HYDERABAD: Local distillers are all set to break monopoly of Bacardi in ready-to-drink (RTD) liquor segment, and if all go well for them, the tipplers will get to drink alcohol pre-mixed with fruit juice at cheaper rates with the local brands hitting the market in the state.
Bacardi is enjoying hegemony so far thanks to the loopholes in the law according to which local distilleries cannot manufacture and sell the ready-to-drink liquor as there are no rules framed for this under AP Excise act 1968. Now, apart from the local distilleries moving the court against this, the government has initiated procedures of framing the rules and sources in the excise department said the commissioner had written to the principal secretary and the rules would be notified shortly.
“The system existing in the state is something monopolistic and if the local distillers are allowed to manufacture RTD liquor, the consumers will benefit from the competition,” said Niranjan Agarwal, president of AP Wineries and Distilleries Association.
While a 330-ml bottle of Bacardi Breezer is selling at the price of Rs. 65, the local brands would be available at much cheaper rates, according to him.
Currently, RTD that is low alcoholic beverage with 4- 6 % of alcohol pre-mixed with fruit juice has the market size of Rs. 100 crore in the state with a total volume of sales around 5.2 lakh cases ( a case is of twelve bottles) a year. If the local brands are allowed, the market would see higher growth trajectory, said a market watcher.
However, the consumers have to wait a bit as the price bid offers to supply IMFL ( Indian Made Foreign Liquor- other than beer) have been opened already and the tenders would be finalized shortly and no local distiller is in the qualified list to supply RTD although three of them had applied. Teachers Whisky is making its foray into the market with two Scotch-based variants- whisky pre-mixed with soda and cola. While Bacardi was ruling the roost with seven variants including orange and lemon flavor with Bacardi Breezer brand enjoying monopoly, Teachers has applied for the tender for the first time in the state and is qualified in the price bidding.
APBCL has received price bid offers from over 75 applicants and all are qualified (10 July was the last date for filing the price bids). The tenders were expected to be finalized before August , but the excise department seemed to have taken some more time, and the Price Negotiation Committee will figure out the price tag based on which the suppliers will enter into a rate contract agreement (RTA) with the APBCL.
As they can’t enter the market with the absence of rules under the Excise Act, the local distilleries have moved the AP High Court with a prayer to direct the state government frame the rules. While the government is preparing to file the counter affidavit, the sources said the authorities in the APBCL and excise department were sympathetic towards the local distillers. Even the excise department is ready with the draft rules and it is matter of time before the procedures are done and as a government source said it would take at least six months from now, to see the local brands of RTD in the state.