The Hindu Business Line : 100 ml brands turn TN tipsy

IT was a deluge waiting to happen. The Tamil Nadu Government's decision to allow 100 ml packs of affordably priced Indian-made foreign liquor is proving to be a hit with the masses.

The combined monthly sales of 100 ml bottles touched five lakh cases in January, which was the first month for the new pack, industry sources said. Buoyed by the response, the industry is betting on a target of 7.5 lakh cases this month and expects sales to cross one million cases in March. The 100 ml pack has added a new dimension to the State's liquor sales, which, hitherto, hovered around 1.2 million cases monthly.

The Government's significant policy decision late last year allowed local liquor companies to launch 100 ml packs of IMFL, priced Rs 15, ostensibly to wean consumers from cheap spurious spirits. The move was also seen in the context of the Government's revenue maximisation plan by tapping the existing potential in the low-end liquor market. The industry experts had hailed the move as "path breaking'' and predicted it would change the face of the industry.

Following the Government nod, all five Tamil Nadu-based distilleries came out with new brands in the 100 ml category. It included Mohan Breweries & Distilleries Ltd (MBDL)'s Red Bull, Empee Distilleries Ltd's Power, Balaji Group's Singham, Shiva Distilleries' Pick Up and Safil's Superstar.

It must be mentioned that only local distilleries were allowed to hit the market with new packs. Amongst the above mentioned liquor entities, Balaji Group is the strategic ally of spirits major, UB Group.

The 100 ml brands roll out in nine-litre cases containing 90 bottles each. The industry experts remain confident that sales would touch a million cases by March if all five distilleries meet their supply commitments. The local distilleries which are currently investing for new 100 ml bottles expect indirect gains to accrue from economies of scale as production lines and volumes move up.

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