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2 | Market structure, trends
and developments
The Turkish brewing sector is dominated by two major
companies. These two companies operate a total of
6 breweries in Turkey and together their market share
is 99%. Beside these breweries there are 5 smaller
companies active in the Turkish market (including
microbreweries). The whole brewing sector produces
37 different brands of beer. In 2010, the sector produced
approximately 10,278,536 hectolitres of beer; this is
0.6% (59,246 hectolitres) more than in 2009.
Besides the brewing, production and sales of beer, the
two big brewing companies also carry out beer-related
activities such as the cultivation of agricultural products
needed for the production of beer, the transportation of
beer, the wholesale of beer, the bottling and packaging
of beer, and production and sales of malt. Some brewing
companies also have pubs and other on-trade outlets.
Exports
In 2010, 1,077,333 hectolitres of the beer that was produced
in Turkey was exported. The main export markets for Turkish
beer are Germany, Lebanon, Iraq and Azerbaijan. In 2010,
the value of the beer exported was 51.6 million euro. In both
volume and value, exports increased signifcant compared to
2009 (respectively by 9% and 16%).
Imports
Less than 1% of the beer sold in Turkey is imported.
Compared to other countries, Turkish beer import is small.
In 2010, approximately, 13,800 hectolitres of beer was
imported. This is 3.5 times more than the previous year.
The value of the beer imported in 2010 was 1 million euro.
Consumption patterns
Approximately 9.2 million hectolitres was consumed in
Turkey in 2010. Beer consumption is decreasing. Some
plausible explanations for this decrease are considered to
be the tax burden, decreasing popularity of beer, changing
alcohol consumption patterns in Turkey, economic crisis
and alcohol acceptance, and the limited opportunities for
promotion and advertising of beer in Turkey.
Of all the beer consumed in Turkey, about 77% is
purchased in supermarkets and other retail outlets,
referred to as the off-trade channel. The remaining 23% is
purchased in the on-trade sector (bars, restaurants, etc.).
Focusing on the off-trade channel, brewing companies
are experiencing an increase in sales volume and value
in supermarkets.
This could be explained by the overall decrease in the
number of (smaller) grocery stores and increase in
supermarkets, in general, in Turkey.
Compared to all of the EU Member States, beer
consumption per capita in Turkey is very low. In 2009, it
amounted to 12.7 litres per capita while it was 75.3 litres
for the average for EU-27. Besides, the total pure alcohol
consumption in Turkey is, compared to other countries, also
low, 1.1 litre per person. The total pure alcohol consumption
consists of consumption from all kinds of alcoholic drinks,
such as beer, spirits and wine. As a general point, due
to religious and health reasons the number of alcoholic
beverage consumers in the total Turkish population
decreased from 44% in 2008 to 39% in 2010.
Developments in the beer sector
Taxation
In Turkey the excise rate on beer has been increased eight
times since 2002. Often the rates increased faster than the
rate of infation. In the last two years, the excise rate on
beer has been increased three times. At the end of 2010,
the excise rate on beer was almost 85% higher than in the
beginning of 2009. The most recent excise tax increases
made Turkey one of the highest excise taxed countries
with regard to beer in the continent of Europe.
In several occasions in recent years, the rate of increase
of excise tax on beer was higher than the increase for
the other alcoholic beverages in Turkey. For example, in
December 2009, the excise on beer was raised by 35%,
whereas, the excise on spirits increased by only 10%.
Marketing
In 2009 and 2010, new legal constraints have been
introduced on the advertisement and merchandising
of alcohol drinks. For example, in 2009, new restrictions
have been added to the Alcoholic Drinks Advertising
Law. Advertising of alcoholic drinks in newspapers and
magazines that target young audiences are forbidden.
Smoking ban
In July 2009, a smoking ban was implemented for pubs,
beer houses and restaurants. The effects of this ban
continued in 2010.
The Contribution made by Beer to the European Economy
246