18-20 market UAEtsJPps:Layout 1 24/10/08 09:26 Page 19
for licences that enable them to Western expatriates. Even in the Diageo, can target a sweet spot of
buy and consume alcoholic drinks
ANYONE VISITING
context of global financial attractive value returns, while as a
through controlled channels. It turbulence, anyone visiting the shop window to the largely
is a respectful, albeit perhaps THE UAE IS LIKELY UAE’s oil-rich desert landscape is untapped potential of the Middle
reluctant, legislative nod to the
TO EXPERIENCE A
likely to experience, at least on the East, this is the place to be seen.
liberal social consumption culture surface, a tangible affluence. For
of the West by an otherwise
TANGIBLE
a comparatively small city, Dubai, Covert consumption
conservative ruling sheikdom.
AFFLUENCE. DUBAI
for example, is awash with The penchant for luxury goods is
To regulate the operating designer labels and high- not purely a characteristic of
environment of alcoholic drinks
IS AWASH WITH
performance sports cars, and the Western expatriates. There are,
a duopoly was set up in the vast numbers of cranes that without doubt, an influential
form of Maritime & Mercantile
DESIGNER LABELS
punctuate its skyline are testimony number of well-to-do Muslim
International LLC and African &
AND HIGH-
to the billions of dollars of residents who exhibit equally high
Eastern NE BVI Ltd. Alcoholic construction projects waiting to aspirational inclinations. This has
drinks are not permitted to be PERFORMANCE be completed. spilled into a growing taste for
produced in the country under any
SPORTS CARS
Everywhere you look there alcoholic drinks, particularly for
circumstances, but these two are infrastructure superlatives in prestige brands such as Johnnie
companies have the task of waiting: the Burj Dubai, set to be Walker Black Label and Chivas
overseeing all avenues of the the tallest building in the world; Regal. Bucket loads of cheap
formal route to market for Dubai World Central, set to be the credit in recent years have made
international brands, meaning most expensive airport in the many luxury items readily
they act as importers, wholesalers world; Palm Islands, set to be the accessible, but because alcohol
and retailers. They are also largest artificial island in the world; for Muslims is banned there
referees in the granting of liquor Dubai Mall, set to become the has inevitably been a build-up in
licences to non-Muslim residents. largest shopping complex in the covert consumption.
It is, in real terms, a closed shop, world; and Dubailand, set to Until recently, it was relatively
and spirits companies have little be the biggest children’s easy for Muslims living in Dubai
option but to operate as best they entertainment centre in the world. and Abu Dhabi, the main
can within its narrow confines. This is a city that boasts consumption bases, to buy bottles
The advertising of spirits brands, shamelessly of betting big. Indeed, of spirits in the northern emirates
for example, is banned in there is, perhaps, no other country of Ajman and Ras-al-Khaimah,
mainstream print and broadcast in the world that flexes so many which operated less stringent
media as well as on outside muscles of promised opportunity. controls on the sale of alcohol
placards. The only viable And where better to develop to non-residents. The Barracuda
advertising channels are glossy the profile and penetration of outlet in Ajman, for example, is a
English-speaking magazines, sold premium and super-premium one-hour drive from Dubai and
mainly in hotels, and low-impact spirits than a niche consumer has historically been a popular
POP material in bars and clubs. market hungry for Porsche, Prada purchase point for outlawed spirits
Entrances to bars and specialist and Jimmy Choo? Volume returns consumers. The risk for anyone
retailers are obliged to be discreet. might be modest but spirits running this route surfaces on
Some are almost hidden from companies, like frontrunner the return journey. Specifically,
sight, like the Prohibition midway on the road connecting
speakeasies of 1920s America. On
paper it looks like a hostile playing
UAE: spirits market
the north and south emirates is
Source: Euromonitor International
Shariah, where Islamic law is
field for the world’s spirits stricter and alcohol consumption is
companies, so what, if any, is the ‘000 9-litre cases 2006 2007 Forecast % gr. completely banned. Vehicles could
attraction of doing business? 2007-2012 be stopped and subjected to
Whisk(e)y 641.2 778.8 44.1 checks by Shariah police and the
Premium opportunity White spirits 361.2 421.1 40.1 penalties for contraband would
The pulse of the attraction is a Rum 238.9 269.9 42.9 often be severe.
strong appetite for premium and Liqueurs 142.4 166.5 40.6 In spite of the risks, this inter-
super-premium products, fuelled Brandy & Cognac 44.8 49.2 28.4 emirate parallel activity has
by high per capita consumer Other spirits 242.7 272.7 34.4 flourished and become an
spending, especially among important niche driver of spiritsUIforward
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