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Market Research Report

Alcoholic Drinks in the Philippines

Published by	Euromonitor International
Published	December, 2009	Product code	115724
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Price	US $ 1900 PDF by E-mail (Single User License)

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

Introduction

Abstract

Euromonitor International' s Alcoholic Drinks in the Philippines 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

Drinking culture sustains positive volume growth

In 2009, volume consumption maintained positive growth as Filipinos, considered the heaviest drinkers of alcohol in Southeast Asia, continued to consume alcoholic drinks despite the economic slowdown. This positive growth was partly driven by affluent consumers whose disposable income levels were not significantly affected by the recession. According to a study released by the Department of Health in 2009, wealthy Filipinos drink significantly higher volumes of alcoholic drinks compared to their counterparts in Thailand, Singapore, Malaysia and Indonesia.

Economic downturn leads consumers to trade down

A large number of alcohol drinkers are switching to more affordable brands or moving to cheaper categories, while maintaining the same volume consumption due to the economic slowdown in the Philippines. Economy brands such as Gran Matador Brandy, San Mig Light (beer) and Franzia (wine) are benefiting from the economic downturn as their shares of sales increased in 2008 and 2009. However, trading down is not a universal trend because wealthier consumers still have the resources to spend on premium and super-premium brands. However, price increases on lower-end products, due to higher taxes, masked the effects of the consumer trading down trend.

Domestic companies continue to control the industry

Domestic companies controlled the alcoholic drinks industry in 2008 and 2009 as they enjoy competitive advantages over importing organisations in terms of pricing and influence on the local market. In what is considered a beer drinking country, San Miguel Brewery Inc maintained the leading position in 2008 and 2009 due to its extensive distribution network, aggressive advertising, and large operational scale. Ginebra San Miguel Inc, Asia Brewery Inc and Tanduay Distillers Inc are other domestic manufacturers with significant total volume shares in the alcoholic drinks industry. Imported brands were more of a niche, largely among affluent consumers, especially due to the much higher taxes in the Philippines for imported brands compared to domestic alternatives.

Off-trade channel generates majority of volume sales

The off-trade channel generated the majority of volume sales in 2008 and 2009. The increase in the number of specialist retailers and the expansion of chained supermarkets/hypermarkets across the Philippines boosted availability, which contributed to higher volume sales. San Miguel Brewery' s beer hotline, a phone order delivery service, may not have had a significant impact on off-trade volume sales in 2008 and 2009 but its popularity among beer drinkers may help to strengthen retail distribution sales in the medium-to-long term.

Positive volume and value growth over the forecast period

Volume sales are expected to increase as manufacturers and importers organise volume-generating events such as live music. However, the growth in total volume sales is expected to be slower than over the review period, as the scheduled hike in excise tax in 2011 will lead to higher unit prices, which might reduce the consumption of alcoholic drinks. However, constant value growth is expected to grow at a faster rate over the forecast period, compared to the review period, due the expected rise in unit prices. This is predicted to lead to higher value over volume growth.