Date:03/05/2006 URL: http://www.thehindubusinessline.com/2006/05/03/stories/2006050301192100.htm

Back Slight drop in beer sales in AP

Our Bureau

Hyderabad , May 2

Andhra Pradesh has registered a one per cent drop in beer sales, even as its hard spirits showed a buoyant growth of 21 per cent during the last financial year.

The high price of beer, mainly due to the heavy dose of taxation by the State Government has led to this. Karnataka, Tamil Nadu, Maharastra, New Delhi, Rajasthan and Uttar Pradesh have registered sound growth, according to the All India Brewer's Association (AIBA).

In AP, the sale of beer last fiscal was of the order of 18 million cases, against the total domestic market size of about 110 million cases. "It is the only State where the beer market has declined", said Mr Sundeep Kumar, Director of the AIBA.

Giving an overview of the beer market, Mr Kumar said that while the ratio of hard spirits to beer was 85:15 through out India, in AP it was 90:10.

The global picture was totally different with beer accounting for 43 per cent of consumption. Hence, there was a big potential to increase the percentage of beer in the domestic market, he told newspersons here on Tuesday.

Mr Kumar, said the AIBA was in agreement with several points raised by the Draft Model Alcohol Policy being circulated by the Ministry of Food and Consumer Affairs.

The Association had discussed these issues as well as that of the higher taxation with the AP Government, he said.

The draft Policy favouredde-linking of beer from spirits, consumer prices to be determined by manufacturers based on market forces and not Government Policy, revamp of inter-state levies, retail, outlets to be on fixed fee and not auction system etc, he added.