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'Halal beer' flops in Turkey

Turkish consumers reject even nonalcoholic beer for various cultural reasons.

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Nonalcoholic beer for sale in a supermarket close to the Kaaba in Mecca, 2013. — Riada Akyol

While the official justification for restricting alcohol sales and advertisement in Turkey has always nominally been to protect public health, many seem to agree that the state’s Islamist/conservative leaders are imposing their politicized beliefs on others, and view alcohol regulations as interference into private life by a particular religious ideology.

The latest tax increase on alcoholic drinks from the beginning of this year is a case in point. It hit beer the hardest: While the special consumption tax on raki (Turkey's famous anis-flavored drink), vodka and gin rose to 10% and 9.97% for wine, it is 15.63% for beer, making Turkey's excise taxes some of the highest in Europe.

Using statistics from 2012, Ernst & Young produced a report on the contribution of the beer sector to Turkey’s economy. In 2012, the total revenue from excise taxes, VAT and income-related contributions due to beer production and sales was estimated at 2.06 billion euros ($2.85 billion).

Considering the tougher legislation, it is no surprise that Turkey's biggest brewer and SAB Miller partner Anadolu Efes expects the new restrictions on alcohol to limit the growth of the country's beer industry.

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