August 1 - 7, 2005 Myanmar's first international weekly © Volume 14, No.277
 
 
 

Domestic beers dominate market

By Maw Maw San

BEER drinkers in Myanmar need not look beyond the borders of their own country for high-quality brews sold at reasonable prices. Although imported varieties are widely available at supermarkets and upscale pubs throughout Yangon, locals and visitors alike are usually satisfied with tasty domestic products.

Although the number of beer drinkers in Myanmar is growing, the relatively low spending power of many people in the country has meant that overall sales have decreased, as each person consumes less.

As a result the beer market has become more competitive as manufacturers and distributors compete for fewer kyats.

Myanmar’s domestic beer market is dominated by products manufactured by Myanmar Brewery Limited (MBL), which include Myanmar Beer, Tiger Beer, ABC Stout and Anchor Beer brands.

Other domestic brewers include Dagon Brewery Co. Ltd – a joint venture between the Myanmar Economic Corporation, Myanmar Golden Star Company (MGS), and the Singapore-based Brew Invest Company – which makes Dagon Beer and Skol Beer, and Mandalay Brewery Ltd, owned by Myanma Foodstuff Enterprise under the Ministry of Industry 1, which makes Mandalay Beer.

A spokesperson from one Yangon-based brewer said that doing well in the domestic market not only requires the production of high-quality beer but also the use of effective marketing techniques.

The spokesperson also said that most people in Myanmar prefer brands with which they are familiar and are often unwilling to try new products, making it difficult for new manufacturers to break into the market.

The fact that the beer market is shrinking makes this even more difficult, he said.

“Beer sales have decreased since last year while production costs have gone up, but we can’t increase our prices because it might make our products too expensive for some consumers to afford,” the spokesperson said.

U Aung Kywe, the owner of Ginki Kids Snacks and Bar in Bahan township, said his beer sales have remained level but prices are likely to increase.

“When this happens only those who really like the taste of beer will stick with it, while others will likely switch to drinking liquor,” he said.

He said his customers are happy drinking domestic beer, so he does not offer imports at his bar.

“Locals and foreigners, even those who prefer imported liquor, are happy with the taste of domestic beer,” said U Aung Kywe.

Although Ginki Kids opened four years ago, sales only took off when it started serving Myanmar Beer, a favourite among customers, he said.

Shoppers at retail outlets also prefer domestic beers over imported products.
“Most of our customers buy local beers, but we do stock a few imports – the most popular foreign brand is Budweiser from the US,” said a spokesperson from one Yangon-based supermarket.

She said most people who purchase beer at the supermarket are upper-class consumers who buy it to drink at home with their families.

“On the other hand, most beer station patrons are young people or sometimes married couples who want to enjoy the entertainment or who just like to gather with their friends,” said the spokesperson.

U San Win Soe, a manager of the Phyu Ni War Pyar Beer Station, said that customers prefer draft beer to cans or bottles.

“They think draft beer tastes fresher, and they also like the lower price,” he said.

 

 
 
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