Sri Lanka: Carlsberg to brew and supply beer to Sri Lanka until Ceylon Beverage Holdings’ brewery is out of commission after floods

Sri Lanka's Ceylon Beverage Holdings Plc said its partner Carlsberg will brew and supply its brand with their factory expected to be out of commission for three months, after floods, EconomyNext reported on June 27.

The firm, which sells Lion and Carlsberg brands in Sri Lanka said it carried only about 15 days of finished product.

Beer demand has fallen after tax increases last year, driving more people to toddy and hard alcohol.

Demand has also fallen due to heavy rains.

Carlsberg Asia will brew the beer at four locations and ship the products to Sri Lanka.

"..Since the brewing process itself takes 15 days, raw materials need to be sourced & brands shipped to Sri Lanka, it will take some time before products start flowing back into the market on a regular basis," Chief Executive Suresh Shah told shareholders.

Though floods were an annual occurrence, this year the water levels had been higher and it had damaged the factory and its electronic circuitry.

These are custom made and took time to produce and arrive in Sri Lanka. The company said damage is still being assessed but it had flood cover and also business interruption insurance which would protect cashflows.

Lion said it had carried out relief work in the area during the floods. Some of its employees, whose houses were also damaged had also continued to work and support the efforts, Shah said.

27 June, 2016