Malaysia: Carlsberg to consolidate its No 1 position

Carlsberg Brewery Malaysia Bhd is aiming to cement its number one position in the market as the beer market stabilises this year after three years of consecutive tax hikes, The Edge Daily reported February 23.

Its executive director Chin Voon Loong said the company would introduce innovative packages of its existing product line and bring in more high-end beer products this year to maintain its market share of over 50%.

He said the beer market size had reduced considerably during the previous three years of excise duty increases and one of the current challenges was to retain the beer drinkers.

�With the relief that was given, we feel that there is a chance for the market to stabilise.

�But we have to make beer consumers stay beer consumers as competition has increased from wines and hard liquor,� Chin told The Edge FinancialDaily in an interview.

He said wines and hard liquor did not experience the same tax hikes as the beer industry did in 2003 to 2005 which led many beer consumers to switch.

While the beer industry was spared another round of excise duty increases, he said any increase this year would harm the industry severely.

�We are trying to get the government to not look at the industry as a revenue model for them.
�The previous increases have almost reached an equilibrium and one more increase will breach it and there will be even less revenue for the government as there will be fewer beer drinkers,� Chin said.

To tap into the wine market and bring back beer consumers, he said Carlsberg had joined hands with fine dinning restaurants to push its high-end beer brands such as Saaz Blonde, which is a brown ale, and Jacobsen, a wheat beer.

In the beer market, Chin said there was a need to excite the market with innovative products.
He said some of the marketing strategies put in place by Carlsberg this year included repackaging Carlsberg and Skol beer products as well as introducing promotions and seasonal brews during festive seasons.

Chin said Skol, which was targeted at the value segment of the market, had carved a presence in the market with a 5% share since its debut here in 2005.

He said Carlsberg was also exploring the possibility of introducing flavoured beer and non-alcoholic beverages this year.

�The products we will introduce this year will be catered to all the segments of the market. This year is also the 160th year of Carlsberg and coincides with our 35th anniversary in Malaysia and we have a lot of programmes lined up,� he said.

On competition from contraband beer, Chin said the stiffer penalties imposed by the government had reduced the amount of smuggled beer but that more needed to be done.

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