Beer in the Philippines
Euromonitor International's Beer 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.
Tables: 58 | Publication date: Dec 2009
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
Dark Beer; Lager; Lager by Origin; Low/Non- Alcohol Beer; Stout
Executive summary
Although beer is the third most commonly purchased item by an average Filipino according to a Department of Health study, the category has reached maturity. New product launches are limited, mostly from importers of premium lager. Domestic manufacturers are maintaining their product portfolios and focusing on increasing consumption. For example, San Miguel Brewery is investing in volume-generating programmes through events such as Oktoberfest and SMB Takes You to the Philippines. This has helped to create continuous volume sales growth albeit at a slower pace.
Total volume sales of beer increased by 5% in 2009 to reach 1.6 billion litres in 2009. This is only marginally slower than total volume growth in 2008 as consumers try to reduce their intake due to the economic slowdown. However, this is not a universal reaction, as a portion of consumers, largely upper-middle and high-income consumers, have not been affected by the financial crisis. This, albeit small, section of the population maintained it beer consumption level in 2009.
Domestic standard lager registered the fastest total volume growth of 5% in 2009, as such products are perceived as offering consumers good value for money choices. Aside from good quality, affordable products by San Miguel Pale Pilsen, San Mig Light, Colt 45 Malt Liquor and Beer na Beer, domestic standard lager is more widely available in both on- and off-trade outlets than other types of beer.
Unit prices increased in current value terms in 2009 despite the efforts of manufacturers and importers to improve production efficiency. Manufacturers and importers are under pressure to pass on higher operational costs to consumers as they are unable to absorb all of the additional expenditure. Some of the key factors behind the rise in unit prices were the 8% increase in excise tax in January 2009, the depreciation of the local currency, and higher raw material and fuel prices.
Lager remains the most popular type of beer in the Philippines, as Filipinos are accustomed to its lighter taste. It is also the most widely available type of beer in the country. The demand for dark beer remains limited despite the availability of a local brand, Cerveza Negra. Whilst stout is available in the Philippines, its strong burnt taste appeals only to a niche consumer base.
Despite the economic slowdown, imported and domestic premium lager gaining popularity in high-end bars and restaurants from the end of 2008. This trend is due to the introduction of imported craft beer and San Miguel Premium All Malt. Curiosity among affluent university students and young urban professionals boosted on-trade consumption of premium lager in 2009.
As beer is an essential part of the local culture, Filipinos do not wait for special occasions to drink it. In 2009, the off-trade channel accounted for a 73% share of volume sales as such outlets are more accessible and affordable to most Filipinos. Most households keep a few bottles in their refrigerator as Filipinos tend to drink beer to relax after an exhausting day at work.
As the beer category reaches saturation, manufacturers are becoming more aggressive in promoting their products to strengthen shares. They are investing in tri-media advertising, professional basketball teams, event sponsorships and celebrity endorsements. Manufacturers are also devising innovative ways to increase consumption. For example, San Miguel Brewery invested in exclusive on-trade selling activities at large-scale festivals such as Ati-Atihan, Maskara and Pintados Kasadyaan across the Philippines. The company also created other promotions to increase consumption such as Teritoryo (Territory) San Miguel, Payday Special, Beer Plazas and Beer Drinking Contests.
Beer in the Philippines is commonly packaged in 330ml amber or flint bottles and aluminium cans. In Metro Manila, most chained supermarkets/hypermarkets, particularly Rustan’s Supermarket and Robinsons Supermarket, only sell local beer brands in cans. Glass bottles is more common in sari-sari stores and provincial supermarkets/hypermarkets were a deposit system is in place. The deposit is included in the retail selling price and a small refund is due the consumer once the bottle has been returned in good condition. Local manufacturers utilise a deposit system as they have the facilities to recycle glass and plastic.
PRODUCTION, IMPORTS AND EXPORTS
San Miguel Brewery and Asia Brewery are the two domestic producers of beer in the Philippines. San Miguel Brewery, the largest beer producer, has five local breweries strategically located across the Philippines. Asia Brewery operates two breweries, one in Cabuyao, Laguna and one in El Salvador, Misamis Oriental.
The local breweries of San Miguel Brewery and Asia Brewery cater mostly to the domestic market. A small share of Asia Brewery’s production is exported to nearby countries such as Singapore, Malaysia, Hong Kong, China, Guam and Micronesia. In contrast, San Miguel Corp has breweries in neighbouring Asian countries such as Thailand, Vietnam and Indonesia that cater to international demand. Hence, the local San Miguel Brewery facilities account for only a small share of export volume sales.
The competition from imported brands is minimal as the large majority of beer volume sales are generated by San Miguel Brewery. The distribution of imported beer is limited to upscale on-trade establishments, and high-end supermarkets and specialist retailers.
