The newly introduced ‘Quarter Rs. 99’ liquor policy in Andhra Pradesh has sparked significant interest among regular consumers as well as liquor companies. This low-priced alcohol, introduced by the state government, has quickly gained popularity due to its affordability.
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As a result, some medium-category liquor producers are now exploring how they can tap into this growing demand by offering their brands at lower prices. Leading companies in the liquor industry have already initiated discussions with the Excise Department to explore opportunities in this new price segment.
Four companies have received approval to supply seven different brands at the Rs. 99 price point, and around 30,000 cases have already been produced and distributed to licensees. The Excise Department plans to make a total of 2.4 lakh cases available by the end of the month.
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Liquor companies are watching consumer behavior closely to decide if they should also launch their products at this price point. Some companies are already moving forward with production, while others are taking a wait-and-see approach.
However, there is a concern among traders that while low-priced liquor might attract higher volumes of sales, the margins for such products are much lower compared to more expensive brands, which could impact profits.
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Overall, the introduction of this low-cost liquor could shift market dynamics, influencing both consumption patterns and the strategies of liquor companies in Andhra Pradesh.
