Alcoholic Drinks in the United Arab Emirates
Euromonitor International's Alcoholic Drinks in the United Arab Emirates 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: 99 | 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
Increasing Demand
The United Arab Emirates (UAE) is a federation of seven Emirates or states. These are Dubai, Fujairah, Ras Al-Khaimah, Umm Al-Qaiwain, Sharjah, Ajman and Abu Dhabi, the capital of the UAE. Each of the Emirates is virtually independent and can apply its own laws, especially those relating to sales and consumption of alcoholic drinks. Sharjah, for example is an alcohol-free state and it is not possible to buy alcohol at all, not even in the most exclusive restaurants. Other states on the other hand, including Dubai and Abu Dhabi are witnessing an economical boom which is attracting tourism, increased business activities and foreign investments. This as a result is increasing the demand on the Alcoholic drinks sales in the UAE as it is mainly dependant on non-Islamic faiths which includes tourist and Western expatriates.
Non-Muslim expatriates drive demand
The native population of the UAE is composed principally of Arabs and Bedouin. However, these comprise only around a quarter of the total population, with the remainder being expatriate and immigrant workers, including Asian, Arab, European and American expatriates. Alcohol is available for non-Muslims in hotels, hotel bars and hotel restaurants. Non-Muslim expatriate workers can also get a liquor license to allow them to buy alcohol for home consumption. Thus the demand on specific types of alcoholic drinks including beer, wine, and Champaign is more pronounced.
Competition limited to two suppliers
Despite being a leading tourist destination, the UAE is a Muslim country with Sharia law, which prohibits the consumption and purchase of alcohol. This limited alcoholic drinks to only two major suppliers and distributors who are not owners of any of the brands. The two companies are Maritime & Mercantileternational (MMI) and African & Eastern NE BVI Ltd. The latter imports mainly world-renowned alcoholic drinks brands, ranging from beer to spirits, to the UAE. The company owns five specialist outlets selling only alcoholic drinks in Dubai and has branches in other Gulf countries including Oman. Whilst, MMI distributes alcoholic drinks on behalf of client companies throughout the UAE, the company also issues liquor licences to non-Muslims that allow them to legally purchase alcoholic drinks.
On-trade registers higher sales
Being a Muslim country, the UAE not only restricts the number of alcoholic drinks suppliers but also restricts the number of alcoholic drinks retailers. Due to this restriction, the main distribution channel for alcoholic drinks is the on-trade, including hotels, restaurants and hotel-related foodservice such as bars and restaurants. Tourism therefore plays a major role in increasing demand through on-trade channels. Non-Muslim expatriates are restricted to annual purchasing limits, which they obtain through a license.
Outlook is bright
The forecast growth for alcoholic drinks will not only be dependant on foreign expatriates workers but also heavily related to tourism activities. The UAE and specifically Dubai have been a tourist attraction for many years. Most tourists come from Western Europe and America, due to the high cost of living in the UEA making it too expensive for most Arab tourists. Demand for alcoholic drinks will therefore grow in line with growth in tourism. Moreover, the UAE is dependant on foreign workers, particularly Western European and US experts, who will also support growth during the forecast period.
