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Asmara Brewery was originally established in 1939 in Asmara, where it is presently located. The Present site of the factory was previously used as a depot of road construction materials. It was set up by Eng. Luigi Melotti, an Italian National who came to Eritrea during the Italian colonial period, as an expert in road construction.

The factory, to start with, used to produce liquor products based on rudimentary technology. Asmara Brewery Corporation S.C. was originally established during the Italian colonial period, to start with, to produce alcoholic drinks (liquor) on a small scale. Over the years, the Brewery went through major developments, in terms of product quality improvement, diversification and plant capacity expansion and modernization, to become a highly reputed plant of its kind!