beer

The All India Brewers Association (AIBA) has urged state governments to allow them to sell beers like fast moving consumer goods (FMCG) products through retail shops.

The association is also demanding a classification separating it from other hard-drinks or spirits owing to its less alcoholic content.

While most spirits have alcohol content of around 42%, beer contains only 5-8% alcohol.

AIBA chairman and managing director at SABMiller India Shalabh Seth was quoted by Press Trust of India (PTI) as saying: "We have already made representations to various state governments to increase the availability of beer. Beer is a fun, social drink and we would like beer to be sold through modern retail shops, like any other FMCG product.

"While some states like Kerala and Maharashtra have relaxed norms for beer shops, we will soon begin round two of representations with more states."

The country’s beer industry is valued at Rs25,000cr ($3.93bn) with around 23 million hecto litres beer being sold in the country annually.

Some of the popular beer brands in the country are India Carlsberg, Budweiser, United Breweries, SABMiller, Bar Malt India, Alfa Laval, Praj Industries and Briggs of Burton.

Seth also added that the beer industry pays a tax between 50-85% per bottle.

"The industry is growing at around 6 per cent. Earlier, the industry was growing in the range of 10 to 12% between 2002 to 2012, however, the growth decreased due to restrictions like higher taxes and limited availability of beer.

"This (growth) could again go in double digits if taxation and other restriction are eased by the government," added Seth.

Image: India’s beer industry is around $3.93bn. Photo: courtesy of tiverylucky/freedigitalphotos.net.