History

South Pacific Breweries was floated as a company in 1952 by a group of local entrepreneurs in Port Moresby.

In December 1954, MBL bought 66% of the shareholding for £A 3 per (100, 000 shares) and further odd lots at a later date to bring the total shareholding to 80.5%.

Three years later, Guinea Brewery was established in Lae by the former General Manager and Brew master of SPB.

In 1964, shares in Guinea Brewery were bought by MBL to make it 100% subsidiary of SPB.

The shareholding on MBL and its interests in PNG was transferred to Pacific Holdings in 1957 for tax reasons as there was differing tax legislating by Papua and New Guinea at the date.

The early years saw little or no profit but, in November 1962, the United Nations resolved to raise the ban on alcoholic consumption by nationals on the grounds that it was unwarranted discrimination.

With the growth of sales and volume, four major extensions were made on the site of the Guinea Brewery at Lae, as this was the area that saw the greatest growth.

In 1969, some of the persons associated with the original float of SPB formed a new company and raised capital for the Territory United Brewery Ltd (TUBL) to be located in Port Moresby. TUBL was supported by the Asahi Breweries of Japan. Asahi withdrew a few years later and was replaced by Dan Miguel and Swan Brewery as Major shareholders. Swan Brewery in turn withdrew from the joint venture and, by 1976; San Miguel was left as the major shareholder.

The total beer market had been expending in the seventies due to the opening up of a country through communication by road and air, but it had reached almost saturation point which resulted in a fierce price war between SPB and San Miguel to secure viable throughput for their Breweries.

In February 1983, San Miguel, after lengthy negotiations in Singapore, agreed to be absorbed by SPB, with SPB buying their share capital at 10toea per share, and assuming San Miguel’s liabilities but taking advantage of their tax losses and offering a part profit sharing scheme for five years.

SPB then decided to modernize the original TUBL Brewery at the Gordon’s site and switch production from the original SPB site at Badili.

In 1985, SPB bought the Pepsi franchise from Burns Philip, and later built a new soft drink plant at Badili and modernize the Lae plant. At the same time, SPB began importing and marketing package milk and fruit juices from an associated company in Singapore.

SP Holding, as a company was established in 1973 as the local umbrella company owning SPB and its subsidiaries in PNG.

Bougainville Beverages Pty Ltd, whose main activities were the manufacture and distribution of non-alcoholic beverages and distribution of beer, was incorporated in 22 October 1970. However, due to sever civil disorder in Bouganville, the manufacturing operations ceased on 2 February 1990 and the distribution activities ceased in May 1990.

In 2000, SP Holdings Ltd made the decision to concentrate only on beer business. As a result it ceased producing non-alcoholic beverage including Pepsi and Schweppes.

In 2001, a major restructure was carried out in the group resulting in several companies (dormant) were amalgamated into SP Holdings Ltd, except South Pacific Brewery Ltd. After the resurrecting, SP Holdings Ltd was put into voluntary liquidation leaving only South Pacific Brewery. The shareholders of SP Holdings Ltd are now the shareholders of South Pacific Brewery Ltd.

South Pacific Brewery Ltd’s main business is now manufacturing and selling of beer.