After a sluggish performance in 2023, when its sales dropped by over one-third compared to the previous year, the consumption of beer improved and registered a growth of nearly 7 percent between April 1 and Sept 30 this year, compared to the same period in 2023.According to data sourced from industry sources, Delhiites consumed nearly 4.6 crore litres – or nearly 60 lakh cartons – of beer during the summer months of the current year. In 2023, consumption during the summer season was just about 4.3 crore litres.Among some of the most prominent beer-consuming states, Karnataka registered year-on-year growth of about 14 percent during the six months of the “beer season”, with nearly 20.4 crore litres of the alcoholic beverage sold from April to Sept in 2024, compared to 20.6 crore litres in 2023. Meanwhile, consumption in Uttar Pradesh surged by 11.7 percent. Interestingly, Goa, among the most popular tourist destinations for both national and international travellers, and Haryana registered negative growth of 5.9 percent and 1.3 percent, respectively, between April 1 and Sept 30 this year, compared to the same six months in 2023.In Delhi, the consumption of beer started increasing in March and peaked in June due to consistently high temperatures. Sales began to dip in July and were especially dismal in Sept, recording a decline of about 32% compared to the same month in 2023. Sources in Delhi govt’s excise department attributed this to technical issues in the software regulating liquor trade in the capital.Industry experts attributed the negative growth in the sale of beer in Haryana and Goa to policy and taxation-related issues. However, they added that there were multiple reasons why the sale of beer remained sluggish in the capital, including less variety and brand pushing, non-availability of “cold” beer during peak season, limited stock in stores due to their small size, and sometimes companies diverting products to states with higher profit margins.Beer accounts for more than one-third of the total liquor volume sold at Delhi’s stores. Industry experts, however, said the potential was much higher considering the intense heat and high humidity levels in Delhi for almost six months of the year.”The real challenge in Delhi is the quality of stock. Prominent and popular brands are barely available at retail outlets, while unknown brands fill the shelves,” said Vinod Giri, director general, Brewers Association of India.This, he added, has also led to consumers buying their stock from neighbouring cities in Haryana and Uttar Pradesh, where a large number of brands are available at cheaper prices.Giri said that only 20-25 percent of beer in Delhi is sold through hotels, clubs, and restaurants, and consumers largely prefer to buy it from stores. While there are over 690 liquor shops in the city, operated by four govt corporations, the number of hotels, clubs, and restaurants is more than 900.”Most shops in the capital are small in size and cannot keep large stocks. Also, some shops still don’t have chillers to keep beer. Buyers prefer the liquid to be cold and not at room temperature,” Giri said.A Delhi govt official, however, said the excise department was making efforts to have more premium shops in the city, which are bigger in size, have more variety of brands, stock more, and provide a better experience to the consumer.”After the excise department’s nudge, corporations have kept chillers in retail stores. The situation has improved drastically since the change in the excise regime in 2022,” said an official.
Published On Nov 17, 2024 at 04:00 PM IST
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