Lion Brewery looks to increase exports with SL’s first craft beer innovation centre

From left: Lion Brewery (Ceylon) PLC Chief Supply Chain Officer Thusith Gunawarnasuriya, Director Mano Selvanathan and Chief Executive Officer Rajiv Meewakkala inaugurate Lion Innovation Centre, the first-of-its-kind facility in Sri Lanka

Lion Brewery (Ceylon) PLC, the leader in Sri Lanka’s brewery market, has unveiled a groundbreaking Rs.4 billion state-of-the-art craft beer innovation centre, marking a first for the country. 

This facility, dedicated to the research and development (R&D) of craft brews, focuses on incorporating local ingredients, including the iconic Ceylon Tea.

Speaking about the development, Lion Brewery (Ceylon) PLC Director and CEO R.H. Meewakkala highlighted that the facility is expected to increase the company’s export share from 15 percent to 20 percent of its total output.The brewery recently refined its export strategy by narrowing its market base from 35 countries to 17, targeting Africa, the Middle East and South Asia. This strategic move is aligned with its broader goal of enhancing focus and efficiency in key markets.

In the Maldives, Lion Brewery continues to dominate the market, with Lion Lager, available in both bottles and draught, remaining a favourite among consumers. The company also exports Carlsberg to the Maldives, under a licensing agreement, further reinforcing its presence in the region.India is another market Lion Brewery sees as a significant growth opportunity over the next five years.

According to Meewakkala, the export volumes are currently growing at an annual rate of 12-13 percent.

The company’s main brewery has an annual capacity of 200 million litres, with 160 million litres currently in use. However, its minimum production volume of 168,000 litres per batch has posed challenges for experimenting with new products without wastage.The new innovation centre addresses this limitation, allowing for smaller batches of just 2000 litres.“This facility will support Sri Lanka’s non-traditional exports,” Meewakkala emphasised.The initiative is also expected to enhance tourism revenue by capitalising on the growing demand for local flavours.“When tourists visit Sri Lanka, they want to eat and drink local cuisines and beverages,” Meewakkala explained. 

Craft beers with local ingredients are seen as a competitive advantage in international markets.Tourists account for around 12 percent of beer sales in Sri Lanka during peak seasons, underscoring their importance to the brewery’s strategy.

Lion Brewery has already developed a range of innovative craft beers, including Elle Valley White (a wheat beer), Thambapanni Red Ale, Ambalavi Mango, Cucumber Lime, Fest Celebration Lager, Blonde (a Belgian-style beer), Pure Ceylon Tea Beer and Coffee Stout. 

(NF)