Roland Bala, Managing Director of HEINEKEN Malaysia commented, “We have started 2019 well with a good Q1, driven by the effective execution of commercial campaigns such as Tiger Beer’s Uncage New Beginnings campaign, nationwide activations of Guinness’ St. Patrick’s Festival and Heineken®’s Live Your Music campaign, as well as better management of our route to market. As the home of world class brands, we continue to inspire consumers with the most exciting campaigns that only HEINEKEN Malaysia’s award-winning portfolio can deliver.”
The revenue increase in the first quarter was also boosted by some sales ahead of the price increase on 1 April 2019. This was the first price increase since the Sales and Services Tax (SST) was introduced on 1 September 2018. The increase was necessary due to higher cost of packaging and raw materials following increased global commodity prices. In view of the Government’s decision to postpone the implementation of the sugar tax on beverages until 1 July 2019, pricing taken on the non-alcoholic Malta currently excludes this new tax.
Roland commented, “We have kept price increase to a minimum and we have not increased the prices of some of our products. We are mindful of the challenging market conditions and that the Consumers Sentiment Index fell further below the confidence threshold of 85.6 in Q1. On a positive front, I take this opportunity to thank the Government and the Royal Malaysian Customs Department for their efforts in intensifying enforcement to clamp down on illicit alcohol as this represents revenue leakages to both the Government as well as the beer industry. We have witnessed positive results from enforcement actions and will continue to work closely with relevant authorities in support of their initiatives to address this issue.”