Is there a biz opportunity for halal beer?

The Economist Magazine recently had an article, Sin Free Ale, reporting about non-alcohol beer taking off amongst Middle-East Muslim consumers.

According to the article, in 2012, 2.2 billion liters were consumed with nearly one-third sale in the Middle East, led by Iran, Saudi Arabia, Egypt and UAE.

The wealthier nation consumers opt for non-alcohol beer due to health issues, and Middle East consumer's desire for sampling 'global [western] lifestyle that fruit juice and soft drinks cannot offer.'

The article also states that prominent Saudi and Egyptian scholars, without identifying them, have issued a fatwa about permissibility for Muslims to drink zero-alcohol (not low alcohol) beer.

 Thus, non-alcoholic beer is brewed in Saudi Arabia (by Aujun), Turkey (Efes), Iran (Behnoush), Palestine (Taybeh), Lebanon (Almaza), and others.

It is assumed these beer brands are not only no-alcohol, but also halal according to local certification bodies.

Thus, the fragmentation, commonplace in the $2.6 trillion halal industry, also extends to 'halal beers.'

The integrity concern/risk is on transparency of the process and ingredients for achieving the halal status.

Faith Based Offerings

One of the areas that Malaysia does better than most Muslim countries has to do with faith based offerings, be it faith and finance (Islamic finance), faith and food (halal), and faith and fashion (Islamic fashion).

The 'better' is in relations to bring institutionalized transparency and accountability to the faith based offerings, i.e., there are rules and regulations and must be adhered to.

In 2011, Malaysia's National Fatwa Council, per earlier discussions in 1984, 1987, 1988 and 2010, stated (UAE's) Barbican's (halal) non-alcoholic beer is permissible for consumption for Muslims, as the drink was not processed to make it alcoholic and the alcohol content was incidental.

Furthermore, Council advised brewers for better labeling so that Muslims are not confused. Source: Bernama Online.

Today, non-alcohol and 'halal' beer is available in Malaysia with names like Regent, S-11, 3 Horses, Szalan, Becks Non Alcohol, Driver, Nova 0, ARita, Bitburger Drive, Barbican, etc., via suppliers importing from Iran, Germany, Belgium, Netherlands, UAE, etc.

Bottom-line, it's an established and growing business opportunity.

[It was a challenge to find information about Malaysian owned companies brewing non/low-alcohol (halal) beer in Malaysia for domestic consumption.]

Muslims & Non Alcohol Beer

Today, the reality is the majority of Muslims part-take in the conventional financial system and eat non-halal food for number of reasons, from inaccessibility to lack of interest to cost disadvantages.

This does not mean Muslims are losing their 'Islamicity,' but they, led by the socially media connected youth, are exploring their individuality and spirituality within their defined Islamic parameters.

For example, it's now well established that Muslims, be they in Middle East or SE Asia, are consuming non-alcohol, zero-alcohol, or halal beer, and the major brewers, like other companies,  are seriously interested in the 1.8 billion Muslims as a new market.

But, two important questions come to mind: (1) do we, Muslims, continue to be paying consumers without controlling/owing the supply chain?  If not, then (2) does this become a business opportunity for a Muslim owned company to start a halal beer brewing company or acquire an established brewer and, much like converting a conventional bank into an Islamic bank or non-halal factory into halal factory, and convert it?

Obviously, the word 'beer' and halal appear to be in contradiction, and, one can even articulate, that we are taking something haram and making it halal.

"O ye who believe! Intoxicants and gambling, (dedication of) stones, and (divination by) arrows, are an abomination, Of Satan's handiwork: Eschew such (abomination) that ye may prosper. (Al Maeda; 5:90).

For example, many Muslims have difficulty comprehending 'beer and permissibility,' hence, they even concerned about 'root beer' or 'ginger ale,' which are neither beer or ale, but a soda.

But, the reality is Muslims are major consumers of non/low or halal beer, and does such consumerism imply an opportunity for Muslims to own and build a global brand for 'halal beer?'

 Halal Beer

There is merit for Malaysia to be in the 'halal beer' business as part of its Halal Hub offering for the following reasons: -There is demand and it's presently being supplied by brewers in Muslim countries like Iran, Saudi Arabia, etc., but do such places have a history on transparent process and ingredients for halal?

Malaysia may well provide clarity and guidance on the process by well respected JAKIM, and backed by Halal Development Corporation (HDC) research, hence, there is trust and confidence in the final product (authenticity).

Malaysia's involvement would provide awareness and education on the process for others interested in brewing 'halal beer.'

The Malaysia approved 'halal beer' would be well recognized globally, because of the respect associated with Malaysia halal. There may also be a push-back by commentators in GCC with statements like, '… see, another example of Malaysia being more liberal in Shariah interpretation..' 

But, halal or no-alcohol is presently brewed and available (due to large demand) in the Middle-East!

A well know quote would capture the moment, 'People who live in glass houses should not throw stones.'

Conclusion

 Today, beef/turkey halal bacon is available in hotels, restaurants, and supermarkets in GCC, Malaysia, etc., hence, what once seemed and  sounded as impermissible has become not only lawful, but also in demand by Muslims and non-Muslims!

The 'halal beer' build-out may follow a path that has already been paved by 'halal bacon.'

The opportunity is a $100 Million plus business that would be controlled/owned by Muslims. The challenge would probably be a new name, instead of halal beer. – August 21, 2013.

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.