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An illicit alcohol production center in rural Bangalore - Nimhans

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<strong>alcohol</strong>) as lower castes/classes adopted the cultural mores of the higher castes / classes <strong>in</strong> order to<br />

better adapt to their changed positions <strong>in</strong> the social hierarchy. In this view, the larger <strong>rural</strong> and<br />

tribal populations felt no pressure to change their dr<strong>in</strong>k<strong>in</strong>g habits. (See discussion later)<br />

The beverage <strong>alcohol</strong> market is dom<strong>in</strong>ated by spirits<br />

94.7% of the beverages drunk, whether they are licit or <strong>illicit</strong> are spirits (Indian made foreign<br />

liquors: Whisky, Brandy, Rum etc @ 42.8 % v/v, or Arrack, the government licensed country<br />

liquor @ 33.3% v/v or various forms of <strong>illicit</strong> spirits of <strong>in</strong>determ<strong>in</strong>ate strength…which we have for<br />

convenience assumed to be @42.8 % v/v.<br />

The IMFL consumption is dom<strong>in</strong>ated by whisky and this is representative of market trends all over<br />

India. Whisky accounts for about 58.3% of the IMFL consumption <strong>in</strong> our sample. Brandy<br />

accounted for 28%, Rum for 11.3% and White spirits for 2%. This is uncannily similar to the<br />

<strong>in</strong>dustry figures, which estimate that the branded spirits market is dom<strong>in</strong>ated by sales of cheap<br />

whisky, which constitute 59% of the spirits bus<strong>in</strong>ess, leav<strong>in</strong>g a limited market to be divided among<br />

the other hard liquors like brandy, g<strong>in</strong> and vodka.<br />

That spirits constitute the lion’s share <strong>in</strong> the licit market (over 72 million cases, nationally) is well<br />

known to local and trans-national companies. The <strong>in</strong>troduction of new branded spirits (as opposed<br />

to beers and w<strong>in</strong>es) has dom<strong>in</strong>ated the market<strong>in</strong>g agenda of most new commercial ventures.<br />

Observers note that this co<strong>in</strong>cides with sharp down turns <strong>in</strong> <strong>alcohol</strong> consumption (especially spirits)<br />

<strong>in</strong> Western Europe and North America and fear that this might lead to dump<strong>in</strong>g of spirits <strong>in</strong> the<br />

Indian market.<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

22.2<br />

IML-<br />

IML-Brandy<br />

IML-Rum<br />

IML-G<strong>in</strong><br />

Government Arrack<br />

IML-Vodka<br />

23.1<br />

3.1<br />

Percent<br />

Preferred beverages<br />

Light<br />

Strong<br />

Scotch whisky<br />

Illicit distilled spirits<br />

25.2<br />

Illicit beers &<br />

Others<br />

IML_Whisky<br />

IML_Brandy<br />

IML_Rum<br />

IML_G<strong>in</strong><br />

IML_Vodka<br />

IML_Others<br />

Government arrack<br />

Light beer<br />

Strong beer<br />

FMFL_Scotch whisky<br />

FMFL_Brandy<br />

FMFL_Rum<br />

Illicit distilled spirits<br />

Illicit beers and brews<br />

Others- smuggled etc<br />

76

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