Alcoholic Drinks in Malaysia

Report Summary

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Malaysia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

The Alcoholic Drinks in Malaysia market research report includes:

• Analysis of key supply-side and demand trends
• Detailed segmentation of international and local products
• Historic volumes and values, company and brand market shares
• Five year forecasts of market trends and market growth
• Production, imports by origin, exports by destination
• Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

• What is the market size of Alcoholic Drinks in Malaysia?
• What are the major brands in Malaysia?
• Have there been any alcoholic drinks legislative changes over the past 12 months?
• How is the alcoholic drinks industry affected by the recession?
• What is consumed more; beer, wine or spirits?
• What have been the key trends seen in new product developments?
• Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

• Gain competitive intelligence about market leaders
• Track key industry trends, opportunities and threats
• Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

EXECUTIVE SUMMARY

Alcoholic drinks continues on a growth trend

As the Malaysian economy continues its recovery from the recession of 2009 and 2010, the return of consumer confidence and liquidity has trickled down to spending and helped facilitate growth in alcoholic drinks sales. With increased direct trade promotional activities, sales have been boosted by these increased activities in addition to changing perceptions of drinking and the increasing numbers of young and female consumers who are starting to emerge as growth demographics for alcoholic drinks in Malaysia.

Sales remain resilient despite Japanese disasters and uncertainty in Europe

With the uncertainties brought about by the precarious position of the European economies and the earthquake and natural disaster in Japan, revenue and volume sales for alcoholic drinks have been resilient despite these factors dampening the economic recovery in Malaysia. In fact, some segments of the alcoholic drinks community suggested that, in such conditions, sales of alcoholic drinks would do well as people seek solace through socialising over drinks.

Industry players target premium and niche products

With the competitive landscape being largely unchanged, Guinness Anchor Bhd and Carlsberg Brewery Malaysia Bhd continued to dominate the industry due to the sheer volume of alcoholic drinks sold by the two companies. That being said, it is increasingly evident that while smaller industry players seek out niches to carve out shares for themselves, the big two are also targeting fast-growing areas such as premium beer and cider/perry, while other players focus on wines and spirits and cider.

On-trade sales continue to dominate

Alcohol consumption remains very much a part of socialising and alcohol something that is consumed mostly in group settings. Thus, the on-trade continues to account for the bulk of volumes sold in Malaysia. While off-trade revenue and volumes have shown increasing growth as well, it still lags behind by a fair margin for most types of alcoholic drinks. However, other spirits and economy beer find popularity among locals in rural areas as well as foreign workers who opt for cheap alcoholic drinks alternatives and purchase them at retail stores for drinking.

Sustained growth expected

Challenging conditions remain in the form of the likelihood of a rise in excise duties, promotional restrictions, as well as calls from conservative groups to ban alcoholic drinks being sold in Muslim majority areas and convenience stores due to concerns about easy accessibility leading to public drunkenness and other associated social problems. However, growth in total volume terms is still expected to continue to be seen, backed by expected increases in tourism arrivals and the resident population. In addition, rising consumer sophistication should boost consumption of premium alcoholic drinks such as premium beer, wine and single malt Scotch whisky.

Table of Contents

Alcoholic Drinks in Malaysia - Industry Overview

EXECUTIVE SUMMARY
Alcoholic drinks continues on a growth trend
Sales remain resilient despite Japanese disasters and uncertainty in Europe
Industry players target premium and niche products
On-trade sales continue to dominate
Sustained growth expected

KEY TRENDS AND DEVELOPMENTS
Industry growth continues, spurred on by a recovering local economy
Emphasis placed on trade support and promotional activities
Growth in premium products continues
Consumer desire for greater variety
Key new product launches
Summary 1 Key New Product Developments 2010-2011
Specialist retailers
Summary 2 Leading Specialist Retailers 2011
Merger and acquisition opportunities remain limited
Summary 3 Merger and Acquisition Activity 2010-2011
Summary 4 Speculated Merger and Acquisition Activity 2011-2012

MARKET BACKGROUND
Legislation
Table 1 Number of On-trade Establishments by Type 2006-2010

