Booze price anomalies

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pik67 - 28 Jul 2005 10:41 GMT

Can anyone explain this?

The price of a 750ml bottle of Johnny Walker Gold label in various places
(in Australian dollars):

Retail in Melbourne: $120 - $140
Duty-free in KUL: $75
Duty-free in PNP: $70
Over the counter in every convenience store in Siem Reap and Phnom Penh: $37

The Phnom Penh shop-bought bottles are labelled "Singapore Duty Not Paid",
and are the genuine article.

Similar price anomalies are apparent on all brands and labels, not just of
Scotch, but all premium liquor. In downtown Phnom Penh the going rate for JW
Black (1 litre) and Chivas Regal (1 litre) is $US18, amazingly low by any
standards. One litre of JW Green is $US27. Like the Gold, the Black is
definitely real. I didn't taste the others.

If they can sell it at those prices in Cambodia, why is it so much more
expensive everywhere else? This can't be explained simply by citing cheaper
labor costs in Cambodia. Yet, I can't believe that the major liquor
manufacturers of the world are selling to Cambodia at a loss.

Note to Australians: Our duty-free allowance is now 2.25 litres, so you can
legally bring three of those 750ml JW Golds back home. Go for it.

Reply to this Message

Chris Blunt - 28 Jul 2005 12:35 GMT

>Can anyone explain this?
>
[quoted text clipped - 22 lines]
>Note to Australians: Our duty-free allowance is now 2.25 litres, so you can
>legally bring three of those 750ml JW Golds back home. Go for it.

Different import duties and taxes among those countries explain most
of the differences. I've also noticed that imported alcoholic drinks
are surprisingly cheap in Cambodian stores. You also have to take into
account that manufacturers target selling prices for different
countries depending on what they think the market will stand in each
country.

Duty-free shops in most places make huge profits. Its true that the
rents they pay on the locations they occupy inside airports are high,
but their markups on what they sell are enormous. I've noticed that
many of the items sold in duty-free shops in the Philippines are
actually available at lower prices in supermarkets inside the country.

Chris

Reply to this Message

Neil Raines - 29 Jul 2005 06:29 GMT

Rents are the key. Airports charge huge rents. In NZ, wine sold 'duty free'
is much more expensive than 'tax paid' in the supermarket.

> Duty-free shops in most places make huge profits. Its true that the
> rents they pay on the locations they occupy inside airports are high,
[quoted text clipped - 3 lines]
>
> Chris

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Travel Forum / Destinations / Asia / July 2005

Booze price anomalies