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The Indian alcoholic beverages industry is the 3rd largest in the world with market size of ~Rs. 3.5 lac crore and sales of ~1,000 million cases. In terms of volumes, Indian Made Foreign Liquor (IMFL), Beer and Country liquor consumption are identical while IMFL contributes to two-thirds of total industry value.

As per a recent study by Euromonitor IMFL is expected to grow the fastest @ 5% volume growth and 8% value growth. Whiskey is expected to dominate consumption with ~62% of IMFL sale by volumes and ~74% by value. Beer is also seeing a steady 7%+ value growth with strong beer contributing to ~85% of sales.

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Growth in IMFL and Beer is being driven by favorable demographics (young population with median age of 28 years, ~55% above the legal age of drinking and low alcohol consumption penetration of ~20%), economic trends (Rising affluence – 40% of families expected to earn Rs. 10 lac or more by 2025 and rapid urbanization – 50% of population expected to live in cities by 2025) and changes in societal attitudes (increasing acceptance and practice of social/ casual drinking especially among the millennials)

While consumption is increasing, heterogenous consumption patterns (the type of liquor and quantity) across states indicates growth opportunities for alcoholic beverage manufacturers. Companies need to be nimble with their strategies in targeting mature audiences in certain zones while aiding migration from indigenous drinks in others.

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Increasing premiumization has had an impact on raw material demand and consumption. Malt spirits are getting scarcer and imports are taxing the wallets of many an IMFL player. Government’s impetus for ethanol blending to support green fuels has driven Extra Neutral Alcohol (ENA) prices by ~10% - 15% higher across states. Ethanol Blending Program has also impacted supplies as distilleries are diverting to ethanol production further exacerbating supply and cost pressures. The industry is focused on ENA security, evaluating investments in Grain and malt spirits distilleries and finding innovative solutions to protect margins against rising costs in a price-sensitive market.

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Capabilities

Product Strategy

White space identification by micro market and evaluating the business case for new product development as well as rationalisation fo existing product mix.

Supply Chain Planning

End-to-end planning and optimization from demand forecasting to invntory planning, production planning, material planning.

Market penetration & segmental growth

Customized sales growth strategies by Micro-Market (Geography-Channel-Product Segment) and Route-To-Market

Material Cost Reduction

Protect margins by reducing costs of raw material & packaging material

Brand Extension Strategy

Strategy to maintain brand presence in the market while meeting ASCI requirements as well as drive alternate incomes.

ENA Sourcing strategy

Tackle ENA cost pressures through sustainable long term solutions

Our Services

Industry Primers

Understand the industry structure and value chain, consumer needs, competitive assessment and market trends

“Qwixpert”ise

Internal “industry know-how” from veterans sharing specific answers to specific questions

Point-of-View

Endorsement of hypothesis/ strategies by and brainstorming sessions/ workshops with industry experts

Expert Retainership

“Expert-led” problem solving, governance and implementation over a longer duration

Benchmarking

Financial and operations benchmarks against peers and/or specific competition

Business transformation

Leverage Qwixpert’s consulting expertise and expert network to drive large scale business strategy and implementation driving tangible topline/ bottomline benefits in a fast and cost-effective manner

Analytics

Descriptive, predictive and prescriptive modeling using new-age analytical and visualization tools to drive sharp and insightful business insights

Presentation/ slide making

Professional and structured decks for board meetings/ top management discussions