PETpla.net Insider 03 / 2013

BOTTLING / FILLING 30 PET planet insider Vol. 14 No. 03/13 www.petpla.net Over the decades Lao Brewery has enjoyed a consistent growth in sales. The company believes it will overshoot the two-million mark in 2012, with sales of 2.2 million hectoli- tres forecast for this year. “We’re reck- oning on an average yearly plus of 12% in the beer segment in the next few years as well”, claims Kissana Vongsay, the Managing Director of Lao Brewery Co., Ltd.,. “Where bot- tled water and alcohol-free beverages are concerned, we’re basing our cal- culations on a rise of 30%. However, this is founded on the assumption that annual sales levels will be compara- bly lower, with currently 790,000hl for water and 400,000hl for soft drinks.” Beer In Laos, beer is generally a bever- age that has a certain luxury to it. A 640ml bottle of Beerlao Classic, for instance, costs € 0.80 in retail outlets. Considering the Lao people’s rela- tively low annual income, it’s quite astonishing to learn that even at this price the average yearly consump- tion of beer per head is 30l and rising, with this figure an incredible 83l in the capital of Vientiane. The Beerlao Classic brand is especially popular, accounting for about 96% of the brew- ery’s total beer sales. Other products in the Beerlao range are Gold and Dark. Like Classic, Gold contains 5% alcohol per volume. With its higher alcohol content of 6.5%, the third beer in the Beerlao range, Dark, is mainly drunk by tourists. The brewery also promotes a beer in the lower price segment called LaneXang. The brewery currently exports Clas- sic and Dark to 16 different countries, including China, Vietnam, Cambodia, Thailand, the USA, Japan, Australia, New Zeeland, Germany, France, and Sweden. At present exports contribute 1% to Lao’s total beer sales. However, in the future export growth is to be pri- marily targeted at the bordering Asian countries. Bottled water trends in Laos At the moment there are no export plans for bottled water. Bottled water is a luxury good for the local populace, who use boiled tap water for daily con- sumption. Yet for reasons of health and hygiene, the trend – for those who can afford it - is more and more towards bottled water. The per capita consump- tion of bottled water in Laos is currently 19l/a. Lao Brewery recognised the trend for bottled water early on, adding this product to its portfolio in 2000. At that time the per capita consumption was still under 1l/a. In 2005 annual water sales at the company were just 76,000hl – and thus less than a tenth of today’s sales volume. By 2007 this figure had risen to 227,000hl. With yearly rates of increase of around 30% the trend has experienced a sharp upswing in the past few years. States On its PET line Lao Brewery has opted for a monoblocked stretch blow moulding/filling/capping system in the shape of an InnoPET BloFill. Lao Brewery goes for water with a KHS turnkey line A Laotian water festival Based on an article by Werner Gessner*and Gerhard Schmitt** * Manager of Market Zone Asia Pacific, KHS GmbH, Singapore. ** Sales, Market Zone Asia Pacific, KHS GmbH, Singapore. The largest brewery and prime water and soft drinks bottler in Laos, Lao Brewery Co., Ltd., recently invested in a new turnkey PET line for water from KHS. Headquartered in the capital of Laos, the company holds a staggering 98% share of all beer drunk in Laos. Their market share for bottled water is 60%, and for soft drinks 70%.