Q: At the Carlsberg Export and License Annual Conference 2024, Lion Brewery won the Best New Launch Award for the Somersby brand… what strategies ensured its success in the market?

A: This award recognises our exceptional performance in overcoming country specific challenges, as well as the strength of our processes and systems. We were competing against global players and larger markets without similar dark market restrictions.

When new products are introduced to the Sri Lankan market, the primary risks are consumer acceptance and repeat purchases. We overcame these challenges through flawless execution, attention to detail and a commitment to quality.

While we operate at scale, we stay agile by using seeding strategies to establish smaller brands such as Somersby prior to leveraging our broader distribution capabilities. Our processes and systems, from trade marketing fundamentals to distribution, ensure our visibility assets meet the highest standards.

We also have some of the best talent in the sector. They are leaders in their work, committed to delivering leadership results.

Madhushanka Ranatunga
Chief Sales and Marketing Officer

Q: Winning the Excellence Award at the FMCG Asia Awards demonstrates Lion Brewery’s commitment to innovation through bold decisions and strategic risks. How does the company approach these dynamics to drive market leadership especially amid challenging macroeconomic conditions?

A: The award recognised us for our resilience and excellence, a distinction that sets us apart from other regional players. We continued to invest heavily in our innovation capabilities, starting with the capacity to manufacture smaller volumes.

We also have dedicated teams managing newly launched products across our Innovation Centre, brand marketing and trade marketing functions. This gives us a sharper focus on market niches while the mainstream business operates separately. The Sri Lankan market also presents unique challenges compared to the broader region; and therefore, we have to adapt continuously and find smarter ways to drive growth.

In most developed markets, ‘on premise’ consumption exceeds 50 percent where drinking beer is deeply ingrained in the culture. In Sri Lanka, 80 percent of our volume comes from ‘off premise’ channels. Lion’s category leadership is essential in meeting these challenges and transforming the sector for the future.

We also play a significant role in the broader economy as the second largest taxpayer in the alcoholic beverage (alcobev) sector and the industry’s largest exporter.

Through Carlsberg’s equity stake in the business, we have attracted foreign direct investment (FDI) to Sri Lanka, reinforcing our position as a key contributor to the sector.

Q: Lion Ice won Product Packaging of the Year at the FMCG Asia Awards… how does this design enhance the consumer experience while strengthening the Lion brand’s values?

A: In a dark market, packaging becomes a key asset for success. Our strategic approach begins with secondary research to analyse global trends followed by primary research to assess consumer preferences, their evolving needs, and responses to new product ideas and packaging designs.

With these insights, we define how we can differentiate and gain a competitive edge in the market. For example, Lion Ice was targeted at a younger, more affluent consumer with an active and healthy lifestyle. We then consider the overall brand architecture and how the brand would be positioned, named and designed.

Lion Ice leverages the equity of the Lion master brand – yet, we sought a fresher and a more modern look through the packaging design.

We introduced a sleek can, a first for the market, and a transparent pint bottle that has been very appealing to the target audience.

Q: How does Lion Brewery’s leadership and people development strategy encourage a culture of growth and sustained excellence as evidenced by winning Gold at the People Development Awards 2024?

A: Leadership is a core value of Lion’s employer brand. The flat organisational structure and highly matrixed system reduce supervisory roles, and empower each person to take ownership of their work and contribute as a team player.

To develop every individual’s ability to impact the larger organisational system, we help identify their leadership skills and styles, and bring them to life through behaviours and actions. Across functions, 80 percent of our key talent participates in learning and development programmes that are primarily on-the-job interventions rather than traditional classroom training.

This practical approach ensures that they develop competencies for their current position, as well as the capacity and capabilities for their next role. We also champion a value driven framework that encourages people to work beyond their job specific tasks.

This type of decision making has allowed important ideas to work their way up the organisation including from the field level. All employees are empowered to challenge the status quo and share their viewpoints with confidence. All such measures are a large part of Lion’s culture that sets us apart.

 

Q: Winning Silver at the Presidential Environment Awards 2024 is a prestigious honour… how does this recognition reinforce Lion Brewery’s commitment to sustainability and environmental conservation?

A: The Lion brand is the perfect companion for gatherings with friends, to unwind in nature, or celebrate the great outdoors after a hike or trek. We are deeply connected to nature and the environment, and our practices reinforce our leadership in environmental sustainability.

Water is a vital resource in the brewing sector and we operate one of the best wastewater recycling plants in the country. By reusing rinsing water in non-product operations, we reduce waste and our impact on earth.

Lion has also invested in converting biogas generated from our wastewater treatment into energy for our boilers, helping to reduce our carbon footprint. Over 90 percent of our bottles are reused with a significant portion containing recycled glass, contributing to a circular economy.

Additionally, we actively support the Melting Point initiative, which upcycles aluminium cans into souvenirs while supporting the informal economy. By converting waste into value and continuously innovating, we continue to lead by example in environmental sustainability.

Q: Lion Brewery received a special commendation at the prestigious National Award of Excellence for Best Supply Chain Practising Organisation, a significant achievement in supply chain management… what key factors, particularly in logistics and operational excellence, have been instrumental in driving this success?

A: This recognition strengthens Lion’s position as a leader in supply chain excellence. Through a combination of strategic insights, technical leadership and operational efficiency, we maintain superior quality and stay resilient in the face of market fluctuations.

A major factor in our progress has been the integration of digitalisation and analytics, which enables us to make data driven decisions that increase efficiency. We improve operational excellence through best practices in vendor and inventory management that ensure a resilient and responsive supply chain, even in challenging environments.

One of our stand out achievements is logistics optimisation. By using large primary distribution trucks, we have substantially reduced transport costs for each bottle in every crate, improving cost-effectiveness while minimising our environmental footprint.

We collaborate with the Carlsberg Group and other international business partners whom we benchmark for best practices to improve our processes continuously, and stay ahead of the sector locally.

Lion Brewery is among Sri Lanka’s top capex investors in the manufacturing sector with a state-of-the-art brewery in Biyagama producing world renowned brands such as Carlsberg, Somersby and Guinness under licence. This reflects our world-class manufacturing capabilities and commitment to the highest industry standards.

 

Telephone 2465900 | Email info@lionbeer.com | Website www.lionbeer.com