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Market Research Report

Alcoholic Drinks in Malaysia

Published by	Euromonitor International
Published	December, 2009	Product code	115671
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Price	US $ 1900 PDF by E-mail (Single User License)

Introduction
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Alcoholic Drinks in Malaysia published by Euromonitor International in December, 2009. This report price starts from US $ 1900.

Introduction

Abstract

Euromonitor International' s Alcoholic Drinks in Malaysia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Why buy this report

Get insight into trends in market performance
Pinpoint growth sectors and identify factors driving change
Identify market and brand leaders and understand the competitive environment

Product coverage

Beer; Cider/Perry; RTDs/High-Strength Premixes; Spirits; Wine

Executive summary

Alcoholic drinks sees a slowdown in growth in 2009

The alcoholic drinks market saw slower growth in 2009 than in 2008, with consumers cutting their expenditure on non-essential products such as alcoholic drinks. Wine posted the strongest performance in total volume terms within the alcoholic drinks market in 2009, as its health benefits continued to attract consumer interest. On the other hand, spirits which cost a premium saw a strong slowdown in growth, as consumers switched from these premium alcoholic drinks to others which are more affordable, such as beer and wine. The black market for alcoholic drinks, particularly spirits, was also noted to rage as a result of this economic situation, as consumers looked for more affordable alternatives.

Consumers trade down amidst an unfavourable economic situation

The economic downturn from the end of 2008 saw consumers tightening their belts in terms of expenditure. Within spirits, low income consumers were noted to switch from premium spirits such as vodka and other blended Scotch whisky to ad-mix variants, which are more affordable. Some consumers also reduced their drinking at on-trade channels; instead they bought drinks via the off-trade channel and shared them amongst their friends at home, which was a more economical alternative.

Players seek to consolidate their positions

2009 did not see many changes in the competitive landscape; Guinness Anchor Bhd and Carlsberg Brewery Malaysia Bhd continued to lead the alcoholic drinks market. However, it is interesting to note that Carlsberg Brewery Malaysia Bhd acquired a leading local alcoholic drinks distributor, Luen Heng Agency Sdn Bhd, in November 2008 to further consolidate its position in the alcoholic drinks market. Through this acquisition, Carlsberg Brewery Malaysia Bhd managed to gain access to a wider brand portfolio, including leading imported premium lager brands such as Budweiser, Stella Artois and Foster' s.

The on-trade channel faces more challenges

More on-trade channels opened in Malaysia during 2008, including pubs, bars and restaurants, posing more challenges for operators to remain afloat. Unfortunately, the economic downturn which set in at the end of 2008 brought about further challenging conditions for the operation of these on-trade outlets, as consumers reduced their expenditure in these outlets, and chose to purchase their drinks via the off-trade channel, which was viewed as a more affordable alternative.

Positive outlook for alcoholic drinks

The alcoholic drinks market is expected to see stronger total volume growth over the forecast period than in the review period, with increased consumer sophistication leading to demands for more alcoholic drinks such as wine, which are purported to contain health benefits. Still red wine is poised to see the strongest total volume growth over the forecast period. Trading up to premium alcoholic drinks is also expected, with rising consumer knowledge seeing them moving up from ad-mix spirits to premium spirits for their better quality and taste. For this reason, the premium spirit vodka is set to account for the second strongest total volume growth over the forecast period.