The Liquor Retail Route
Ambrosia|AMB SEPT 2016

For the liquor industry distribution is the key. CSD, QSRs are now getting into the limelight.

The Liquor Retail Route
The Canteen Stores Department or CSD as it is fondly known in marketing circles, and a not-for profit organisation, earned ₹236 crore during FY14-15. Considered in liquor marketing circles to be the route to creating Millionaire Brands it is known to buy huge volumes at low prices as no taxes are involved. The resulting disruptive prices results in huge sales and high profits.

CSD's operating margin is 1%, which it claims on its website is lowest for any retailer in the world. For most consumer product and liquor companies, CSD accounts for 5-7% of their total volume sales.

The huge profits have been better than even D'Mart stores, that made a profit of ₹211crore that year, Future Retail which made ₹153 crore and Reliance Retail ₹159 crore. However in all fairness none of the retail stores can match the heavy discounted prices accorded to CSD as their goods are for the armed forces.

The CSD's retail outlets sell 5,300 products ranging from biscuits and beer to shampoos and cars to 12 million consumers — personnel of the army, navy and air force, ex-servicemen and their families. Started in 1948, it is managed by the defence ministry and comprises 3,901 unitrun canteens and 34 depots. It has more than 600 suppliers competing to provide a range of products including toiletries and cosmetics, household goods, footwear and accessories, food items, stationery, electronics and consumer durables, liquor and vehicles.

Vendor companies offer slightly better discounts to CSD than to local kiranas, products are still sold at very low prices because the government waives a substantial amount of taxes.

هذه القصة مأخوذة من طبعة AMB SEPT 2016 من Ambrosia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة AMB SEPT 2016 من Ambrosia.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من AMBROSIA مشاهدة الكل
E-commerce In Alcohol Is The New Route To Market Strategy
Ambrosia

E-commerce In Alcohol Is The New Route To Market Strategy

Post Covid e-commerce could help the industry out of a crisis. But in the new normal the growth rate may not be high. A report.

time-read
6 mins  |
May 2021
Processes for alcohol-free beer production: A review
Ambrosia

Processes for alcohol-free beer production: A review

Carlos MULLER1 Luis Eduardo NEVES1 Luciana GOMES1 Munique GUIMARÃES1 Grace GHESTI1 * http://orcid.org/0000-0003-1043-5748

time-read
10+ mins  |
May 2021
The US and China offer resilience and opportunity for drinks groups
Ambrosia

The US and China offer resilience and opportunity for drinks groups

Strong performances in China and the US have shielded multinational drinks companies from the fallout of Covid-19 in recent months. IWSR examines the reasons why.

time-read
3 mins  |
May 2021
Increasing demand for nostalgic flavours in drinks
Ambrosia

Increasing demand for nostalgic flavours in drinks

Nostalgic flavours such as peanut butter, lemonade and chocolate have become increasingly popular during the pandemic. IWSR looks at how the trend is manifesting in different beverage categories.

time-read
3 mins  |
May 2021
‘80% of the International Awards won by Indian wines are from Karnataka'
Ambrosia

‘80% of the International Awards won by Indian wines are from Karnataka'

The Wine market in India is still in its infancy but is growing at a much faster rate as compared to any other category/ segment. Grover Zampa, the second biggest manufacturer of Wines in India has been on a spending spree acquiring wineries in India to increase their presence in the market. In an interview with Ambrosia, Ravi Vishwanathan, Chairman, Grover Zampa Vineyards speaks about his investments, the Indian market and the possibilities for the future. Excerpts:

time-read
8 mins  |
May 2021
Trends in alcohol consumption in Europe continue their positive course
Ambrosia

Trends in alcohol consumption in Europe continue their positive course

Over recent months, we have seen very welcome findings on drinking behaviours released by leading health authorities across Europe, particularly with regards to the decline in underage drinking. This contrasts sharply with misleading coverage which often suggests that overall consumption is dangerously on the increase, in particular since the pandemic started, writes spirits Europe Director General Ulrich Adam.

time-read
3 mins  |
May 2021
Pernod Ricard and Brown Forman Merger Speculation
Ambrosia

Pernod Ricard and Brown Forman Merger Speculation

As speculation mounts about the strategic merger between Pernod Ricard & Brown & Forman, we look at the far reaching consequences of the deal.

time-read
10+ mins  |
May 2021
Glasgow Whisky announces distillery purchase to expand global business
Ambrosia

Glasgow Whisky announces distillery purchase to expand global business

The company is expanding its wings with an environmentally sustainable and energy efficient distillery

time-read
2 mins  |
May 2021
Excise revenues save the day for Maharashtra and Karnataka
Ambrosia

Excise revenues save the day for Maharashtra and Karnataka

The pandemic has not much changed consumption levels of liquor in Maharashtra, though the excise department may fall short of the excise revenue target of ₹19,225 crores for 2020-21. Home delivery of liquor in Maharashtra has done exceedingly well as it has earned almost equal revenue for the State as compared to last year.

time-read
1 min  |
May 2021
Bacardi adds flavour to Indian market
Ambrosia

Bacardi adds flavour to Indian market

Over the past few years, Bacardi has further strengthened its position in India as a premium brand. Known for its diverse brand portfolio, Bacardi aims at bringing superior quality spirits to the market. Zeenah Vilcassim, Marketing Director, Bacardi India, unveils her strategy for the Indian market.

time-read
5 mins  |
May 2021