Distribution Pattern
 The sales are controlled by each state individually and that will continue due to the constitutional powers. More and more states are allowing the sales through easier channels like supermarkets and stores that sell only wine and beer are given cheaper licenses. Maharashtra, Karnataka, Haryana, Goa and Punjab have a liberal retail policy paving for a continuous growth through these channels. Delhi is still restrictive due to political expediency. Such policies are likely to change the market trends with Retail sector expanding in a big way during the current year
Each state requires wholesalers to have their own excise license. The importer/ distributors must sell their products through these wholesale licensees. Bigger importers like Brindco and Sonarys act as wholesalers in some states while others rely on local wholesalers.
Haryana allows retail sales through a license issued annually through draw of lots. But the retailer must buy through wholesalers who have to get a separate license. The Distributors have to sell through these wholesalers, adding to the cost of distribution.
During the coming years, there will be more sales through the retail channels. With big giants like UK's Berkmann Cellars, UB, and Diageo entering the market and the Indian wine producers like Champagne Indage and Sula stepping up their import activities, the Distribution hierarchy is expected to undergo an overhaul and the next couple of years will be interesting to watch.
Subhash Arora
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