E-Malt.com News article: India: Tamil Nadu to import beer this summer despite its usual policy of not retailing beer brewed in other states

With rising demand from beer lovers and a dip in supply from distilleries in the state, the Tamil Nadu Marketing Sales Corporation (Tasmac) plans to import beer from other states to make up for the shortfall this summer, Times of India reported on March, 11.

Tasmac officials said initially about five lakh (five hundred thousand) cases of beer would be procured from other states. Last summer, sales reached a new high with monthly consumption crossing 25 lakh cases. Tasmac authorities expect the average monthly demand to touch 35 lakh cases this season.

In 2010-11, beer sales touched 2.7 crore (1 crore = 10 mln) cases compared to the previous years' figure of 2.4 crore cases. The increase in sales could result in demand outstripping the supply capability of manufacturers in the state this summer.

For years, Tamil Nadu has had a policy of not retailing beer that is not brewed in the state, leaving the market with limited choice.

"The local suppliers cannot meet the demand this summer. We recently floated a tender for registering companies who evince interest in supplying beer," a Tasmac official said.

The southern beer market, constituting nearly 50% of national beer sales, is dominated by 'strong' beer brands with an alcohol content of 7.5-8%, a segment that is growing significantly. Sales are usually high in March, April and May, the peak summer season.

According to official statistics, Tamil Nadu ranks third in consumption after Punjab and Andhra Pradesh, while in volume terms, the state tops the list due to higher taxes. Industry sources said the relatively high temperature in the state this season had spurred high beer consumption.


14 March, 2012