SP Brewery toasts a brighter outlook

According to Managing Director Ed Weggemans (pictured), Papua New Guinea’s largest brewer, SP Brewery, witnessed a notable pick-up in 2022, with production volumes up 16 per cent and revenues rising even higher.

As well as consumers having more money in their pockets to spend, courtesy of higher global prices for agricultural commodities like coffee, vanilla and palm oil, Weggemans also attributes heightened demand to the 2022 national elections.

He expects the market to remain buoyant this year, but, in the absence of major upcoming events, he expects recent growth to cool somewhat.

Meanwhile, Weggemans expects increased costs entrenched within international supply chains, due to higher freight costs and the inflated costs of raw ingredients, to start trending downward over the next 12 months. Weggemans attributes the lion’s share of growth to the success of brewer’s economy brands, which have benefited from consumer thrift in the face of higher living costs. On the other hand, premium brands such as South Pacific Export lager were more directly impacted by lingering pandemic-era trading restrictions and liquor bans.

To celebrate the 70th anniversary of the company’s mainstream beer, SP Lager, in 2023, SP Brewery expects to put a lot of effort into promoting the brand this year.

Meanwhile, there are plans to introduce a new flavour to SP’s Chiller range of fruitbased beers, and it is continuing to build demand for Heineken 0.0, a no-alcohol beer.

While SP continues to support the PNG Golf Open and the PNG Olympic Committee, it is directing more advertising spend to sports that appeal to its target market, notably rugby league. It recently recommitted to naming rights sponsorship of the PNG Hunters and will continue to sponsor PNG’s national competition.

BY PAUL CHAI & STAFF WRITERS