Hope you are doing well.
By the way, did you know this - The per capita Beer consumption in India in 2020 was only around 1.2 ltr while the same was 181.70 in Czech Republic.
Recently, we were studying a listed Beer company - Som Distilleries and therefore decided to look at some data on Beer consumption in India.
Below, we have shared our notes about the industry. Hope you find them useful for your own investments or to add the stocks to your watch list:
[New Special situation] - Latest special situation recommendation looks like a relatively low downside opportunity (around 20%) based on the combination of factors discussed in our report. The holding period for this one should be around 3-4 months
Regarding upside, 20-50% is possible from our recommended levels; however, nothing can be said with certainty in such cases and therefore what’s important to know is – how much can be the downside? For details - click HERE
- Beer is an alcoholic beverage produced by mixing fermented yeast, hops, water and cereal grains
- The value of India beer market was ~ ₹ 371 bn in 2020 and expected to reach around ₹ 662 bn by 2026
- The global beer market size reached ~ US$ 640.2 bn in 2021
- Beer can broadly be classified into 2 subcategories:
- Strong beer with alcohol content of 6-8%
- Mild or lager beer with alcohol content of 4-6%
- It seems Indians prefer strong beer as the same accounts for 85% of the total volume sold in India
- Also, Super Premium segment within both the Strong and Mild beer categories has been growing faster than the overall beer industry
- Sales trends:
- ~30% of the sales are in the summer months
- 25% beer consumption happens out of home in places like bars, pubs, etc
- Some facts/figures
- Beer and wine seem to be the most tried and loved drinks among urban Indian consumers
- Per capita beer consumption in India in 2020 was 1.2 Ltr against 181.70 Ltr in Czech Republic
- Beer comprises about 12% of the total alcohol consumed in India
- Taxation on Beer
- Globally, beer is taxed on alcohol strength...in India, it is taxed on alcohol by volume
- Alcohol consumption in India
- Nearly 15 crore adults drink Alcohol in India
- Alcohol consumption among adult men is at 18.8%
- Alcohol consumption among adult women is at 1.3%
- Arunachal Pradesh has the highest proportion of both men (53%) and women (24%) who drink alcohol among all Indian states
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Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above.
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