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CHAPTER - I
INTRODUCTION
Introduction:
The first chapter deals with the Introduction of the Alcoholic Beverage
Industry in India. It shows “The Structure of the Beverage Alcohol Industry” and
provides a summary of the beverage alcohol industry its nature and scope. This
chapter briefly highlights on the consumption patter of beer, wine and Indian
made foreign liquor in India and different part of the world. The other aspects
discussed are the growth of industry over the times, recent challenges (, import-
export duties and taxes, increasing market for wine, self-regulation norm) and
future prospects. The objective of this chapter is to throw light on the challenges
faced by the alcohol industry worldwide.
Alcohol has been widely consumed since prehistoric times by people
around the world, as a component of the standard diet, for hygienic or medical
reasons, for its relaxtant and euphoric effects, for recreational purposes, for
artistic inspiration, as aphordisiacs, and for other reasons. Some drinks have been
invested with symbolic or religious significance suggesting the mystic use of
alcohol, e.g. by Greeo-Roman religion in the ecstatic rituals of dionysus (also
called Bacchus), god of wine and revelry; in the christian eucharist, and on the
Jewish Shabbat and Festivals.
In India, ' drinking ' has remained a bad word, clubbed with the other
vices. While the beer and liquor market continuous to grow at an impressive rate
even against an impressive rate even against an economic reassion, the social
stigma remains in place which manifests itself in anti-growth state policies.
United Breweries (UB), shaw Wallacs and McDowell Cpart of UB group)
presently dominate the liquor and beer market. The market on its past is set to
undergo a sea change with the arrivals of MNCS. The structure of the industry is
clearly influenced by the regulatory environment and the consequent
fragmentation of markets. The regulatory framework covers all these categories.
Besides these, there is a significant presence of illicitly brewed alcoholic
beverages, which escapes the tax and regulatory net.
2
We can have a look at an overview of Alcoholic beverage industry.
Overview of Indian Alcohol Beverage Industry
Alcohol Beverages Industry
Source: (Indiamarkets.com)
The Potable Sector Market
1) Indian Made Foreign Liquor (IMFL) –Whisky, Rum, Brandy, Gin &
Vodka -180 million cases p.a.
2) Country Liquor –222 million cases p.a.
3) Beer (made from Barley and Malt)-170 million cases p.a.
4) Wine Domestic –1.5 million cases p.a.
Prevalence of Alcohol Use
The prevalence of alcohol is use still low in India as per some studies
done around the country (Table No.1.1). The per capita consumption is 2 liters
per adult per year (calculated from official 2003 sales and population figures).
After adjusting for undocumented consumption, which accounts for 45 to 50
percent of total consumption, this is likely to be around 4 liters.
Licensed
- Large - Ale - Stout - Pilsner - Dry - Diet - Ice - Strong
Illicit White Spirit
-Gin -Vodka
- Alcohol Produced by Distilleries and sold to state Govts marketed as Licensed Country Liquor
- In addition large scale production of illicit brew in the unorganized sector
- Table wine (still wine)
- Sparkling Wine
- Fortified wine
- Aromatized wine
Beer
Country Liquor
-Whisky -Brandy -Rum
Brown Spirit
IMFL Wine
3
Table No 1.1
Prevalence of Alcohol use
Sr.No. Prevalence of Alcohol use Percent
1 Never use Alcohol 25-74%
2 Prevalence (12 months) 19-34%
3 Prevalence (30 days) 12-20%
4 Regular users in last 30 days 6-10%
5 Problematic/Alcoholics 5%
6 Women (mostly abstainers) >90%
Source: Alcohol and Drugs Information Centre (ADIC)
Though consumption is still low, pattern of alcohol consumption vary
widely through the country. Punjab, Andhra Pradesh, Goa and the north eastern
states have a much higher proportion of male alcohol consumer than the rest of
the country. Women tend to drink more in the state of Arunachal Pradesh. Assam
and Sikkim in north-east; Madhya Pradesh, Chhattisgarh, Orissa and Andhra
Pradesh in central and east India, and Goa in the west, compared to other states.
Alcohol also provides and ‘excuse’ to behave in an uncontrolled manner,
which make ‘controlled’ societies, like in many Asian countries, including India,
even more at risk, where alcohol consumption tend to done without the
knowledge of parents and family.
Table No 1.2
Age wise Drinking Population of Alcoholic Beverages (percentage)
Sr. No. Age 2004 2005 2006 2007 2008
1 Below 21 2 6 9 12 14
2 21-30 29 31 33 34 35
3 31-40 38 36 36 34 34
4 41-50 24 22 18 16 14
5 Above 50 7 5 4 4 3
Source-Alcohol and Drugs Information Centre (ADIC)
4
Table No.1.2 shows the Age wise Drinking Population of Alcoholic
Beverages in India. It is seen that highest drinking population belong to the age
group of 21-30 followed by the age group of 31-40.
Table No 1.3
Average Age Wise Alcohol consumption At a Glance.
Sr. No . Average Age(In Years) Year
1 19 2003
2 17 2004
3 15 2005
4 14.5 2006
5 14 2007
6 13.5 2008
7 13 2009
Source-Alcohol and D rugs Information Centre (ADIC)
Table No.1.3 shows the Average Age wise alcohol consumption in india.
It is seen that Average age of Alchol consumption was 19yrs in 2003 highest
drinking population belong to the age group of 21-30 followed by the age group
of 31-40.
Dynamics of Alcohol Industry
Article 47 of The Constitution envisages that for promotion of public
health and nutrition the states shall impose prohibition. However, efforts has been
made repeatedly by State Governments to impose prohibition ended in fiasco.
Alcohol Industry is State controlled.27 States plus Union Territories with
different laws, different price structures etc.. Therefore, 32 different markets for
all practical purposes. Four States are under prohibition –Gujarat, Mizoram,
Manipur and Nagaland. It is the only Industry where inputs are de-controlled
(free market price) and output is controlled (selling price is determined by State
Excise in most States)
5
India is third largest market for alcoholic beverage in the World, the domestic
market is largely dominated by United Breweries, Mohan Meakins and Radico
Khaitan and others.
The demand for beer and spirits is estimated to be around 373mn cases
per year. There are 12 joint venture companies having a licensed capacity of
33,919 Kilo-Litres p.a. for production of grain based alcoholic beverages. Around
56 units are manufacturing beer under license from the Govt. of India.
There are approximately 23,000 licensed liquor outlets in India, with
another 10,000 outlets in the form of bars and restaurants. Regulations in this
sector differ State-wise.
