‘Revenge’ partygoers boosting liquor sales in PH
MANILA, Philippines — The Philippines is expected to bring in more distilled liquor or spirits from abroad, thanks to “revenge” partygoers wanting to spend their hard-earned money on beverages with a higher alcohol content, says a study from the US Department of Agriculture (USDA).
The USDA said in a report that annual distilled spirits exports to the Philippines are projected to return to the prepandemic level of $153 million by next year.
The USDA estimated that the country’s imports of distilled spirits would reach $143 million (87 million liters at an average price of $1.64 per liter) in 2022, an increase of 20 percent from $119 million (106 million liters at an average price of $1.12 per liter) last year.
The USDA noted that most workers have returned to their offices after pandemic-induced mobility restrictions. This caused people to reduce their spending on alcoholic drinks at home, resulting in decreased sales of low-ABV (alcohol by volume) drinks such as beer and cocktails.
“On the other hand, a growing number of bars and pubs have come to life, attracting “revenge” partygoers eager to spend on booze. Business entertaining and big weddings are also back on track,” it said.
Product mix
“These shifts have prodded traders to re-think their product mix and reorder more expensive distilled spirits, such as brandies and whiskeys,” it added.
The foreign agency estimated that distilled spirits imported from the United States would hit $5.3 million this year, up by 15.2 percent from the $4.6 million recorded in 2021, noting the “strong preference” for US food and beverage products.
“The Philippines’ young, fast-growing, and highly urbanized population, and relatively low consumption of imported distilled spirits (less than 4 percent of roughly 2.7 billion liters of alcohol consumed annually) present a strong opportunity for US exporters of distilled spirits,” it said.
“Prospects for growth are exceptionally bright due to the country’s young, fast-growing, and highly urbanized population the strong presence of premium US brands, and the proliferation of social media,” it said.
Citing relevant data, the USDA said Spain was the country’s leading source of imported distilled spirits with most consumers buying brandy, while the United States belongs to the list of top five suppliers, supplying mostly whiskey.
Annual income
The USDA noted at least 20 million Filipinos earn $12,700 or approximately P701,400 annually, presenting a population that can afford these alcoholic drinks.
Under Republic Act No. 11467, signed by former President Rodrigo Duterte in January 2020, the ad valorem tax on distilled spirits is 22 percent of the net retail price and the specific tax is P52.
