A dream summer for Indian beer companies

Indian beer producers could not have asked for more: Amidst the global economic doom and gloom and a slowing Indian economy, when the talk of a grimmer economic situation was pervasive around the country, an extended and unusual Indian summer has helped the Indian beer producers to achieve one of the highest sales during the peak beer consuming months (March – June) in India.

Indian beer sales in the first financial quarter (April – June) usually accounts for about 35 percent of annual sales. Temperatures ranging 42 – 46 degrees Celsius in most of the continent are considered normal in these three months, as a result of which beer sellers even find it difficult to replenish their stocks at the fast rate of consumption. People turning away from the beer vends due to non-availability of beer (or at least: cold beer) is a common sight. A new trend has also emerged in the last three to four years which helps stimulating the beer consumption: the rural population of the country, which used to consume cheaper IMFL or toddy in the summer, have started also going for beer recently.

Of course, beer consumption shoots up everywhere in summer. But brewers in India have never ever had it so good. June is always the peak period for beer market, from July onwards sales decrease and reach a minimum in December. But this year, even July temperatures are unusually high and the whole country is on the verge of a severe drought. Given these conditions, beer companies are hopeful of reaching new volume heights in the month of July, August and September, which normally are rainy months in the country. Rainy season or monsoon, which hits India in the start of June and reaches New Delhi by 1st July, criss-crossing the country in the intervening period, has miserably failed this year. MET officials are projecting a grimmer situations for the coming months and are warning of a possible drought. Some of the largest beer consuming states (Rajasthan, Andhra Pradesh, Delhi, Punjab and UP) are in the grip of these severe weather conditions.

While beer companies and state authorities are still to come out with the official data of beer sales, BRAUWELT International got access to the month-old data of beer sales of India’s national capital New Delhi. The capital city, which is a barometer of national beer consumption, downed 2.33 million beer cases between April 1 to June 8, 2012. As per Delhi Government statistics, the beer consumption in the capital increased to 2.8 million bottles till June 8, 2012 (2011: 2.75 million bottles in the same period).

While the beer sales have climbed up the ladder in capital’s liquor vends, the scenario is no different in bars, pubs and restaurants which all have witnessed brisk sale. The beer sale in 30 shopping malls across the city has witnessed a rise of 120 percent during the current financial year as compared to last year, according to a Delhi excise department release.

Beer sales in Delhi had dropped drastically in June last year due to ample rainfall and an increase in prices. As per Delhi Government statistics, about 117.8 million bottles of beer were sold in the national capital in the years 2009 – 2010, whereas the people of the city had consumed 97.4 million bottles of beer in 2008 – 2009.