Research Report of Lion Brewery (Ceylon) PLC for year ended 31st March 2024
1. Company Profile
History and Overview: Lion Brewery (Ceylon) PLC, a subsidiary of Carson Cumberbatch & Co. Ltd., has a rich heritage spanning over a century in the brewing industry. Established in 1849 in the picturesque region of Nuwara Eliya, the company has grown to become a leading brewer in Sri Lanka. The brewery’s portfolio includes a diverse range of beers, from traditional lagers to innovative new products.
Mission and Vision: The company’s mission is to produce high-quality beverages that delight consumers while maintaining a strong commitment to sustainability and social responsibility.
Recent Developments: In the fiscal year 2023/24, Lion Brewery successfully navigated the challenging economic landscape of Sri Lanka, marked by economic crises and frequent excise tax hikes. The company reported steady growth in profits and an expansion in consumer choice, underpinned by a strong rebranding effort and strategic international expansion.
2. Industry Background
Market Dynamics: The brewing industry in Sri Lanka is subject to stringent regulations and high excise duties, which have increased by 64% over the past year. This has widened the gap between legal and illicit alcohol markets, presenting significant challenges for the industry.
Economic Factors: Sri Lanka’s economy showed signs of recovery with GDP growth in the latter half of the year and a stable exchange rate. However, the purchasing power of consumers remains strained due to declining real incomes and high inflation rates.
Tourism Impact: The tourism sector, a critical driver for the brewing industry, saw a significant rebound with 1.48 million tourists visiting Sri Lanka, doubling from the previous year. This boost in tourism positively impacted the company’s volumes.
3. Competitive Landscape
Key Competitors: Lion Brewery faces competition from both local and international brewers. Key competitors include Heineken Lanka Limited, McCallum Breweries (Ceylon) Ltd., and various illicit alcohol producers.
Market Position: Lion Brewery holds a strong market position, bolstered by its extensive portfolio of well-recognized brands such as Lion Lager, Lion Strong, and Lion Stout. The company’s strategic partnerships with Carlsberg and Diageo enhance its competitive edge.
Download Full Report: https://lankabizz.net/product/lion-brewery-ceylon-plc/