Global Beverage Alcohol Production
Global alcohol beverage production is rather heterogeneous and includes
a wide range of different levels of production. Information is available on
recorded beverage alcohol production from a diversity of sources including
official sources (e.g., the United Nations Food and Agriculture Organization
(FAO) and national government reports), and from industry or private sector
analysts. Unrecorded beverage alcohol is based on estimates of the amount of
alcohol which is not officially recorded in national or international statistics. It
includes home production (which may be licit or illicit), travelers’ imports and
cross-border shopping, smuggling (either organized criminal activity or
individuals importing amounts exceeding legal allowance), surrogate alcohol
intended for other purposes, tourist consumption, and beverages with alcohol
content below the legally defined limit for beverage alcohol.
Recorded Beverage Alcohol
According to the available industry data, Euro monitor International, 9 a
leading business information company, estimates global volume sales of
beverage alcohol at 182.9 billion liters in 2004 with a stable 1-2% annual
increase over the 1999-2004 period.
6
Figure 1.1
Global sales of beverage alcohol by sector in liters of pure alcohol, 1999-2004
Source: Euro monitor 2005
Note: For the purposes of comparison, pure alcohol conversions have
been calculated on the following basis: beer, cider and flavored alcohol beverages
(FABs) 1 liter pure alcohol = 20 liters @ 5% alcohol by volume; wine 1 liter pure
alcohol = 8 liters @ 12.5% alcohol by volume; spirits 1 liter pure alcohol = 2.5
liters @ 40% alcohol by volume.
The large majority of beverage alcohol is produced by a plethora of small
domestic manufacturers catering to local traditions and tastes. These products are
not traded internationally, but their levels of production are generally recorded by
governments (largely for purposes of collecting excise taxes). They are often
termed “commodity” drinks-legal, commercially-produced local alcohol sold at
very low prices. They reflect the local drinking culture and, in certain regions,
account for an overwhelming share of recorded consumption. For example,
“commodity” spirits brands are estimated to account for 99% of total recorded
consumption in China; 94% in Russia; 92% in Thailand; 89% in Brazil; and 75%
in India.11
7
Figure 1.2
Total alcohol volume sales, 000 9L cases (2004)
Source: Combined IWSR data, 2004, Commodity alcohol - assumed to be
alcohol produced by IWSR “undefined” manufacturers.
It is seen from the above figure no 1.3 the total alcohol volume sale
around the globe.
Commodity alcohol(including beer, wine and spirits) accounts for 64.5%
volume sales, whereas the branded alcohol(including beer, wine and spirits)
accounts for 37.5% of volume sales, so the consumption of unbranded alcohol in
different parts of world constitutes a major portion of the consumed alcohol.
8
Table No 1.4
Alcohol production and import (metric tones)
Sr. No Alcoholic Beverages Production Import
1 World 231035679 17876448
2 Asia 55981448 (24%) 1445338 (8.1%)
3 South-East Asia 6411451 (11%) 105116 (7%)
4 Bangladesh 3004 (3%)
5 Myanmar 22062 (0.3%) 10350 (10%)
6 India 418653 (65%) 6876 (7%)
7 Indonesia 252756 (4%) 3594 (3%)
8 Korea, DPR 332400 (5%) 7300 (7%)
9 Maldives 2487 (2%)
10 Nepal 18600 (0.3%) 820 (1%)
11 Sri Lanka 21600 (0.4%) 1029 (10%)
12 Timor-Leste 0 3810 (4%)
13 Thailand 1577180 (25%) 56579 (53%)
Source- ICAP
Table no 1.4 shows the alcohol production and import (metric tones).we
can see that india is producing 418653(65%) of alcoholic beverages in India
whereas the import is only 6876(7%)
Sale of beverage alcohol in Maharashtra state.
• The Country Liquor sale in the year 2001-02 was 15 crore bulk litre and
in the year 2007-08 is 26.27 crores.
• Foreign Liquor sale in the year 2001-02 was 6.07 crore bulk litre and in
the year 2007-08 is 11.17 crores.
• The Beer sale in the year 2001-02 was 10.96 crore bulk litre and in the
year 2007-08 is 18.43 crores.
• Sale of Wine in the year 2001-02 was 5.18 lakh bulk litre and in the year
2007-08 is 13.97 lakh liter.
9
Maharashtra has emerged as an important states for the production of
alcoholic beverages. There are no of wineries, distilleries and breweries are
located in Maharashtra state.. There is wide scope for alcoholic beverages
industry in Maharashtra. As we know that there are large no. of sugar industries
located in Maharashtra, which provides molasses in the form of raw material for
the production of alcoholic beverages.
Table No 1.5
Excise Revenue Trend in Maharashtra state-Subhead Wise (Rs. In Crore)
Source- Maharashtra state excise Dept (2008)
Table No 1.5 shows the Excise Revenue Trend in Maharashtra state-
Subhead Wise (Rs. In Crore).it can be seen that total excise revenue from all the
Alcoholic beverages was Rs.1786.81 crore in 2001-02 and in the year 2007-08 it
grew up to whopping 3930.68 crore.
Sr.
No
Subhead 01-02 02-03 03-04 04-05 05-06 06-07 07-08
1 Country
Liquor
509.23 552.16 568.66 661.21 868.04 1030.38 1192.35
2 IMFL
(Spirits)
826.56 800.00 908.03 871.05 1162.07 1392.73 1636.04
3 Beer 209.07 253.33 286.91 359.31 315.19 398.65 570.90
4 Fees
from all
types of
licenses
50.50 158.22 341.04 237.87 287.03 320.83 355.56
5 Other
Revenue
191.45 211.73 182.26 195.03 183.31 153.84 175.72
6 Total
Revenue
1786.81 1975.44 2286.90 2324.47 2815.28 3296.43 3930.68
10
Aurangabad District, which is in Marathwada region is a tourist hub,
surrounded with many historical monuments including Ajanta and Ellora World
heritage sites. Around 17 lakhs domestic tourists andover 50,000 foreigners visit
the city every year.
Making great strides in Industrial Development in the last 25 years,
Aurangabad has emerged as a major Industrial Destination with strong base of
automobile, liquor, engineering and pharmaceutical industries, Arrival of BAjaj
Auto in easy 1980's completely changed the Industrial Scene.
The Shendra, Chikalthana and Waluj MIDC Industrial Areas are
prominent industrial zones on the outskirts of the city major multinational groups
that have set up manufacturing or processing plants in and around the city.
