According to study, “Country Profile: Spirits in Malaysia”
some of the major companies that are currently working in the spirits in
Malaysia are William Grant & Sons Ltd., Bacardi Limited, Diageo plc, The
Edrington Group Limited, Pernod Ricard SA, Pernod Ricard SA, Bozeman Spirits
LLC, Amigo Pop, The Edrington Group Limited, Benison & Co. Ltd.
The Malaysia spirits sector is led by the whiskey category
in both value and volume terms. Spirit is a fermented mixture and a potable
alcoholic beverage. An additional sales tax of 15% is levied on all alcoholic
beverages sold in country. Malaysia is the10th largest consumer of spirits in
world. Consumption of Spirits is high among Malaysian consumers who received
Tertiary education. Spirits are classified into many terms such as brandy, specialty
spirits, whiskey, gin & genever, rum, tequila & mezcal, liqueurs and
vodka.
The sale of spirits is permitted in dedicated retail stores
and licensed outlet such as bars, restaurants and night clubs. All hotels
serving alcoholic beverages in their facilities are required to have a valid
liquor license issued by the local police authorities. The license is an annual
permit issued by the local municipal councils in country. It is only issued to
non-Muslim residents of Malaysia who are at least 21 years of age. The legal limit for
alcohol at driving time is 80 milligrams per deci-litre or 100 milli-litres in
country. Alcohol
is banned in the states of Kelantan and Terengganu, due to Muslim culture.
Trade of spirits in country is allowed for designated
distributors, hypermarkets & supermarkets, department stores, convenience
stores, drug-stores & pharmacies, food & drinks specialists, warehouse
clubs, dollar stores, variety store & general merchandise retailers,
vending machines, e-retailers, and retailers. Trade can be divided into two
broad segments, which are; on-site consumption and off-site consumption.
On-site consumption is used to refer to consumption on the premises where
alcohol is bought like hotels, bars, night clubs etc. off-site consumption
is used to refer to consumption off/or away from the retail store. Off-site
consumption is limited, due to tight government regulation and high taxation.
The spirit sector can be divided on the basis of packaging
material such as glass, paper & board, rigid plastics, flexible packaging
and rigid metals etc. Glass is the most commonly used package material.
Moreover pack types are bottle, bag-in-box, carton-liquid, stand up pouch and
can etc. There
are many brands available for spirits. Some bear brands are Carlsberg,
Heineken, Guinness, Tiger, Corona Extra, Asahi Super Dry, Kilkenny, Anchor
Smooth, Hoegaarden and paulaner weibbier. Glenfiddich, dewar’s and johnnie walker
are the leading brands in the spirits sector.
Malaysia has long grappled with the problem of fake or
bootleg spirit. According to official statistics, every year more than 21
people are dead and dozens ill in country after drinking bootlegged alcohol.
In Malaysia, government has recognized that alcohol consumption
is a serious health problem. Therefore many non-profit organizations and NGOs
have campaigned against alcohol and tried to push for a more aggressive national alcohol
policy. This includes monitoring alcohol and liquor companies' advertisements
and promotions. Sharia Law is organized for regulate of alcohol in country.
The Malaysian spirits market had total revenues of US$835.6
million in 2016. It is expected to grow at a CAGR of 5.6% in 2016-2021. In 2016, whiskey was the largest with value
sales of US$384.8 million. In 2017, the spirits sector accounted for value and
volume shares of 0.1% and 0.04%, respectively, in Asia-Pacific. In 2017, the
per capita consumption of spirits was lower and per capita consumption of specialty
spirits was higher compared to both global and regional levels in country.
Malaysia is trying to ban alcohol ban by support of Islamist
parties. These parties have introduced the alcohol prohibition bill to
parliament. If bill passed it will make it illegal to sell, distribute, and to
consume drinks with more than 1 per cent alcohol content. In 2018, major trends
of spirits are premium drinks, craft beer, craft spirits, sparkling wine,
blended drinks, healthy options non-alcoholic options and convenience. It is expected that
appreciation of whiskies will widen in society over the forecast period, driven
by increasing product availability and awareness.
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