6 days ago
From bar stools to sofas: Carlsberg Malaysia spots country's pandemic drinking revolution, sets sights beyond beer
KUALA LUMPUR, Aug 13 — More Malaysians now prefer drinking at home over bars or restaurants, marking a lasting shift in local drinking habits.
Carlsberg Brewery Malaysia Bhd attributes this change to the impact of the Covid-19 pandemic, according to a report published in The Edge.
The brewer's managing director Stefano Clini said this shift began during pandemic lockdowns when on-premise outlets closed, and has stuck around even after restrictions eased.
'Before Covid, on-trade accounted for more than half of our business. Now, off-trade is half or more than half. That change appears to be permanent,' Clini told reporters on Tuesday.
He added that this trend aligned with global patterns, where retail sales for home consumption — known as off-trade — often dominate beer sales.
In Europe, off-trade can represent 70 to 80 per cent of total sales.
Weaker consumer confidence over the last 18 months has also hit on-trade sales, he said.
'When people go out, they go out less and maybe drink less. Consumers make trade-offs — choosing, for example, between a coffee or a beer at a café.'
Touching on demographics, Clini said Carlsberg's data showed those aged 24 to 35 still drink beer, but a drink a little less of it.
Consumption tended to rise with age, consistent with past trends.
'Every generation is a bit different, but we haven't seen a massive drop in beer penetration in Malaysia,' he said.
To keep up with evolving tastes, Clini said the company is steadily branching out into other beverages but stressed that beer remains Carlsberg's core.
The wider Carlsberg Group's moves into the soft drinks sector globally highlight its ambition to be a 'total beverage company.'
'The core of beer and brewing will never change, but we're complementing it. We'll be where the consumer is,' he said.
Diversification is quicker in Europe due to sharper beer consumption declines, but Malaysia's pace depends on local market dynamics.
Earlier this year, Carlsberg Group completed its £3.3 billion (RM19.9 billion) acquisition of Britvic plc, a leading soft drinks company in the UK.
The merger formed Carlsberg Britvic, combining Carlsberg's brewing strength with Britvic's bottling rights for Pepsi, 7UP, and Lipton Ice Tea in Britain and Ireland.
Clini said that for now, Carlsberg Malaysia aims to strengthen its portfolio, stay relevant across age groups, and adapt swiftly to shifts in how and where people drink.
