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<ul><li>United Breweries (UB) and Anheuser-Bush InBev are looking into expanding their products into the non-alcoholic state of <keyword id="6354766" type="LOCATION" weightage="20" keywordseo="Gujarat">Gujarat</keyword>.</li><li>UB is already testing the launch of its Kingfisher Radler in the state. </li><li>The potential for non-alcoholic beverages in <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword> is huge with four dry states and a growing soft drinks market.</li></ul>Gujarat was the first Indian state to go dry, that is to say that making, selling and drinking alcoholic beverages in the state is banned. But, when the cauldron runs dry, it apparently opens up a whole new market. According to the Economic Times, United Breweries (UB) and Anheuser-Bush InBev (<keyword id="1122151" type="ORGANIZATION" weightage="20" keywordseo="AB-InBev">AB InBev</keyword>) are planning on introducing their non-alcohol range of beverages in the state. The companies responsible for producing Heineken and Budweiser, respectively, believe that the market is Gujarat presents a unique opportunity for them to expand their portfolio. In fact, UB, already the largest beer maker in India, is testing the launch of its Kingfisher Radler non-alcoholic beer in the state. While a lot of non-<keyword id="6359858" type="UNKNOWN" weightage="20" keywordseo="alcohol">alcohol</keyword>ic beers since have the 0.5% alcohol by volume (ABV), the Kingfisher Radler is completely alcohol-free using an emulsion of barley malts and lemon juice. With 30% less sugar than carbonated drinks and a price point akin to soft drinks at Rs 45, Pepsi and Coke may also have some competition on their hands. Ab InBev, on the other hand, has plans of entering the market next month. It’s unclear whether they’ll be launching Budweiser, Hoegaarden or Becks since all three lie in the low or non-alcoholic category. It’s not that Gujarat doesn’t have other alternatives, but they’re mostly imported and sold at exuberant prices. The potential of non-alcoholic beverages in India Gujarat isn’t the only state in India to have banned liquor within its borders. <keyword id="30033" type="COMPANY" weightage="20" keywordseo="Bihar">Bihar</keyword>, Nagaland and the islands of Lakshadweep also don’t allow any alcohol to manufactured or sold in their states. And, it’s not just about exploiting the markets where alcohol isn’t available. Research shows that companies producing non-alcoholic beverages are also driven by the demand from teenagers. In lieu of being underage, the option of a namesake alcohol drink is enticing. It’s important to note that these beverages, while produced by alcohol brands, won’t be completing against alcoholic beverages, but other soft drinks in the market. Juice, carbonated drinks like Coke and Fanta, energy drinks like Red Bull and Monster as well as concentrated drinks showed a compound annual growth rate of 9.9% between 2012 to 2017. In comparison, the beer market only grew by 3%. Globally, the market for non-alcoholic beverages is expected to hit $25 billion by 2024, but in India, these beverages account for less than 1% of the beer market. Consumers may have to wait a while before Kingfisher Radler officially hits the market, but they’ll have the option to choose from lemon, ginger lime and mint lime flavours. All in all, this means there will finally be another option on the table aside from mixers and mocktails for non-alcohol drinkers at a party.

