E-Malt.com News article: India: More consumers prefer premium beer in Tamil Nadu

Premiumisation seems to be the overriding trend in the liquor business in Tamil Nadu. The development is perhaps most clearly illustrated in the beer segment, where demand for premium brands is growing faster than their regular counterparts, The Hindu Businessline reported on November 17.

Consumers, even in tier-III markets, prefer premium brands, say industry sources.

This is clearly evident from the fact that premium brands such as British Empire, Kingfisher Superior, Vorion 12000, Max 11000 and Maxkool sell faster than regular brands from the respective manufacturers. For example, Max 11000 and Maxkool from the Empee stable, account for over 60 per cent of the company’s beer sales. Similarly, British Empire accounts for more than 40 per cent of SNJ Breweries’, which produces two regular beers under the brands SNJ 10000 and High Voltage.

Industry sources say, irrespective of alcohol strength, consumers prefer premium beer for its improved quality and taste.

According to sources in the State-owned TASMAC (Tamil Nadu State Marketing Corporation), the monopoly wholesaler and retailer of liquor, on average 29 lakh cases (12 bottles of 650 ml each) of beer are sold in the State every month. Premium brands alone account for close to 40 per cent of sales. The retail price of a 650 ml bottle of premium beer is Rs 100, against Rs 80-90 in the case of regular beer.

Overall, beer consumption in Tamil Nadu has come down to around 15 per cent of the total sales revenue of TASMAC, from over 20 per cent five-six years ago. However, in absolute terms, beer market is growing at a “healthy pace”, said an official.

He attributed the drop in percentage terms to the faster growth rate of IMFL.

Besides, the demand for draught beer which is sold in hotels and clubs, currently at 30,000-litres-a-month, is also growing. Till early last year, TASMAC imported beer from neighbouring states.

Thanks to three new facilities added in the last couple of years, the state has an excess capacity. With most of them operating at 30 per cent their licensed capacity, the state has a surplus capacity of more than 2 crore cases.

There is also an indication that the government may allow export of beer to other states and countries, “once details of duties and other formalities are worked out”, said the official.


20 November, 2013