Alcoholic Drinks in Egypt
Euromonitor International's Alcoholic Drinks in Egypt 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.
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Tables: 109 | Publication date: Feb 2008
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
Tourism continues to drive demand
Egypt’s population of 74 million is almost entirely Muslim. While this is not to say that Egyptians do not drink any alcohol whatsoever, it does limit the domestic market for alcoholic drinks. As such, sales of wine and spirits, and to a lesser extent beer, rely heavily on tourist consumption. The steady growth of tourist numbers has meant continuous growth for the alcoholic drinks industry, though declining tourism also directly impacts the alcoholic drinks industry. Fuelled by tourist demand, advertising of alcoholic drinks has emerged throughout Egypt and alcoholic drinks are becoming increasingly available in both on-trade and off-trade channels.
Beer and NAMBs dominate sales
Beer continued to lead alcoholic drinks in 2007. Volume and value growth can be largely attributed to Al Ahram’s Fayrouz and Birell brands. As these non-alcoholic malt beverages (NAMBs) are widely considered ‘adult soft drinks’ in Egypt, rather than beer, they are widely available and do not contradict social and religious conventions. Exports of these brands have also continued to soar during the review period.
Competition between two suppliers
Even though Egypt is an important tourist destination, there are only two manufacturers of alcoholic drinks in the country: Al Ahram Beverages Company (ABC) and Egyptian International Beverages Co (EgyBev). The country’s prohibitive import duties on alcohol keep foreign competition to a minimum. Al Ahram has produced alcoholic drinks since 1897 and long held a monopoly. EgyBev is a more recent entrant and is much smaller than its older rival. Al Ahram produces a wide range of beers, wines, spirits and RTDs, while Egyptian International offers a much narrower product portfolio. Both companies own a number of specialist retailer outlets with branches mostly in northern Egypt.
Demand for wine continues to mature
Wine is one of the fastest growing alcoholic drinks. As imports of wine remain extremely low and have continued to decline due to high import duties, Egypt’s domestic wine industry is showing an increasing level of development. The competition between Al Ahram and Egyptian International has supported both a quantitative as well as a qualitative upgrade in Egyptian wine. Producers are introducing new superior grapes and are expanding existing areas under cultivation. Egyptian wine, once labelled ‘Château Vinaigre’ is today of a much-improved quality.
Contraband remains a serious issue
Due to the country’s prohibitive import duties on alcohol, sales continue to be plagued by contraband and parallel trade. Spirits in particular attracts a sizeable black market and fake brands. Upper-class Egyptians prefer to consume imported premium spirits available from the black market, while many lower-class Egyptians purchase cheap, untaxed and poor quality spirits. The attempted introduction of domestic premium spirits has not met with the success anticipated.
Alcoholic drinks expected to show positive growth during forecast period
Euromonitor International expects sales of alcoholic drinks to continue to grow due to increasing tourist flows and the expanding upper-income group of the population. The brief but intense competition between the two domestic companies has already done its part in adding vitality and making companies more responsive to consumer demands. This trend is expected to continue and become more accentuated and help drive future growth further.
