Red Stripe's Brewery Investment Positions Brand for U.S. Growth
WHITE PLAINS, N.Y. — Red Stripe's $16-million investment in its brewery has set up the beer brand to grow in the United States and globally.
Since Heineken acquired a controlling stake of Red Stripe Beer in 2015 and returned production back to the brand's Jamaican homeland in 2016, the company has embarked on a 10-year investment plan dedicated to building Red Stripe's position as a global brand.
Part of the plan included a new production line dedicated exclusively to export markets at its brewery in 2017. The move boosts Red Stripe export production to 26,000 cases a day and more than 5 million cases a year.
It also allows for future expansion of the brewery up to two times its current capacity. The new hi-tech line is powered by liquefied natural gas, reducing the brewery's fuel usage.
"The long-term investment in Red Stripe is monumental. In addition to greater capacity, Red Stripe's investment will significantly improve service to its export markets and delivers on the brand's commitment to making a positive environmental impact," said Charles Littlefield, general manager, Five Points Trading Co.
The plan also accounts for positive growth of U.S. and global volume demand to increase local raw materials sourcing.
"Increased demand means hundreds of new jobs for Jamaican farmers and a boost to the Jamaican economy," Littlefield said. "Although Heineken has a global footprint, it remains a family-owned company that is dedicated to supporting the local economies where its brands are brewed. Developing a plan that benefits Jamaica, its people and the environment over the long term was integral to the strategic planning process."
U.S. growth will be a focus this year, according to Andrew Anguin, senior marketing manager, Caribbean Imports for Five Points Trading Co.
"The changes at the brewery will have a significant impact in the U.S. market," Anguin said. "We are gearing up for an aggressive 2018 hyper-local growth plan in the U.S., concentrating efforts and resources against the greatest local market opportunities where current and high potential Red Stripe consumers live.
"The new hi-tech production line in Jamaica guarantees we can consistently deliver the best quality, freshest Red Stripe beer on a timely basis in the packs our consumers demand. This is critical to the future success of Red Stripe here and on the global stage," he added.
Red Stripe is imported in the U.S. by Five Points Trading Co., Heineken's new venture aimed at incubating a range of the company's emerging global brands back in-house in the U.S., while growing then through the resources of the company's established distribution network.
White Plains-based Five Points Trading is the official U.S. importer of a range of Heineken's emerging global beer brands including Red Stripe, Tiger, Birra Moretti, Affligem Belgian Blonde, Murphy's Irish Stout, Prestige and Cerveja Sagres.