Effect of COVID 19 on the alcohol and beverage industry

The Covid-19 lockdown that began late March had a substantial toll in all areas and this sector is unquestionably no exemption. The alcohol and beverage industry has had its reasonable part of obstacles in terms of growth, sustainability or the transformation in the consumption pattern from pubs to the living room. In the third phase of the lockdown, the sale of alcohol was resumed though the sales of beers have been significantly low as people changed their preferences to buying liquors with more alcohol quotient as opposed to a beer which is low on its alcohol proportion. 

The bars and restaurants that managed to have enormous sales from serving alcohol have been disproportionately affected as socialisation has become negligible and it will take enough time for the people to earn back the trust in living a socially productive life again. Therefore, there has been a reversal in the customers for bars and restaurants. One sector that has continued to develop is the retail market which has admittedly supported alcohol and beverage items in terms of sales as people have been leaned towards bulk buying. It should not be disregarded that the people have found means of entertaining themselves at home and this has professed a chance for the Alco-Bev industry as to how they can make their product accessible to the people who have been centred on in-home entertainment. 

The corona fee taxed by the government on liquor had also hit the alcohol beverage industry and because of which there had been a rise in the price of the alcohol which has affected consumers with the high cost and a reduction in demand due to the same. Therefore, the manufacturers involved were ardent on getting stability on the taxes that are being taxed so that they can purvey to their assistance yet again. 

As liquor sales have further been strengthened by expanding home delivery in various states. The manufacturers are trying hard to facilitate the purchase of their goods in different cities, but due to diverse inter-state tax policies, they will have to simultaneously meet other ground challenges, which has greatly transformed the industry.

Furthermore, with Unlock 1.0 and 2.0 the manufacturing units have started to operate again but what they demand is effectiveness and efficacy to suffice the ongoing demand and supply chain in the market. The alcohol and beverage industry has been handed out a set of guidelines by FSSAI which have secured safety measures and social distancing to ensure that the employees are safe and the product that is being made is also consumer-friendly owing to the current situation. 

Enduring optimism, the manufactures are comprehending out revival strategies owing to the current situation as they acknowledge and recognise that it will demand time to reshape their sales and open doors to fresh opportunities but at the same time innovation is the need of the hour and with time and thorough devising it is undeniable that this business will be back on its foundation.