![#](https://e-malt.com/Images/left_top_corner16x200.gif) | E-Malt.com News article: India: Demand for spirits and beer at pre-Covid levels in the September quarter![Brewery news](https://e-malt.com/Images/BeerBullet2.gif)
India’s demand for spirits and beer rose to pre-Covid levels in the September quarter on a weak year-earlier base and a consistent recovery in footfalls in the out-of-home consumption category, The Economic Times reported on November 2, citing companies data.
The pandemic hit beer and spirits makers as restaurants and pubs across the country operated with low footfalls amid pandemic-related restrictions. That appears to have reversed in the September quarter with curbs being eased as Covid cases decline and vaccinations rise.
Spirits firms Diageo and Pernod Ricard, which account for nearly three-fourths of the market, grew 14% and 27%, respectively, in the quarter. "This category has almost emerged as semi-essential. Now, on an ongoing basis, we are seeing a steady flow of orders and demand. That is the key indication for us in terms of recovery," said United Spirits managing director Hina Nagarajan.
Rival Pernod Ricard's finance director Helene de Tissot said India is growing at 27%, with a very strong rebound from the year-ago base.
According to the International Wine and Spirits Research (IWSR) data, the overall India spirits market fell 20% in the last calendar year with volume dropping to 277 million cases. The beer segment saw the sharpest dip by 39% to 193 million cases.
With people drinking at home, spirits companies saw higher sales at retail stores. Brewers, which get a significant chunk from out-of-home outlets such as bars and restaurants, saw a more gradual recovery.
Beer companies in India have been facing low demand for three summers now. In 2019, the Indian Premier League (IPL) cricket tournament and summer months, which have both historically boosted demand for beer, failed to revive the segment, which also faced a setback due to the general elections and consequent dry days. Last year, the segment was declared non-essential amid lockdowns to contain the spread of Covid-19, halting retail operations for nearly six weeks. Even this year, the second Covid wave forced many states to curb restaurant timings.
"We can always say that consumer confidence has been so high that, despite record high prices, industry levels have gone back to the 2019 level," said Kartikeya Sharma, president, India and South East Asia, at AB InBev. "Whether it's hospitality, urban mobility or any other format that requires consumer confidence to come back, we do see the same happening."
Heineken, which owns India's largest brand beer Kingfisher, said beer volume in India grew 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, north Indian states such as Haryana have grown in double digits in the September quarter from the same period in 2019 but Maharashtra, which is one of the top three states in consumption, has declined.
"In a very volatile market, India's 30% volume growth was achieved on the back of relaxation of various Covid-related restrictions," Carlsberg chief financial officer Heine Dalsgaard told investors last week. "We are encouraged to note that our third-quarter numbers were almost back at the 2019 levels, albeit we see significant differences state by state."
02 November, 2021
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