September quarter lifts spirits, beer makers
As more people are drinking beer at home, spirits companies are seeing higher sales at retail stores
Due to a consistent recovery in footfalls in the out-of-home consumption category, demand for spirits and beer soared to pre-Covid levels in the September quarter on a weak year-earlier base, according to companies, The Economic Times report on Tuesday. Covid-19 had impacted beers and spirit makers as restaurants and pubs across the country operated with low footfalls, owing to the pandemic related restrictions. However, the September quarter reversed with the easing of the curbs following a decline in Covid cases and an increase in vaccinations.
According to the International Wine and Spirits Research (IWSR) data, the overall India spirits market declined by 20%, with volume dropping to 277 million cases. The beer segment witnessed the biggest decline of 39% to 193 million cases.
Demand yet to reach pre-Covid level
In the quarter, popular spirit firms Diageo and Pernod Ricard increased by 14% and 27% respectively. These companies account for nearly three-fourths of the market. According to Pernod Ricard, India is increasing at 27%, with a very strong rebound from the year ago base.
As more people are drinking beer at home, spirits companies are seeing higher sales at retail stores. Brewers on the other hand, saw a more gradual recovery, which get a significant chunk from out-of-home outlets like bars and restaurants.
Hieneken, the owner of India’s largest brand beer Kinhgfisher, said that the beer’s volume increased by close to 50% in the September quarter, following a progressive recovery and gradual lifting of restrictions.
However, demand has not reached pre-Covid levels uniformly across the country. For Instance, Maharashtra one of the top three states in consumptions has declined.