Table of contents
BEER IN THE PHILIPPINES : MARKET INSIGHT
HEADLINES
TRENDS
PRODUCTION, IMPORTS AND EXPORTS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR BACKGROUND
Lager price band methodology
Table 1 Lager by Price Band 2009
SECTOR DATA
Table 2 Sales of Beer by Subsector: Total Volume 2004-2009
Table 3 Sales of Beer by Subsector: Total Value 2004-2009
Table 4 Sales of Beer by Subsector: % Total Volume Growth 2004-2009
Table 5 Sales of Beer by Subsector: % Total Value Growth 2004-2009
Table 6 Sales of Beer by On-trade vs Off-trade Split: Volume 2004-2009
Table 7 Sales of Beer by On-trade vs Off-trade Split: Value 2004-2009
Table 8 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 9 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 10 Beer: Production, Imports and Exports: Total Volume 2003-2008
Table 11 Company Shares of Beer by National Brand Owner 2005-2009
Table 12 Company Shares of Beer by Global Brand Owner 2005-2009
Table 13 Brand Shares of Beer 2006-2009
Table 14 Forecast Sales of Beer by Subsector: Total Volume 2009-2014
Table 15 Forecast Sales of Beer by Subsector: Total Value 2009-2014
Table 16 Forecast Sales of Beer by Subsector: % Total Volume Growth 2009-2014
Table 17 Forecast Sales of Beer by Subsector: % Total Value Growth 2009-2014
LOCAL COMPANY PROFILES - PHILIPPINES
ASIA BREWERY INC - ALCOHOLIC DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Asia Brewery Inc: Key Facts
Summary 2 Asia Brewery Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Asia Brewery Inc: Competitive Position 2009
DESTILERíA LIMTUACO & CO INC - ALCOHOLIC DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Destilería Limtuaco & Co Inc: Key Facts
Summary 5 Destilería Limtuaco & Co Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Destilería Limtuaco & Co Inc: Competitive Position 2009
EMPERADOR DISTILLERS INC - ALCOHOLIC DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Emperador Distillers Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Emperador Distillers Inc: Competitive Position 2009
GINEBRA SAN MIGUEL INC - ALCOHOLIC DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Ginebra San Miguel Inc: Key Facts
Summary 10 Ginebra San Miguel Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Ginebra San Miguel Inc: Competitive Position 2009
TANDUAY DISTILLERS INC - ALCOHOLIC DRINKS - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Tanduay Distillers Inc: Key Facts
Summary 13 Tanduay Distillers Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Tanduay Distillers Inc: Competitive Position 2009
ALCOHOLIC DRINKS IN THE PHILIPPINES
EXECUTIVE SUMMARY
Drinking culture sustains positive volume growth
Economic downturn leads consumers to trade down
Domestic companies continue to control the industry
Off-trade channel generates majority of volume sales
Positive volume and value growth over the forecast period
KEY TRENDS AND DEVELOPMENTS
Consumers trade down during times of economic difficulty
Importers become more conservative
Demand for premium brands increases in high-end on-trade establishments
Local brands continue to dominate alcoholic drinks
Specialist Retailers
Table 18 Leading Specialist Retailers 2008
Market Merger and Acquisition Activity
Table 19 Merger and Acquisition Activity 2008-2009
Table 20 Speculated Merger and Acquisition Activity 2009-2010
LEGISLATION
Table 21 Number of On-trade Establishments by Type 2004-2008
TAXATION AND DUTY LEVIES
Summary 15 Taxation and Duty Levies on Alcoholic Drinks 2009
Table 22 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Sectors 2009
Table 23 Selling Margin of a Typical Beer Brand 2009
Table 24 Selling Margin of a Typical Wine Brand 2009
Table 25 Selling Margin of a Typical Imported Spirits Brand 2009
Table 26 Selling Margin of a Typical Domestic Spirits Brand 2009
OPERATING ENVIRONMENT
MARKET INDICATORS
Table 27 Retail Consumer Expenditure on Alcoholic Drinks 2004-2009
MARKET DATA
Table 28 Sales of Alcoholic Drinks by Sector: Total Volume 2004-2009
Table 29 Sales of Alcoholic Drinks by Sector: Total Value 2004-2009
Table 30 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2004-2009
Table 31 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2004-2009
Table 32 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2009
Table 33 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2009
Table 34 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2009
Table 35 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2009
Table 36 Company Shares of Alcoholic Drinks by Global Brand Owner 2005-2009
Table 37 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2009
Table 38 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2009
Table 39 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2009-2014
Table 40 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2009-2014
Table 41 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2009-2014
Table 42 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2009-2014
APPENDIX
DEFINITIONS
Sources
Summary 16 Research Sources
Published data comparisons