Logo of Phnom Penh Post newspaper Phnom Penh Post - More cans for a thirsty market

More cans for a thirsty market

A man holds a can of Cambodia beer in Phnom Penh’s Wat Botom Park yesterday.
A man holds a can of Cambodia beer in Phnom Penh’s Wat Botom Park yesterday. Eliah Lillis

More cans for a thirsty market

Khmer Brewery, the producer of Cambodia beer, inaugurated a beverage can production plant in the capital last week under a joint venture with American metal packaging products company Crown Holdings Inc, a company executive said yesterday.

Peter Leang, president of Khmer Brewery, confirmed a foreign media report that the Phnom Penh plant began operations last week. However, citing a nondisclosure agreement with Crown, he could not provide further details of the location of the plant, its investment capital, production capacity or the joint venture agreement.

According to a report in Asia Food Journal released yesterday, Crown initiated the discussion for a joint venture with Khmer Brewery, citing long-term potential growth in beverage sales.

“We can offer manufacturing expertise and product innovation to Khmer Brewery as they grow their business in the future,” said Timothy Donahue, president and CEO of Crown Holdings, according to the report.

The same report quoted Leang as saying that through the joint venture, Khmer Brewery is now able to get a secure supply of beverage cans with international standards and learn solid management practices.

NYSE-listed Crown Holdings Inc said in its 2015 annual report that its Singapore-based subsidiary, Crown Asia Pacific, had begun construction on its third beverage can plant in Cambodia and was expected to commence operations during the second quarter of this year.

The plant, whose production capacity was not disclosed, will support increasing consumer demand for beer packaged in cans in the market, the report said.

Crown first entered the Kingdom in 2007 with a single line for 330 millilitre two-piece aluminium cans with an annual capacity of 500 million. In 2012, the company announced that it would begin construction on a second factory set to be completed in 2013, with an expected to production capacity of 725 million aluminium cans a year.

Robert Bourque, president of Crown Asia Pacific Holdings, said yesterday that the rising demand was a significant factor in the company’s decision to invest into a third plant.

“Cambodia has a growing demand in beer, energy drinks and RTD [ready to drink] teas segments,” he said. “Due to metal packaging’s benefits such as a strong barrier against light and heat, light-weight as well as being 100-percent recyclable, application of metal packaging into this growing product portfolio in the local market is something to look forward to.”

Independent economist Teng Delux said the expansion of manufacturing would reduce the Kingdom’s dependency on beverage can imports from other countries.

“The demand for cans is increasing because it is a convenient item for consumers,” he said.

“Beverage production in Cambodia will continue to develop with more products besides beer, which will push demand even further.”

An earlier version of this article incorrectly attributed the comments of Robert Bourque, president of Crown Asia Pacific Holdings, to the company's PR representative.

MOST VIEWED

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration