Alcohol enthusiasts in Uttar Pradesh are increasingly favoring international brands, as a multitude of foreign companies are eagerly vying for the attention of patrons seeking alcoholic beverages within the state.
In the current fiscal year, the tally of registered liquor brands in the state has surged to 3,854, marking the highest count to date.
According to an official spokesperson, the government recorded the registration of 3,106 distinct alcoholic products in the preceding fiscal year.
As foreign liquor brands (including whisky, vodka, rum, and gin) continue to establish a stronger presence in the retail sector, local premium brands are encountering robust competition. The count of imported overseas liquor brands offered in Uttar Pradesh has surged from 199 in the previous fiscal year to 573 in the current period.
Likewise, producers of non-Indian wines have expanded their product offerings, and foreign beer manufacturers have also diversified their selections.
Over the span of a year, the quantity of imported wine and beer products has risen from 305 to 445 and from 34 to 41, respectively.
Officials have attributed the enhanced situation, characterized by a broader array of choices for end consumers, to the fortification and adaptability of the annual excise policy.
“We also have the full support of the state government to implement measures that improve the ease of doing business,” said excise commissioner Senthil C. Pandian.
The excise department also achieved elevated revenues by facilitating a greater number of brand registrations, resulting in a year-over-year (YoY) revenue escalation from INR 18.12 crore to INR 20.92 crore.
With the aim of enticing a higher influx of international enterprises, the department opted to eliminate the prerequisite mandating foreign brand registrants in Uttar Pradesh to provide an authorization letter from the principal importer.
“Till March 31, 2023 an individual or entity interested in marketing a foreign brand had to approach the principal exporter to authorise him/her to sell the product in UP. It was a pointless exercise which made no sense and was struck down. Anybody having ‘imported liquor – bottled in origin licence’ could register the brand. That is why we see a sudden rush of foreign brands this year,” said the officer.
The proliferation of hard liquor brands appears to have impacted the demand for brews, presenting challenges that beer manufacturers must now navigate.
Spokesperson of AB InBev India, the company owning beer brands, said, “During the last few years, industry-friendly rationalisation of excise tax slabs has fuelled the growth of the beer industry in the state. However, the growth of the beer industry recently has not been in line with the growth of country liquor and hard spirits in Uttar Pradesh. Duty increase on beer earlier this year along with certain technical issues on the excise portal last month, led to the surge in consumption of country liquor and hard spirits nudging consumers towards high alcohol strength beverages.”
The beer industry experienced a reduction in volume during the summer months, attributed to elevated taxes and adverse weather conditions in April.