Big liquor brands regain market share after excise policy changes in AP
The overall market share of liquor brands owned by multinational companies (MNCs) and brands with a national presence have reached 56% — an increase of more than 150% compared to their presence during the previous YSRCP regime.
The market share of lesser-known brands has decreased to just 7%, which used to be 68% during the previous regime. None of the suppliers have more than 20% of the market share.
According to excise minister Kollu Ravindra, the reason for the increase in market share of well-established brands is the automated order-placing system. "We are placing orders as per the demand from consumers. We didn't do anything either to favour a particular brand or to prevent any brand from accessing the market in AP.
Our system places indents based on the demand and supply mechanism without any manual intervention," explained Ravindra.
While MNCs had a negligible presence during the previous regime, a few companies with national presence like Tilak Nagar Industries (8%), Radico Khaitan (6%), and Jagatjit Industries (3%) got a share in the market before the NDA govt came to power in the state in June 2024. The other top 25 brands together had only 11% of the market share.
by Taboola
by Taboola
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After the change of policy by the NDA govt in the state, the market share of Tilak Nagar Industries increased to 12%, while that of Radico Khaitan rose to 18%. Pernod Ricard and United Spirits, which vanished from the state during the previous regime, have now gained 7% and 12% market share, respectively. Even the market share of other top 25 brands has increased from 11% to 18% after the NDA govt came to power.
Another significant difference, according to Ravindra, is the reduction in illicit liquor.
"There has been a remarkable improvement on this front as nine districts have been declared illicit liquor-free. Non-availability of favoured brands is one reason for people to opt for illicit liquor. Operation Navodayam launched against this menace is giving good results, and we are confident of making more districts arrack-free in the coming days," said Ravindra.
HIC HIC HOORAY
Market share of various companies before and after the new excise policy (in %)
MNC Brands
United Spirits | 0 to 11.4
Pernod Ricard | 0 to 7.3
Brands with national presence
Radico Khaitan | 6.2 to 18.3
Tilaknagar Industries | 8.2 to 11.4
Allied Blenders | 1.4 to 7.7
InBrew | 1.8 to 6.6
John Distilleries | 0 to 6.2
Other Top 25 brands
11.1 to 19.3
Lesser-known brands
68.2 to 7.2
Prices have come down by Rs 10 to Rs 100 on various brands of liquor and beer
Excise dept estimates Rs 110 crore savings per month for consumers due to price reduction
Prices of 30 brands having a market share of 87% in AP are lower than in Telangana, Karnataka, and Tamil Nadu
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