Algeria, already fragile economically and politically, has now been facing a new crisis: the COVID-19 pandemic. In 2020, the lockdown implemented by the government in order to contain the virus spread, has negatively been affecting both the offer and the demand.
On 17 March 2020, the country closed its land, air and sea borders to travellers and banned mass gatherings, including for collective prayers. On 23 March, total lockdown was imposed in the prefecture of Blida, near Algiers, the initial focal point of the epidemic in Algeria.
In 2020, beer, the largest product area in volume, will continue to be led by two multinational companies, namely Groupe Castel Algerie and Tango-Heineken. They manufacture their products domestically, matching their expertise in promoting and operating their businesses with their globally recognised, strong brand portfolios.
In 2020, the measures taken by the local authorities, especially in the mostly affected areas, to prevent the contamination and spread of COVID-19 have important consequences for economic activities, transport and distribution throughout the country. In addition, the health crisis has been disrupting value chains, affecting international trade and posing risks to alcoholic drinks supply chains.
The COVID-19 pandemic has been having a very negative impact on the performance of foodservice in 2020 due to lockdown and the closure of hotels, restaurants and bars for several months. In addition, due to the ongoing Algerian economic crisis causing growing inflation and disposable income levels decline, foodservice volume sales have been declining, beyond the health crisis issues and outlets closures.
Alcoholic drinks will begin to recover from as soon as 2020, in line with the COVID-19 pandemic coming to an end. It is expected that alcoholic drinks will post further growth over the forecast period, benefitting from population growth, rising consumer awareness and the government’s efforts to limit illegal sales and contraband.
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