TAXATION AND DUTY LEVIES
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2011
Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories 2011
Table 4 Selling Margin of a Typical Beer Brand 2011
Table 5 Selling Margin of a Typical Wine Brand 2011
Table 6 Selling Margin of a Typical Spirits Brand 2011

OPERATING ENVIRONMENT
Contraband/parallel trade
Duty free
Cross-border/private imports

MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2006-2011

MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2006-2011
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2006-2011
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2006-2011
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2006-2011
Table 12 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Volume 2011
Table 13 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: Value 2011
Table 14 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Volume 2011
Table 15 Sales of Alcoholic Drinks by Category by On-trade vs Off-trade Split: % Value 2011
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2007-2011
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2006-2011
Table 18 Off-trade Sales of Alcoholic Drinks by Category and Distribution Format: % Volume Analysis 2011
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2011-2016
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2011-2016
Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2011-2016
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2011-2016

DEFINITIONS
Published data comparisons

SOURCES
Summary 5 Research Sources

Alcoholic Drinks in Malaysia - Company Profiles

Asiaeuro Wines & Spirits Sdn Bhd in Alcoholic Drinks (Malaysia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING

Denise Wines Sdn Bhd in Alcoholic Drinks (Malaysia)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 9 Denise Wines Sdn Bhd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 10 Denise Wines Sdn Bhd: Competitive Position 2011

Guinness Anchor Bhd in Alcoholic Drinks (Malaysia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 13 Guinness Anchor Bhd: Production Statistics 2011
COMPETITIVE POSITIONING
Summary 14 Guinness Anchor Bhd: Competitive Position 2011

Napex Corp Sdn Bhd in Alcoholic Drinks (Malaysia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 16 Napex Corp Sdn Bhd: Competitive Position 2011

Single Malt Sdn Bhd in Alcoholic Drinks (Malaysia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 18 Single Malt Sdn Bhd: Competitive Position 2011

Beer in Malaysia - Category Analysis

HEADLINES

TRENDS
Building on growth witnessed in 2010, imported premium lager continued to enjoy healthy growth in 2011, up 5% in total volume terms, compared with 3% in 2010, and by 7% in 2011 (5% in 2010) in on-trade establishments, which account for 66% of overall imported premium lager volume. Demand for such beers can partly be attributed to consumers craving variety and a change from traditional pilsner lagers with the imported beers like Hoegaarden and Erdingers often being wheat beers, which is a change in taste for the palates of local drinkers.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Guinness Anchor Bhd and Carlsberg Brewery Malaysia Bhd remain the dominant players in beer with a combined 94% of total volumes sales in 2011. With such keen competition between the two companies, both companies continue to invest time and resources into increasing efficiencies with Carlsberg Brewery Malaysia Bhd investing RM10 million in upgrading its MIS systems to further improve channel distribution and inventory management systems.

PROSPECTS
Growth prospects for beer remain positive as increased affluence and social perceptions of drinking beer change and its appeal to the young working demographic further increases. This will be seen not only with male drinkers but also an increasing number of female social drinkers, who are increasing targeted by beer players, seeing the growth potential in this demographic group, many of whom are new or previously infrequent consumers of alcoholic drinks.

CATEGORY BACKGROUND
Lager price band methodology
Summary 19 Lager by Price Band 2011
Table 23 Number of Breweries 2006-2010

CATEGORY DATA

Table 24 Sales of Beer by Category: Total Volume 2006-2011
Table 25 Sales of Beer by Category: Total Value 2006-2011
Table 26 Sales of Beer by Category: % Total Volume Growth 2006-2011
Table 27 Sales of Beer by Category: % Total Value Growth 2006-2011
Table 28 Sales of Beer by On-trade vs Off-trade Split: Volume 2006-2011
Table 29 Sales of Beer by On-trade vs Off-trade Split: Value 2006-2011
Table 30 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 31 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 32 Beer: Production, Imports and Exports: Total Volume 2005-2010
Table 33 Beer Imports by Country of Origin: Total Volume 2005-2010
Table 34 Beer Imports by Country of Origin: Total Value 2005-2010
Table 35 Beer Exports by Country of Destination: Total Volume 2005-2010
Table 36 Beer Exports by Country of Destination: Total Value 2005-2010
Table 37 Company Shares of Beer by National Brand Owner 2007-2011
Table 38 Company Shares of Beer by Global Brand Owner 2007-2011
Table 39 Brand Shares of Beer 2008-2011
Table 40 Forecast Sales of Beer by Category: Total Volume 2011-2016
Table 41 Forecast Sales of Beer by Category: Total Value 2011-2016
Table 42 Forecast Sales of Beer by Category: % Total Volume Growth 2011-2016
Table 43 Forecast Sales of Beer by Category: % Total Value Growth 2011-2016

