-based brewer, Asia Pacific Breweries Ltd (APB), will be in Sri Lanka this week to discuss their recent acquisition of a majority stake in a brewery and to announce to the media future plans of the joint tie-up.

APB CEO Koh Poh Tiong and Ms. Sarah Koh, Assistant General Manager, Corporate Communications will meet the media in Colombo on Tuesday.
Extending its presence to South Asia, APB has acquired a 60% equity stake in United Brewery Lanka Ltd (UBL). APB will inject up to US $ 5 million in fresh shareholders funds to be funded from internal resources.

Partnering Sri Lankan-based Anandappa family group and associates and MBL Offshore Limited, a wholly-owned subsidiary of Phoenix Beverages Limited which is a leading beverage group from Mauritius, the investment marks APB’s maiden entry into Sri Lanka, APB said in a statement.

“APB’s stake in UBL is consistent with our regional expansion strategy to acquire strategic interests in domestic breweries within selected markets to create defendable and profitable businesses. South Asia is amongst the emerging markets which APB has identified for growth and our interest in UBL will give APB access to the growing Sri Lanka beer market,” CEO Koh Poh Tiong said.

Sri Lanka’s GDP is expected to grow between 5% and 6% per annum and in line with this economic growth, the Sri Lanka beer market is expected to grow at a rate of 6% per annum.

UBL operates a brewery with a designed annual production capacity of 120,000 hectolitres. The brewery located at Mawathagama produces and markets local beer brands including Bison XXtra, Kings Lager, Kings Pilsner and Kings Stout.

The statement said that by leveraging on the strength of UBL’s distribution with trade channels, there will be an opportunity for APB’s beer brands to cross sell into the various segments of the Sri Lanka market.

Including UBL, APB now has interests in 22 brewery operations in nine countries including Singapore, Malaysia, Thailand, Vietnam, Cambodia, China, New Zealand, Papua New Guinea and Sri Lanka.

Asia Pacific Breweries Limited (APB) is a Singapore listed companycontrolled by a joint venture between the Fraser and Neave Group of companies and Heineken of Holland.

It manages a portfolio of over 40 beer brands and brand variants, with Tiger Beer and Heineken as its flagship brands.

Back to Business