Of 18 Abstract
Total Page:16
File Type:pdf, Size:1020Kb
Page 1 of 18 Abstract Asia Pacific Breweries (APB) began more than 70 years ago as a result of a joint venture between Heineken Breweries, a European company seeking to expand into new markets, and Fraser and Neave, a leading soft drink manufacturer. Together, the Malayan Breweries Limited (MBL) was created as an Asian brewery. Asia Pacific Breweries, the name given in 1990, is well known for its global marketing efforts and internationally awarded beers. APB’s signature brand is Tiger Beer, and is sold not only in Asia, but the beer also has a niche market in the United States and UK. APB is listed on the Singapore stock exchange under (A46). Page 2 of 18 Table of Contents Introduction…………………………………………………………………………..4 History of Acquisitions ………………………………………………………..4 Operations……………………………………………………………………..5 World Renowned Taste - APB's Beer Brands……………………………………...6 Tiger Beer………………………………………………………………….......6 Tiger Beer Accolades and Awards…………………………………………….6 Heineken………………………………………………………….……………7 Anchor Beer……………………………………………………………..……..7 Baron's Strong Brew…………………………………………………………...8 ABC Extra Stout………………………………………………………………..8 Tour of the Brewery…………………………………………………………………..9 Logistics………………………………………………………………………..9 Where it all begins……………………………………………………………..9 Packaging Facility…………………………………………………………….10 Unwinding……………………………………………………………………..12 Community & Environmental Impact……………………………………………...12 Creativity Development………………………………………………………..12 Humanitarian Causes………………………………………………………….13 The Future of APB……………………………………………………………………14 Expansion in Laos……………………………………………………………..14 Indian Market………………………………………………………………….15 Forward Looking………………………………………………………………15 Key Questions………………………………………………………………………...16 References…………………………………………………………………………….17 Page 3 of 18 Introduction The year was 1931, and the company was Malayan Breweries Limited (MBL), an Asian brewery that was the spawn of a joint venture between Heineken and Fraser & Neave. Seventy-seven years later MBL is still brewing award-winning beers as Asia Pacific Breweries (APB). APB, known for its variety of beers and acclaimed internationally for its award winning brews, is a company that defines excellence in the products they create. Enclosed you will find the story of a company's humble beginnings to the multi- national mega-conglomerate that oversees a portfolio of over 40 beers and brand variants. The APB group operates an extensive global marketing network that spreads across 60 countries and is currently supported by breweries in 12 countries. APB has been consistently ranked as one of Asia's top companies by the Far Eastern Economic Review, as well as by KPMG for consistently delivering a value added product to customers and shareholders (5a). History of Acquisitions In 1932, MBL completed construction of a new brewery where Tiger Beer was introduced. Tiger Beer, a rich pale lager known for its smooth taste was the beginning of several other acquisitions and investments that would define MBL as a respectable and successful company. As strong demand for Tiger Beer grew the brewery was forced to expand in 1937 and again in 1939. MBL's huge success resulted in the 1941 acquisition of the Archipelago Brewing Company, which accommodated demand, launched into new markets and gave the company a new brand, Anchor Beer. Although demand reduced temporarily during World War II, MBL’s focus was to continue its international growth pattern. In 1958, MBL purchased South Pacific Brewery of Papua New Guinea; thus resulting in another premium beer, SP Lager, being added to MBL's list (9). Until Page 4 of 18 1990, MBL had dominated the Malaysian and Singapore markets and decided to adopt a new branding strategy to enter the premium beer category. This effort led to high advertising spending in long running television series and exciting cinema-style advertisements. Also, in 1990, MBL took on the name Asia Pacific Breweries (APB). During the 1980s, ABP decided to partake in a diversification initiative to commercially combine its Anchor and Tiger Beer breweries. The result was a state-of-the art brewery in Tuas (Singapore). Attempting to position itself into China, APB purchased a controlling amount of shares in Shanghai Mila Brewery, which developed and launched a Chinese beer called Reeb Beer. This beer's success helped create two more breweries in the early 1990’s. One of its last major pushes to move internationally during the 1990s was garnering a 27% stake in DB Group for $245 million. The DB group, formally known as Magnum, operated a brewery and a wine-making facility with holdings in hotels and pubs. Under the influence of APB and Fraser & Neave, however, the DB Group gained a 54% share of the company displaying its growth strategy (9). Operations The group's operations are supported by a network of 14 breweries throughout Singapore, Thailand, China, New Zealand, Papua New Guinea, and Indochina countries. They brew