Alcoholic beverage giants are looking to expand into India’s dry-state

<ul><li>There has been a staggering 380% increase in the purchase of honey and 200% increase in the purchase of cheese in since the ban.</li><li>Families also reported a weekly increase of 32% in household expenditure and 19% of households reported acquiring a new asset. </li><li> 58% of women said that they felt more respected since the ban.</li></ul>In April 2016, <keyword id="30033" type="LOCATION" weightage="20" keywordseo="Bihar">Bihar</keyword> became the fourth Indian state to implement a ban on liquor despite much opposition from multiple fronts. However, it now looks like that since the ban, citizens of Bihar are living a much healthier and a fancier lifestyle. To ascertain what sort of impact the ban has had, the Bihar government commissioned two studies by think-tank <keyword id="6403783" type="COMPANY" weightage="20" keywordseo="asian-development-research-institute">Asian Development Research Institute</keyword> (ADRI) and knowledge institute Development Management Institute (DMI). The results from both studies as reported by news agency <a href="http://ptinews.com/news/9807696_Studies-show-India--s-Bihar-turning-to-expensive-clothes--honey-cheese-after-liquor-ban">PTI</a> have undeniably been reassuring. The study by ADRI revealed that there has been a staggering 380% increase in the purchase of honey, 200% increase in the purchase of cheese, 1,751% increase in the purchase of expensive sarees and a 910% increase in the purchase of expensive dress material since the ban was implemented. This study evaluated the consumer purchasing behaviour at retail outlets of COMFED (Bihar State Milk Co-operative Federation) that markets its products under the label "Sudha Dairy" and sales tax revenues of various industries. The study conducted by DMI was based on primary data collected from 2,368 households in five districts - Nawada, Purnea, Samastipur, West Champaran and Kaimur. According to this study, families reported a weekly increase of 32% in household expenditure and 19% of households reported acquiring a new asset. Women too have gained from this ban that was implemented “mainly as a response to demands of rural women who suffered because of the widespread practice of drinking alcohol”. According to the DMI report, women, in general, found themselves in an elevated position after the ban. In fact, 58% of women said that they felt more respected and 22% said that their opinion was taken into account not only in household matters but in key village matters as well. There also seems to be a dip in crime. According to the ADRI report, there was a 66.6% reduction in cases of kidnapping for ransom, followed by 28.3% reduction in murder cases and 2.3% in dacoity. The ADRI report also postulated that at least ₹4,400 million was saved every month, which translates to ₹52,800 million every year. This assumption was based on the figures of 2011 that suggested there were around 4.4 million alcoholics in Bihar when the ban was enforced and assuming that each of these people spent at least ₹1,000 per month on alcohol.

Ban on liquor in Bihar has resulted in positive consequences: Report

India’s alcohol consumption has increased by 38% between 2010 and 2017, said a Lancet study that analysed alcohol intake in 189 countries between 1990 and 2017. In 2007, the alcohol consumption in India was at 4.3 litres per adult per year which increased to 5.9 litres. This rise is much steeper than what’s seen in other countries. For the same period, the per adult alcohol consumption in the US rose from 9.3 litres to 9.8 litres. The growth in China too was marginal, as it went up from 7.1 to 7.4 litres per adult,<a href="https://economictimes.indiatimes.com/industry/cons-products/liquor/indias-alcohol-intake-up-by-38pc-in-seven-years-lancet-study/articleshow/69231992.cms"> said Economic Times</a> citing the study. It should also be noted that the average per adult consumption of alcohol in India, is much lower than its in the US. Up by 70% Globally too, the popularity of alcohol is increasing. Between the years 1990 and 2017, which is 27 years, global alcohol consumption increased by 70%. The total volume of alcohol intake rose from 20,999 million litres in 1990 to 35,676 million litres in 2017. Alcohol consumption in high-income countries witnessed constant growth but it has been growing in low and middle-income countries as well. Before 1990, Europe had recorded the highest level of alcohol use. However, the study forecasts that Europe will not hold that title for long. Going ahead, the world will drink more, and more people will drink as well. The research <a href="https://economictimes.indiatimes.com/industry/cons-products/liquor/indias-alcohol-intake-up-by-38pc-in-seven-years-lancet-study/articleshow/69231992.cms">also suggests </a>that almost half the adults across the world will consume alcohol by 2030 whereas a quarter of them will become binge drinkers. Binge drinkers are those people who drink 60 grammes or more pure alcohol in one or more sittings, in a month. Starting Young Indians are not just drinking more, they are drinking dangerously as well. As many as 57 million people are facing the after-effects of alcohol addiction. A <a href="https://www.indiatoday.in/mail-today/story/most-delhi-youth-drink-before-legal-age-claims-survey-1455638-2019-02-14">survey</a> by the Community Against Drunken Driving (CADD) revealed that over 88% of youth below 25, consume or purchase alcohol though it’s illegal. Punjab, Goa, Tripura, Chhattisgarh and Arunachal Pradesh rank high on alcohol consumption. However, Uttar Pradesh has the highest number of alcohol drinkers in India. Regulating alcohol A few state governments like Bihar, <keyword id="6354766" type="LOCATION" weightage="20" keywordseo="Gujarat">Gujarat</keyword>, Mizoram and Nagaland, have prohibited the sale of alcohol. States like Kerala, Bihar, Tamil Nadu have imposed variety prohibition since 2016, reported Economic Times. The state government of Rajasthan allows sale of liquor only until 8.30 in the evening. India has also witnessed an increase in the number of drunken driving cases. According to <a href="https://timesofindia.indiatimes.com/city/hyderabad/with-46-lakh-traffic-violations-in-2018-fine-collection-doubled-to-rs-54-crore/articleshow/67596677.cms">reports</a>, fines from drunk driving in India in 2018 alone, was at around ₹6 crore.

