Things you may not know about HK's oldest local brewery

Author︰ Hua Siqi

When it comes to the specialties of Sham Tseng in Hong Kong, many people will think of roast goose. In fact, there was a time when Sham Tseng was also known for another specialty—San Miguel Beer.

San Miguel is the oldest brewery still operating in Hong Kong today. Although its factory is now located in Yuen Long, its predecessor, the Hong Kong Brewery, was established in Sham Tseng in the 1930s.

You may have heard of the founder's name—he was the Indian businessman, Jehangir Hormusjee Ruttonjee (律敦治), who also established Ruttonjee Hospital.

Beer was introduced to China during late Qing Dynasty

Before discussing the San Miguel Brewery, let's talk about the history of beer. Archaeologists have found evidence of beer drinking and brewing on clay tablets from Mesopotamia and relics from ancient Egypt.

It is said that beer was introduced to China during the late Qing Dynasty (1644-1911). In the past, it was called "咇酒" (bì jiǔ) or "皮酒" (pí jiǔ). Due to its reputed benefits for spleen, which is "脾" in Chinese, it was also known as "脾酒" (pí jiǔ).

By the 19th century, when Hong Kong was forced to open up to trade, beer was imported by foreign merchants and even became a ration for the military.

The photo was taken in 1994 in Sham Tseng, when the San Miguel Brewery still occupied a large space on the waterfront.
This photo, taken in Sham Tseng in 1994, shows the San Miguel Brewery occupying a vast waterfront space. (Image Source: South China Morning Post)

Soldiers' craving for beer prompted merchants to build breweries in HK

According to Notes on Hong Kong Wine Culture 1841-1851 (《香港洋酒文化筆記1841-1851》), a mid-19th century blue book by the British Hong Kong Government recorded that a regiment in Stanley consumed about 10 litres of beer each month per soldier, indicating a strong demand.

Recognising the profit potential, several beer companies were established in Hong Kong in the early 20th century. The Hong Kong Brewery, founded by Ruttonjee in 1933, was one of them.

At that time, the Hong Kong Brewery not only employed a large number of Sham Tseng residents but also brewed beer using creek water from Sham Tseng, making it truly "made in Hong Kong."

Read more: An exclusive interview with "Father of Milk Tea" Wong Ka Wo

Indian businessman J.H. Ruttonjee not only founded the Hong Kong Brewery, but was also a famous philanthropist in Hong Kong.
The Indian businessman J.H. Ruttonjee was not only the founder of the Hong Kong Brewery but also a renowned philanthropist in Hong Kong. (Image Source: South China Morning Post)
From this 1935 clipping, you can see an advertisement for Hong Kong Brewery, whose beer was then known as
This 1935 newspaper clipping shows an advertisement for the Hong Kong Brewery, under the name "HB" or "Hong Kong Beer." (Web Image)

Ruttonjee sold Hong Kong Brewery to San Miguel

However, shortly after the Hong Kong Brewery was established, it ran into operational difficulties due to the 1930s silver crisis and the Japanese invasion of China. The brewery was temporarily taken over by the Japanese, and Ruttonjee and his son were even taken as prisoners of war.

Although the Hong Kong Brewery resumed production soon after the liberation of Hong Kong, Ruttonjee lost interest in running the business due to the grief of losing his daughter and eventually sold the brewery to the Philippine-based San Miguel.

In 1948, San Miguel Brewery Hong Kong was officially established, marking a period of industrial and economic growth in Hong Kong.

Sham Tseng and around became filled with factories, including not only San Miguel but also Garden Company (嘉頓公司), Kowloon Textile Factory (九龍紗廠), and United Carbonic Company (聯合碳化公司), with San Miguel being the largest employer among them.

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This photo shows the San Miguel Brewery in Sham Tseng in 1948, with a beautiful environment, vastly different from the modern factory.
The picture shows the San Miguel Brewery in Sham Tseng in 1948. It is said that the brewery even had its own reservoir to collect rainwater for beer production back then. (Image Source: San Miguel Brewery 1998 Annual Report)
An old advertisement for San Miguel Beer.
The picture shows a San Miguel beer advertisement on a building wall in the 1950s. (Web Image)

San Miguel Brewery moved to Yuen Long

In the 1960s and 1970s, household refrigerators began to become popular in Hong Kong. Opening the fridge to taste a sip of ice-cold beer on a hot summer day became the freshest life enjoyment for office workers. 

To boost beer sales, many breweries sent "beer girls" to street-side food stalls (大排檔) and restaurants for promotion, which has become an part of Hong Kong's dining culture.

Entering the 1980s, as urban land prices soared, factories in Sham Tseng gradually relocated, which made Sham Tseng into a residential area.

The San Miguel Brewery also moved to Yuen Long Industrial Estate (元朗工業邨) in 1996, with the original site being sold to a property developer for the development of Bellagio (碧堤半島).

Today, Garden Company is the only factory still operating in the former Sham Tseng factory area.

Read more: Garden biscuits were rations during war of resistance against Japanese aggression?

San Miguel Beer Drinking Contest
San Miguel Brewery started the "San Miguel Beer Drinking Contest" in 1974. To this day, some events sponsored by San Miguel still include beer drinking contests. (Image Source: Getty)

Yuen Long San Miguel Brewery once closed because of high percentage tax

Before the government exempted non-distilled alcohol taxes in 2008 for beers and wines with less than 30-degree alcohol concentration, beer manufacturers had to pay taxes up to 40%.

Considering rising production costs and a shrinking local beer market, the Yuen Long San Miguel Brewery once closed in 2006.

It was not until the government implemented zero tariffs on non-distilled alcohol that the brewery reopened in 2009, allowing the 75-year-old Hong Kong brand to continue producing locally brewed fresh beer and continuing its story in the city.

Non-distilled alcohol taxes for beers and wines
In the fiscal year 2003-2004, the revenue from taxable alcoholic beverages exceeded HKD760 million, accounting for 0.4% to 0.5% of the government's operating revenue; of this revenue, 35% came from beer. (Image Source: South China Morning Post)
Bellagio residential area
In 1996, San Miguel sold the land of the Sham Tseng Brewery to Wheelock Properties (會德豐) for over HKD 3 billion. The site was later developed into the Bellagio residential area. (Image Source: Getty)
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