Cider/Perry in Malaysia - Category Analysis

HEADLINES

TRENDS
With the reintroduction of Gaymers cider in 2008, cider has finally started to gain enough demand from Malaysian consumers that globally leading brands like Strongbow and Savanah Dry were launched in Malaysia in 2010. Perry offerings still remain severely limited, with Gaymers Pear being introduced, but having yet to gain prominence in Malaysia.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
As cider/perry grows in volume, it is expected that Savanah Dry and Strongbow will continue to make gains and eventually overtake Gaymers’ leading position during the forecast period due to the wide distribution networks of Guinness Anchor Bhd and Carlsberg Brewery Malaysia Bhd in the country.

PROSPECTS
With both Carlsberg Brewery Malaysia Bhd and Guinness Anchor Bhd entering cider/perry with Savanah Dry and Strongbow, respectively, growth will be expected to remain healthy as both companies allocate resources to market and promote their cider products to consumers.

CATEGORY DATA

Table 44 Sales of Cider/Perry: Total Volume 2008-2011
Table 45 Sales of Cider/Perry: Total Value 2008-2011
Table 46 Sales of Cider/Perry: % Total Volume Growth 2008-2011
Table 47 Sales of Cider/Perry: % Total Value Growth 2008-2011
Table 48 On-trade vs Off-trade Sales of Cider/Perry: Volume 2006-2011
Table 49 On-trade vs Off-trade Sales of Cider/Perry: Value 2006-2011
Table 50 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2006-2011
Table 51 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2006-2011
Table 52 Company Shares of Cider/Perry by National Brand Owner 2007-2011
Table 53 Company Shares of Cider/Perry by Global Brand Owner 2007-2011
Table 54 Brand Shares of Cider/Perry 2008-2011
Table 55 Forecast Sales of Cider/Perry: Total Volume 2011-2016
Table 56 Forecast Sales of Cider/Perry: Total Value 2011-2016
Table 57 Forecast Sales of Cider/Perry: % Total Volume Growth 2011-2016
Table 58 Forecast Sales of Cider/Perry: % Total Value Growth 2011-2016

RTDs/High-Strength Premixes in Malaysia - Category Analysis

HEADLINES

TRENDS
Spirit-based RTDs continues to make up the bulk of sales with a 93% volume share in 2011 and grew by a further 1% on 2010, while wine-based RTDs volumes declined by almost 2% on the previous year.

COMPETITIVE LANDSCAPE
Kampai Marketing (M) Sdn Bhd led sales in 2011 due to the popularity of its Kampai range, which is benefiting from rising demand for spirit-based RTDs. Kampai is also widely available within a wide range of channels such as bars, convenience stores, and supermarkets due to its producer’s excellent distribution network.

PROSPECTS
RTDs/High-strength premixes faces competition from beer and spirits, as it typically suffers from low brand loyalty and no switching costs involved for consumers to move from one type of drink to another.