As far as Alcoholic Beverages are concerned many multinational
companies are attracted towards Aurangabad for production, because of the
infrastructure facilities and the quality of water that is required in the production
of Alcoholic Beverage is available in Aurangabad.
Aurangabad District comprises of the following tahsil.
a) Kannad b) Soygaon c) Sillod
d) Phulambri e) Aurangabad f) Khultabad
g) Vaijapur h) Gangapur i) Paithan.
According to 1981 census, the population of the District (including Jalna)
was 15.81 lakh. The population is around 29 lakh as per 2001 census report.
The State Govt. has earned whopping revenue of Rs.500 Crores from
Aurangabad District alone, following a record sale of liquor last year. The sale
was recorded between Jan. and Dec.2006. A total of 1.58 crores liter of liquors
was sold last year. It includes sale of country liquor (85.51 lakh litres), foreign
liquor (19.58 lakh litres) and beer (26.40 lakhs litrs.) The figures show a
considerable hike in the sale of liquour in the district, which has registered a sale
of 1.22 crore litres of liquor in 2005 most of the sale was recorded between
March 31 and Dec.2006.
11
Table No 1.6
Excise Revenue trend in Marathwada Region (Rs.in crore /lakh)
Sr.No District
2003-
04
2004-
05
2005-
06
2006-
07
2007-
08
1 Aurangabad 344.60 332.60 412.50 534.13 736.84
2 Jalna 2.69 1.85 1.95 2.06 2.42
3 Parbhani 2.32 1.42 1.50 1.62 2.52
4 Hingoli 1.22 0.72 0.95 0.73 1.31
5 Beed 4.04 3.20 3.31 2.99 5.91
6 Nanded 10.04 9.33 10.89 10.09 11.03
7 Osmanabad 15.82 19.9 16.24 12.27 17.22
8 Latur 4.22 4.02 4.25 3.64 6.97
9 Marathwada
Rgn. Total
385.00 355.16 452.59 567.55 784.22
Source- State excise Dept. Maharashtra (2008)
Table No 1.6 shows the Excise Revenue trend in Marathwada Region
Rs.in crore /lakh. It can be seen that total excise revenue from all the Alcoholic
beverages was Rs.385 crore in 2003-04 and in the year 2007-08 it grew upto
784.22 crore, further the highest excise revenue is collected from Aurangabad
district alone.
At the end of September 2009 state excise department has collected Rs
576 crore revenue from Marathwada region , Aurangabad district has contributed
significantly by acquiring the top position and as compare to last year
Aurangabad district has collected 557 crore. Aurangabad is the leading producer
of alcoholic beverages in the world recently Aurangabad region (Waluj and
Chikhalthana industrial area) has produced 11 crore liter of alcoholic beverages.
At Aurangabad, there are 13 industries producing alcohol beverage (5 foreign
liquor distilleres,2 country liquor and 6 breweries).
12
Beer Market:
Profile of Indian Beer Market
With India offering huge potential for growth and further deregulation
expected in retail sales and duties, international players are keen on entering beer
in India. In 2007, a number of international players firmed up their plans to enter
the domestic beer market. The noticeable new entrants included Carlberg, which
launched Okocim Palone in June 2007 through South Asia Breweries and
Anheuser-Busch, which launched locally made Budweiser in a few South Indian
States in July 2007. Other top global beer manufacturers are keen on entering the
domestic beer market and players such In Bev and Asia-pacific Breweries have
found Indian partners and are setting up domestic production facilities.
The 2007 growth of 18% was considerably stronger than the review
period CAGR of 12%. Rising consumerism coupled with deregulation in the
states of Punjab, Haryana, Chandigarh and Orrisa in 2006 resulted in a high
growth rate for beer in 2006. The momentum carried on into 2007, with beer
continuing to register stronger growth due to increasing trading up by consumers
to strong beer, deregulation in key states and a greater level of social acceptance
towards drinking alcohol. The upsurge in consumerism has been a result of
changing demographics. Changing consumers perceptions, lifestyles, media
coverage and high-profile promotions have prompted the strong growth in beer
sales.
Low-alcohol beer is not commonly available in India, with a few
imported brands such as Beck’s and some domestic ones such as Zingaro falling
into this category. There is a strong preference for strong beer, which has an
alcoholic content upwards of 5%, as consumes prefer the “high” that strong beer
provides in a relatively smaller quantity and price. With very few women in India
drinking beer, the demand for low-alcohol beer is fairly limited. The demand for
low-alcohol beer is unlikely to change in the forecast period as consumers will
continue to prefer strong beer for its faster intoxication effect.
Dark beer and stout are not popular in India, due to low brand availability
and lack of consumer awareness. SABMiller test-marketed Haywards Black
Strong Stout Beer in 2006 in select cities. Carlsberg introduced Okocim Palone in
some North Indian states in 2007. The brand has been positioned alongside
13
premium strong beer brands such as Kingfisher Strong and Haywards 5000. The
availability of the newly launched brands is restricted mainly to high-end on-
trade outlets, thereby reaching out to only a small set of consumers.
At present, the domestic beer market is dominated by united Breweries
and SAB Miller who together control nearly 90 percent of the 158 million –case
market. The beer market in India is growing at the rate of 14 percent though the
per capita consumption is at around 1 litre.
All India Brewers’ Association
The All Brewers’ Association is a prime body representing the interests of
brewing industry of India. Its members account for more than 90% of Production
and sales of Beer in India.
AIBA was formed in the year 1977 and was
registered under the Karnataka Societies
Registration Act 1960. From membership strength
of mere 15,it has now swelled to close to 50 is
India’s leading business support organization. The
membership includes leading brewers, malt
companies, manufactures of brewing equipment and
engineering & technological service provides.
United breweries, SABMiller India, Bar Malt India,
Alfa Laval, Praj industries, Briggs of burton are
some of its member.
The principal of AIBA can be summarized as follows:
� To provide a common platform for its members to discuss issues of
mutual interest
� To work with all stakeholders like Central & State Government, raw
material suppliers, consumers other than the brewing companies on issues
affecting the industry
� To be able to present a common face and voice on industry issues whilst
representing to other constituents of our environment
14
Others10%
United Breweries
54%
SAB Miller India36%
SAB Miller India United Breweries Others
� To lobby with the regulatory authorities (decision makers- state
government representatives, excise dept) for effecting beneficial
legislation
In India the future of beer industry is very much optimistic because-
1. India has predominantly a warm/hot climate.
2. The beer-drinkers in the country are much younger than the average beer-
drinker elsewhere in the world. This makes them more likely to carry the
brand with them for a lifetime.
