Lion Brewery (Ceylon) PLC triumphs in 2 categories at FMCG Asia Awards 2024

The company remained a leader in Sri Lanka’s alcoholic beverage industry amidst economic challenges and economic volatility.

The financial year 2023/24 had been challenging for companies globally, faced with inflation and supply chain challenges. Despite these challenges, Lion Brewery (Ceylon) PLC continued to thrive and innovate, paving the way for its deserved win in the Excellence Award - Sri Lanka and Product Packaging of the Year - Sri Lanka categories at the FMCG Asia Awards 2024.

Lion Brewery was recognised for its exceptional performance over the past financial year, as well as the unique packaging of its Lion Ice beer.

The industry had notably experienced major challenges during the past year, with the 64% cumulative rise in excise duties as well as a 3% VAT increase, leading to higher consumer prices that affected affordability in the local alcohol market. Despite heightened competition, Lion Brewery maintained a strong presence due to its strategic pricing and market positioning.

Its LKR80.8b (US$275.37m) tax contribution highlights its role as a key economic player in Sri Lanka. It was also able to navigate currency devaluation and rising commodity prices, with LKR8.4b (US$28.63m) in profit after tax on a turnover of LKR109b (US$371.47m), a 20% growth over the previous financial year. Additionally, the company showcased its robust credit profile with its AAA Fitch rating.

Furthermore, Lion Brewery focussed on achieving sustainable growth by concentrating its resources on growth regions like Africa, the Middle East, and South Asia, in addition to pulling out of 20 underperforming markets. This proved to be a strategic move, resulting in 20% growth in its international business. Lion Brewery also ensured cost optimisation by localising imported materials, identifying new suppliers, and improving category buying. This allowed it to achieve LKR875m (US$2.8m) in cost savings.

Keeping its customers in mind, the company enjoyed continuous profitability without compromising the quality or affordability of its products. It introduced a 500ml returnable glass bottle for Lion Strong and Carlsberg Special Brew, priced 15% to 20% lower than existing SKUs.

Sustainability was also central to Lion Brewery’s operations, with its fermentation process generating 1,772 metric tons of surplus CO2. These were supplied to the local market, reducing reliance on fossil fuels. An impressive 92% of its bottles are returnable, whilst 96% of plastic crates are reused.

“Looking forward, Lion Brewery continues to drive innovation and premiumisation. The company is set to launch Sri Lanka’s first-ever craft beer range in October 2024, featuring eight new varieties,” Lion Brewery said.

For its ability to navigate economic and regulatory constraints whilst maintaining excellence, Lion Brewery was lauded with the Excellence Award - Sri Lanka. Meanwhile, it also took home Product Packaging of the Year - Sri Lanka for its Lion Ice Packaging Design Strategy.

Established in 1881, Lion Brewery has long held a dominant position in the Sri Lankan beer market. However, it faced challenges in sustained growth as the brand became perceived as a “heritage product,” seen by younger consumers as their father’s beer.

Seeking to address this challenge in a market dominated by strong beer whilst appealing to new consumers entering through the 8.8% segment, Lion Ice was introduced in 2022 as a lighter ABV beer designed to attract a younger, premium audience.

Following advertising restrictions on alcohol in 2006, the company leveraged packaging to remain relevant to its audience. The same rings true for Lion Ice, which featured unique, modern packaging with vibrant yellow and blue colours to symbolise the beer’s lightness and freshness. The design breaks free from traditional beer packaging so it can prevent the stigma surrounding alcoholic beverages in Sri Lanka. The Lion Ice packaging for both beer bottles and cans was unique, with a sleek format and clear bottles compared to traditional packaging.

“The visual identity also reflects the core values of leadership and local pride, with a strong emphasis on the typeface and a modern, global-inspired look, moving away from the traditional Lion animal motif,” the company added.

Presented as a refreshing choice, especially amongst tourists and young locals, Lion Ice’s packaging and liquid strategy led to the rejuvenation of the master brand’s image whilst also appealing to younger consumers. Recent consumer research found that the packaging effectively drove trial amongst consumers. Lion Ice also achieved a 4.0% power score amongst the target group, outperforming several renowned international brands within 18 months. Lion Ice served with a wedge of lime also became a popular choice for both locals and tourists, particularly favoured by beach-goers.

Given Lion Ice’s versatility, it became an excellent base for blending with various flavours, presenting an opportunity for Lion Brewery to develop sub-variants of Lion Ice in local flavours. “This initiative will further build the flavour portfolio under Lion Ice, enhancing the brand’s youthful and premium image whilst catering to the rising demand for flavoured beers in Sri Lanka,” Lion Brewery said.

Lion Ice has left a positive impact on Lion Brewery, generating US$624,042 in revenue for the company and a volume of 67,924 to the average sale.

The FMCG Asia Awards, presented by Retail Asia, spotlights companies that have left a significant impact on the industry. It is a prestigious event that celebrates outstanding companies in the fast-moving consumer goods sector for their exceptional products and remarkable initiatives.

The FMCG Asia Awards is presented by Retail Asia Magazine. To view the full list of winners, click here. If you want to join the 2025 awards programme and be acclaimed for your company's exceptional products or initiatives in the FMCG industry, please contact Jane Patiag at [email protected].