India witnessed 38% surge in alcohol consumption in seven years —and it isn’t going to slow: Study

From the next financial year, alcohol will be banned in Bihar, as announced by the state’s Chief Minister <keyword id="6358190" type="PERSON" weightage="100" keywordseo="Nitish-Kumar">Nitish Kumar</keyword>. He has done so after he had promised a group of angry women about the same, at an event in July. Reportedly, the women were angry over the alarming addiction to country liquor in Bihar villages. 
 
"In 1977-78 we tried to impose prohibition but it was not effective. But I feel women are suffering more than others (because of alcohol abuse)... I have instructed my officials to start working towards this and implement this from the next financial year," Mr Kumar said at a function. 
 
After his swearing in as Bihar’s Chief Minister last week, this is his first major announcement. However, one can’t be sure if alcohol would be completely banned or the ban would be restricted to just country liquor. 
 
Talking of the income through alcohol, last year Bihar government earned nearly Rs. 3,500 crore through taxes on the sale of alcohol. How and when this loss of revenue would be covered up is yet to be known. 
 
Other Indian states where alcohol is banned are Gujarat, Nagaland, Manipur and Lakshwadeep. Last year, Kerela too had announced its aim to be alcohol-free within 10 years. 
 
<a href="http://www.thecourier.co.uk/news/local/fife/falkland-folk-planning-to-fight-public-alcohol-ban-1.35385">Image source</a>

Banned: Alcohol in Bihar to be banned April 2016 onwards, CM Nitish Kumar announces

The ban on the sale of liquor within 500 meters of highways in the country would mean a probable loss of Rs 50000 crore for several state governments. This, because a list of prominent hotel chains, like the Taj, Oberoi, Hyatt and Accor groups will now have to stop serving alcohol to guests at their premium locations, thus denting the 
estimated revenue of state governments, which they would have earned from these hotels in form of taxes. 
 
Also read: <a href="http://www.businessinsider.in/The-11-best-Champagne-bars-in-the-world/articleshow/54549480.cms">The 11 best Champagne bars in the world</a> 
 
Riyaaz Amlani, president of the National Restaurant Association of India (<a href="http://www.businessinsider.in/strategy/restaurant-body-fights-back-says-dont-eat-if-you-dont-want-to-pay/articleshow/56313066.cms">NRAI</a>), told ET that along with this loss to the governments, restaurants, bars and pubs will also be taking a hit of Rs 10,000-15,000 crore, and 100,000 people will be out of work. 
 
Also read: <a href="http://www.businessinsider.in/good-karma-or-bad-man-behind-liquor-ban-cant-find-liquor-nearby/articleshow/57985331.cms">Good karma or bad? Man behind liquor ban can’t find liquor nearby</a> 
 
However, as per a tweet by Niti Aayog CEO Amitabh Kant, the ban would impact jobs of around <a href="http://www.businessinsider.in/1-million-people-to-lose-job-inindia-blame-drunken-driving-for-it/articleshow/57971679.cms">1 million people</a>. 
 
The country houses over a third of liquor outlets around national and state highways, which means that this ban would result in a deep impact on the liquor industry and state governments’ pockets. 
 
Also read: <a href="http://www.businessinsider.in/Bihar-politics-ban-making-liquor-companies-suffer/articleshow/53767756.cms">Nitish Kumar wooed Carlsberg to set up a plant in Bihar, and then banned liquor in the state</a> 
 
In order to avoid this, some state administrations have even changed the nomenclature of state highways to district roads. 
 
(Image source New Indian Express)

Liquor ban would dent state governments’ estimated revenue by Rs 50,000 crore

The government’s plan on alcohol is clear- <a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">drink as much as you want</a> but pay the bill. While it may sound odd, <a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">alcohol itself is a great revenue generator</a> for the exchequer. Believe it or not, most state governments’ budgets are nearly 20% funded by alcohol sale. This is one commodity in India that is consumed by both urban and rural populace. 
 
