Iconic brewer looking to make a social impact in Papua New Guinea
SP Brewery’s beers have been sold in PNG since 1952, almost a quarter-century before independence. Now the company is looking to invest in social change alongside business growth opportunities, its Managing Director Ed Weggemans tells Business Advantage PNG.
SP Brewery’s Ed Weggemans. Credit: BAI
As a subsidiary of the Heineken Group, South Pacific Brewery is signed up to its parent company’s goal of achieving net zero carbon emissions by 2030.
In 2026, SP Brewery completed upgrades to its Lae production facility, including installation of solar panels on the roof and expansion of warehouse capacity, according to Managing Director Ed Weggemans.
“We’ve been part of the country growing up and we plan to be here to celebrate the nation’s 100th anniversary of independence.”
Lae is the larger of SP Brewery’s two production facilities, with the other being situated in Port Moresby.
In addition to helping meet net-zero commitments, Weggemans says the upgrades will give the business the ability to meet any future increase in demand – including any flow-on boost from a final investment decision on the Papua LNG project.
Room for growth
There is certainly room for the market to grow, with the average Papua New Guinean consuming only 5 litres of beer per year, according to a study commissioned by SP Brewery.
In comparison, the average Australian adult consumes about 88 litres of beer each year, according to the most recent available data.
“With the current demand [in PNG], we could probably produce all the beer we require in one brewery,” Weggemans says. “Between the two breweries we have more than enough capacity.”
Working against any growth plans is the continued depreciation of the kina, which has fallen about 17 per cent against the US dollar since early 2023.
“Many of our raw materials are not available in Papua New Guinea, which means imports have to be paid for in foreign currency, which is raising the cost of production,” says Weggemans.
“It creates a crunch.”
Another concern expressed by Weggemans is competition from producers of cheap spirits that appear to be avoiding the excise duty on alcohol.
SP Brewery presented research to Prime Minister James Marape that showed products being sold on supermarket shelves at a lower price than the applicable excise duty.
To its credit, he says, the government has begun to scrutinise these manufacturers.
The social brew
In addition to its business goals, SP Brewery is investing in its social impact through a campaign against gender-based violence.
The campaign, which was launched in early February, will reach television and radio broadcasts as well as billboards and limited-edition beer packaging.
Ultimately, the goal is to create a “generation of change,” in Weggemans’ words.
“As a national iconic brand, we are in a unique position to contribute. We’re communicating a different way to deal with these situations, choosing to react differently. It’s about engaging with the young people,” he says.
Looking forward, Weggemans says the brewer is also planning innovations for products such as SP Lager, a brand that has existed since before PNG’s independence in 1975.
“We’ve been part of the country growing up and we plan to be here to celebrate the nation’s 100th anniversary of independence,” he says.
This piece was first published in the 2026 edition of the Business Advantage PNG Annual. You can read the full issue here.
