India: Liquor Sales Fall Due to Alcohol-Free Election
Indian alcohol summer sales growth has slowed for beer by 2% and for spirits by 1% comparative to last years sales growth due to alcohol restrictions in election months.
According to Global Data, last year in the peak summer months sales grew by 7% for beer and 3% for spirits. Comparatively this year sales growth has reduced by 5% for beer and 2% for spirits in the same time period.
The main reason behind the drop in peak sales is the restrictions placed on alcohol sales during Indian elections. It also coincided with the label registration cycle for the year.
The Lok Sabha elections coincided with the Indian Premiere League cricket tournament and summer months, and both have historically boosted demand for beer in this warm, tropical country. The April-June quarter typically accounts for nearly 45% of the annual sales in the beer segment, according to Global Data.
Liquor also saw a similar trend in reduced sales growth. Spirits sales growth rate reduced to 3% in the January-March quarter, due to tax impact in a few states and pre-election-related disruptions, before slowing further to 2% in the April-June period.
The drop in alcohol consumption is good news for India, a country where alcohol harm costs more than the entire health spending.