3. Increasing exposure to beer and wine drinking, mainly due to media and
consumer mobility.
All these factors combined make the scenario very promising for beer
industry and are ‘in sync’ with their strategy for India.
Figure 1.3
Market Share of Beer Industry in India
SABMiller and United Breweries together own nearly 90 per cent of the
share of the beer market in India. SAB Miller’s market share is 36 per cent in the
Indian beer market, which is about the same as last year’s.
15
UB (United Breweries Ltd.) is the market leader in the Indian beer market
with a 54% market share. Its flagship Kingfisher brand alone commands 25%
market share. The company has however been focusing on strong beer, which has
driven growth. market is now skewed towards strong beer with more than 60% of
the market being strong beer market. Beer mix today is approximately 60 percent
lager beer and 40 percent strong beer. This ratio was very different 4 year ago.
Over the last four year strong beer has been the fastest growing segment. This
was completely usurped by Shaw Wallace. As of today while Shaw Wallace has
approximately 28 to 30 percent of the strong beer market, UB already has
achieved 14 to 15 percent of that strong beer market and is growing very fast. It
launched Kingfisher Strong only in May of 2001. And once it is able to take
Kingfisher Strong national, it will try to match Shaw Wallace’s market share over
the next few years.
Figure: 1.4
Beer Category Trends – All India
Source- AMBROSIA• December 2009
16
Apart from Kingfisher, and Foster’s Beer, the other brands in the Indian
market are Carling Black Label, Carlberg, Dansberg, Goldern Eagle, Guru,
Maharaja premium Lager, Haake Beck, Haywards 2000 Beer, Haywards 5000,
Haywards Skol, Flying Hourse Royal Lager, Taj mahal, Heinkin, Hi-five, Ice,
Kingfisher Diet, Kingfisher Strong, Kirin, Knockout, Legend, London Diet,
London Draft, London Pilsner, Royal Challenge, San Miguel Lager, Sand Piper,
Strohs and Zingaro.
South Africa Breweries India Ltd. – Knock-out, Continental and Three
Lions, a new brand that was launched in the autumn of 2001 by SAB in Uttar
Pradesh, Chandigarh and Himachal Pradesh.
Other possible competition-Radico Khaitan and beer international
interbrew have formed a joint venture to distribute interbrew’s Beck’s Brand of
beer in India. The premium lager beer segment in India will be targeted. Radico
has also announced the launched of its international division.
The beer-drinkers in the country are much younger than the average beer-
drinker elsewhere in the world. This makes them more likely to carry the brand
with them for a lifetime. Also, as the target audience becomes younger, a light
beer is expected to attract first-time drinkers, since it is much milder than any of
the other beers in the country.
A lot of new variants promise to gain prominence, but mainly in niche
urban segments. The sophisticated consumer who drinks beer for the experience
and not to get drunk will lap up ice beer or light beer. IN urban centers, apart
from first time users companies are also targeting women, who as ‘the times they
are a changing,’ are entering the market for beer. Essentially, women shy away
from beer consumption because it is associated with pot-bellied men sitting at
bars and shooting darts.
17
Table No 1.7
Consumption of Beer Liters Per person –Beer in comparison with other
Liquids-(in liters)
Sr. No. Categories 2004 2005 2006 2007 2008 2009
1 Beer 0.5 0.5 0.6 0.7 0.8 0.9
2 Bottled water 0.1 0.1 0.1 0.2 0.3 0.5
3 CSDs 1.0 1.2 1.2 1.5 1.6 1.8
4 Coffee 2.0 1.2 1.3 1.3 1.3 1.2
5 Distilled Spirits 0.3 0.3 0.4 0.5 0.6 0.6
6 Fruit Beverages 0.1 0.1 0.1 0.2 0.2 0.2
7 Milk 41.2 41.7 40.2 40.7 40.1 40.5
8 Tea 49.7 50.9 49.2 52.5 48.2 44.2
9 Subtotal 94.8 96.1 93.1 97.4 93.0 89.7
10. All others* 631.9 630.6 633.6 629.3 633.7 637.0
11. Total 726.7 726.7 726.7 726.7 726.7 726.7
Include tap water, Vegetable juices, powders, and miscellaneous others.
(Source: Beverage Marketing Corporation)
Table No 1.7 shows the comparison of Beer consumption as compared
with other liquids. The consumption of Tea per person is highest i.e. 44.2 liters,
whereas the consumption of Beer (in liters) per person is only about 1% in India.
18
Table No 1.8
Production of Beer in India.
Sr. No. Year Production in kilolitres
1 2004-05 270446
2 2005-06 295515
3 2006-07 372194
4 2007-08 407665
5 2008-09 451001
Source: CMIE Data (2009)
Table No 1.8 depicts the production of Beer in India. We can see from the
table that every year there is increase in production of beer from 2004-05 to
2008-09. In 2004-05 the production of Beer was 270446 kilolitres whereas in
2008-09 it rose up to 451001 kilolitres.
INTERNATIONAL SCENARIO
World over it has been identified that policy focus should not as much be
on controlling consumption but more importantly or reducing harm. Therefore,
beer and wine dominate the alcohol market in most countries. It is considered to
be common man’s drink and in many countries is even priced in parity with soft
drinks. But in India things are different in India.
19
Table No. 1.9
GLOBAL BEER MARKET
Per Capita Consumption of Top 20 Countries
Rank Countries Regions Liters per Capita
1 Czech Republic Europe 159.4
2 Ireland Europe 154.7
3 Germany Europe 127.5
4 Luxembourg Europe 109
5 Austria Europe 108.9
6 Denmark Europe 101.9
7 United Kingdom Europe 99
8 Belgium Europe 97.5
9 Australia Australia/Oceania 91.2
10 Solvak Republic Europe 88.1
11 United States N.America 84.4
12 Netherlands Europe 84.2
13 New Zealand Australia/Oceania 80.7
14 Finland Europe 80.1
15 Venezuela S. America 75.2
16 Spain Europe 68.8
17 Canada N.America 68
18 Hungary Europe 65
19 Portugal Europe 64.3
20 Sweden Europe 59.3
GLOBAL
AVERAGE 22.1
INDIA 0.9
Source- Ambrosia (2009)
The per capita consumption of beer in India is just 1 liter pre person per
year as compared to the world average of 22 liters. This is one of the lowest in
the world.
20
World Beer Market:
World beer sales totaled 157.8 billion liters in 2005 with the top 10
companies accounting for approximately 60% of global volume of branded beer.
