New India: Diageo India on Wednesday said it will offer hygiene kits and personal protection equipment to bars, pubs and restaurants serving alcohol once they resume business in India. The maker of Smirnoff vodka and Johnnie Walker scotch will earmark ₹75 crore for this purpose.
Under its 'Raising the Bar' programme, the local arm of the world's largest spirits maker will also help these outlets establish tie-ups with online reservation and digital payment partners over a period of two years as it hopes for a recovery in these trade channels that contribute significantly to sale of alcoholic beverages.
Diageo India’s commitment is part of the $100 million promised by the maker of alcoholic beverages that will benefit owners of such businesses globally in cities like New York, London, Edinburgh, Dublin, Shanghai, Sydney, among others.
Bars continue to remain shut in India, even as restaurants that are now operational have been barred from serving alcohol. Last month, Karnataka had allowed takeaway of liquor from bars and pubs.
For companies that sell alcoholic beverages on-premise, sale of liquor via bars, pubs and restaurants is a key source of revenue.
“The 'Raising the Bar' programme will provide targeted non-cash support including physical equipment needed for outlets to re-open like ‘hygiene kits’ with high-quality permanent sanitiser dispensers, medical grade hand sanitiser and a range of personal protection equipment (such as masks and gloves); help to bars, pubs and restaurants serving alcohol to establish partnerships with online reservations and cashless systems; mobile bars and outdoor equipment,'" the company said in a statemen.
The two-year programme will support recovery of qualifying bars, pubs and restaurants serving alcohol across New Delhi, Mumbai, Bengaluru and other cities.
Such businesses will be allowed to register online to ask for support once bars, pubs and restaurants are allowed to sell liquor on premise.
Anand Kripalu, managing director & CEO, Diageo India said the Indian hospitality and F&B industry has witnessed unprecedented loss of revenues. This has impacted many start-ups and MSMEs as well as the livelihood of millions of people.
“The revival of this sector is vital to the economy and to the success of our business," said Kripalu. Diageo has always had strong linkages with the hospitality and F&B industry, jointly curating unique experiences for consumers, he said.
India’s bars, restaurants and pubs have been severely impacted by the lockdown. With socializing and nightlife in the country’s biggest cities taking a hit, several allied business have been impacted.
“In our view, this is a good marketing strategy to strengthen relationship with pubs, bars and restaurant which account for 15-20% of its volumes. Quick recovery of these channels will be good for USL besides ensuring better connect, visibility," said Edelweiss Securities’ Abneesh Roy.
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