Beer sales on the decline

Sales volumes of beer in the Sri Lankan market have been on the decline for the past two years. "They are flat at the moment," said Managing Director of The Lion Brewery Ceylon Ltd, Suresh Shah. Speaking to The Sunday Times FT, Shah attributed the sales decline to the restrictions on marketing and advertising of alcohol and tobacco products. "There is no possibility of promoting any alcohol or tobacco products under the current legislation."

Lion Brewery has invested in India and the Indian company is building two plants in Rajasthan and Maharashtra and has bought a plant in the north western state of Himachal Pradesh. "The Himachal brewery is currently in production and is selling its products in the northern markets of India," Shah said. The Indian company will expand into other states depending on the needs of the market. "We expect to be present throughout the Indian market but cannot give a time frame at this stage."

Currently, Lion Brewery does not have plans to invest in other overseas markets although Shah said the company is continuing to pursue export opportunities in overseas markets. Approximately 15 containers are being exported to various parts of the world including the United States, United Kingdom, Japan, Maldives, France, Senegal and Canada each month. (NG)