Pago Pago, AMERICAN SAMOA — Samoa Breweries Ltd (SBL) has confirmed a Memorandum of Understanding (MOU) has been reached with Charlie Va’ai and Beatrice Ott to produce Vailima Beer in Samoa.
This is outlined in a statement issued by the SBL after its earlier announcement in June to move production from Samoa to Fiji, evolving the local operations into a sales and distribution business.
“The MOU foresees that SBL will grant Mr Va’ai, Ms Ott and family an exclusive license to produce the Vailima brand in Samoa for the local Samoan market.
“Samoa Breweries Limited will continue to sell and distribute Vailima alongside Samoa’s favorite non-alcoholic beverages while the brewing of Vailima will be done locally by Mr Va’ai and Ms Ott.
“It’s always been our strong preference to keep the production of Vailima in Samoa,” says Paradise Beverages Limited (the majority owner of SBL) General Manager Mike Spencer.
“We are thrilled to be working on a solution where the brewing of the iconic Vailima brand would remain in Samoa and be looked after by people who are incredibly passionate about the brand.”
According to the statement, until Mr Va’ai and Ms Ott are ready to produce locally on the island, the product will be produced offshore using the same methods and ingredients to ensure consumers can in the meantime continue to enjoy their much-loved Vailima.
Moira Simi, country manager of Samoa Breweries Limited said it is fantastic they have found passionate locals to produce the much-loved Vailima.
“We look forward to working closely with Mr Va’ai and Ms Ott to continue the great legacy of Vailima in Samoa.”
The Government has also been informed on the latest developments through the Ministry of Commerce, Industry and Labour.
“We had a successful meeting with the Ministry of Commerce Industry and Labour, as well as the Prime Minister Fiame Naomi Mata’afa this week to provide an update on the MOU and plans to produce Vailima in Samoa,” said Simi.
One of the minor shareholders for the SBL Muagututi’a Lafaele Ngau Chun said recently the Samoa Breweries Limited’s finances have been declining in the last five years and its shareholding capital is $12 million.
He made the comments during his live show on StarFM with host and owner, Maposua Corey Keil yesterday.
Muagututi’a is one of the 200+ local shareholders of Samoa Breweries Limited and local shares holders own 6 percent while the majority shareholder is Paradise Beverages Limited which owns 94 percent of the company.
Paradise Beverages Limited’s parent company is Coca-Cola Company.
Radio Polynesia made numerous efforts to get comments at that time from the Board of Directors, Christopher Jon LITCHFIELD, Roger John Hare, and Elizabeth Clare Oneil, who are based overseas, but was unsuccessful.
Muagututi’a said it was disappointing how he received word the company was shifting production, to Fiji.
“And it comes down to “not wanting to invest money into the improvement of the brewery.
“If you want to move out, sell [Vailima] back to our people,” urged Muagututi’a.
He said they need to evaluate the production equipment, given that it was never replaced, which consisted of the brewing, packing, and bottling and it will cost $10 million to “overhaul” the production line.
Muagututi’a said Coca-Cola should just “give away” the plant since they are walking away.
Furthermore, he called on the Government to take action.
“They should step in to salvage Vailima, given it’s a Samoan brand and that Vailima is the Country’s national beer.”
But none of the options seemed commercially viable at the time.
The report says that in the past five years, Samoa Breweries Limited had steadily declined its operations on account of factors that included aging machinery, the impact of the 2019 measles outbreak, followed by the disruption caused by COVID-19.
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