Alcoholic Drinks in the Philippines

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.

Buy online to access strategic market analysis and an interactive statistical database of volume and value market sizes including on-trade and off-trade, company and brand shares, distribution and pricing data.

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

Expanding consumer base underpins volume growth

Volume consumption of alcoholic drinks continued to show positive growth in 2008 albeit at a slower pace. An expanding consumer base, with women and younger drinkers being tapped by local manufacturers, has contributed to the sustained volume growth in 2008. With increasing disposable incomes due to more entering the work force, young adults have increased their spending on alcoholic drinks. Due to economic slowdown, consumption slowed slightly in 2008 but was not significantly impacted by the economic crisis; while generally people drink for a reason, Filipinos find a reason to drink.

Brandy survives weaker market

2008 was swamped with economic challenges as the market was faced with rising commodity and raw material prices, but despite this weakened market situation, brandy survived as a consumer preference because of its affordability. Secondly, brandy has been actively marketed to younger male and female drinkers, all the while broadening the consumer base and encouraging more volume sales.

Domestic companies hold leading shares

The top five players in the alcoholic drinks market were all domestic companies. San Miguel Corp continued to be the market leader in 2007 due to the strength of beer consumption particularly during what was an election year. Other domestic companies worthy of note in 2007 were Ginebra San Miguel Inc, which is a subsidiary of San Miguel Corp, Asia Brewery Inc, Tanduay Distillers Inc and Emperador Distillers Inc, completing the top five. The competitive advantage of domestic companies over multinational competitors is based primarily on distribution, pricing (due to much lower excise tax) and influence over the local market.

Chained off-trade expansion

Off-trade channels remained the prime volume contributor for alcoholic drinks. The expansion of chained supermarkets/hypermarkets and specialist retailers, encouraging greater brand presence and availability, has positively impacted volumes. Expansion ranged from more chained outlets to increased shelf space in existing outlets, with modern distribution channels extending beyond Metro Manila to other big cities in Visayas and Mindanao.

Value will grow faster than volume over the forecast period

Two more excise tax increases in 2009 and 2011 are expected to put pressure on manufacturers’ pricing strategies. This trend will force manufacturers to pass some of the increased costs onto consumers which will lead to higher unit prices over the forecast period. Therefore volume growth over the forecast period is expected to be slower compared to the review period coupled with the economic slowdown. Nevertheless, the general election in 2010 will help to sustain volume consumption during the middle part of the forecast period.

Table of contents

ALCOHOLIC DRINKS IN THE PHILIPPINES : MARKET INSIGHT

EXECUTIVE SUMMARY

Expanding consumer base underpins volume growth

Brandy survives weaker market

Domestic companies hold leading shares

Chained off-trade expansion

Value will grow faster than volume over the forecast period

KEY TRENDS AND DEVELOPMENTS

Players push existing repertoire to young working drinkers

Local brands hold clout in the market

Tourism influx boosts on-trade in provinces

Modern grocery retailers are expanding

Specialist retailers’ activity helps to increase consumption

Summary 1 Leading Specialist Retailers 2007

Market mergers and acquisitions activity

Mergers and acquisitions

Summary 2 Speculated Mergers and Acquisitions Activity

Market Background

TAXATION AND DUTY LEVIES

Table 1 Taxation and Duty Levies on Alcoholic Drinks 2008

Table 2 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2008

Table 3 Selling Margin of a Typical Domestically Produced Beer Brand 2008

Table 4 Selling Margin of a Typical Imported Wine Brand 2008

Table 5 Selling Margin of a Typical Imported Spirits Brand 2008

Table 6 Selling Margin of a Typical Domestic Spirits Brand 2008

OPERATING ENVIRONMENT

Contraband/Parallel Trade

MARKET INDICATORS

Table 7 Retail Consumer Expenditure on Alcoholic Drinks 2003-2008

MARKET DATA

Table 8 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008

Table 9 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008

Table 10 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008

Table 11 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008

Table 12 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008

Table 13 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008

Table 14 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008

Table 15 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008

Table 16 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007

Table 17 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008

Table 18 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008

Table 19 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013

Table 20 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013

Table 21 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013

Table 22 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013

DEFINITIONS

Sources

Summary 3 Research Sources

LOCAL COMPANY PROFILES - PHILIPPINES

ASIA BREWERY INC - ALCOHOLIC DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 4 Asia Brewery Inc: Key Facts

