How alcohol brands in Malaysia balance cultural sensitivities with sales revenue

• Oct 19, 2018

There has recently been some kerfuffle in Malaysia surrounding Oktoberfest, with multiple media reports stating that Johor and Terengganu have banned related celebrations. According to The Star, Johor’s chief minister Mentri Besar Datuk Osman Sapian said that while the state government will not clamp down on non-Muslims who wish to drink in pubs as those premises are licensed to sell alcohol, it will not issue a licence for alcohol-related festivals such as Oktoberfest.

On the other hand, restaurants in Kuala Lumpur are permitted to organise Oktoberfest events if they are licensed to sell alcohol and if the events are held within their premises, The Star reported. Oktoberfest typically brings in a considerable source of revenue for alcohol brands. In Germany, for example, the gross revenue for beer sales at last year’s Oktoberfest was €75.7 million, according to market research portal Statista.

Meanwhile just next door in Singapore, the Oktoberfest Asia organised by Oktoberfest Asia Prost has also grown popular among the locals. The fifth edition of the Oktoberfest Asia sees sponsors such as ibis Hotels and Hapz coming on board as the official hotel and ticketing partner respectively.

So how do alcohol brands in Malaysia ensure their sales numbers during this period are not taking a massive hit?

Lars Lehmann, managing director of Carlsberg Malaysia, told A+M that the company places “great emphasis” on quality and innovation that translates to drinking experience and consumer-facing activities. According to him, response for its “Probably The Best Oktoberfest” promotion and in-outlet parties has been “encouraging”. As most of the activations are to be held in bars, pubs and entertainment outlets, Carlsberg did not experience any major hiccups this year.

“As a responsible brewer, we advocate responsible drinking in line with our group’s purpose of ‘Brewing for a Better Today and Tomorrow’. In conjunction with some of the Oktoberfest promotions hosted by our trade partners, we deployed employee ambassadors to educate patrons on the consequences of irresponsible drinking and test their blood alcohol content via breathalysers to discourage driving under the influence of alcohol if they are over the national legal limit of 0.08%,” Lehmann added.

The brand is also offering 1,000 free rides in conjunction with Oktoberfest, including new female-only rides, to encourage responsible choices and prevent drunk-driving. This is done in partnership with Grab and Riding Pink.

Also noting the tensions around the event, in a statement to A+M, Heineken Malaysia’s spokesperson said it operates with respect to cultural sensitivities in Malaysia. “We comply with all relevant local laws and regulations governing our marketing activities,” the spokesperson added. Keeping up with the Oktoberfest festivities globally, in Malaysia, the brand has its Great Brew Fest 2018. This is a series of consumer promotions and activations that are available in its partner outlets, which its licensed to retail and serve alcoholic beverages. “Our consumer promotions are strictly for non-Muslims aged 21 and above only,” the spokesperson re-iterated.

Source: https://www.marketing-interactive.com/how-alcohol-brands-in-malaysia-balance-cultural-sensitivities-with-sales-revenue/