RAWALPINDI, Pakistan (news agencies) — A pungent fug of malt and yeastiness hangs over Murree Brewery, Pakistan ’s biggest and oldest producer of alcoholic drinks.
The company is an outlier in a country where alcohol is outlawed for everyone except non-Muslims, who make up some 9 million people out of 241 million. Pakistan, an Islamic republic, banned booze for Muslims in the 1970s.
Murree Brewery has strong financials despite the prohibition, thanks to its history, scant competition and a small, thirsty and predominantly elite consumer base.
But the government exerts significant control over the sale and marketing of alcoholic beverages through red tape and high taxes, pushing brewery chairman Isphanyar Bandhara to expand the company’s footprint in Pakistan’s non-alcoholic drinks industry, which, although bigger, is more crowded and less lucrative.
“Even I tell my staff of about 2,200 that we cannot sit on our laurels by selling alcohol,” said Bandhara, the third generation of his family to run the 165-year-old business that was founded by the British. “It’s a restricted market, so we have to rely and focus more on the non-alcoholic side. That’s where I think I would like to flex my muscles and take credit, rather than being a liquor baron.”
The brewery already manufactures energy drinks, juices and malted beverages, but they are not as well known as products from big international brands. However, this part of the business is registering double-digit growth, and Bandhara wants to cash in on the country’s youth bulge. Around 64% of the population is under 30.
Pakistan’s government determines the brewery’s alcohol prices, points of sale and customer base. Last year it took $35 million from the brewery’s revenue in taxes. The company cannot advertise its alcoholic beverages or expand that part of the business inside Pakistan. Online shopping is unavailable.
The brewery is permitted to export beer to countries outside the Organization of Islamic Cooperation, a 57-member bloc, even though there is a “big demand for liquor and beer” in Muslim-majority countries, Bandhara said.
Meanwhile, more Pakistanis drink far more sodas and juices, with billions of dollars in sales every year. PepsiCo and Coca-Cola dominate, but there are also homegrown brands.
“The multinationals are thriving in Pakistan,” Bandhara said. “It’s a rewarding market. There might be less money (in non-alcoholic drinks), but it’s more secure.”
Murree Brewery’s malted drinks line is packaged in a way that strongly resembles its beery counterparts. The taste, while not unpleasant, is distinctive, sweet and slightly yeasty.
Alcohol is a niche item in Pakistan. Even cooking ingredients like red wine vinegar, and buying essentials like cough medicine, is hard because of their alcohol content, however minuscule.
Five-star hotels slip a drinks list into the in-room dining menu or decant alcohol into a more discreet vessel, like a teapot. Some restaurants, usually upscale, allow diners to bring a bottle but seat them away from others or shield the pour from prying eyes. There is often a windowless, joyless bar in major Pakistani cities.
Non-Muslims — nationals and foreigners — can get a liquor permit allowing them to buy limited amounts of alcohol. Diplomats and the elite are a rich source of booze, with well-stocked cabinets and sometimes entire rooms dedicated to drinks.
There are also wine shops, but only in some provinces and run by non-Muslims. Some wine shops deliver to customers waiting in their cars, for discretion. Home delivery is also available.
