Rabat- A recent study conducted by Euromonitor International revealed a decline in the consumption of Alcoholic drinks in Morocco.
The London-based market intelligence firm said that “Morocco’s dire economic situation” continues to negatively impact the performance of alcoholic drinks and the decline of volume sales.
“There was a consensus among Moroccan consumers that, in order to save money, it was necessary to reduce spending on all non-essential goods and leisure activities. As a result, there was a shift in alcoholic drinks consumption”, said the research’s executive summary about Morocco.
The research suggested that the Moroccan government’s continuous increase in consumption taxes “had a strong influence on the activities of alcoholic drinks companies as volume sales recorded a significant decline terms in 2012.
The tax increase, says the market intelligence firm, boosted unit prices in alcoholic drinks. Consequently, the consumption of alcoholic drinks declined during 2012 and the consumption of contraband and clandestinely produced products increased.
Marjane’s decision to cease selling alcoholic beverages in its hypermarkets throughout Morocco was also a crucial factor in the declining performance of the industry.
“The company embarked on this strategy in an effort to attract more families who refuse to shop in outlets which sell alcoholic drinks for religious reasons”, added the research.
The report mentioned the leading position of Group des Brasseries du Maroc, a local player that dominates sales of Alcoholic drinks in Morocco due to the fact that beer is the alcoholic drink most preferred by Moroccans. The research hailed the Group’s excellent distribution network and strong brand name in maintaining its leading position in the industry.
Euromonitor International is expecting a modest performance for the alcoholic drinks industry in Morocco in the near future
“While there remains a great deal of uncertainty about the depth and duration of the current economic downturn, the future performance of alcoholic drinks in Morocco is expected to remain negative throughout the forecast period”.
A previous Reuters report ranked Morocco as the number one exporter in the Arab world. The kingdom allocates 37 thousand acres of land for the cultivation of grapes and vines used in wine production.
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