Sri Lanka: Lion Brewery (Ceylon) Plc in talks with Diageo to license foreign brands

Sri Lanka’s Lion Brewery (Ceylon) Plc, the island’s top beer producer has initiated talks with UK-based Diageo Plc to produce international spirit brands under license, Chief Executive Rajiv Meewakkala was quoted as saying by EcononyNext on December 4.

Lion already has about 90 percent of the local market which is growing slowly and has also started exporting to boost the market.

Expanding into spirits will open up new market for the firm.

“One of the main things what we will be looking at is trying to manufacture the international brands locally, that means Vat 69, Smirnoff, all those international brands of Diageo,” Meewakkala said.

“So, we have started conversations with them and it’s positive. Now we are currently looking at the feasibility and the commercial feasibility, so whatever comes out will be in 26.”

Lion Brewery already license produces Guinness, a beer brand owned by Diageo. Expanding into spirits will take the firm to Gin, Brandy and Vodka segments.

Diageo also produces Scotch whiskies like Johnny Walker.

Lion Brewery has just commissioned a high tech brewery called the innovation centre that allows the firm to design and fine tune new beers targeting foreign markets and tourists.

04 December, 2024