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Albanian beer is "shrinking", local factories are importing foreign beer, consumption is also falling in bars and restaurants

2023-12-18 10:50:42Biznes SHKRUAR NGA REDAKSIA VOX

Albanian beer is "shrinking", local factories are importing foreign

Beer imports continue to expand in the Albanian market. In January-October, according to Customs data, beer imports increased by 6% year-on-year. The weight of import beer to the total market (imports+production) for the months January-October 2023 reached 59% against the share of 54% that imports had on the market for January-October 2022.

Producers have repeated several times that local beer is on the verge of bankruptcy. In the period January-October 2023, 30 million liters of beer were produced, the lowest amount since 2016. For January-October, domestic production decreased by 13% compared to the same period in 2022.

Enzo Panteqi, administrator of the "Stela" brewery, told "Monitor" that the consumption of local beer continues to be at low levels, due to the high cost of the doubling of the excise duty, the price of energy and the cheap prices of sale of foreign beers.

To increase turnover and profit margin, he claims they are importing a Spanish brand of beer. "This situation is the result of non-incentive fiscal policies of Albanian institutions. "Albanian beer is on the verge of extinction, causing damage to the employees and the country's economy", he underlines.

During 2023, the price of Albanian beer in the entire Albanian market, according to the data of the Association of Beer Producers, increased by 20% compared to years, as a result of the doubling of the excise duty level from January 1, losing competitiveness against imported beers that are sold at a cheaper price.

Albanian beer is "shrinking", local factories are importing foreign

Consumption also drops in bars and restaurants

The downward trend in consumption has returned for bars and restaurants. In the summer months, consumption in bars and restaurants increased by 20% compared to years, due to the high flow of tourists. With the departure of foreign tourists, according to the representative of the Association of Bars and Restaurants, Enri Jahaj, consumption began to shrink.

Among the internal factors that are affecting the decrease in consumption according to Jahaj, there remain the uncertainty about spending by the family consumer due to economic difficulties and the tendency to save on the eve of the holidays, as well as including the "fear" of being exposed in restaurants of individuals who possess dirty money, due to investigations by SPAK.

"Consumption in bars and restaurants is decreasing compared to years. First, we are facing a crisis that consumers feel insecure about spending. Second, there were long days off for national holidays. Thirdly, we are also on the eve of the end-of-year holidays and the consumer tends to save on expenses in bars and restaurants.

Fourth, those who have money, as well as those who have dirty money in their hands, do not go out to spend anymore, because they do not want to be noticed. Stay away from people's attention, consume at home. So it is already a fact that both arms are no longer going out for lunches and dinners in the restaurant, or they go out without being seen by people. Everyone is afraid", says Yahja.

He adds that the attraction of this category is having an impact, due to the fact that it is estimated that they account for 10-15% of the total consumption in bars and restaurants. "This category spends up to 15,000 ALL per person in restaurants."

Earlier, real estate market agents also claimed for "Monitor" that the investigations are affecting the drop in demand for apartment purchases.

The concern about the decline in consumption was also raised at the beginning of this year by the Association of Bars and Restaurants, due to consumer uncertainty from the increase in prices for food basket products from the Russia-Ukraine conflict.

According to the representatives of the association, consumption improved in the local elections of May 14 and continued to increase during the summer months from tourists.

Mr. Jahja said that currently, expenses per person in restaurants range from 3,500 to 4,000 ALL, from 3,000 to 3,500 ALL per person that used to reach years. Spending on restaurants has increased from 13 to 17% per person.

There are a total of 15.5 thousand bars in the country, from 22 thousand in 2015, being the second most preferred activity in the country, after the minority business. According to the data of the INSTAT business register, in 2021, 854 activities of food and beverage services were closed, with a decrease of 5.2%.

Referring to INSTAT data, until 2019, 45,000 people were employed in this sector. The number of employees is considered higher, due to informality.

Albanian beer is "shrinking", local factories are importing foreign

After the end of the tourist wave, the consumption of alcoholic beverages returns to decline

Imports of the "Beverages, alcohols and vinegar" group in January-October increased 7% more than last year, according to INSTAT data.

Local canteens of alcoholic beverages claim that after the departure of tourists, especially from November, the demand from the consumer has started to decline. "The demand for alcoholic beverages changed after the departure of tourists.

The change in consumption has been influenced by the increase in consumer spending on basket products, the prices of which are increasing. Even the prices of alcoholic beverages are 15 to 20% more expensive than last year, but they are not primary products for consumption", says Denis Zhilla, director of sales of the "Skënderbeu" beverage canteen.

During the summer months, due to the arrival of tourists, the sales of alcoholic beverages for this operator increased by 10% and those of wines by 30%, especially in the premises of the southern area.

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