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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.

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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

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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)

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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)

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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.

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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

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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.

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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.

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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

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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.

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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).

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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

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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

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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.

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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

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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.

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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.

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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.

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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.

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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

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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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