Summer fails to push up beer sales

Tasmac witnessing the biggest decline of demand for the drink this year

The Tamil Nadu State Marketing Corporation Limited, popular known by its acronym Tasmac, is witnessing the biggest decline in its beer sales. This year, for the first four months, beer sales have dipped drastically when compared to the same period in 2014.

In January only 14 lakh cases (each case contains 12 bottles) were sold as against 15.80 lakh on the same period last year.

The figures include the elite outlets set up by Tasmac in malls across the State.

Beer sales are typically higher during summer, which is, starting March. But this year, the scorching sun has failed to attract beer lovers.

In March 2015 only 20.85 lakh cases were sold as against 25.39 cases the previous year. Similarly, in April only 21.71 lakh cases were sold when compared to 27.60 lakh in 2014.

‘Only combined value available’

The volumes have been hit due to price hike, is what a Tasmac official who wished anonymity had to say. Tasmac had hiked liquor prices twice in the second half of 2014.

When asked for the value of these sales the official refused to comment and said, “We only have the combined sale value of IMFL and beer. We don’t have the data for beer.”

But sources in Tasmac union said that the value of sale would definitely be high with the price increase.

“Even we are denied access to the sale value,” said a union member of Tasmac.

Last year, Tasmac introduced an exclusive outlet for selling beer at Parsn Complex on Kodambakkam High Road in Chennai.

The rationale behind this was to attract more footfalls especially the beer drinking category which was moving to hotels and pubs.

Exclusive outlet flops

“This move has failed to make any impact. Even today many of the Tasmac outlets don’t have good infrastructure to refrigerate the beer. And no one would purchase beer which is not refrigerated,” said another official at Tasmac. “We are looking at ways to push up sales,” the official added.

According to estimates, in Tamil Nadu there are around 6,826 Tasmac shops and of this 2,500 shops sell beer. Tasmac, the cash cow, contributes more than a fourth to the State government’s revenue.