Table of contents
ALCOHOLIC DRINKS IN EGYPT : MARKET INSIGHT
EXECUTIVE SUMMARY
Tourism continues to drive demand
Beer and NAMBs dominate sales
Competition between two suppliers
Demand for wine continues to mature
Contraband remains a serious issue
Alcoholic drinks expected to show positive growth during forecast period
KEY TRENDS AND DEVELOPMENTS
Religion, an obstacle to sales
Social polarisation
Increasing tourism flows
High taxation and duty levies
Specialist retailers
Summary 1 Leading Specialist Retailers 2006
Market mergers and acquisitions activity
Summary 2 Speculated Merger and Acquisition Activity 2006-2007
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Table 1 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2007
Table 4 Selling Margin of a Typical Domestically Produced Wine Brand 2007
Table 5 Selling Margin of a Typical Domestically Produced Spirits Brand 2007
Table 6 Selling Margin of a Typical Imported Spirits Brand 2007
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 9 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 11 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 2007
Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Volume 2007
Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: % Value 2007
Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 18 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - EGYPT
AL AHRAM BEVERAGES CO (ABC) - ALCOHOLIC DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Al Ahram Beverages Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 5 Al Ahram Beverages Co: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 6 Al Ahram Beverages Co: Competitive Position 2006
CHEERS - ALCOHOLIC DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Cheers: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
DRINKIES - ALCOHOLIC DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Drinkies: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
EGYPTIAN INTERNATIONAL BEVERAGE CO - ALCOHOLIC DRINKS - EGYPT
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Egyptian International Beverage Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 10 Egyptian International Beverage Co: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 11 Egyptian International Beverage Co: Competitive Position 2006
BEER IN EGYPT
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager Price Band Methodology
Summary 12 Lager by Price Band 2007
Table 23 Sales of Beer by Subsector: Total Volume 2002-2007
Table 24 Sales of Beer by Subsector: Total Value 2002-2007
Table 25 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 26 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 27 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 29 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 30 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 31 Company Shares of Beer by National Brand Owner 2002-2006
Table 32 Company Shares of Beer by Global Brand Owner 2002-2006
Table 33 Brand Shares of Beer 2003-2006
Table 34 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 35 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 36 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 37 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY IN EGYPT
TRENDS
RTDS/HIGH-STRENGTH PREMIXES IN EGYPT
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 39 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 40 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 41 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 42 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 43 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 44 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 45 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 46 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 47 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 48 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 49 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 50 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 51 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 52 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
WINE IN EGYPT
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 53 Sales of Wine by Subsector: Total Volume 2002-2007
Table 54 Sales of Wine by Subsector: Total Value 2002-2007
Table 55 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 56 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 57 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 58 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 59 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 60 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 61 Volume Sales of Still Red Wine by Price Segment 2004-2007
Table 62 Volume Sales of Still White Wine by Price Segment 2004-2007
Table 63 Volume Sales of Still Rosé Wine by Price Segment 2004-2007
Table 64 Volume Sales of Other Sparkling Wine by Price Segment 2004-2007
Table 65 Company Shares of Still Light Grape Wine by National Brand Owner 2002-2006
Table 66 Company Shares of Still Light Grape Wine by Global Brand Owner 2002-2006
Table 67 Brand Shares of Still Light Grape Wine 2003-2006
Table 68 Company Shares of Champagne by National Brand Owner 2003-2006
Table 69 Company Shares of Champagne by Global Brand Owner 2003-2006
Table 70 Brand Shares of Champagne 2003-2006
Table 71 Company Shares of Other Sparkling Wine by National Brand Owner 2002-2006
Table 72 Company Shares of Other Sparkling Wine by Global Brand Owner 2002-2006
Table 73 Brand Shares of Other Sparkling Wine 2003-2006
Table 74 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 75 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 76 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 77 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS IN EGYPT
HEADLINES
TRENDS
Production, Imports and Exports
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Vodka, Gin and Other Blended Scotch Whisky Price Band Methodology
Summary 13 Benchmark Brands – Egypt
SECTOR DATA
Table 78 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 79 Sales of Spirits by Subsector: Total Value 2002-2007
Table 80 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 81 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 82 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 83 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 84 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 85 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 86 Sales of Blended Scotch Whisky by Premium/Super-premium Split 2004-2007
Table 87 Sales of Gin by Premium/Super-premium Split 2004-2007
Table 88 Sales of Vodka by Premium/Super-premium Split 2004-2007
Table 89 Sales of Flavoured vs Non-flavoured Vodka 2004-2007
Table 90 Company Shares of Spirits by National Brand Owner 2002-2006
Table 91 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 92 Brand Shares of Spirits 2003-2006
Table 93 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 94 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 95 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 96 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012