Non-alcoholic malted drinks, marketed as halal “beer” all around the world, has proven to be increasingly popular in Muslim-majority markets in the Middle East and Africa … but Malaysia might be a tougher market to crack.
Businessman Ruzi Shuib planned on cornering the emerging market by partnering up with Netherlands-based Bavaria 0.0 percent malt drinks, one of several popular brands of non-alcholic beer, for distribution in Malaysia, but he’s come against a robadlock.
Despite the Malaysian economy moving three million litres of non-alcoholic beer in 2013, the beverages themselves have a hard time receiving official halal certification from the Malaysian Islamic Development Department (Jakim) – which refuses to deem any product halal (even if it is halal) that has the word “beer” in it.
The Wall Street Journal‘s Celine Fernandez reports that this is the same Jakim policy that led to popular fast food chain A&W to rename its signature Root Beer soft drink to just “RB” in 2013, and for its retail partner Coca-Cola Malaysia to rebrand the drink as “A&W Sarsaparilla” in 2009.
Further, Jakim decided to deny Ruzi’s application for a halal certificate for Bavaria 0.0 percent beer due to the drink being made and bottled in the same factories that produce alcoholic beverages.
Federal restrictions aren’t the only things holding halal beer back in Malaysia. Malaysian Muslims are also wary of the packaging of non-alcoholic beer brands, which obviously try to capture the mystique of their alcoholic counterparts by using similar bottles and packaging labels.
Ruzi has had an easier time selling his halal beer to Middle Eastern customers in Malaysia, who have less reservations and are more aware of the distinction between alcoholic and non-alcoholic malted drinks. They make up 40% of Ruzi’s clientele in the country.
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