Lao Brewery Company

Lao Brewery Company Ltd
Industry Alcoholic beverage
Predecessor Brasseries et Glacières du Laos
Founded 1971
Headquarters Vientiane, Laos
Products Beer
Owner Lao government, Carlsberg Group
Website Official website
A bottle of Beerlao Lager.

The Lao Brewery Company Ltd. (LBC) (ບໍລິສັັັດ ເບຍລາວ ຈໍາກັດ Bolisad Beerlao Chamkad) is a producer of beer, soft drinks, and bottled drinking water in Laos.[1] It is headquartered in Vientiane.

History

Founded in 1971, the Lao Brewery Company was at that time a joint-venture between French and Lao businessmen. It took up production in 1973 with a capacity of 3 million litres per year.[2] The company, then called Brasseries et Glacières du Laos (BGL), marketed Bière Larue for the local market and "33" export for export (to countries in Indochina).

With the establishment of the Lao PDR in 1975, the company was nationalised and obtained the status of a state-owned enterprise.[2] It marketed its beer first under the Bière Lao, brand then (early 1995) as Beerlao. Their brand "33" export was marketed till 1990, and Bière Larue till 1995.

In the wake of the 1986 economic reform program, which initiated a transition from central planning to a market economy and the launching of the New Economic Mechanism (NEM), the LBC in 1993 entered into a joint venture: 49% Lao government-owned with 51% foreign investment (Loxley: 25.5%[3] and Italian: 25.5%) with a production capacity of 20 million litres per year and employing 300 workers.[2]

In 2002, the foreign investors withdrew their shares from LBC, and the Lao government regained total control of the company. Subsequently, Carlsberg and TCC, a Thai company which is Carlsberg's partner in Thailand, each acquired a 25% share in LBC. The remaining shares are still held by the government of Laos. The maximum capacity at that time was 60 million litres.

In 2005, the company increased its annual production capacity to 85 million litres, and in 2007 to 160 million litres. It now has about 500 employees. Recently, a new factory was opened in Pakse with a capacity of 100 million litres per year.

In 2005, ownership changed once again with the Lao government still owning 50% and the remaining 50% owned by Carlsberg.

All machinery is imported from Europe. The company processes locally grown rice and imports malted barley from France and Belgium, and hops and yeast from Germany.

Products

The company produces and markets 3 types of beer under the Beerlao brand (Beerlao Lager, Beerlao Gold, and Beerlao Dark), Lanexang lager and locally brewed Carlsberg lager. It also produces and markets bottled drinking water under the Tiger Head brand.[2][4]

LBC claims it has a 99% local beer market share.[5] Beerlao is exported to a dozen countries, but the export figures are still modest, though increasing.

Beerlao products have been awarded several times with Gold Quality Awards at the World Quality Selections, organised yearly by Monde Selection.[6]

External links

References

  1. ↑ "Lao Brewery Co". Lao Brewery Co. LBC. Retrieved 3 October 2014.
  2. 1 2 3 4 "International Success of Laotian Beer". World Intellectual Property Organisation. Retrieved 23 May 2014.
  3. ↑ Annez, P.; Sarakosas, S.; Vandenberghe, D. (May 2001). "Loxley: the development of the Lao Brewery Company" (PDF). ASEAN Business Case Studies No 20. ASEAN. Retrieved 3 January 2015.
  4. ↑ "98% Market Share for Beer and 60% for Water". Birkner GmbH & Co. KG. 25 September 2012. Retrieved 3 January 2015.
  5. ↑ About Beerlao
  6. ↑ LBC reported growth of 19% in first half of 2010, Current News
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