Hunter beer grabbing Bangladesh market

by Business Correspondent
August 1, 2011

http://www.weeklyblitz.net/1615/hunter-beer-grabbing-bangladesh-market

Crown Beverage Limited, a sister concern of Jamuna Group, which is a large business and industrial conglomerate in Bangladesh introduced first locally made alcoholic beverage couple of years back. The company is also capable of producing various types of liquor, including 'Siraji' brand whisky.

Bangladesh's Narcotics Department issued licences to produce beer in the country. Jamuna Group has set up the brewery at Gazipur area, where they are now brewing and marketing Hunter Beer. The brewery can produce up to 100 million cans of beer a year. Annual consumption of beer in Bangladesh is approximately 300 million cans.

Actually, from way back Jamuna Group had been making "energy drinks" in the name of Crown and Hunter. The Narcotics Control Department had complained that the energy drinks contained excessive amounts of alcohol. Now, however, these are no longer energy drinks with too much alcohol content; Jamuna is now producing genuine beer. Bangladesh government lifted ban on production of alcoholic beverage, though any citizen in this Muslim dominated country requires 'license' to consume beer or any such alcoholic beverage.

According to the Narcotics Control Act 1990, no one can drink alcoholic beverages without a licence; no distilleries or breweries can be set up; no alcoholic drink can be produced, processed, carried, transported, imported, exported, supplied, bought, sold, kept, stored, preserved, displayed or used. Now the law have been amended to create scope for local entrepreneurs in producing alcoholic beverages.

The consumption, storage, display, advertising, sales, purchase and supply of alcoholic drinks are banned. But those holding a licence can do all this. However, a licence is required for consumption of liquor. There are about 80 thousand persons in Bangladesh who have such licences to drink and according to available statistics, on an average; these license holders are consuming approximately 160,000 litres of alcoholic beverage every month. The government is issuing 12,000 new licenses to individuals allowing them to consume alcoholic beverage. This is very little in comparison to the country's population. Even so, Jamuna is ready to carry on the beer business.

Hunter beer contains 5 per cent alcohol. The company started selling this brand since 2009. Officials of the Department of Narcotics Control said the company would be able to sell its beer to off-shops, bars, clubs and hotels that have a permission to sell. Earlier, international brands such as Heineken, Tuberg, Carlsberg, Lowenbrau, Elephant, Baron, Atlas etc brands were available in Bangladesh market. Though Crown Beverage is selling locally produced beer at the rate of US$ 0.80 per can [includes local taxes], foreign brands are also being sold in diplomatic and bonded warehouses in the country.

Crown Beverage is advancing slowly despite having a plant with a capacity of brewing 30 tons of beer a day with the major raw materials - malt and hops - being imported from abroad. The company is also setting a beer bottling plant soon targeting international market. The company is eyeing on the huge market of beer in the Middle East and other Asian-African countries.

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