Carlsberg India Volumes Hit By Highway Liquor Ban, Monsoon And GST

Carlsberg India Pvt Ltd.’s volumes decline in the July-September quarter following the ban on sale of liquor on designated highways, implementation of the Goods and Services Tax and heavy monsoons.

The Indian market has been volatile as result of these three factors and sales volumes fell during the quarter by “a couple of percent” as well as year-to-date, the local arm of Danish brewer Carlsberg group said in a conference call today. Its market share, however, increased during this period, the company added.

The company undertook price hikes during the quarter to offset the impact of GST which was rolled out on July 1.

Carlsberg India reported a 1 percent decline in its revenue for the quarter and expects the weakness, especially on account of the highway ban, to spill over into the October-December quarter, the company said.

The Supreme Court of India had ordered a ban on the sale of liquor within 500 metres of state and national highways from April this year. Later, it clarified that the ban is not applicable within city limits.

“We have a list which we have every month updated what the distribution in the outlet is and we see that increasing,” the company told analysts on a conference call after announcing its quarter ended September results.