<a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">This budget may help every Indian to own a car: Read</a> 
 In 2015, with 0.2% growth rate, alcohol sector has seen the slowest growth after ages. 2016 wasn’t really a good time for most of the alcohol brands. First there was the sluggish growth. Then the next blow was served by the <keyword id="6358190" type="PERSON" weightage="20" keywordseo="Nitish-Kumar">Nitish Kumar</keyword> government of <keyword id="30033" type="COMPANY" weightage="20" keywordseo="Bihar">Bihar</keyword> in April when alcohol got banned in the state. And then there was demonetization in November. The <a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">alcohol industry in India</a> has seen worse, but this was probably the single bad year after the market attained maturity. 
 
While <a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">Gujarat</a>, <keyword id="50015" type="COMPANY" weightage="20" keywordseo="nagaland">Nagaland</keyword>, Mizoram, Manipur and Bihar are the states with order of ban on alcohol, most states have alcohol as the second most profiting means of revenue. Delhi, for instance, earns almost Rs 3000 crores of revenue from liquor every year, that’s almost a little less than 10% of Delhi government’s annual budget. 
 Alcohol manufacturers’ hub <keyword id="6354321" type="CITY" weightage="20" keywordseo="Bengaluru">Bengaluru</keyword> earns excise revenue of 20% of state revenue. Same is the case with <keyword id="6357783" type="CITY" weightage="20" keywordseo="West-Bengal">West Bengal</keyword>, which has a few alcohol plants spread over the state. The eastern state earns Rs 32,000 crore from just <a href="http://www.businessinsider.in/this-budget-may-help-every-indian-to-own-a-car-heres-how/articleshow/56627024.cms">liquor excise</a>. 
 
However as mentioned earlier, several factors affected the industry big time. 
 
Here is the list of factors that paralyzed the industry last year

Will the alcohol industry in India say ‘cheers’ to Budget
2017?

Michael Jensen, CEO of Carlsberg India, has termed India as the most difficult market in the world, and you can’t blame him for that, since Jensen has personally experienced how politics can make business run on its fingers, making investors vary of future projects. 
 It was three years ago that <keyword id="6388010" type="ORGANIZATION" weightage="100" keywordseo="Bihar-CM">Bihar CM</keyword> <a href="http://www.businessinsider.in/Nitish-Kumars-government-imposes-13-5-tax-on-luxury-items-including-samosa-and-kachori/articleshow/50563854.cms">Nitish Kumar</a> had wooed Carlsberg to invest in the state, thus convincing it to set up a $25 million plant near Patna in 2014. However, after he was <a href="http://www.businessinsider.in/Nitish-Kumar-takes-oath-as-Bihar-CM/articleshow/49858253.cms">re-elected </a>last year, he went on to ban liquor in the state, which led to the company’s revenues falling and forcing it to consider pulling out, since there was no backup plan for this unexpected move. 
 
"It was a sizeable market and investment but they decided to do prohibition in 12 hours," Jensen told ET. 
 
Other than Carlsberg, Diageo Plc, United Breweries and Molson Coors are also worried about the ban since they have been running more than 70 distilleries and breweries in Bihar for over a decade now, which is an ideal market for these liquor companies, offering an abundance of raw materials (barley and wheat) and cheap labour. 
 
In Bihar, sale of alcohol has been banned since March this year, fulfilling the <a href="http://www.businessinsider.in/Banned-Alcohol-in-Bihar-to-be-banned-April-2016-onwards-CM-Nitish-Kumar-announces/articleshow/49934345.cms">promise </a>that Kumar made during his election campaign. 
 
Also read: <a href="http://www.businessinsider.in/Bihar-women-to-get-35-reservation-in-government-jobs/articleshow/50665360.cms">Bihar women to get 35% reservation in government jobs </a> 
 
"Our medium-term intent is actually (to) exit the state of Bihar from all manufacturing and related activities," United Spirits CEO Anand Kripalu was quoted saying in an investor call. "It is about just over 1% of our total business in terms of revenue and probably something similar in terms of profit right. So we believe, while it is an important state in terms of its contribution, it is not that material to our total business." 
 
The industry is, however, maintaining some hopes since sector lobby groups have challenged the ban in the Patna High court. 
 
"We are fighting against the unjust ruling to ban all liquor instead of just country and illegal liquor," said All India Brewers Association Director General Shobhan Roy. "Our breweries are running full capacity and we have claimed about 400 crore compensation for existing inventories and machinery." 
 
<a href="http://s3.india.com/wp-content/uploads/2014/06/nitish-kumar-3.jpg">Image source</a>

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Alcoholic beverage giants are looking to expand into India’s dry-state

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