Although twenty large multinational and regional producers head the industry
tables on branded beer volume, small production dominates total beer production
when “commodity” beer products are considered (“commodity” beer is 62% of
total beer production).
Although the largest global brewers have significant international
production, their brands are essentially local. Due to its large volume, beer is
generally produced in the country in which it is consumed.International brands,
when available outside their “home” countries, are usually produced locally
either by a brewery established by the brand owner or under license by a local
brewery. Exports are important only for a few countries with prominent brands
(e.g., Heineken, Carlsberg, Stella Artois or Guinness), which are produced by
some of the world’s largest brewing companies.
Over the past five years, changes in beer consumption patterns have
varied by region. In low and middle-income countries, the main developments
have been shifts from consumption of unrecorded, locally produced beer to
commercial, regional brands. Also noteworthy in low and middle-income
countries is the shift to beer from other beverage alcohol categories (primarily
from unrecorded and “commodity” spirits).
Challenges and impediments:
India is predominantly a hard spirits market and beer is a minority
preference for those who consume Beverage Alcohol. Beer makes only 4% by
revenue of the total alcohol market. It would be pertinent to mention that while
per capita consumption of spirits in India is 65% of global average, in the case of
beer it is a mere 3% of global average.
Moreover, the Indian beer industry is plagued with myriad taxes & levies
that vary form state to state. In fact no two states or UT s have a same or even
similar policy
The inconsistency in the state policies leads to fostering an environment
of mismanagement & lack of focused strategy to manage state finances. States
21
usually do not adopt policies based on scientific management or by considering
the social aspects of managing this trade. The policies are generally short tern in
their outlook with little or no thought to long- tern interests of all stakeholders,
including the general public.
Hence, despite the recent growth, there still exist numerous challenges of
the beer industry.
• Beer Highly Taxed
• Most Regulated Industry:
• Price Restriction-
• Inadequate Market infrastructure-
• Restriction of Movement of Beer
DEFINITION OF SPIRIT
A spirit is any alcoholic beverage containing a significant amount of
distilled ethanol (ethyl alcohol).
What is a spirit?
A spirit is a potable alcoholic beverage obtained from the distillation of an
alcoholic containing liquid. In distillation all the alcohol can be separated from
the liquid forming pure alcohol to which distilled water is added to reduce its
potency.
India-Made Foreign Liquor (IMFL)
This category, created for revenue purpose, consists in Western-style
distilled beverages such as whiskey, rum, gin, vodka and brandy. These are made
in India under government licenses and the maximum alcohol content allowed is
42.8% Whiskey is by far the most popular drink in this category, with hundreds
of brands available, at least 20 of which have an all-India presence. Several dozen
brands of rum, gin and brandy are also available. Wines fall under this category
of liquor too, although until recently wine production and consumption in India
was almost nonexistent. Some wine are now made in the country, and small
amounts of wine are imported for select consumers.
22
The IMFL industry in India is estimated at nearly 100 Million cases and is
growing at 8 per cent per annum. Consumption is largely skewed towards
whisky, which accounts for over 60 per sent of the market. Brandy accounts for
21 per cent. rum for 14 per cent and whites (Gin, Vodka, others) for 5 cent.
Growing at a CAGR of 9% for last decade and expected to grow at 8-9%
in next three years.
Table No 1.10
Segmentation of IMFL
Total market value Rs.41,000 crore in 2007
Total market volume Approx 180 million cases
Liquor industry segmentation Whisky-60%
Brandy-18%
Rum - 15%
White spirit-7%
Lowest per capita consumption India 0.8 liters
Global average 3.1 liters
(Source:UBS)
It can be seen from table No.1.10 the market value, market volume and
industry segmentation of IMFL, in India the Average consumption of IMFL is
about 0.8 liter per person compared to the global average of 3.1 liter.
The Indian Made Foreign Liquor (IMFL) market in India constitutes 31%
of the total liquor market in India. The rest is accounted for by country liquor.
However, there is a discernible shift in consumption from country liquor towards
IMFL. The IMFL segment is growing at 9-10% (in volume terms) as against 6-
7% growth in country liquor.
23
Table No. 1.11
Production of Indian made foreign liquor in India.
Sr.No. Year Production in kilolitres
1 2004-05 183178
2 2005-06 233400
3 2006-07 272834
4 2007-08 302328
5 2008-09 343331
Source: CMIE Data(2009)
Table No 1.11 highlights on the production of Indian made foreign liquor
in India. We can see from the table that every year there is increase in production
of beer from 2004-05 to 2008-09. In 2004-05 the production of Indian made
foreign liquor was 183178 kilolitres whereas in 2008-09 it rose up to 343331
kilolitres.
Table No 1.12
SPIRITS INDUSTRY 322 MILLION CASES
IMFL 100 million CASES FY 2004-06 VOL GROWTH 9% 2009 GROWTH 10% - 11%
COUNTRY LIQUOR 222 million CASES FY 2004-06 VOL GROWTH 7% 2009 GROWTH 5% - 6%
WHISKY • IMFL share: • 59.5% • Exp.Growth
10% • Major
Brands • Mc.Dowell
No;.1 • Royal Stag,
8Pm • Bagpiper • Directors
special
RUM • IMFL
Share: • 17.6% • Exp.Growth • 8.9% • Major
Brands: • Bacardi • Old Monk • Mc.Dowell • Celebration • Old Admiral
BRANDY • IMFL
Share: • 18.2% • Exp.Growth • 6.7% • Major
brands: • Mc Dowell
No.1 • Honey Bee • John
Exshow • Old
Admiral Golkonda
VODKA • IMFL
Share: • 1.2% • Exp.Growth
30% • Major
Brands: • Smirnoff • Roma noy • White
mischief • Magic
moments • Alcazar
GIN • IMFL
Share: • 3.5% • Exp.Growt
h 0.1% • Major
brands: • Blue
Riband • Carew • Haywards’ • Aristocrat • Contessa
Source : Motilal Oswal Report
24
Table No 1.22 shows the spirit industry of 322 million cases (IMFL 100
cases and country liquor 222 million cases). It shows the growth of IMFL and
country liquor from 2004 to 2009. The IMFL is expected to grow between 10%-
11%, whereas the growth of country liquor is expected to grow at the rate of 5%-
6%.
Challenges of the IMFL Industry
• India is 28 countries in the context of one (There are 31 states but some
are very small). There are at least 23 quite different market of importance.
• Each state levies taxation on alcohol at its own determined rates and
excise duties. States control the distribution channels in its own way. It is
a state subject not the federal subject.
