The effect of “isolation” on high consumption increases for the main products of the basket ends. Imports of oil and cereals decrease for the 4 months of 2021 compared to 2020. Companies report high sales of alcoholic beverages. Increased demand in the domestic market after quarantine is 25%
Dorina Azo
After last year’s quarantine and the consequences of the pandemic on consumption and investment, the domestic economy is gradually returning to normal.
Consumption of oil and flour in the period January-April this year is declining, after high growth in the quarantine period. For other products, were more affected by the change in consumer behavior, the trend is growing. Leading wholesale distributors of consumer goods claim higher sales growth for alcoholic beverages and healthy cereals, while sales of detergents are at the same level as in quarantine. Forecasts are optimistic if with the start of the season there will be foreign tourists and immigrants.
In bars and restaurants, attendance continues to decline. Leaders of the Association of Bars and Restaurants claim that the restriction of movement is the main factor in the decline in turnover. The transport sector is still not recovering the number of passenger attendance since resuming work on July 6, 2020.
Operators say the main factors in the decline are emigration and the high use of practical means of movement, such as electric scooters. The effect of the pandemic has faded even on bus passengers in Tirana, as many of them no longer use the protective mask and do not respect social distancing.
They increased significantly during the quarantine, the import of oil and cereals falls
According to INSTAT data, imports for the group of goods “Animal or vegetable oils and fats” in January-April 2021 is 9.8% lower than in 2020. Compared to the same period of 2019, imports are 20% more. Even the import of cereals this year is down 30% compared to 2020.
In January-April 2020, cereals increased 24% compared to the same period of 2019, after quarantine, which oriented consumers towards the basic products of the basket. The import of sugar for the group “Sugars and sweets from it” has increased 6% compared to years, although it is lower than in 2019.
The general director of the company “Erbiron sh.pk”, which has the exclusivity of the import of Hungarian bottled oil “Floriol”, Tedi Maraj, told “Monitor” that the sales of oil for the period January – April have been reduced by 20% compared to the same period last year.
“Oil consumption is lower in this period compared to years, as many individuals bought more than you needed in quarantine, for fear of how long the isolation would last. This is also noticed in the products of corn, peas and canned beans that had high sales in the period March-May. Currently, compared to 2020, sales for these products are 20% less.
Another reason for the contraction in oil and canned food consumption is the decline in consumer purchasing power due to the Covid-19 crisis. “If this year there will be an influx of emigrants and foreign tourists, we predict that the consumption for these products will be higher than last season”, emphasizes Mr. Maraj from the company “Erbiron”.
Consumption is also declining for flour, sugar, rice, beans according to sales data for the 2021 quarter of the company “Teuta” compared to January-April 2020. The Director of Finance, Junis Uruçi, says that the sale of these products was “inflated” due to isolation.
“People were buying more than they were consuming, tending to create reserves due to insecurity from the pandemic. For the months of January-April 2021, flour sales have fallen by 4% compared to the same period of 2020. The highest decline was felt in beans 63%, oil 43%, sugar 29% and rice 24%. It is different to consume healthy cereals. In 2021, their sales are higher than in the quarantine period.
According to the representative of the company “Teuta”, the main reason is the launch of some new types of cereals, but also the continuation of the routine created in quarantine to consume as many healthy products. “Yeast sales are 105% higher than in the quarantine period, as many families continue to make bread at home. The sale of pasta has also increased by 93% compared to years, due to the opening of restaurants and hotels. The sale of cereals, such as: quinoa, couscous, buckwheat, oats has increased 38% more than 2020 “.
Sales of alcoholic beverages, higher than in quarantine
The quarantine and closure and subsequent curfew of bars and restaurants also led to a significant drop in alcoholic beverage consumption last year. This year, the situation is quite different.
In 2021, imports of alcoholic beverages increased about 26% more than in 2020, according to INSTAT. Compared to 2019, imports are about 12.5% higher. The high growth of consumption of alcoholic beverages is also confirmed by the largest wholesale company in the country, “Agna Group”. Representatives of the company told “Monitor” magazine that sales of alcoholic beverages in the period January-April are 20 to 30% higher compared to the same period of 2020.
“Alcohol consumption this year has increased due to the opening of bars, restaurants and hotels, which remained closed during the period of isolation. In HoReCa services (Hotels-Restaurants-Cafes) there has been an increase in sales of soft drinks, while there has been a decrease in supermarket chains. With the opening of the economy and the start of schools, sales have been higher than years even for products like chocolates, croissants and chips. “Dishwashing detergents and detergents are at the same levels as in the quarantine”, underlined the leaders of the company “Agna Group”.
The same trend for the consumption of these products is reflected for the company “Marketing & Distribution”. The director of field sales of the largest distributor of food items, Genti Çela, said that the increase in sales for beer, alcohol and coffee has come due to the opening of the economy. “The use of detergents has increased by 2-3% compared to the same period last year.
Years in quarantine, due to fear of infection, individuals increased care for cleanliness and hygiene, increasing the use of laundry products and preparations. The effect is more seasonal, as always in the spring and summer season, sales of detergents increase. Another reason is that the consumer continues to maintain the routine of quarantine months for hygiene care. “Increases in the same levels have been recorded for coffee, beer and alcohol even in conditions when weddings are not allowed to be held and nightclubs continue to be closed and lounges.”
According to data from the Ministry of Finance and Economy, cigarette imports in January-March 2020 had a slight increase compared to 2019. For 2021, cigarette imports fell by 3%. In terms of cigarette consumption, according to data from the company “Agna Group”, sales in the 4 months of 2021 were 4 to 5% higher than in 2020. The growth according to the company is due to the opening of the economy.
Bars and restaurants
For May, turnover in bars and restaurants is 20% less compared to March and April of this year, when attendance was highest. The turnover of bars and restaurants is lower than the same period since May 18 when the economy opened in 2020. “We thought that the reason for the decline in attendance was the month of Ramadan, but after its completion it was noticed that the situation did not improve.
Another reason is that many people are familiar with the life of quarantine, where they already consume coffee or meals at home or in the office. On the other hand, many families tend to save to raise holiday income. Another problem is the schedule of allowing movement, until 23:00. After the end of the schedule, people are going more to the casinos, which have also turned into discos in this pandemic period “, says Henri Jahaj from the Association of Bars and Restaurants.
Starting June 1, restrictive measures against Covid-19 in Albania were eased. The epidemiological situation is stable. For this reason, the Technical Committee of Experts decided to postpone the movement permit until 23:00. Nightclubs, discos, continue to remain closed. Music will be allowed until 22:00. From July 1, the movement permitting schedule will be until 24:00, while the music permitting schedule will remain unchanged.
The Association of Bars and Restaurants predicts that changing the allowed movement schedule will improve the turnover of these services. “Changing the schedule will bring, step by step, a return to normalcy, as many people who leave work want to go to bars or restaurants until 11:00 or 12:00 pm.”