Market Research Reports - Ken Research Philippines Alcoholic Beverages Industry Analysis

Growth of assorted popular alcoholic beverages in Philippines: Ken Research
Spirit is an alcoholic beverage that is produced by distillation of grains, fruit, or vegetables that
undergo alcoholic fermentation. Philippines climatic condition is not suitable for plantation of
grape-bearing vines. Therefore, grapes are grown in small quantities in the country. Wine is
made from other fruits such as mangoes, guavas and passion fruit. Mango wine is the most
popular wine along with guava and passion fruit wines which are easily available. The variety of
alcoholic beverages labelled as fruit wines are actually spirit bases. They are made up of grain
or starchy roots flavoured with fruit extracts or concentrate. The leading alcohol producer in
Philippines is the San Miguel Brewery that holds more than 90% of the beer market.
According to the study “Spirits in the Philippines”, gin, beer, rum, and brandy are the most
popular drinks that are easily available in Philippines. Rum is an alcoholic spirit manufactured in
the Philippines with white and gold versions. The products are well made and are used for
cocktails. Blended whiskey, vodka and brandy are also produced at various levels of aging and
quality. The common alcoholic beverage preferred in Philippines is beer. Local alcoholic drinks
are tuba (coconut wine) and clear liquors produced from sugar or fruit. Imported beer, wine
and whiskey are available but expensive. Tanduay is another popular brand of rum, along with
Tondenia Premium Rum and Anejo 65 Rum brands which are available in Philippines. The
popular brandy brands are Barcelona, Genoroso, and Gran Matador. The local Vodka brands are
Cossack Vodka and Antonov Vodka. Don Enrique Mixkila is a combination of Tequila and
distilled spirits. Erg is as brand of Alcotonic, Q-Shandy and Cali are brands of non-alcoholic beer.
Boracay, Expired, Kagatan, Calibog are few of the cocktail drinks available in the country.
Filipino lambanog is an alcoholic beverage manufactured by PDC and is going global. This
product cannot be found anywhere else in the world and is a true Filipino spirit. Lambanog is
hoping to find itself alongside the world’s best known distinctive liquors.
In the year 2013, the Philippines government has started to impose new taxes such as excise
tax on the spirits such as beer, liquor, wine, and alcohol products. The spirits market in
Philippines is still recovering from the effect of taxes. San Miguel is the leading brand in the
manufacture of beer and gin in the country with a variety of products. Beer na Beer is a close
competitor for San Miguel. Philippine Distillers Company (PDC) is another leading player in the
spirits market.
The growth of on-trade channel for spirits is driven by encouraging the cocktail culture in the
country. On-trade establishments also introduce various spirits categories and consumers are
attracted towards the new brands. The off-trade sale of spirits is always in bulk and it was
observed that the off-trade spirits market will continue sales at a steady growth. However, the
volume sales of imported brands remains negligible compared to the premium brand of spirits