Liquor consumers in Uttar Pradesh high on foreign brands

Liquor consumers in Uttar Pradesh are going high on foreign brands that are lining up in large numbers to woo alcoholic beverage patrons from the state.

The total number of liquor brands registered in the state have gone up to 3,854 during the current fiscal year which is the highest so far.

In the previous fiscal year, 3,106 different alcoholic products were registered, according to a government spokesman.

Local premium brands are facing strong competition as overseas liquor brands continue to make inroads into the retail sector. The number of imported foreign liquor brands (whisky, vodka, rum and gin) available in Uttar Pradesh have increased from 199 in the previous financial year to 573 this time.

Similarly, non-Indian wine producers have pushed more products while foreign beer manufacturers have increased their offerings too.

The number of imported wine and beer products have gone up from 305 to 445 and 34 to 41 in a year.

Officials said that the improved scenario, in which end consumers will have more options to choose from, has been possible since annual excise policy was made robust and flexible.

“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 was also able to generate higher revenues through increased registration of brands with year-over-year (YoY) revenue going up from Rs 18.12 crore to Rs 20.92 crore.

In order to attract an increased number of overseas companies, the department decided to do away with the condition which made it compulsory for the company registering foreign brands in Uttar Pradesh to submit an authority 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 increased number of hard liquor brands seem to have dented the demand for brew and beer manufacturers have some challenges to deal with.

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 volume declined during the summer months due to increased tax and inclement weather in April.