High Petrol Prices Depress Alcohol Market

[george]

High petrol prices depress alcohol market

BANGKOK: --In what will come as welcome news for anti drink-driving campaigners, the public appears to be reducing its expenditure on alcohol in response to skyrocketing fuel prices, according to a report published recently by a leading research centre.

The report by the KASIKORN Research Centre suggests that 2004 will prove a bad year for producers of alcoholic beverages, despite the healthy growth rate of the Thai economy.

The report cites figures showing that the amount of alcohol purchased by Thais during the first half of 2004 stood at 1.163 billion litres, up a mere 3.7 percent from the same period last year, when the level of alcohol purchased expanded by 16.4 percent.

While attributing the sluggish growth rate in part to the success of the government’s ‘social order’ policies, which have seen a crackdown on underage drinking and a more rigorous enforcement of licensing laws, as well as a successful campaign to reduce alcohol consumption, the report also blames the rising price of fuel.

With the price of petrol up 28.3 percent from January this year, consumers are becoming increasingly wary about spending on items perceived as non-essential, particularly entertainment.

However, while liquor, wine and the more expensive beers have seen moribund growth in sales, lower priced alcoholic drinks have benefited from more frugal spending habits, especially among middle income consumers.

Nonetheless, the report forecasts a return to high sales growth at the beginning of next year, when general elections – and the large number of campaign parties any election entails - will fuel alcohol consumption.

--TNA 2004-08-29

[astral]

Time to work on the Petrol/Alcohol fuels.

Help the economy in two ways.