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According to the Economic Times, Spirits, beer and wine makers are facing a hard time in Andhra Pradesh, one of the bigger liquor markets in India.

 
The government has been moving towards phased prohibition. As part of that, it has taken control of liquor sales, which means it collects what consumers spend and then remits to the alcoholic beverage companies.
 
But the government payments come with inordinate delays. It is yet to pay companies about INR 1,550 crore for the period September to December, multiple people aware of the matter said.
 
Companies allege that the move towards prohibition has also led to the mushrooming of local unknown brands at the cost of the national ones.
 
These problems have hit United Spirits (USL), French giant Pernod Ricard, and Allied Blenders & Distillers (ABD) the hardest as they are the three biggest firms in terms of volume sales in the state and nationally at about 65-70%. Their total outstanding amount is estimated to be close to INR 800 crore. All the three firms declined to comment on the matter.
 
The total amount overdue was close to INR1,800 crore at the end of last month, before the government settled INR 256 crore in January. “It is not hidden from you that fast moving consumer goods are highly dependent on working capital which is generated through rotation of capital. In the current context of outstanding dues ranging from 21-100 days, this is imbalanced and uncertainty in payments has landed the suppliers under deep financial crisis for want of capital,” the Association of Liquor & Beer Suppliers wrote in a letter to the government last month.
 
An executive at a liquor company said the prohibition measures have led to the creation of at least 10-12 local brands. These are cutting into popular brands like McDowell’s and Officer’s Choice whiskey.
 
“The orders placed by the Andhra Pradesh State Beverage Corp Ltd (APSBCL) has been on an ad hoc basis,” said the executive. The government retailer could not be reached for comment.
 
Amrit Kiran Singh, executive chairman of International Spirits and Wines Association of India (ISWAI), said the problem started ever since the government took over the retail liquor trade. “We would like Andhra to follow a system based on average national market share of each brand for the last three years, so that no particular label is unfairly promoted. This system would ensure that brand market shares would continue to be more or less in line with the one that existed before the government took over,” he said.
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5 hours ago, Android_Halwa said:

Bring back Babu..! Bring back brands...Babu vasthe brands vastayi..

Appati daka naatu saara sisa lo posi naakincheyyandi commission lu mingeyandi

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7 hours ago, Bodi_lafangi said:

Assalu vishyam grahincha leni eddi gorre la unnav ra, Mee mundu kattu baanisa lu kuda baladoor

 

7 hours ago, Bodi_lafangi said:

FysCITI_c$y

 

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