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Lakshmi Subramanian
Lakshmi Subramanian

TAMIL NADU

Happy summer for tipplers, govt resumes procurement from popular brands

ker-liquor-policy-new [Representational image] TASMAC had stopped procuring from Enrica Enterprises, United Breweries and Empee Breweries in September last year

Tamil Nadu has placed orders with makers of Kingfisher Beer and McDowell's

Once again, it's time to rejoice for tipplers in Tamil Nadu. Popular brands like Kingfisher Beer and McDowell’s brandy will soon fill the shelves of the government-run 5,700-odd retail liquor stores across the state. 

After six months, the state-owned Tamil Nadu State Marketing Corporation (TASMAC) has placed orders to Enrica Enterprises,  United Breweries and Empee Breweries, who had faced severe losses after the state government stopped procuring from them since September last year.

Enrica Enterprises, bottlers of Kingfisher Beer, used to supply Kingfisher Beer. 

The company makes popular Indian Made Foreign Liquor (IMFL) brands like McDowell's, Signature and Royal Challenge on a royalty basis for Diageo-controlled United Spirits. Chennai and Empee breweries, owned by United Breweries, brew Kingfisher beer for supplying across Tamil Nadu through TASMAC outlets. 

In February this year, the employees union of Enrica enterprises had sued TASMAC for stoppage of orders. A writ petition filed by V Harikrishnan, general secretary of the Enrica Employees Union against Tasmac, states that the employees have not been paid their salaries since October, 2016.

In fact, after the stoppage of the orders to these three outlets, Tamil Nadu’s tipplers had no other choice but to purchase and drink only the available brands. Every year, the beer consumption in Tamil Nadu, during the peak of summer from March to May, according to sources in TASMAC is at least 50 to 60 per cent of the total sales. 

With at least 45 lakh cases sold every month, Tamil Nadu had always been a major market for these liquor companies. The sales volume for these companies, according to sources in TASMAC, have gone up by at least eight per cent every year. The monthly beer sales is expected to be close to 30 lakh cases every month this summer. The total sales per month, inclusive of all brands, stands at Rs 70 crore per day, across the 5,700-odd outlets in the state. 

Placing orders to bring back these brands again to satisfy the tipplers has irked the protestors who have been demanding total prohibition in the state. Prohibition, in fact was one of the major issues during the general elections where all the parties except the ruling AIADMK promised total prohibition. 

Former Chief Minister Jayalalithaa had then promised phased prohibition. Accordingly, she ordered closure of 500 retail outlets in May 2016, while her successor Edappadi K Palanisami closed another 500 shops in February this year.

With these two closure orders, there are at least 5,700 TASMAC outlets in the state that sell all brands of liquor. These outlets procure IMFL brands, beer and wine from 11 manufacturing units, seven beer bottling plants and one winery. 

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