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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Ankur Gupta, Head Marketing & Communications