Alcohol sales during the festive season of Christmas and New Year witnessed a significant surge, with some industry players experiencing over a 20 percent increase in demand compared to the previous year. India indulged in a variety of alcoholic beverages, and there was a growing preference for premium products.
During the holiday season, there was a notable surge in alcohol sales nationwide. For instance, Delhi recorded a 14 percent year-on-year (Y-o-Y) growth in December, with sales reaching 4.56 crore bottles. In Karnataka, the state-run Mysore Sales International Limited (MSIL) outlets reported liquor sales worth INR 18.85 crore on December 31, reflecting an increase of INR 4.34 crore compared to the sales of INR 14.51 crore on the same day the previous year.
Read Other Articles: New Year, New Records: MSIL’s liquor sales skyrocket to INR 18.85 Crore in Karnataka
Likewise, on New Year’s Eve, it is reported that the Andhra Pradesh State Beverages Corporation Limited (APSBCL) recorded alcohol sales of INR 147 crore, which is double its typical daily sales. In Hyderabad, during the final three days of 2023, there were reports of the sale of 4.76 lakh cases of various kinds of liquor and 6.31 lakh cases of beer, amounting to INR 658 crore.
This year, industry players experienced heightened momentum compared to the corresponding period last year. Jagatjit Industries achieved a growth rate of 18-20 percent during the holiday season, contributing to a year-on-year (Y-o-Y) growth of 23 percent for the October-December 2023 period. Tilaknagar Industries observed a volume growth exceeding 10 percent over the previous year during the holiday season.
The sales volume of The Beer Cafe chain surged by around 25 percent during the holiday season, compared to the corresponding period in 2022. Likewise, the homegrown beer brand Lone Wolf reported a significant increase in sales volume, with a growth rate exceeding 200 percent compared to the same period last year. NAO Spirits, the craft gin maker backed by United Spirits, noted a nearly 100 percent year-on-year increase in secondary sales.
Devender Gulia, Director, Sales and Marketing, Jagatjit Industries Limited noted, “During holiday seasons in India, people are filled with festive spirits embracing joy and celebration. The alcobev industry also experiences a surge in demand as people indulge in festive spending, savoring moments with loved ones, increase in outdoor consumption due to long weekends, wedding season, parties, get-togethers with their preferred spirits.”
Diverse Alcohol Tastes:
Over the recent days, Indian consumers diversified their alcohol choices. Rahul Singh, Senior Vice-President of Pubs at Bira 91, mentioned that despite the winter season, several beer brands in their portfolio maintained popularity, and there was a noticeable increase in interest for Rum and Whisky.
Gin also emerged as a favored option during this season. Anand Virmani, Co-founder and CEO of NAO Spirits, said, “We noticed a notable shift toward high-quality craft Indian spirits, and there has been a noticeable increase in on-trade consumption, returning to pre-Covid levels.”
The offerings, including Greater Than London Dry Gin, Hapusa Himalayan Dry Gin, and Pipa Rum de Goa, gained significant traction.
The premiumisation trend gained momentum, with Tilaknagar Industries stating that its growth was driven by brands in the ‘prestige and above’ segment.
“The younger consumer is more experimental and is looking at premium offerings for an elevated experience. Additionally, there has been a very visible inclination towards flavored spirits which has further been seen in the growth in the overall flavored spirits industry,” said Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries.
Read Other Articles: Premiumization trend to fuel India’s soaring liquor industry, Crisil Report reveals