BARS and nightclubs, which were the last of the economic sectors to fully reopen, are now facing a shortage of imported wines, thanks to the same factors impacting other industries such as the depreciating ringgit, global supply chain problems and the Russia-Ukraine war, operators said.

The shortage is most acutely felt on weekends as people return for weekend drinks after two years of Covid-19 lockdowns. Bars and nightclubs were able to resume business on May 15 after two years of zero income.

Restaurant and Bistro Owners Association vice-president Jeremy Lim said the costs of running these establishments have increased from 15% to 20%.

Not only are foreign wines and champagne more costly to import, they are taking longer to arrive.

“For the outlet I run, I placed orders in mid-May, but was told by the supplier that imported wines and champagne were out of stock. My opening hours now depend on stock. Sometimes I only open for two days a week,” Lim said.

Business has not recovered fully and volume at the moment is only enough to pay the rent and employees’ salaries, he added.

Lim said the reasons given by wineries for lower output include a worker shortage in the UK and France due to Covid-19 cases.

Another reason, according to industry talk, is that the Customs Department has a shortage of liquor tax stickers.

“Buying imported wines from suppliers has become more expensive as supply is short. I’ve also been hearing from wine dealers that stock cannot be released because there is a shortage of (customs’) liquor tax stickers,” said Mak Kim Siang, who runs seven bars with friends.

Mak said he currently buys what he needs from local liquor shops a day before opening his outlets.

He also sells customers whatever is available and they have been understanding and willing to select other wines if their preferred choices are unavailable.

Mak said the shortage is felt more in Kuala Lumpur where there is higher demand, while outlets in Penang and Johor are less affected.

He said the price of alcohol had increased since May when the sector was allowed to reopen, but bars and clubs are absorbing the cost so as not to pass it on to customers.

Entrepreneur Kesavan Purusotman, who manages five bars and nightclubs, said he knew of “quite a few bars” in Kuala Lumpur that are experiencing a shortage of imported wines, his own included.

“After the Health Ministry (MOH) allowed bars and nightclubs to reopen in May, there was a sudden increase in the demand for imported wines.”

He, too, said a shortage of customs’ alcohol tax stickers was part of the problem as the relevant government departments were not prepared once the MOH allowed the sector to reopen.

Kesavan said the Russia-Ukraine war had also affected output and production, and contributed to the shortage.

To keep business going, he is buying his supply at a higher cost.

Federation of Johor Entertainment Industry deputy president James Ho said the price of imported alcohol rose by 20% two months ago.

While the shortage of imported wines in Johor bars and nightclubs is not serious, other liquors are in higher demand, which does lead to some supply problems, he said. This includes cognacs such as Hennessy and Martell.

Federation of Malaysian Entertainment Industry president Liew Poon Siak said consumers should “naturally” expect their favourite tipple to cost more because of this situation.

“It’s not just the shortage of supply that will see dealers raising prices, but the raw materials are also costing more because of the war and logistics,” he said. – July 22, 2022.