Drinking enthusiasts in Tamil Nadu will soon get a wider choice of liquor to consume. Yes, you read that right. The state government has reportedly approved the Tamil Nadu State Marketing Corporation (TASMAC) to procure about 54 new liquor brands. These procurements will take place from distilleries and breweries that supply beer and Indian Made Foreign Spirits (IMFS). Here is everything you must know.
TASMAC holds a legal monopoly over retail and wholesale liquor distribution, and Tamil Nadu operates its entire retail apparatus through it. While on paper, the state corporation stocks over a hundred registered brands, in practice only some of them reach the store shelves.
For decades, consumers in Tamil Nadu have faced a relatively restricted menu when it comes to liquor. The offerings were dominated by a handful of local breweries and distilleries. This created a huge gap between the actual availability and consumer demand.
Consumers' preferences have also been evolving with rising disposable income, demographic shifts, and exposure to national craft beer trends. People who wished to try craft ales, international-style spirits, or lighter lagers could not find them in the stores here.
The move now will bring in about 54 new labels, which will range from popular craft beers to premium Indian Made Foreign Spirits (IMFS) to craft beers like Bira.
This decision was taken in a very recent meeting of the TASMAC Board. It is a part of the government’s efforts to offer consumers a wide range of products, promote competition among manufacturers, and also streamline the sale of liquor.
.jpg&w=1920&q=75)
This move by the state government with TASMAC will help in reshaping the alcohol retail landscape in Tamil Nadu. It will address the long-standing allegations of market monopolization as well as curb cross-border revenue leakage.
Consumers in border districts of Tamil Nadu would travel to neighbouring states and Union Territories to bring preferred labels that were missing here. These included Karnataka, Puducherry and others. By approving the procurement of 54 new liquor and beer labels, the government can easily retain these consumers in the state ecosystem and also modernize the entire retail experience.
TASMAC procured liquor using a three-month weighted average indent system. Under this, purchase orders were allocated based on the brand’s historical sales in the state over the preceding three months compared to its most recent week’s performance.
Also Read: Tamil Nadu TASMAC Liquor Shops Closure: CM Vijay Orders Closure Of 717 Outlets
A small group of 6 breweries and 11 distilleries have been holding the lion’s share of supply contracts. Now, under the system, since the purchase orders favored established top-sellers, the newer or out-of-state brands struggled to get onto store shelves. Consumers bought whatever was on the shelves, which again kept the historical sales high for the same few brands that were available.
To dismantle this barrier, TASMAC is testing a system where all eligible suppliers get equal orders. This applies to regular IMFS and beer, which together make up most sales.
Alcohol sales represent one of the largest non-tax revenue sources for Tamil Nadu. It maintains a steep tax structure on alcoholic beverages with approximately 220 percent Excise Duty and approximately 58 percent Value Added Tax (VAT).
There are also no immediate plans to increase retail MRPs or hike liquor taxes. By capturing the high-volume purchases that went to other states, TASMAC wishes for the revenue to grow naturally without burdening the consumers.
.jpg&w=1920&q=75)
The official roster of all 54 brands will be rolled out in phases and is yet to be announced. The newly approved brands will not reach the outlets immediately; the manufacturer also needs time for production, logistics, and supply chain alignment.
Popular Craft and Premium Beers: Bira White, Bira Blonde, Bira Gold, and Lone Wolf are some urban mainstays that will be the major entrants approved for TASMAC distribution.
Diversified Spirits: Apart from standard whiskies and brandies, the update will help expand choices in flavored gins, premium dark rums, vodkas, and more.
National IMFL Labels: New whisky, rum, brandy, and vodka labels from various distilleries operating across the states will also be included.
The approval of 54 new brands is surely a major policy milestone, and the transition will be slow and gradual. This is because the manufacturers will have to finalize state label registration, supply chain logistics, and warehouse distribution schedules before the products land on the shelves of the outlets.