CATEGORY DATA

Table 59 Sales of RTDS/High-strength Premixes by Category: Total Volume 2006-2011
Table 60 Sales of RTDS/High-strength Premixes by Category: Total Value 2006-2011
Table 61 Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2006-2011
Table 62 Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2006-2011
Table 63 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2006-2011
Table 64 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2006-2011
Table 65 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2006-2011
Table 66 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2006-2011
Table 67 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2007-2011
Table 68 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2007-2011
Table 69 Brand Shares of RTDS/High-strength Premixes 2008-2011
Table 70 Forecast Sales of RTDS/High-strength Premixes by Category: Total Volume 2011-2016
Table 71 Forecast Sales of RTDS/High-strength Premixes by Category: Total Value 2011-2016
Table 72 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Volume Growth 2011-2016
Table 73 Forecast Sales of RTDS/High-strength Premixes by Category: % Total Value Growth 2011-2016

Spirits in Malaysia - Category Analysis

HEADLINES

TRENDS
Spirits growth continues to be hampered partially by consumer price sensitivity and by the premium prices placed on imported spirits due to the duties and taxes placed on such products, which prices them beyond the reach of the less affluent consumer. However, with returning consumer confidence in Malaysia as the economic landscape is showing signs of recovery, growth in spirits, especially in selected premium categories, is increasingly encouraging.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Pernod Ricard Malaysia Sdn Bhd maintained its leading position within spirits in 2011 with a 13% total volume share, backed by the popularity of a strong portfolio of brands like Absolut, Chivas Regal, and Martell. Although spirits is occupied by numerous brands, imported spirits is dominated by multinationals like Pernod Ricard Malaysia Sdn Bhd and Riche Monde Sdn Bhd. Such players benefit from the expertise and marketing support of their parent companies and the fact that their brands are already well known among consumers.

PROSPECTS
Spirits growth will continue to be positive, although a total volume CAGR of 2% is expected over the forecast period versus the review period CAGR of 4%. This is partially in acknowledgement of the fact that spirits is maturing in some categories and also some consumers are switching over to wines from brandy/cognac. With recovering consumer spending power, and increasing numbers of consumers seeking a taste of premium drinks like single malt Scotch whiskies, growth figures could potentially outperform current forecast estimates.

CATEGORY BACKGROUND
Vodka, gin and other blended Scotch whisky price band methodology
Summary 20 Benchmark Brands 2011

CATEGORY DATA

Table 74 Sales of Spirits by Category: Total Volume 2006-2011
Table 75 Sales of Spirits by Category: Total Value 2006-2011
Table 76 Sales of Spirits by Category: % Total Volume Growth 2006-2011
Table 77 Sales of Spirits by Category: % Total Value Growth 2006-2011
Table 78 Sales of Spirits by On-trade vs Off-trade Split: Volume 2006-2011
Table 79 Sales of Spirits by On-trade vs Off-trade Split: Value 2006-2011
Table 80 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 81 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 82 Sales of Gin by Price Platform 2006-2011
Table 83 Sales of Other Blended Scotch Whisky by Price Platform 2006-2011
Table 84 Sales of Vodka by Price Platform 2006-2011
Table 85 Sales of Flavoured vs Non-flavoured Vodka 2006-2011
Table 86 Spirits Production, Imports and Exports: Total Volume 2005-2010
Table 87 Spirits Imports by Country of Origin: Total Volume 2005-2010
Table 88 Spirits Imports by Country of Origin: Total Value 2005-2010
Table 89 Spirits Exports by Country of Destination: Total Volume 2005-2010
Table 90 Spirits Exports by Country of Destination: Total Value 2005-2010
Table 91 Brandy & Cognac Production, Imports and Exports: Total Volume 2005-2010
Table 92 Gin Production, Imports and Exports: Total Volume 2005-2010
Table 93 Rum Production, Imports and Exports: Total Volume 2005-2010
Table 94 Vodka Production, Imports and Exports: Total Volume 2005-2010
Table 95 Whiskies Production, Imports and Exports: Total Volume 2005-2010
Table 96 Company Shares of Spirits by National Brand Owner 2007-2011
Table 97 Company Shares of Spirits by Global Brand Owner 2007-2011
Table 98 Brand Shares of Spirits 2008-2011
Table 99 Forecast Sales of Spirits by Category: Total Volume 2011-2016
Table 100 Forecast Sales of Spirits by Category: Total Value 2011-2016
Table 101 Forecast Sales of Spirits by Category: % Total Volume Growth 2011-2016
Table 102 Forecast Sales of Spirits by Category: % Total Value Growth 2011-2016

Wine in Malaysia - Category Analysis

HEADLINES

TRENDS
New World wines continue their ascendancy as the consumers’ choice in Malaysia, with products from Australia, New Zealand, Chile, and the US leading sales during 2011. Brands like Lindeman’s and Jacob’s Creek from Australia continue to lead overall volume sales.