such brands as Tiger Beer, Heineken, Anchor, Baron's Strong Brew, ABC Extra Stout, Guinness Foreign Extra Stout, Reeb, Tui, DB Draught, Export Gold, Monteith's, Touche, SP Lager and Amber Stout. In May 2006, Anheuser-Busch was appointed the importer of Tiger Beer in the USA. The tie-up has since given APB access to a strong network of 500 wholesalers and Tiger Beer is currently traded in 48 of 50 states in the US. Page 5 of 18 World Renowned Taste - APB's Beer Brands Tiger Beer Tiger Beer is available in over 60 countries worldwide including Europe, USA, Latin America, Australia and the Middle East. In the western markets such as the UK and USA, Tiger Beer has been embraced as a leading premium lager that hails from the Far East. Currently this authentic Singapore brand can be found in over 8,000 premium bars/clubs and distribution outlets in UK's major cities such as London, Manchester, Leeds, and Newcastle (5a). Tiger Beer Accolades and Awards Over the years, Tiger has received scores of acclaim from the world's leading newspapers and journals. The Asian Wall Street Journal rated Tiger "the best among 18 brands". The London Sunday Times singled it out from a field of 250 brands for its "balance, clean taste, and aroma". The New York Times attributed Tiger's success to its "carefully brewing process". The Washington Magazine, in a blind taste-test involving several hundred brands, unanimously voted Tiger as "positively the best beer in the world". In 1994, the Tiger Brewing Company out-shined the competition and redefined the brewing standards in Asia by winning the prestigious ISO 9002 certificate by Lloyds of London. This was the first time an Asian brewery was granted this award and becoming one of the only few in the world to be a part of this elite fraternity of beer makers. APB continued on to win the 1998 Brewing industry International Award (BIIA), considered the "Oscars of Beers". Tiger Beer has become such a recognizable and Page 6 of 18 much sought-after import premium beer in UK that it was named UK Cool Brand Leader each year from 2004 to 2006. Tiger Beer also topped a list of 50 beer brands and was crowned the "NUTS" Beer of the Year 2004. That same year it won a gold medal at the World Beer Cup for European Style Pilsner. In 2005 it won a silver medal for in the premium Lager category at the Wine and Spirit International Beer Challenge. In total, Tiger Beer's award-winning taste has picked up over 40 internationally acclaimed accolades and awards since 1939 (5a). Heineken Established in 1864, Heineken is one of the APB staple beers brands. It is embraced by drinkers in over 170 countries and enjoys the widest international presence of any international beer brand. Distinctive for its green bottle, its exclusive image finds rapport with consumers who enjoy cutting-edge music experiences and premier sporting events. It is the flagship product of the company and is made of purified water, malted barley, hops, and yeast and is force carbonated. Heineken beer is a Dutch beer, brewed by 40 breweries in 39 countries around the world (21a). Anchor Beer Anchor, APBs third main beer brand, was first brewed in Singapore over 70 years ago using German technology and brew masters. "The Smooth Pilsner Beer" branded beer is positioned in the market as a value-for-money product with a refreshing and crisp taste that appeals to drinkers in over 10 countries throughout Asia. In 1998, it was awarded the gold medal from at the Australian International Beer Awards (21). Page 7 of 18 Baron's Strong Brew Baron’s Strong Brew was launched in Singapore in 1997 and is regarded as "European to the last drop". Traditionally blended from the finest European hops and malt for a strong smooth taste, Baron's delivers a message of solid European heritage, along with high alcohol content. The packaging is distinctive in design, reflecting its premium image and quality. Golden amber in color, it is comprised of dried apricot, wet barley, and panettone which gives off a slight floral bath oil aroma. A round, frothy entry leads to a fruity medium-full body of fruit bread, praline, and peppery spice flavors. Finishes with a warm bread, sea salt, and honeyed herb fade of hops. This brew won the selection Mondaile gold medal in 2007 and the Brewing Industry International Awards gold medal in 1998 and 1999 (18). ABC Extra Stout APB's proprietary ABC Extra Stout reflects its core drinker's values and self-image. Appreciated for its full-bodied and robust taste, ABC is the leading premium stout in Cambodia. In conjunction with the Chinese New Year APB had introduced a ginseng infused version of their flagship ABC Extra Stout. Brewing manager, Tai Seng Kong, said "We felt that adding ginseng, a traditional Chinese herbal root known for its medicinal properties, would give a refreshing twist to the original version of the stout." It is black in color with decent brown head but has a sweet alcoholic nose with notes of roast, coffee and licorice.