Alcohol increasingly popular in the Gulf - March 21, 2011
Taking advantage of the increased flow of tourists in the Arab, the world leader Diageo liquor has increased its sales in the Near East and North Africa by 16% over 2010. The Gulf region alone accounts for 44% of group sales. After the modest 6% rise registered in 2009, growth accelerated to sales in this region, mainly through the introduction of liquor into luxury hotels and the opening of a liquor store high range in the Dubai airport last December. The British giant, which sells brands including Smirnoff, Baileys and Guinness beer, is also in talks to open another liquor store in the duty free area at the international airport of Qatar.
"The Persian Gulf countries become important markets through international deductions that, as the Formula 1 Grand Prix of Bahrain or the World Cup to be held in Qatar in 2022. This gives us new opportunities, "says Jane Ewing, executive director of Diageo for tourism Modial and the Near East (GTME), indicating that the company expects to double its sales in the region over the next 5 years .
A strategy of non-alcoholic beverages
Diageo is not the only company to be present on the market of Gulf countries. The Dutch brewer Heineken has become famous in this area because it was part of the official sponsors of the European Championship football."Heineken is one of the main sponsors of the Champions League UEFA championship which is very popular in Arab countries," said John Paul Schuirink, communications manager for Heineken, adding that the association group of football was a way to reach customers in the Middle East. The group announced a net profit of 1.44 billion euros in 2010, up 41% compared to 2009, showing in its annual report an increase in its production by 12% for countries in Africa and Middle East.
Besides the liquor, the Dutch group also distributes under its own brand of soft drinks, including fruit drinks made from malt, became particularly popular among young consumers in Arab countries. Thanks to these drinks, Heineken owns nearly 40% of the beverage market in the UAE, 70% and 90% in Lebanon to Egypt.For the Dutch company, the market for Persian Gulf countries remains small, but easy enough to win with less intense competition.
Alcohol is forbidden by Islam, some countries in the Middle East, like Saudi Arabia or Kuwait, totally prohibit the marketing. In Bahrain or Dubai, foreign residents must obtain special authorization to buy drinks in shops alocoolisées with special licenses. These limitations do not hamper the producers: "Every country has its limitations. We are committed and we respect them, "says Jane Ewing Diageo, stating that these laws do not inhibit the growth of sales.