South Pacific Brewery

takes a world view

One of Papua New Guinea’s most impressive export cam paigns has been mounted by the South Pacific Brewery Ltd., of Port Moresby whose new export lager has been winning up-market appreciation, and encouraging sales principally, so far, in Hawaii and California.

S.P.’s general manager, Bruce Flynn, said in Port Moresby that the export drive would continue with planned expansion of sales into Britain, Japan and Australia, as well as some other countries. However ’’meaningful export incentives” were required and the com pany was negotiating with the PNG Government on this point, he said.

Beer sales in Papua New Guinea have been declining steadily over the last three or four years and, while the trend now appears to have flattened out, no increase in sales is expected within the country this year. Sales are down from 505,451 hectolitres in 1980 to 474,294 last year. The drop was caused by the long ’’dry”

imposed by government during the elections and by strict reg ulation of sales especially on pay days.

A year ago South Pacific merged with San Miguel, their only competitor in PNG, in an agreement which ended a ruinous period of price-cutting competition and allowed SP’s management to ’’turn an unvi able industry, which showed a loss of some Kina 6 million in 1982, around to show a modest profit in 1983," Mr Flynn said.

The recovery program would continue into 1984, he said, with the investment of Kl.B million in refurbishment and rehabilitation in the Port Mores by plant and a further K 1.2 million at the Lae brewery.

The most exciting develop ment has been the growth of South Pacific export lager sales overseas. The beer, slightly stronger than the domestic brew, (4 per cent alcohol by weight, compared with 3.6 per cent) is sold in a spectacular package which last year won the ’’beer can of the year”

award against world-wide com petition. Development of the export image and the product itself is continuing with the planned introduction of a new stubby as well as the taller “Heineken-style” bottle, both in American-style six-packs.

Most of the current effort is going into development of the American market. California alone imports 18 million cases of foreign beer a year, and Hawaii two million, while Au stralia brings in only 300,000 cases.

S.P. would not neglect the Australian market but “one per cent of 18 million is a better target than two per cent of 300,000,” said Mr Flynn. Pros pects also looked promising in Europe where drinkers’ tastes were moving markedly towards lager. Castlemaine XXXX, and New Zealand’s Steinlager, as well as Fosters Lager, were all doing well.

Sales of SP Export lager are now running at the rate of $1 million annually in California and Hawaii. The company’s agents in Queensland (Walter Reid) and in New South Wales (Brimps), are about to start new campaigns in department stores and liquor chains while, with the help of PNG’s department of foreign affairs and trade, new export markets are being negotiated in New Zealand, Solomon Islands, and West Irian as well as Japan and the U.K.

South Pacific has broadened its interest in non-alcoholic be verages with Bougainville Be verages, a joint venture in the North Solomons, and will begin canning aerated drinks later this year. They have also begun distributing Daisy milk and fla vored milks, and Meadow Gold fruit juices.

Bruce Flynn