AS many as 80% of coffee shops nationwide are facing a shortage of bottled beer, which they depend upon to top up sales, associations said.
The government ordered breweries to close in June as part of the movement control order, but industry representatives told The Malaysian Insight that it is a blow to the coffee shops, which rely on profits from alcohol sales and can be sold to customers for consumption off the premises.
They noted that bottled beer in particular was far more popular for coffee shop consumers and the shortage has put a dent on revenue, which may have the knock-on effect of smuggling.
This will, in turn, bite into national revenue.
Malaysia Singapore Coffee Shop Proprietors General Association president Wong Teu Hoon said that bottled beer was still available in June.
However, the inventory for alcohol is running low after two months, he said.
“Beer is one of the ways for the catering industry to make a profit. It will not be enough to meet the running expenses if businesses only rely on selling tea and coffee,” he said.
He said many members have had difficulties shortages, in addition to poor business during the pandemic, he said.
According to Wong, 80% of coffee shops across the country have no more bottled beer to sell now, the majority of which are in urban areas such as Selangor.
“Although there is no way to dine-in these days, there are still customers who will purchase beer while taking out food.
“During Euro 2020, many chose to buy beer to drink and watch the game,” he said.
Apart from the stocks in supermarkets and restaurants that are enough to cope with short-term needs, he said other small businesses no longer have a supply of beer.
He hopes that the brewery industry can reopen when the government allows 60% of factory employees to return to work.
Lee Chow Hait, president of the Selangor and Kuala Lumpur Chinese Coffee and Tea Shopkeepers’ Association, agreed with Wong.
He said that the market is sluggish these days and most businessmen will not choose to stock up on beer.
“Stocking up requires cash but the industry will not do so too much avoid affecting cash flow,” Lee said.
The industry is careful due to the poor market economy and the ban on dining, he said.
“When the supply of beer is scarce, the demand for smuggled wine increases.
“In this case, won’t the government lose out? It will affect national taxation,” Lee said.
The Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng said that sales of beer in grocery stores are not impacted largely.
This is because grocers do not sell as much alcohol as coffee shops, he said.
“Yet, there is still a certain demand for beer and I have received feedback from some members that bottled beer had run out, especially from the wholesale mini-markets,” Hong said.
The association said it had sent a letter to the government requesting that the brewers reopen, but to no avail.
“It doesn’t have to be a seven-day operation a week, perhaps only for two to three days to solve the supply problem,” Hong said.
Selangor and Kuala Lumpur Wine and Spirit Chinese Dealers Association secretary Albert Chooi Leong Peow said that the alcohol shortage will be a first for Malaysia.
He added that the industry generally does not purchase beer in large quantities because it has a limited shelf life, usually up to three to six months.
Chooi urged the government to allow the breweries to resume with appropriate standard operating procedures.
On July 16, Carlsberg Malaysia called on the National Security Council to allow the breweries to reopen in the second phase of the national recovery plan.
The group’s managing director, Stefano Clini, stated his worries that the long-term suspension of production would lead to a market shortage and subsequently encourage wine smuggling, which will impact national revenues. – August 16, 2021.
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