Table of contents
ALCOHOLIC DRINKS IN THE UNITED ARAB EMIRATES : MARKET INSIGHT
EXECUTIVE SUMMARY
Increasing Demand
Non-Muslim expatriates drive demand
Competition limited to two suppliers
On-trade registers higher sales
Outlook is bright
KEY TRENDS AND DEVELOPMENTS
UAE benefits from booming economy
Growth driven by tourism
A Muslim country with some religious diversity
On-trade vs off-trade trends
Specialist retailers
Summary 1 Leading Specialist Retailers 2006
Market merger and acquisition activity
MARKET BACKGROUND
Legislation
TAXATION AND DUTY LEVIES
Summary 2 Taxation and Duty Levies on Alcoholic Drinks 2007
Table 1 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2007
Table 2 Selling Margin of a Typical Imported Beer Brand 2007: Brauerei Beck GmbH & Co’s Beck’s
Table 3 Selling Margin of a Typical Imported Wine Brand 2007: Southcorp Holdings Ltd’s Lindeman’s
Table 4 Selling Margin of a Typical Imported Spirits Brand 2007: Bacardi & Co Ltd’s Bacardi Superior
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 5 Retail Consumer Expenditure on Alcoholic Drinks 2002-2007
MARKET DATA
Table 6 Sales of Alcoholic Drinks by Sector: Total Volume 2002-2007
Table 7 Sales of Alcoholic Drinks by Sector: Total Value 2002-2007
Table 8 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2002-2007
Table 9 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2002-2007
Table 10 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Volume 2007
Table 11 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade split: Value 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 Company Shares of Alcoholic Drinks by Global Brand Owner 2003-2006
Table 15 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2007
Table 16 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2007
Table 17 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2007-2012
Table 18 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2007-2012
Table 19 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2007-2012
Table 20 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2007-2012
DEFINITIONS
BEER
Headlines
Trends
Competitive Landscape
Prospects
Sector Background
Summary 3 Lager by Price Band 2007
Sector Data
Table 21 Sales of Beer by Subsector: Total Volume 2002-2007
Table 22 Sales of Beer by Subsector: Total Value 2002-2007
Table 23 Sales of Beer by Subsector: % Total Volume Growth 2002-2007
Table 24 Sales of Beer by Subsector: % Total Value Growth 2002-2007
Table 25 Sales of Beer by On-trade vs Off-trade split: Volume 2002-2007
Table 26 Sales of Beer by On-trade vs Off-trade split: Value 2002-2007
Table 27 Sales of Beer by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 28 Sales of Beer by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 29 Company Shares of Beer by National Brand Owner 2002-2006
Table 30 Company Shares of Beer by Global Brand Owner 2002-2006
Table 31 Brand Shares of Beer 2003-2006
Table 32 Forecast Sales of Beer by Subsector: Total Volume 2007-2012
Table 33 Forecast Sales of Beer by Subsector: Total Value 2007-2012
Table 34 Forecast Sales of Beer by Subsector: % Total Volume Growth 2007-2012
Table 35 Forecast Sales of Beer by Subsector: % Total Value Growth 2007-2012
WINE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 36 Sales of Wine by Subsector: Total Volume 2002-2007
Table 37 Sales of Wine by Subsector: Total Value 2002-2007
Table 38 Sales of Wine by Subsector: % Total Volume Growth 2002-2007
Table 39 Sales of Wine by Subsector: % Total Value Growth 2002-2007
Table 40 Sales of Wine by On-trade vs Off-trade split: Volume 2002-2007
Table 41 Sales of Wine by On-trade vs Off-trade split: Value 2002-2007
Table 42 Sales of Wine by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 43 Sales of Wine by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 44 Forecast Sales of Wine by Subsector: Total Volume 2007-2012
Table 45 Forecast Sales of Wine by Subsector: Total Value 2007-2012
Table 46 Forecast Sales of Wine by Subsector: % Total Volume Growth 2007-2012
Table 47 Forecast Sales of Wine by Subsector: % Total Value Growth 2007-2012