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE
Wine sales are highly fragmented in Malaysia. However, there are a few leading players in some types of wines in Malaysia. In other fortified wine and vermouth, Bacardi-Martini Malaysia commanded 65% volume share in 2011, whilst in champagne, Riche Monde Sdn Bhd led with 80% volume share in 2011.

PROSPECTS
With increasing affluence, appreciation of wine is expected to increase among middle-to-high-income consumers. Thus, it is expected that with increased appreciation of and education about wines, a growing number of consumers are likely to base wine purchasing decisions on factors other than purely price.

CATEGORY DATA

Table 103 Sales of Wine by Category: Total Volume 2006-2011
Table 104 Sales of Wine by Category: Total Value 2006-2011
Table 105 Sales of Wine by Category: % Total Volume Growth 2006-2011
Table 106 Sales of Wine by Category: % Total Value Growth 2006-2011
Table 107 Sales of Wine by On-trade vs Off-trade Split: Volume 2006-2011
Table 108 Sales of Wine by On-trade vs Off-trade Split: Value 2006-2011
Table 109 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2006-2011
Table 110 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2006-2011
Table 111 Volume Sales of Still Red Wine by Price Segment 2006-2011
Table 112 Volume Sales of Still White Wine by Price Segment 2006-2011
Table 113 Volume Sales of Still Rosé Wine by Price Segment 2006-2011
Table 114 Volume Sales of Other Sparkling Wine by Price Segment 2006-2011
Table 115 Sales of Still Red Wine by Grape/Varietal Type 2006-2011
Table 116 Sales of Still White Wine by Grape/Varietal Type 2006-2011
Table 117 Sales of Still Rosé Wine by Grape/Varietal Type 2006-2011
Table 118 Sales of Still Red Wine by Quality Classification 2006-2011
Table 119 Sales of Still White Wine by Quality Classification 2006-2011
Table 120 Sales of Still Rosé Wine by Quality Classification 2006-2011
Table 121 Wine Production, Imports and Exports: Total Volume 2005-2010
Table 122 Wine Imports by Country of Origin: Total Volume 2005-2010
Table 123 Wine Imports by Country of Origin: Total Value 2005-2010
Table 124 Wine Exports by Country of Destination: Total Volume 2005-2010
Table 125 Wine Exports by Country of Destination: Total Value 2005-2010
Table 126 Company Shares of Still Light Grape Wine by National Brand Owner 2007-2011
Table 127 Company Shares of Still Light Grape Wine by Global Brand Owner 2007-2011
Table 128 Brand Shares of Still Light Grape Wine 2008-2011
Table 129 Company Shares of Champagne by National Brand Owner 2007-2011
Table 130 Company Shares of Champagne by Global Brand Owner 2007-2011
Table 131 Brand Shares of Champagne 2008-2011
Table 132 Company Shares of Other Sparkling Wine by National Brand Owner 2007-2011
Table 133 Company Shares of Other Sparkling Wine by Global Brand Owner 2007-2011
Table 134 Brand Shares of Other Sparkling Wine 2008-2011
Table 135 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2007-2011
Table 136 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2007-2011
Table 137 Brand Shares of Fortified Wine and Vermouth 2008-2011
Table 138 Company Shares of Non-grape Wine by National Brand Owner 2007-2011
Table 139 Company Shares of Non-grape Wine by Global Brand Owner 2007-2011
Table 140 Brand Shares of Non-grape Wine 2008-2011
Table 141 Forecast Sales of Wine by Category: Total Volume 2011-2016
Table 142 Forecast Sales of Wine by Category: Total Value 2011-2016
Table 143 Forecast Sales of Wine by Category: % Total Volume Growth 2011-2016
Table 144 Forecast Sales of Wine by Category: % Total Value Growth 2011-2016