Brewers lose early gains as excise hike and health agenda weigh on sentiment

[[{“value”:”

BREWER’S share prices rallied in early first half of 2025 (1H25), but gains were erased in 2H25 as the April 1 ban on cigarette displays and talk of higher tobacco duties sparked broader “sin sector” risk-off sentiment, weighing on the brewers.

This was compounded by the government’s broader health agenda, with the 13MP highlighting the expansion of a “pro-health” tax to cover both alcoholic and cigarette products.

In line with this policy direction, the recently tabled Budget 2026 proposed a 10% hike in excise duty on alcoholic beverages, marking the first upward revision since 2016, when duties were rebased to RM165 per litre of alcohol content.

Under the proposal, the effective excise duty rate for beer will rise to RM192.5 per litre (from RM175). Given that excise duties account for 58-60% of brewers’ cost of goods sold, this translates into a 5.8-6.0% increase in their overall cost base.

“In our view, the excise duty hike will likely be fully passed through to consumers,” said Hong Leong Investment Bank (HLIB).

While brewers have the option of lowering alcohol content to mitigate tax increases, our discussions with brewery management suggest this is not a viable strategy due to the risk of compromising taste and consumer acceptance.

“Heading into financial year 2026 (FY2), we identify two key catalysts that could help cushion potential volume losses, the 2026 Visit Malaysia Year and the FIFA World Cup 2026,” said HLIB.

Malaysia’s target to attract 43 mil tourists in 2025 and 47 mil in 2026 is poised to lift beer sales. Meanwhile, the FIFA World Cup has typically been a strong catalyst for beer demand, with past tournaments (FIFA14, FIFA18, FIFA24) delivering more than 10% year-on-year (YoY) revenue growth in the corresponding quarter.

Notably, these event-related spikes occurred despite challenges such as the 2014 excise duty hike, the 2018 US-China trade war, and the 2024 high inflation slowdown.

“As such, we are optimistic that history will repeat again in quarter three 2026,” said HLIB.

HLIB sees Carlsberg as the better pick, supported by its diversified earnings base with around 30% of sales derived from Singapore. Heineken, while appealing for its more than 6% dividend yield, could be weighed down by ongoing digital infrastructure investments.

With 100% of its sales exposed to Malaysia, Heineken is also more vulnerable to the upcoming excise duty adjustment and post-price-hike consumption slowdown.

“Maintain Overweight, as we continue to favour brewer’s risk-reward profile, particularly after the recent share price weakness following the excise duty hike announcement,” said HLIB.

With both Carlsberg and Heineken now trading at undemanding valuation, back to levels last seen during Covid-19, HLIB believes much of the regulatory risk is already reflected, while sentiment could gradually improve given that past two excise duty hikes were spaced more than five years apart. —Oct 29, 2025

Main image: Malay Mail

The post Brewers lose early gains as excise hike and health agenda weigh on sentiment first appeared on Focus Malaysia.

“}]]

5 thoughts on “Brewers lose early gains as excise hike and health agenda weigh on sentiment”

Den Charme ehrlich gelebter Industriekultur zu erhalten,
um sie mit zeitgemäßer und funktionaler Qualität der Veranstaltungswelt zu kombinieren – das war immer eine atmosphärische Grundlage des
CASINOS. Das Ruhrgebiet bietet viele touristische Ziele und Attraktionen, die in Ihre Veranstaltungskonzepte integriert werden können. Die oft als “schönste Zeche der Welt” bezeichnete Anlage bietet viele spannende und interessante Aspekte für Fotografen und letztlich
auch für jeden Besucher. Durch die zahlreichen Bauprojekte auf Zeche Zollverein Essen Kanal und um Zollverein soll in den nächsten Jahren ein breites kulturelles Angebot für viele Interessenlagen geschaffen werden. Dieser Ort bietet eine große Auswahl an Gerichten zu erschwinglichen Preisen.
Ein Geschäftsessen im Casino kann eine gute Möglichkeit sein, sich mit
Kunden oder Kollegen zu treffen und in einer entspannten Atmosphäre zu plaudern. Welche Casinos sind also die
besten, um einen Glücksspielabend mit einem gepflegten Restaurant-Besuch zu kombinieren?
Sie bieten eine gute Auswahl an Fleisch-, Fisch- und vegetarischen Gerichten jeden Tag von Mont…
Klar bei 1000 Theaterbesuchern und geschätzten 100 Restauantplätzen ist der Laden schnell voll!

Darüber hinaus bieten viele Betreiber kostenlose Spielversionen an, sodass Sie ohne Risiko in die Welt des Glücksspiels eintauchen können.
Copyright © 2024 Spielbank Wiesbaden GmbH & Co.

References:
https://online-spielhallen.de/pistolro-casino-freispiele-ihr-schlussel-zu-kostenlosen-drehungen-und-gewinnen/

After dropping consecutive games for the
first time since 2022, the Lions are one loss away from missing out on the playoffs.
Detroit continued to insist on sticking with the run game, rushing
five straight times for a total of 8 yards. Detroit only 196 total yards of offense prior to a last-minute, pad-statting drive,
which would have been the worst of the entire Dan Campbell era.
The defense has kept them around, but Detroit’s offense isn’t
putting up much of a fight in this potential playoff elimination game.

The Vikings only had three net passing yards for the game, but
the frequent short fields and an explosive run from Jordan Addison made all
the difference for the Lions.
All three 2025 Christmas games reheat longstanding division rivalries.
“I think we all need to take a nice, good, long look in the mirror after this,” Dan Skipper
said after the Lions’ loss to the Vikings. But a loss would serve to make for a bitter Christmas Day.
The Lions won’t have Avonte Maddox in the secondary — who
was already stepping up in a depleted unit — and currently
have 11 questionable for the game. McCarthy and Brett Rypien (Emergency 3rd QB),
running back Jordan Mason, linebacker Austin Key, tackle
Brian O’Neill and tight end T.J. Expect Dan Skipper to get more run at left tackle.

References:
https://blackcoin.co/what-is-free-play/

Access comprehensive responsible gaming controls through your account settings.
Unverified accounts face limitations preventing withdrawals until identity confirmation completes.

First-time deposits using credit cards may require additional verification steps, including
uploading card photos with middle digits covered.
As part of this offer, players can get up to 1,500 AUD on the first three deposits.
We built DollyCasino to blend vintage glamour with a modern, regulation-first iGaming experience for Australian players.
Welcome packages stretch across four deposits, delivering sustained value
rather than one-time promotions. Subsequent deposit bonuses unlock as you continue playing, with each tier
offering additional matched funds and free spins.

References:
https://blackcoin.co/10-minimum-deposit-casino-bonuses-in-australia-2025-guide/