Page 58 - FoodFocusThailand No.161 August 2019
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                                                                              Started from Scratch...

                                    To Be the Special “Cambodia Beer”

                                                      The First 100% Khmer Owned Brewery



            The alcoholic beverage industry in the ASEAN region is growing strongly in the past few years, especially in
            the beer industry that has grown 6% from 2013-2018. However, the growth of the beer market in Asia Pacific
            region has started to slow down by 1% in the same period. This trend has showed that the ASEAN economy is
            tending to be more urbanized. The beer consumption which reflects the behavior of higher-income population
            is also increasing dramatically. As a result, it is not surprised that we can see many faces stepping into the beer
            industry in ASEAN both local and international companies. In this visit, Food Focus Thailand Magazine will bring
            all readers to know Khmer Beverages (KHB), a giant company in Cambodia that turns themselves to the beer
            industry. We will see how the company that is a 100% Khmer owned brewery and started everything about beer
            from “zero”, has push themselves and their famous “Cambodia Beer” to be the number one beer in the country.

               Khmer Beverages is a subsidiary of Chip Mong that has been   choice in Cambodia. It was in early 2017 that Khmer Beverages then started
             in the construction, real estate and textile industries as well as   to abandon its one-brand-only strategy and launched a dark stout. This was
             familiar with the food business, for instances, sugar, cooking oil and   the third and biggest expansion step that again the management opted for
             snacks, for a long time. Mr.Peter Leang, Board Member of Khmer   German solutions . With completion of all new kits in 2017 with the non-
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             Beverages has told us about how the company got into the beer   alcoholic beverage line separately installed, the company can still well
             business that …                                   maintain the highest standard and quality of both alcoholic and non-alcoholic
               Chip Mong has started a new business by being an importer for   beverages as usual.
             beer from abroad for selling in domestic market. However, the   Currently, the beer products produced besides the “Cambodia Beer”
             outcome has not so successful as expected due to both price and   include Barrley Black Extra Stout Beer and Kudo Lager Beer. Meanwhile,
             popularity factors conditions which are very varied. Imports for sale   the non-alcoholic beverages include Wurkz Energy Drink, Ize Cola, Ize
             are; therefore, quite a problem. Yet, with the high determination   Lemon, Fruit Punch, Joop Asian juice, and Cambodia Water have also been
             while it has foreseen the opportunity to engage the local beer market   developed. All of which are well-received in Cambodia’s market. The total
             in Cambodia, Chip Mong decided to open Khmer Beverages in   production capacity rose up to 7 million hectoliters per year divided to the
             2009, which is ready to build a brewery for beer production to serve   beer output for 5 million hectoliters and the non-alcoholic beverage for
             the domestic market right away. In 2011, the first factory was   2 million hectoliters, making Khmer Beverages as the beer market leader
             completed and ready for production. At that time, there are two   in Cambodia.
             breweries owned by two European owners while Khmer Beverages,   Khmer  Beverages’  expectations  are  significantly  higher  for  the
             the new comer, is 100% Khmer owned.               diversification of its product range to cover soft drinks as well. Entering the
             Started from Zero…                                soft drinks market is yet another major milestone for them. The company at
                                                               that time was also targeting a market share of 45% to be reached by 2022 .
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               With the passion in beer but did not have any experience in the   It is not least the 29 exclusive beer distributors located all over the country
             field, Mr.Peter decided to explore the beer industry at the Research   who will make sure this benchmark is attained. “Having a good team is
             and Teaching Institute for Brewing (VLB) in Berlin where he   extremely important. We look after our customers, we want to learn from
             completed his apprenticeship as a “brewmaster”.   them and improve our performance on a daily basis,” is how the company
               By the end of 2011 the first brewery construction phase was   emphasize for distribution partners. Likewise, the company also expects
             finished and operated. “We launched our Cambodia Beer brand to   precisely the same from its suppliers. “You can buy good technology, but
             the Cambodian market on the first day of 2011. The date was   you can’t buy a good relationship with your partners .”
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             deliberately chosen to stress our goal of becoming number one on   Chip Mong wouldn’t be what it is today if those responsible didn’t come
             the local beer market” Mr.Peter stated in the article “From Cambodia   up with a steady stream of fresh ideas. The Khmer Beverages project has
             for Cambodia ”                                    hardly been successfully completed, and now something new is planned
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               Khmer Beverages was then ready and began its production with   after gaining some valuable experience with products based on water, a
             three German turnkey lines : a canning line, a glass line, and a keg   production operation for whiskey in the vicinity of its brewery which expects
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             system. Incidentally, just six months after starting up Khmer   to invest around 40 million USD . For as the businessman says: “People
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             Beverages is already Cambodia’s number two brewery. Further   aren’t going to stop drinking.”
             increases in capacity are planned up to 2017 when the company is   At present, Khmer Beverages is not only the number 1 beer brewer in
             reckoning on an output of four million hectoliters of beer.  Cambodia, but also produces a variety of non-alcoholic beverages. Although
             Over 90% Sold in Cans                             the major market is still in the domestic, the proportion of exports and
               Right from the start, Khmer Beverages relied solely on the   overseas marketing have increased considerably because this brewery is
             Cambodia brand, a pale lager with 5% abv. Over 90% of it is   well equipped with state-of-the-art technology and its high production capacity
             nowadays filled in cans. Beer in cans is well-known and a popular   will be able to serve much higher demands in the future.

             58  FOOD FOCUS THAILAND  AUG   2019


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