NEW DELHI: Alcohol companies, nursing a hangover from a spate of dry days that marked the six weeks of polling in the middle of summer, are hoping for a respite, now that the elections are finally over.
Liquor makers have been hit by disruptions in supplies and closure of retail outlets across the country, in addition to the mandatory dry days surrounding polling days.
Sale of alcohol was barred at stores, bars, restaurants and hotels 48 hours before polling ended across towns and cities, according to the directives of the Election Commission.
The Lok Sabha elections were held across seven phases from 11 April to 19 May. 23 May, the day of counting, was a dry day, too.
Alcohol companies were also expected to restrict production at breweries and distilleries during the entire polling cycle, which led to disruptions in production and supply.
“This time, from a business point of view, the disruption to the alcoholic beverages industry has been significantly higher during the elections," said Paramjit S. Gill, chief executive officer of the Mumbai-based Allied Blenders and Distillers Pvt. Ltd, the maker of Officer’s Choice whisky.
“There were days when we had production restrictions on overtime, or while running the second shifts, and even on using Sundays. There were more dry days restricting sales at retail points as compared to previous times," Gill said.
India’s largest beer maker, United Breweries, said that restrictions on hours of production, dry days and subsequent closure of liquor outlets affected the business of the Kingfisher beer maker.
The summer months are peak season for beer makers. “Unfortunately for us, the elections have come right in the middle of the season, April and May being the peak season," Shekhar Ramamurthy, managing director, United Breweries told Mint.
At United Breweries, the two months were marked by lower production in some states.
“If we do three shifts to fully service the markets, in some states we were down to one or two shifts," said Ramamurthy. “That leads to restrictions on how much we can produce, and that reduces our ability to service the market; that is the disruption of the elections."
Bira 91, the manufacturer of Bira beer, also saw “severe supply chain and sales restrictions", which impacted business by 35-40% in the key markets of Karnataka, Madhya Pradesh, Maharashtra and Delhi.
“The general elections came in at the peak season and impacted the March, April and May sales. Disruptions were at all three levels—production restrictions and several days when we couldn’t produce; permit delays and reduction in number of days when we could dispatch from brewery; and restrictions on quantities that could be purchased by retailers due to the election code of conduct," said Ankur Jain, founder and CEO, Bira 91.
Rum-maker Bacardi said it, too, suffered because of the elections.
“Contrary to what people believe—that election means everyone is drinking—it is actually just the opposite, we actually lose a lot of business during these cycles," said Sanjit Randhawa, managing director (India and south east Asia), Bacardi Ltd.
“We could have done better," Randhawa added, without sharing numbers.
Companies are now going back to full production.
“So from June onwards these restrictions will go away, but demand also will come down in the monsoon season that starts from July," United Breweries’ Ramamurthy added. “That’s the key aspect as far as business and elections are concerned."
