Logo of Phnom Penh Post newspaper Phnom Penh Post - Beer tops advertising budgets

Beer tops advertising budgets

Cans of Cambodia beer are set up for customers at a local restaurant in Phnom Penh.
Cans of Cambodia beer are set up for customers at a local restaurant in Phnom Penh. Eliah Lillis

Beer tops advertising budgets

Beer advertising is one of the fastest growing advertising segments in the Kingdom, though just as people often struggle to keep track of how many beers they have put away, the amount that local breweries and distributors actually spend on media placements is subject to widely varying estimates.

According to Indochina Research, the advertising budget of Cambodian beer companies saw double-digit growth last year. The regional market research firm estimates that spending on beer television and print advertisements grew by 19 percent last year to top $3.3 million.

Xavier Depouilly, general manager for Vietnam and Cambodian market research operations at Indochina Research, said that while the figure does not include advertising for concerts and sporting events – which admittedly accounts for the lion’s share of beer promotional activities – it provides a rough idea of just how much the beer companies are sinking into advertising their respective brews.

“Apart from the overall value, the spending report gives an objective idea on the branding efforts done by each brand in the media,” he said.

According to Depouilly, the most advertised brand in 2016 in terms of commercial spots was Ganzberg at 57,117, representing 28 percent share of television advertising, followed by Cambodia beer with 34,947 spots, and Angkor at 26,448.

Cambodia has three major breweries, including Cambrew, which produces Angkor, Bayon, Black Panther and Klang beers, and Khmer Beverages, the producer of Cambodia beer. The third, Cambodia Brewery Ltd (CBL), produces Tiger, ABC, Anchor and Crown, and earlier this month opened a new $100 million manufacturing plant to expand production and brew Heineken under licence.

According to Heineken’s own data, Cambodians imbibe about 6.1 million hectolitres of beer per year, or 38.6 litres per person. This places Cambodians among the top beer-drinkers in the region – though still well below the level of per capita consumption seen in Europe.

Chhe Lim Sreng, a marketing manager for one of Cambodia’s largest television stations, said beer has the largest advertising budget of any consumer product in the Kingdom, followed by telecom companies and then other non-alcoholic beverages.

“In terms of the beer market, if there is no advertisement, companies will not be able to sell their products,” he said, adding that breweries have stepped up spending as the market becomes more competitive.

“The more companies spend on advertising budgets reflects that they are having more sales,” he added.

Sreng said Indochina Research’s estimated $3.3 million print and television advertising budget seemed low. While he did not offer an alternative figure, he said if all advertising platforms including concerts and sports promotion were included, the budget would likely be closer to $20 million a year.

Im Sothearith, director of communications of Khmer Beverages Ltd, said the company alone spends nearly $10 million a year, with not all of it going into traditional advertising channels.

“For just our corporate social responsibility budget, we spend nearly $1 million a year,” he said, adding that he believed Indochina Research’s figure was widely conservative.

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Mr Pancake or M Crepe? Tasty by any title

    Crowds of people gather around a lone man with a mobile food cart every day at around 2pm in front of the Institut Francais du Cambodge to order what many say are the best crepes in Phnom Penh. To some – even to the man making

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused

  • PM sets tourism reopening as centrepiece of ATF 2022

    Prime Minister Hun Sen urged ASEAN to reopen tourism and trade now that many of the bloc’s member countries have vaccinated their populations. Speaking at the 40th ASEAN Tourism Forum 2022 (ATF 2022) in Preah Sihanouk province on January 18, the premier also said ASEAN has a