Asian brewers to quench thirst in Myanmar, Laos, Cambodia

Reading Time: 2 minutes
Asian Beers
Competition is heating on the Southeast Asian beer market

Nearing saturation on their domestic markets, Southeast  Asian beer brewers are now eyeing emerging nations such as Myanmar, Laos and Cambodia to satisfy the appetite of beer drinkers for a greater variety of beer brands.

The Philippines’ largest brewer San Miguel is mulling to set up breweries in Cambodia, Laos and Myanmar, the company said at its annual stockholder meeting in Manila on May 29. This plan may entail new investments amounting to $300 million in these three countries.

Ramon Ang, chairman of San Miguel Brewery, said construction for each plant may cost $100 million but that each one would add $200 million to $300 million in annual revenues for the company.

The company is in need to look for new markets as domestic sales in the Philippines are reaching saturation. Sales growth in 2011 was only 1,4 per cent, as compared  to a 25 per cent increase from 2009 to 2010, Ang said. San Miguel controls 96 per cent of the Philippines beer market.

San Miguel, one of the biggest listed firms on the Manila stock exchange, has already set up breweries in Hong Kong and Indonesia in the past to test beer drinkers’ appetite for its premium brands Anker and San Miguel All-Malt and Super-Dry. However, the new breweries in Cambodia, Laos and Myanmar will most likely produce  the Philippine brewer’s low cost brand range San Miguel Pilsen, Gold Eagle, and Red Horse.

Ang said that the company is trying to juggle different types of beer to see which will generate higher margins in each market.

Apart from Miguel, Thailand’s Singha Corp, maker of Singha and Leo beers, has said it also plans to set up a brewery in Myanmar with an initial capacity of up to 100 million litres per annum, and will set up new distribution companies in Cambodia and Vietnam. While the company did not disclose the investment value planned for Myanmar, it said it will allot $15 million this year for international marketing as part of its regional expansion drive.

The beer giants will have to compete with long established local brands. In Myanmar, the market is dominated by state brewer Myanmar Beer and private venture Mandalay Beer. In Laos, Beer Lao has 99 per cent domestic market share, and in Cambodia, the dominance of brands such as Angkor Beer and Kingdom Beer will be hard to crack.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Competition is heating on the Southeast Asian beer market

Nearing saturation on their domestic markets, Southeast  Asian beer brewers are now eyeing emerging nations such as Myanmar, Laos and Cambodia to satisfy the appetite of beer drinkers for a greater variety of beer brands.

Reading Time: 2 minutes

Asian Beers
Competition is heating on the Southeast Asian beer market

Nearing saturation on their domestic markets, Southeast  Asian beer brewers are now eyeing emerging nations such as Myanmar, Laos and Cambodia to satisfy the appetite of beer drinkers for a greater variety of beer brands.

The Philippines’ largest brewer San Miguel is mulling to set up breweries in Cambodia, Laos and Myanmar, the company said at its annual stockholder meeting in Manila on May 29. This plan may entail new investments amounting to $300 million in these three countries.

Ramon Ang, chairman of San Miguel Brewery, said construction for each plant may cost $100 million but that each one would add $200 million to $300 million in annual revenues for the company.

The company is in need to look for new markets as domestic sales in the Philippines are reaching saturation. Sales growth in 2011 was only 1,4 per cent, as compared  to a 25 per cent increase from 2009 to 2010, Ang said. San Miguel controls 96 per cent of the Philippines beer market.

San Miguel, one of the biggest listed firms on the Manila stock exchange, has already set up breweries in Hong Kong and Indonesia in the past to test beer drinkers’ appetite for its premium brands Anker and San Miguel All-Malt and Super-Dry. However, the new breweries in Cambodia, Laos and Myanmar will most likely produce  the Philippine brewer’s low cost brand range San Miguel Pilsen, Gold Eagle, and Red Horse.

Ang said that the company is trying to juggle different types of beer to see which will generate higher margins in each market.

Apart from Miguel, Thailand’s Singha Corp, maker of Singha and Leo beers, has said it also plans to set up a brewery in Myanmar with an initial capacity of up to 100 million litres per annum, and will set up new distribution companies in Cambodia and Vietnam. While the company did not disclose the investment value planned for Myanmar, it said it will allot $15 million this year for international marketing as part of its regional expansion drive.

The beer giants will have to compete with long established local brands. In Myanmar, the market is dominated by state brewer Myanmar Beer and private venture Mandalay Beer. In Laos, Beer Lao has 99 per cent domestic market share, and in Cambodia, the dominance of brands such as Angkor Beer and Kingdom Beer will be hard to crack.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid