Despite highway ban of alcohol sales it is business as usual again

The Indian Supreme Court’s restrictions last year on the sale of alcohol near state and national highways led to the closure of about a third or about 30,000 of the country’s liquor vendors, causing a drop in demand for beer and spirits.

But the court’s subsequently clarification of its ruling eased the conditions for liquor sales and allowed many outlets to reopen. It is believed that almost 90 percent of outlets have reopened and things are back to normal.

Nonetheless, sales of alcoholic beverages declined for the second consecutive year in calendar 2017, with spirits down three percent and beer volumes falling nearly ten percent, it was reported.

Market leader Diageo-controlled United Spirits posted a two percent decline in the nine months ended December while United Breweries (Heineken) saw sales volumes rise six percent. Danish brewer Carlsberg posted a two percent drop in volume in India in 2017, a sharp reversal from 16 percent growth a year ago.

AB-InBev, which sells Budweiser, Hoegaarden and Corona, is said to witness a surge in consumer demand and hopes to benefit from the positive trend towards premiumisation, coupled with product and packaging innovations.