Summary 5 Asia Brewery Inc: Operational Indicators 2005-2007

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 6 Asia Brewery Inc: Competitive Position 2007

DESTILERíA LIMTUACO & CO INC - ALCOHOLIC DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Destilería Limtuaco & Co Inc: Key Facts

Summary 8 Destilería Limtuaco & Co Inc: Operational Indicators 2005-2007

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 9 Destilería Limtuaco & Co Inc: Competitive Position 2007

EMPERADOR DISTILLERS INC - ALCOHOLIC DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Emperador Distillers Inc: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 11 Emperador Distillers Inc: Competitive Position 2007

PREMIER WINE & SPIRITS INC - ALCOHOLIC DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 12 Premier Wine & Spirits Inc: Key Facts

Summary 13 Premier Wine & Spirits Inc: Operational Indicators 2005-2007

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 14 Premier Wine & Spirits Inc: Competitive Position 2007

TANDUAY DISTILLERS INC - ALCOHOLIC DRINKS - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 15 Tanduay Distillers Inc: Key Facts

Summary 16 Tanduay Distillers Inc: Operational Indicators 2005-2007

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 17 Tanduay Distillers Inc: Competitive Position 2007

BEER IN THE PHILIPPINES

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Lager price band methodology

Summary 18 Lager by Price Band 2008

SECTOR DATA

Table 23 Sales of Beer by Subsector: Total Volume 2003-2008

Table 24 Sales of Beer by Subsector: Total Value 2003-2008

Table 25 Sales of Beer by Subsector: % Total Volume Growth 2003-2008

Table 26 Sales of Beer by Subsector: % Total Value Growth 2003-2008

Table 27 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008

Table 28 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008

Table 29 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 30 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 31 Beer: Production, Imports and Exports: Total Volume 2002-2007

Table 32 Beer Exports by Country of Destination: Total Volume 2002-2007

Table 33 Beer Exports by Country of Destination: Total Value 2002-2007

Table 34 Beer Imports by Country of Origin: Total Volume 2002-2007

Table 35 Beer Imports by Country of Origin: Total Value 2002-2007

Table 36 Company Shares of Beer by National Brand Owner 2003-2007

Table 37 Company Shares of Beer by Global Brand Owner 2003-2007

Table 38 Brand Shares of Beer 2004-2007

Table 39 Forecast Sales of Beer by Subsector: Total Volume 2008-2013

Table 40 Forecast Sales of Beer by Subsector: Total Value 2008-2013

Table 41 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013

Table 42 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013

CIDER/PERRY IN THE PHILIPPINES

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

PROSPECTS

RTDS/HIGH-STRENGTH PREMIXES IN THE PHILIPPINES

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 43 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2003-2008

Table 44 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2003-2008

Table 45 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2003-2008

Table 46 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2003-2008

Table 47 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2003-2008

Table 48 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2003-2008

Table 49 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2003-2008

Table 50 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2003-2008

Table 51 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2003-2007

Table 52 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2003-2007

Table 53 Brand Shares of RTDS/High-strength Premixes 2004-2007

Table 54 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2008-2013

Table 55 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2008-2013

Table 56 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2008-2013

Table 57 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2008-2013

WINE IN THE PHILIPPINES

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 58 Sales of Wine by Subsector: Total Volume 2003-2008

Table 59 Sales of Wine by Subsector: Total Value 2003-2008

Table 60 Sales of Wine by Subsector: % Total Volume Growth 2003-2008

Table 61 Sales of Wine by Subsector: % Total Value Growth 2003-2008

Table 62 Sales of Wine by On-trade vs Off-trade Split: Volume 2003-2008

Table 63 Sales of Wine by On-trade vs Off-trade Split: Value 2003-2008

Table 64 Sales of Wine by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 65 Sales of Wine by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 66 Volume Sales of Still Red Wine by Price Segment 2003-2008

