Andhra Tops In Beer Sales

Andhra Pradesh has toppled Maharashtra to bag the number one spot in beer sales in the country.

During April-December 2002, Andhra Pradesh sold 11.8 million cases of beer, while Maharashtra sold only 10.5 million cases. In 2001-02, Maharashtra had notched beer sales of 13.7 million cases, compared to 12.2 million cases sold by Andhra Pradesh.

The liquor industry attributes the growth to favourable regulatory norms and prosperity in the state. Industry analysts say the liquor policy in Andhra Pradesh has been rational and consistent over the years, while most states prefer to experiment, leaving the industry as well as traders uncertain about the regulatory framework.

 

South African Breweries India head (sales and marketing) Vinod Giri said beer sales in Andhra Pradesh grew 25-30 per cent during April-December 2002, and if the growth rate was maintained, sales were likely to touch 15 million cases by the end of 2003. The company claims a marketshare of about 20 per cent in the state.

Shaw Wallace claims to have garnered a 48 per cent share in beer sales in Andhra Pradesh in 2002-03, compared to a 29 per cent marketshare in 1998-99. Company officials say Haywards 5000 has contributed significantly to the growth by constituting more than 29 per cent of the sales of strong beer.

Industry experts say Andhra Pradesh has benefitted from a growing demand for strong beer. Consumers prefer strong beer because they want to avoid spirits and strong beer is seen as a greater value for money. Almost 63.5 per cent of the beer sales in the state stem from the strong beer segment.

The ratio of mild to strong beer in the country has shifted from 66:34 in 1993-94 to 38:62 in 2001-02. Of the 73.6 million cases sold in 2001-02, mild beer accounted for 28 million cases, while strong beer constituted the balance.