RAWALPINDI: 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.