Beer in the Philippines

PROSPECTS

Healthy growth for domestic products

With the introduction of new marketing campaigns and effective trade programmes by incumbent players such as AB Heineken Philippines Inc and San Miguel Brewery Inc, beer continued to record a positive performance in 2018. The players continued increasing their distribution nationwide, which helped drive consumption of beer products in different parts of the country.

Millennials drive premiumisation in beer

As one of the mature categories in the alcoholic drinks industry in the Philippines, incumbent players eye younger consumers of legal drinking age who are not only more exposed to different beers, but also are more willing to try new experiences. The proliferation of domestically-produced craft beers such as Elias, Enkanto and Pedro help create a more prestigious image for the category as more restaurants and bars begin to carry more than just domestic mid-priced and economy lagers.

COMPETITIVE LANDSCAPE

San Miguel Brewery continues to lead beer

San Miguel Brewery maintained its leadership in beer in 2018 as it is able to bank on its strong brand equity through effective marketing campaigns and an unmatched distribution network. The product variety of the company enables it to cater to different consumer segments, regardless of the price points, thereby allowing San Miguel Brewery to be present in various retail channels, including other grocery retailers, which takes in sari-sari stores.

Incumbent players aggressively compete to gain share

Despite the aggressive marketing and distribution efforts of San Miguel Brewery, the other key player, AB Heineken Philippines, had the fastest-growing brand in 2018 in Heineken due to its affordability and perceived quality, after Asia Brewery took over its brewing and distribution. The company pushed the brand not only with its continued above-the-line marketing strategies, but also hosted a number of events in bars outside Manila.

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