Table 67 Volume Sales of Still White Wine by Price Segment 2003-2008

Table 68 Volume Sales of Still Rosé Wine by Price Segment 2003-2008

Table 69 Volume Sales of Other Sparkling Wine by Price Segment 2003-2008

Table 70 Sales of Still Red Wine by Grape/Varietal Type 2003-2008

Table 71 Sales of Still White Wine by Grape/Varietal Type 2003-2008

Table 72 Sales of Still Rosé Wine by Grape/Varietal Type 2003-2008

Table 73 Sales of Still Red Wine by Quality Classification 2003-2008

Table 74 Sales of Still White Wine by Quality Classification 2003-2008

Table 75 Sales of Still Rosé Wine by Quality Classification 2003-2008

Table 76 Wine Production, Imports and Exports: Total Volume 2002-2007

Table 77 Wine Imports by Country of Origin: Total Volume 2002-2007

Table 78 Wine Imports by Country of Origin: Total Value 2002-2007

Table 79 Company Shares of Still Light Grape Wine by National Brand Owner 2003-2007

Table 80 Company Shares of Still Light Grape Wine by Global Brand Owner 2003-2007

Table 81 Brand Shares of Still Light Grape Wine 2004-2007

Table 82 Company Shares of Champagne by National Brand Owner 2004-2007

Table 83 Company Shares of Champagne by Global Brand Owner 2004-2007

Table 84 Brand Shares of Champagne 2004-2007

Table 85 Company Shares of Other Sparkling Wine by National Brand Owner 2003-2007

Table 86 Company Shares of Other Sparkling Wine by Global Brand Owner 2003-2007

Table 87 Brand Shares of Other Sparkling Wine 2004-2007

Table 88 Company Shares of Fortified Wine and Vermouth by National Brand Owner 2004-2007

Table 89 Company Shares of Fortified Wine and Vermouth by Global Brand Owner 2004-2007

Table 90 Brand Shares of Fortified Wine and Vermouth 2004-2007

Table 91 Forecast Sales of Wine by Subsector: Total Volume 2008-2013

Table 92 Forecast Sales of Wine by Subsector: Total Value 2008-2013

Table 93 Forecast Sales of Wine by Subsector: % Total Volume Growth 2008-2013

Table 94 Forecast Sales of Wine by Subsector: % Total Value Growth 2008-2013

SPIRITS IN THE PHILIPPINES

HEADLINES

TRENDS

PRODUCTION, IMPORTS AND EXPORTS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR BACKGROUND

Vodka, gin and other blended Scotch whisky price band methodology

Summary 19 Benchmark Brands – Philippines

Domestic economy brand determines going rate for vodka

Giant Ginebra San Miguel commands gin price

Other blended Scotch whisky

SECTOR DATA

Table 95 Sales of Spirits by Subsector: Total Volume 2003-2008

Table 96 Sales of Spirits by Subsector: Total Value 2003-2008

Table 97 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008

Table 98 Sales of Spirits by Subsector: % Total Value Growth 2003-2008

Table 99 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008

Table 100 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008

Table 101 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008

Table 102 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008

Table 103 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008

Table 104 Sales of Gin by Premium/Super-premium Split 2003-2008

Table 105 Sales of Vodka by Premium/Super-premium Split 2003-2008

Table 106 Sales of Flavoured vs Non-flavoured Vodka 2003-2008

Table 107 Spirits Production, Imports and Exports: Total Volume 2002-2007

Table 108 Spirits Exports by Country of Destination: Total Volume 2002-2007

Table 109 Spirits Exports by Country of Destination: Total Value 2002-2007

Table 110 Spirits Imports by Country of Origin: Total Volume 2002-2007

Table 111 Spirits Imports by Country of Origin: Total Value 2002-2007

Table 112 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007

Table 113 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007

Table 114 Vodka Production, Imports and Exports: Total Volume 2002-2007

Table 115 Gin Production, Imports and Exports: Total Volume 2002-2007

Table 116 Rum Production, Imports and Exports: Total Volume 2002-2007

Table 117 Liqueurs Production: Total Volume 2002-2007

Table 118 Company Shares of Spirits by National Brand Owner 2003-2007

Table 119 Company Shares of Spirits by Global Brand Owner 2003-2007

Table 120 Brand Shares of Spirits 2004-2007

Table 121 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013

Table 122 Forecast Sales of Spirits by Subsector: Total Value 2008-2013

Table 123 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013

Table 124 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013