• Prices vary by states and are low by international standards
• High investments for production & distribution channels.
• Surrogate Liquor Advertising.
Growth Drivers of the IMFL Industry
• Changing demographics 54% of youth and middle aged population
increased in 2011 from 48% in 2001.
• *In Indian demographics nearly 485m people are at the drinking age and
another 270m will likely to be added over the next 30 years.
• Deregulation by state governments.
• Influence of western culture.
World Spirits Sector
In 2005, the top five spirits brands in the world were all nationally
specific. The only major spirits brands to feature in the world’s top 10 in volume
terms in 2005 were Bacardi rum and Diageo’s Smirnoff vodka.
The top global spirits producers account for 60% of the volume of
premium Western-style spirits produced, but only approximately 20% of the total
global spirits market. For example, as highlighted in table 4, by volume Diageo
produces 14.7% of the global Western-style spirits, but only 4.4% of total spirits
25
volume. The term “western-style spirits” refers to products made in accordance
with internationally accepted industry standards (e.g., EU, WTO etc), which
specify raw materials, aging, level of alcohol by volume (abv), etc. Much of the
whisky produced in India, for example, does not qualify as “whisky” under the
EU industry standards. The EU definition specifies that whisky has to be made
from cereals, at least 40% abv and aged for three years or more, whereas Indian
whisky is derived from molasses.
Figure 1.5
Major global spirits companies by volume,
Source: Impact
Figure 1.5 shows the -Major global spirits companies by volume, it can be
seen from the figure that Diageo is market leader in terms of volume of
production, followed by Pernod Ricard and UB group of India.
Country Liquor
These distilled alcoholic beverages are made from any cheap raw material
available locally, e.g. sugarcane, rice, or coarse grains. Country liquor is
produced in licensed distilleries and sold from authorized outlets within the same
district. Common varieties of country liquor are arrack, desi sharab, and tari
26
(toddy). Excise duties are paid, but since production costs are low the retail prices
are also low. The licensing system and some governmental monitoring of the
production process ensure and uniformity in alcohol content (around 40%) and
basic safeguards against adulteration with other harmful intoxicants. Northern
and western India are sugar – producing areas, and a large amount of molasses is
available in these states at a very cheap price. Consequently, molasses is the main
raw ingredient for country liquor there. In south India, coconut and other palms
are used for the same purpose. In addition, inexpensive grains are used for
country liquor all over India.
About 222 million cases of CL is sold in the country and the growth rate
is 5 to 6%. The CL market is highly regulated, sold generally as commodity,
often dominated by cartels, traders get disproportionate share of MRP. CL
companies predominantly are state centric e.g. Saraya & Radico in UP, GM
Brewery & Vasant Dada in Maharashtra, IFB Agro in West Bengal, Som
Distillers and Kedia in MP, Glenn in Haryana etc. A.P., Karnataka and Tamil
Nadu have abolished RS based CL in favour of cheap ENA based IMFL. UP
(19.5), Maharashtra (19.3), Karnataka (13.6), Punjab (10.2) & Haryana (9.4)
consume 63% of the total CL.
Table No. 1.13
Production of Country liquor in India.
Sr. No. Year Production in kilolitres
1 2004-05 139285
2 2005-06 142673
3 2006-07 155326
4 2007-08 186106
5 2008-09 247198
Source: CMIE Data 2009
Table No 1.13 depicts the production of country liquor in India. It is seen
from the table that every year there is increase in production of country liquor
from 2004-05 to 2008-09. In 2004-05 the production of country liquor was
139285 kilolitres whereas in 2008-09 it rose up to 247198 kilolitres.
27
WINE INDUSTRY
The Indian wine market:
Currently the Indian wine industry is growing at the rate of 25-30% per
annum, with few good wine makers. The market for wine in India is predicted to
grow at a CAGR (Compound Annual Growth Rate) of 12% in volume between
2004 and 2009 (Source: 2009, Euro monitor International). A host of new
wineries, new imported brands and the easing of government rules and taxes are
expected to be the catalysts for growth. As the Indian economy continues to do
well, with strong GDP growth predicted, the disposable income of Indian
consumers available for spending on luxuries is expected to increase.
Sales of wine in India in 2004 stood at over 4 million liters, dwarfed by sales of
beer and spirits. However, growth of wine has been unprecedented in a country
which does not have a culture of wine consumption. Volume sales of wine grew
by 17.5% in 2005, with a compound annual growth rate of close to 22% between
2004 and 2009.
Consumption and Market Analysis:
Tastes and Preferences
The tastes and preferences of Indian population towards still wines, and
more specifically, table wines. Though a market exists for champagne and
sparkling wines, these varieties sell at a much lesser rate (8-10% market share)3.
In general, slightly sweet wines the varieties of Sauvignon Blanc, Chenin Blanc,
Rieslings, and Gewurztraminer are fairly popular and also pair well with typical
Indian dishes. Similarly, rose and blush have been projected as good fits for the
Indian market. However, the majority of sales have stayed on traditional still red
and white wines. In regards to presentation, wine producers have two different
demographics in the Indian market upon which to focus: the upper class and the
general consumer. While the upper class prefers the classic presentation, i.e. real
cork, full bottle size, and dry red and white wines, the growing consumer class in
India gravitates towards approachable wine packaging, i.e. screw caps, half bottle
sizes, and sweet wines.
28
Value and Volume estimates
For 2008, the authors of this study estimate Indian wine consumption to
be 1.1 million 9 – liter cases at a value of approximately US$ 60 million5. With
an annual growth rate to 20% to 25%, consumption in this emerging market is
projected increase to 2.0 million cases by 2011 (consumption projections,
conservatively, are 4.0 million cases by 2015 and 8.0 million cases by 2020). On
a per capita basis, Indians consume about 9 milliliters annually (compared to
9000 milliliters in the US)
Wine consumption in relation to that of Spirits and Beer.
Indian alcohol consumption has traditionally focused on spirits and beer
instead of wine. Annually, Indian consume 50 million cases of whiskey, 14
million cases of brandy, 25 million cases of rum, 110 million cases of beer, 200
million cases of country liquor, and 1 million cases of imported spirits (400,000
bottled imports and 600,000 bulk imports which are bottled in India.). This long-
standing dominance of spirits and beer as the alcohol beverages of choices among
Indians has made it difficult for wine to take a place in the market; however,
despite this structure wine is becoming more accepted, sought-after, and
available.
Indian wine consumption by location
The two largest and dominating markets in India are not regions, but
rather the city-areas of greater Mumbai and Delhi. It is estimated that a much as
65% of total Indian wine consumption is accounted for in these two locations.
