Red Stripe commissions new export line Powered by LNG and Targets Increased Production

Red Stripe Jamaica in December launched its new Production Line 8 that will grow the brewery’s capacity to one million beers per day, powered by liquefied natural gas (LNG).

The new line will nearly triple the plant’s capacity which totalled 375,000 bottles a day prior to the expansion.

Red Stripe’s US$18-million investment in the new line is meant to grow distribution of domestic and international volumes for the company that was acquired by international beer giant Heineken in 2015. However, the beers rolling off Line 8 are all designated for Red Stripe’s export market. Line 5 produces for Jamaica‚Äôs domestic consumption.

The new Line 8 will allow the brewery to produce up to 26,000 cases per day or one million bottles of the Jamaican beer for the domestic and international markets.

“The challenge now is for our sales and marketing team to make it happen,” said Ricardo Nuncio, Managing Director of Red Stripe Jamaica.

The company’s top export markets are the United States and Canada, with two million and 700,000 cases in annual shipments, respectively. As at July 2017, the company recorded 15 per cent market growth in the American focus cities of Miami, Tampa, Orlando and Atlanta.

“In early 2016, Red Stripe entered Australia, Dubai and Brazil and there’s robust brand building in those countries. We’re also moving to put down our roots in Africa and Russia, following successful testing,” Nuncio said in a press release issued at the commissioning ceremony.

The beer plant, built in 2014, recently switched over from propane to LNG as its energy source. The LNG facility was developed for Red Stripe by American company New Fortress Energy. The switch is expected to save Red Stripe more than J$110 million in energy costs in the first two years of operation.

“Red Stripe will be the model for the whole region to follow. By using natural gas, Red Stripe will save J$43 million in the first year and J$73 million afterwards,” said Sam Abdalia, Vice President project development at New Fortress Energy. Abdalia described the project as the largest of its kind in the Caribbean.

Line 8, which involved infrastructure changes and training for employees, took 12 months to complete. It frees up the existing production line to focus solely on domestic volumes and is designed to produce new Red Stripe Local and Dragon Stout in six-pack cartons.

Written By
More from Admin

First Citizens Research & Analytics

Expert Advice on Financial and Economic Matters The Research & Analytics team...
Read More