Liquor companies are worried; the sector’s FY20 growth is expected to be a crawl as economic hardships hit household budgets and consumption. Also, Government should rather start focusing over slowing economy than the divisive issues like Citizenship Amendment Bill.
Here’s the good news: Many Indians are giving their overworked livers a bit of a break — by drinking less. And here’s the bad news: it’s just another sign of the economic slowdown. Across India, household budgets have shrunk and this has hit consumption hard, especially given the price of onions. Discretionary spending, whether it is on eating out or buying booze, has taken a backseat. And this is expected to take a toll on the final tally of liquor and spirit sales this fiscal year. Growth is likely to be in “single digits” in comparison with the low-double-digit growth that the segment recorded last fiscal year.
United Spirits Ltd, controlled by Diageo, saw just 2.2 per cent year-on-year growth in standalone revenue from operations, at ?7,296 crore, during the quarter ending September. Overall volumes inched up 1 per cent year on year against 10.3 per cent last year.
“Our revenue growth in this quarter was impacted by a broad based consumption slowdown as well as liquidity challenges in the trade channel in certain markets. We also faced some one-off operational issues," the company’s CEO Anand Kripalu said recently.
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