Israel: Beer market shrank by 4 percent in 2004
Israeli beer market decreased by 4% during 2004. The local beer market is estimated to be worth NIS 600 million (USD 135 million) per annum, Amir Ifrach, head of marketing at Israel Beer Breweries (Carlsberg Israel), Central Bottling's beer company, said. However, there hardly has been any growth in recent years, and in some years, even slight consumption declines were recorded.
Israel's two largest beer makers, the Central Bottling Company (Coca-Cola Israel) and Tempo Beer Industries, invested over NIS 45 million (about USD 10 million) in advertising their brands in 2004. (1 USD= 4.4203 Israeli New Shekel on June 06 2005)
Tempo controls about 56 % of the local beer market, while Central Bottling has a 35 % share. Data provided by the companies shows that last year Carlsberg invested NIS 36 million in advertising and marketing of its beer brands, which include Carlsberg, Tuborg, Malty and Guinness. Tempo, meanwhile, invested NIS 10 million in promoting its brands - Goldstar, Maccabee, Nesher and Heineken.
"Even though it appears that sales are not increasing, the market is actually growing," says Raffi Baharav, CEO of Tempo, explaining that over 200,000 Romanians, known for their beer consumption, left the country last year, but the market did not shrink significantly. As a result, the market actually grew.
Amir Ifrach, head of marketing at Israel Beer Breweries (Carlsberg Israel), Central Bottling's beer company said that despite the apparent lack of market growth, Carlsberg will continue investing in the advertising and marketing of its brands.
Both breweries hope to increase sales by boosting the sale of their malt beer brands, whose image has been redesigned to appeal to the health conscious. Although malt beer sales rose last year, the product constitutes a small portion of total beer sales. Part of Carlsberg's increased budget will be devoted to the launching of Stella Artois, a Belgian beer that joins the company's other imported premium beers, Leffe and Hoegaarden.
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