This number reaches an estimated 80% when including other major cities such as
Bangalore, Chennai, Kolkata (formerly Calcutta), Nashik, and Pune. This market
dominance of Mumbai and Delhi ensures their place as the fulcrum points for any
producer or distributor looking to increase sales to India. The city of Bangalore
(with its high-tech industry inflows), and the State of Goa (with its high energy
tourism sector), are a secondary, yet important focus for marketers as well. The
cities of Kolkata, Chandigarh, Nashik and Pune are all important niche markets
and should be followed and acted upon as appropriate. Chennai and Hyderabad
29
have much potential due to the growth of their IT industry but their government
policies are not yet conducive to wine sales.
Table No. 1.14
Indian Wine consumption – historical and projected (By volume)
Sr. No. Year Total Domestic Imported
1 (Number of 9 Liter cases)
2 2004 550,000 470,000 80,000
3 2005 620,000 520,000 100,000
4 2006 750,000 630,000 120,000
5 2007 900,000 750,000 150,000
6 2008 1,100,000 920,000 180,000
7 2009 1,400,000 1,180,000 220,000
8 2010 1,700,000 1,440,000 260,000
9 2011 2,000,000 1,700,000 300,000
10 2015 4,000,000 3,400,000 600,000
*Note: Figures exclude regional flavored fruit wines. Figures are consumption
estimates
Source: Indian wine industry report
Table No. 1.14 shows the Indian Wine consumption – historical and
projected (By volume) it can be seen from the table that consumption of wine
was 5,50,000 by volume in 2004 from both domestic and imported wine, in the
year 2010 consumption grew up to 17,00,000 by volume from both domestic and
imported wine and in future it is expected that consumption of wine may increase
up to 4,000,000 by volume in 2015.
Indian Wine Production
While only six Indian wineries existed in 2000, the present number has
grown to approximately 65. some 85% of these wineries are located in the Indian
State of Maharashtra, whose capital is Mumbai. Most of these wineries lie on the
Nashik, Pune, Baramati and Sangli belt – 250km east of Mumbai – where table
30
grapes have traditionally been grown and now an emerging emphasis has been
placed on the production of vitis vinifera wine grape varieties. Although wine
grapes are rather new to Indian farming, table grapes are not. India currently has
approximately 150,000 acres of table grapes and only 7,000 – 12,000 acres (this
number is disputable) of wine grapes in production. Of this total for Indian
production of wine grapes, the state of Maharashtra represents some 90%,
Karnataka 7% and the remaining 3% is divided between other regions. The
majority of planted acres are in Syrah (Shiraz), Cabernet Sauvigon, Merlot,
Chenin Blanc, Sauvignon Blanc, and Chardonnay.
Table No. 1.15
The major players and their production volumes are estimated as follows:
Sr. No. Domestic 2008 (estimate) 2010 (potential)
1 Chateau Indage 400,000 500,000
2 Sula 300,000 420,000
3 Grover Vineyards 100,000 150,000
4 Vinsura 25,000 40,000
5 Vintage Brands (Reveilo) 10,000 20,000
6 All other 85,000 570,000
7 Total 920,000 1,700,000
Source: Indian wine industry report
Others include: Diageo (Nilaya), Globus Wines (Miazma) John Distillers
(Big Banyan – Goa), Deepak Roy (Valle De VIN)
Table No. 1.15 shows the major players and their production volumes for
the year 2008 estimate and 2010 potential. it can be seen from the above table
that chateau indage and sula wine are the dominant players in the market in terms
of production volume followed by grover vineyards, vinsura and vintage brands
GLOBAL Wine Sector :
The global wine market remains highly fragmented with numerous small
and medium sized producers in every wine producing market. In 2005, the
International Wine and Spirits Record listed 1,360 companies, which account for
31
27% of the world wine market. The remainder is produced by smaller
“undefined” companies. As with beer and spirits, top 10 wine makers produce
only a small proportion of global volume (10.69%).
E&J Gallo was the world’s largest wine producer until the acquisition of
Australian wine-maker BRL Hardy by Constellation Brands in April 2003.
Constellation’s major acquisition, of premium Californian winery Robert
Mondavi in December 2004 has now made them the largest global wine
producer. The acquisition of Southcorp in 2005 by Foster’s Group of Australia
has propelled Foster’s to a leading position among global wine producing
companies. The Wine Group, once part of the Coca-Cola Company, but now
independent, is the second largest wine producer by volume which specializes in
“commodity” produced wines and is the market leader in “boxed” wines in the
U.S. Wine growing is concentrated in Europe and European-settled areas and
products include so-called New World wines from areas such as California in the
U.S., Chile and Argentina in South America, South Africa, Australia and New
Zealand.
Measures taken by the government for reviving the industry
Domestic Wine Industry Support from the Government of India (GOI)
The GOI provide support to the nascent Indian wine industry in the
following ways:
1. Direct subsidies for winery development – payment for to 25-33% of the
start-up costs for capital investments of wineries (to a cap of US $
160,000).
2. Capacity building initiatives – technical trainings on viticulture, enology,
and winery development
3. Research Assistance – rootstock trials, variety selection, pest/disease
management research
4. Laboratory development assistance – for wine analysis
5. Proposed formation of a National Wine Board, which will be arranged as
a Private – Public Partnership that will support growth initiatives for the
Indian Wine Industry.
32
The Maharashtra government has decided to pare the license fee hike for
five liquor categories to 150-200 per cent. In October 2001, the government had
announced a 200-400 per cent hike in the license fees fro various categories. A
government media release said while the license fee hike had been announced in
15 categories of liquor, a rethink in the wake of protests by the liquor industry
has resulted in the new decision, restricting the hike to certain categories.
The five categories of liquor manufacturing and sale for which the license
fee hike would be restricted to 150-200 per cent are the wholesale segment of
foreign liquor, retail segment of foreign sale, permit rooms and wholesale and
retail sale of country-made liquor.
The release said the decision was in response to repeated pleas by
wholesalers’ and retailers’ association that an unrealistic license fee hike would
run these segments of the industry out of business.
The government also decided to levy an additional sales tax on country-
made liquor manufacturing units at Rs. 18 per box.
This will result in additional revenue of Rs. 28 crore annually for the state
and is intended to offset the notional loss that would arise out of the decision to
restrict the license fee hike that has been announced, the official release said.
