/ 10 August 2003

Brewers go head to head in battle for Muslim markets

Forget Pepsi versus Coca-Cola. The next big battle of the beverages is brewing between European lager giants in the most unlikely of markets. Global ale empires have embarked upon a scramble to tempt Muslims.

Carlsberg and Heineken are smashing through brewing’s final frontier and taking their marketing muscle to parts other beers can’t reach. But potential drinkers in countries such as Saudi Arabia need not fear. There will not be 80 lashes should they choose to imbibe, because the potions pouring their way are strictly non-alcoholic.

An advertising onslaught across the Middle East and southern Asia is expected in a bid to woo drinkers and establish brand loyalty. A number of Western firms already export drinks such as Kaliber and Barbican to dry markets, but with thirsts deepening it appears the key showdown will be between old rivals – Danish Carlsberg and Dutch Heineken. Only this time it is Moussy v Fayrouz.

Moussy is the most popular non-alcoholic brew in the Middle East and was recently bought by the Danes. Heineken has snapped up Al Ahram Beverages (ABC) of Egypt and gained access to its fashionable Fayrouz brand.

Both are sweet, fruity drinks that find favour with palates unused to lager and stout. Moussy, the most popular drink in Saudi Arabia, plays on an image of being sophisticated and Westernised. Adverts portray Moussy drinkers as stylish men and women lounging in bars, while its website offers recipes for cocktails (non-alcoholic, of course) using the brand’s lemon, strawberry, peach and apple flavours.

Marketed as luxury products, Moussy and Fayrouz are sold in supermarkets in the Gulf states. Consumption of non-alcoholic beer-style beverages in Saudi Arabia alone increased by more than 15% in 2001 to reach close to 28 million litres. Industry sources believe that is a conservative figure and expect even greater returns this year across the region.

When asked why the brand had proved such a hit with Saudis, Anders Rud Joer gensen, from Moussy, said: ‘It’s the taste, and also the image of the brand – it is something young and different.’

But its dominant position is under threat. Heineken is set to increase promotion of Fayrouz across the Muslim world and hopes it will even catch on in the West. It has targeted the Gulf states and Saudi Arabia and plans to ship the beer to India and Indonesia, where alcohol is sold but shunned by many among their large Islamic populations.

‘These are large communities and we have a unique product,’ said Steven Keefer, of Heineken’s ABC subsidiary in Cairo. ‘We are not commercialising religion, it is just that our product meets the lifestyle needs of a huge chunk of the world’s population.’

During the late 1990s ABC’s sales of Fayrouz surged by more than 80%, attracting Heineken’s interest. ‘There are 1,3 billion Muslims in the world, and many of them want something fizzy, malt-based, flavoured and socially accept able,’ added Keefer. ‘Fayrouz gives them that.’

Fayrouz makes much of the fact that it has been certified halal, or permissible in Islam, by al-Azhar University in Cairo, one of the most influential theological colleges in the Muslim world. Fayrouz’s production process avoids fermentation, so alcohol is never produced. With most other non-alcoholic beverages, the malt is fermented and the alcohol is removed.

Another large brewer also eyeing the new market is Turkish firm Efes Pilsen, which hopes to make the most of its geographical proximity to the dry region and a cultural knowledge of Muslim sensitivities.

Lager is even flowing in the Islamic Republic of Iran. The first consignment of Baltika No.0, brewed in Russia, but part-owned by Edinburgh-based Scottish Courage, poured into Iran last week. ‘We believe there is a big market in Iran,’ said a spokesperson. – Guardian Unlimited Â