Strong sales in second half of FY21 helps domestic liquor industry limit losses

The strict nationwide lockdown in India in FY21 led to a 12 per cent decline in sales of Indian made foreign liquor (IMFL) in comparison to the previous financial year, according to the Confederation of Indian Alcoholic Beverage Companies.

The domestic liquor industry managed to see a strong sales revival in the second half of FY21, helping limit the overall sales decline during the last financial year to just 12 per cent, show data compiled by industry body Confederation of Indian Alcoholic Beverage Companies (CIABC). The liquor industry, like most other businesses, suffered severely due to the nationwide lockdown last year. Liquor sales fell by nearly 42 per cent in the first quarter of 2020-21 and another nine per cent in the second. Therefore, liquor sales declined by an average of at least 29 per cent in the first six months of the previous year. Liquor stales started witnessing a recovery only during the festive season last year when the decline was reduced to just one per cent in the third quarter. And in the fourth quarter, liquor sales had registered a six per cent growth.