The state government’s decision in October, 2001, to raise the license fees
for liquor manufacturing and sales had evoked widespread protest from wine
merchants, restaurateurs, permit rooms and manufacturers who felt they were
already burdened with high levy. Wine shop owners in particular felt that their
business would be the most hit as they could not pass on the cost to their
customers since they are in the retailing sector where prices of products are pre-
determined.
Hotel and restaurateurs, especially from Mumbai, contended that passing
on the cost burden of the high license fee to the customer would be an unviable
option in the wake of the already dwindling numbers in their clientele.
A couple of shutdowns were observed by the retailing sector and
representation were made to the state government to desist from introducing such
a huge hike the license fee. The decision restricting the fee is seen as a fallout of
these protests.
33
Maharashtra has also announced a grape processing industrial policy
incorporating incentives like excise duty reduction on wines, sales tax
concessions, simplified processes and procedures, fixed license fees fro a 10 year
period and creation of a wine institute and a grape board for quality control,
certification and export promotion.
OBJECTIVES OF THE STUDY
1. To review the historical perspective followed by growth of the alcoholic
beverage industry in Maharashtra State, with special reference to
Aurangabad District.
2. To examine the factors influencing the consumer’s choice of Alcoholic
beverages and brand.
3. To examine the level of awareness of the brands available.
4. To study the behavioral aspects of the consumers such as frequency of
consumption and quantity of consumption.
5. To examine the effectiveness of surrogate advertisements prompted by
liquor industry.
HYPOTHESIS TESTED
1. Consumption is set to rise with higher disposable incomes and standard of
living.
2. There is significant relation between personal factors and brand
preference towards alcoholic beverages.
3. Surrogate advertising plays an important role in increasing the
consumption of alcoholic beverages.
4. There exists a strong relation between age and consumption pattern.
SCOPE AND LIMITATIONS OF THE STUDY
The scope of the study may be defined from three dimensions of the
approach.
a) Geographical : It is limited to consumption of alcohol beverage in
Aurangabad District.
34
b) Operational : The study is primarily confine to the marketing aspect of
alcoholic beverage industry although the branding and surrogate
advertising would also be covered exhaustively.
c) Temporal Scope : The investigation would be collection of an exhaustive
data from all the districts of Aurangabad till date.
Customers may not always follow what they have always stated in their
response. Thus the degree of reliability of the responses can not always be taken
as accurate and sound. The study is constrained with certain limitations stated as
follows:-
• The study is limited to Aurangabad district only.
• The period of study is limited to 2004-2009.
• The survey findings cannot be construed as being representative of the
opinion of the general society at large.
• People tend to hide certain information as may feel uncomfortable while
disclosing such an information.
• The researcher focused only on selected brands of alcoholic beverages
otherwise the scope of the study would have become extremely large.
RESEARCH METHODOLOGY
The study is based prominently on primary data with a supplementary
secondary data.
The primary data is collected from various sources like.
a) Interview Methods.
b) Questionnaire Methods.
i) Open Ended Questions.
ii) Multiple Choice Questions.
iii) Dichotomous Questions.
The target for the primary data were the customers consuming alcoholic
beverage, Bar Owners, Permit Rooms and the expert people from Industries,
different questionnaires were be designed for different customer groups.
The secondary data was collected from companies report, Govt.
Publications. Trade Journals and, websites have been collected. The present
35
research has considered the convenient sampling technique having a sample size
of 1000 customers.
Tools & Technique used
As far as research techniques are concerned, the data is presented and
tabulated in charts and graphs. The analysis and interpretation are made with the
help of standard tools like percentages, averages, deviations, chi square test, and
ranking technique etc.
PRESENTATION OF THE STUDY
The present study is divided into six chapters:-
CHAPTER-1 Introduction
The first chapter deals with the Introduction of the Alcoholic Beverage
Industry in India. It shows the “The Structure of the Beverage Alcohol Industry”
and provides a summary of the beverage alcohol industry its nature and scope. it
also highlights the objective of the study, hypothesis, scope and limitation of the
study.
CHAPTER-2 Review of Literature.
This chapter contains a review of selected literature related to Drinking
patterns and associated studies are also presented to help define the nature of the
problem. Information from different sources including religious texts, historical
accounts and other manuscripts has been collected to describe the conditions as
they existed during successive historical periods.
CHAPTER-3 Progress of the Alcoholic Beverage Industries in Maharashtra.
The third chapter deals with the Progress of the Alcoholic Beverage
Industries in Maharashtra. The detailed analysis of sale of alcoholic beverages in
each district of Maharashtra, highlighting the policies of state government to
promote liquor industry in Maharashtra, at the same time this chapter also
highlights the Aurangabad industrial area which has become a liquor hub.
36
CHAPTER-4 Marketing and Branding Aspects of Alcoholic Beverage
Products.
This chapter deals with the introduction of different marketing concepts
given by the national as well as international experts.. This chapter also
highlights the branding concepts in alcoholic beverage. This chapter also deals
with significance of advertising promotion and growth of surrogate advertising in
liquor industry while focusing on these points; it has also covered the concept of
consumer behavior and marketing of alcoholic beverage industry.
CHAPTER-5 Data Collection and Analysis.
The fifth chapter presents the Data Collection and Analysis. The data is
presented and tabulated in charts and graphs. The analysis and interpretation are
made with the help of standard tools like percentages, averages, deviations, chi
square test, and ranking technique etc.
CHAPTER-6 Conclusions and Suggestions.
The sixth and the final chapter of the study shows the Conclusions and
Suggestions which may be considered to the development of alcoholic beverage
industry. The findings and Recommendations of the study may be utilized by
government of Maharashtra, liquor companies, researchers and academicians to
access the ground realities of alcoholic beverage industry in Maharashtra.
Concluding Remark
This chapter highlights the scenario of Alcoholic Beverage Industry in
India, “The Structure of the Beverage Alcohol Industry” and provides a summary
of the beverage alcohol industry its nature and scope. This chapter also
highlighted the consumption pattern of Beer, wine and Indian made foreign
liquor in India and different parts of the world. The research is undertaken at
Aurangabad district of Maharashtra state. Aurangabad is the leading producer of
Alcoholic Beverages in the world, recently Aurangabad region (Waluj and
Chikhalthana industrial area) has produced 11 crore liter of alcoholic beverages,
at Aurangabad there are 13 industries producing alcohol beverage (5 foreign
liquor distilleres,2 country liquor and 6 breweries).
37
While this overview of the beverage alcohol industry and its structure
may help in understanding the commercial sector, but it is important to bear in
mind the huge diversity of the market when addressing public health, social and
trade issues around the world.
38
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