SPIRITS
Headlines
Trends
Competitive Landscape
Prospects
Sector Background
Sector Data
Table 48 Sales of Spirits by Subsector: Total Volume 2002-2007
Table 49 Sales of Spirits by Subsector: Total Value 2002-2007
Table 50 Sales of Spirits by Subsector: % Total Volume Growth 2002-2007
Table 51 Sales of Spirits by Subsector: % Total Value Growth 2002-2007
Table 52 Sales of Spirits by On-trade vs Off-trade split: Volume 2002-2007
Table 53 Sales of Spirits by On-trade vs Off-trade split: Value 2002-2007
Table 54 Sales of Spirits by On-trade vs Off-trade split: % Volume Growth 2002-2007
Table 55 Sales of Spirits by On-trade vs Off-trade split: % Value Growth 2002-2007
Table 56 Company Shares of Spirits by National Brand Owner 2002-2006
Table 57 Company Shares of Spirits by Global Brand Owner 2002-2006
Table 58 Brand Shares of Spirits 2003-2006
Table 59 Forecast Sales of Spirits by Subsector: Total Volume 2007-2012
Table 60 Forecast Sales of Spirits by Subsector: Total Value 2007-2012
Table 61 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2007-2012
Table 62 Forecast Sales of Spirits by Subsector: % Total Value Growth 2007-2012
CIDER/PERRY
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 63 Sales of Cider/Perry: Total Volume 2002-2007
Table 64 Sales of Cider/Perry: Total Value 2002-2007
Table 65 Sales of Cider/Perry: % Total Volume Growth 2002-2007
Table 66 Sales of Cider/Perry: % Total Value Growth 2002-2007
Table 67 On-trade vs Off-trade Sales of Cider/Perry: Volume 2002-2007
Table 68 On-trade vs Off-trade Sales of Cider/Perry: Value 2002-2007
Table 69 On-trade vs Off-trade Sales of Cider/Perry: % Volume Growth 2002-2007
Table 70 On-trade vs Off-trade Sales of Cider/Perry: % Value Growth 2002-2007
Table 71 Company Shares of Cider/Perry by National Brand Owner 2002-2006
Table 72 Company Shares of Cider/Perry by Global Brand Owner 2002-2006
Table 73 Brand Shares of Cider/Perry 2003-2006
Table 74 Forecast Sales of Cider/Perry: Total Volume 2007-2012
Table 75 Forecast Sales of Cider/Perry: Total Value 2007-2012
Table 76 Forecast Sales of Cider/Perry: % Total Volume Growth 2007-2012
Table 77 Forecast Sales of Cider/Perry: % Total Value Growth 2007-2012
RTDS/HIGH-STRENGTH PREMIXES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 78 Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2002-2007
Table 79 Sales of RTDS/High-strength Premixes by Subsector: Total Value 2002-2007
Table 80 Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2002-2007
Table 81 Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2002-2007
Table 82 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Volume 2002-2007
Table 83 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: Value 2002-2007
Table 84 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Volume Growth 2002-2007
Table 85 On-trade vs Off-trade Sales of RTDS/High-strength Premixes: % Value Growth 2002-2007
Table 86 Company Shares of RTDS/High-strength Premixes by Global Brand Owner 2002-2006
Table 87 Company Shares of RTDS/High-strength Premixes by National Brand Owner 2002-2006
Table 88 Brand Shares of RTDS/High-strength Premixes 2003-2006
Table 89 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Volume 2007-2012
Table 90 Forecast Sales of RTDS/High-strength Premixes by Subsector: Total Value 2007-2012
Table 91 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Volume Growth 2007-2012
Table 92 Forecast Sales of RTDS/High-strength Premixes by Subsector: % Total Value Growth 2007-2012
AFRICAN & EASTERN NE BVI LTD
Strategic Direction
Key Facts
Summary 4 African & Eastern NE BVI Ltd: Key Facts
Company Background
Prodution
Competitive Positioning
AL AHRAM BEVERAGES CO (ABC)
Strategic Direction
Key Facts
Summary 5 Al Ahram Beverages Co (ABC): Key Facts
Company Background
Production
Competitive Positioning
Summary 6 Al Ahram Beverages Co (ABC): Competitive Position 2007
MARITIME & MERCANTILE INTERNATIONAL LLC (MMI)
Strategic Direction
Key Facts
Summary 7 Maritime & Mercantile International LLC (MMI): Key Facts
Company Background
Production
Competitive Positioning