Indian Wine Industry
January 2011 - Posts
S p e c i a l f e a t u r e AP market to grow by 10%
After a total sale of 40 million cases of IMFL between 2009-2010, the Andhra Pradesh Beverages Corporation Limited (APBCL) is expecting a growth of 10 per cent in volume in the coming financial year.
This is in keeping with the sales over the last three years which have been increasing consistently. Since April 2010 the monthy sales have fluctuated, with the highest sale months being July and August (refer to table). Last year (2009-2010) the total sales of the AP Beer market decreased to approximately 24.9 cases from 29.2 million ...view middle of the document...
There is no manipulation. Though we call for a tender, brands can always supply here. The only difference is the price fixation which is decided by a committee and the MRP is regulated keeping in mind the market forces as well as the consumer. This corporation system ensures that the alcohol market is more organised. As a result of this structure every drop of consumption can be recorded and accounted for. ” The Corporation also believes that the presence of such a system protects the consumers from the harm that is caused by spurious liquor by controlling illicit distillation. Under their purview the liquor is first chemically tested and only later released. Thus the high quality of the liquor is being maintained. At the same time the price fixation, due to the tax structure ensures that the end consumer price is still high enough to prevent them from consuming more. An additional responsibility of the Corporation is to oversee all violations and unauthorised sales which are checked by the enforcement department.The state of AP has the largest number of distilleries in India totaling 32 and 9 breweries. And though it has been a slow one there has definitely been a growth/expansion of distilleries and breweries in the state. In the last three years there have been 3-4 new distilleries (bottling units), one of which is likely to start operations by the end of October. Alcohol is sold through 6500 retail outlets and 1500 bars in AP.
In the AP market there is no restriction on the number of brands that are allowed into the market in the mid and premium segments but only 15 brands are allowed in the lower segment. Reports suggest that in a price-wise segmentation of brands (MRP for a quarter) the following brands have the highest
Upto `. 59:
Bagpiper No. 1
Upto `. 70:
Mc Dowell’s Brandy
Upto `. 88:
Mc Dowell’s No. 1
Classic Blend Whisky
Seagram’s Imperial Blue
Upto `. 100:
Seagram’s Royal Stag
In the higher segments Seagram’s Blenders Pride, Seagram’s
100 Pipers and Teacher’s are the most prominent brands. Speaking about the trends in the alcohol consumption in AP, Valaven said that as with most other markets, the AP market too has recorded a considerable increase in the medium and premium segment as compared to the lower segment (as is evident in the report). According to him this has been the status over the last three years and is a result of the greater money circulation that there is today, amongst the middle class in society. Additionally there are a lot of new brands in both these segments and the price difference between the medium and the lower segment brands is not much. Curtesey http://www.ambrosiaindia.comPosted Jan 27 2011, 03:52 PM by admin with no commentsFiled under: Wine Business, andra |
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