FREQUENTLY ASKED QUESTIONS

What is the procedure for supplying liquor to Kerala?

KSBC invite offers from manufacturers for entering into rate contract on an annual basis. Those firms/companies who are manufacturers of liquor/ Beer are eligible to make offer and on satisfactorily meeting the conditions sign the contract for sale and supply of liquor/beer. The contract is normally invited in February/March and valid for a minimum period of one year.

Is there a floor price for liquor/beer?

a) Yes. For liquor the floor price (F O R) is Rs.235/- per case. b) For Beer, as of now there is no floor price. c) Can supply of liquor be made by any Distillery/Brewery from anywhere in the World?The contracts KSBC is inviting has scope for any manufacturer from India/Outside India to enter into contract. So far only Indian Manufacturers have entered into contract and supplied Liquor/Beer.

Can a Supplier Company entering into contract supply from any other supply source that he has?

Manufacturers entering into contract for supply with KSBC has to be a manufacturer. Thereafter at the time of exigencies and business needs the supplier can source his supply from any other manufactory whether within Kerala or outside Kerala provided the supplying manufactorer is also a registered contractor with the Corporation.

What is the pricing system in KSBC?

The pricing system followed in KSBC is Administered pricing system, whereby KSBC decided the price at which the liquor has to be contracted in an year, after the item has been quoted for the first time.

How the quality of liquor is ensured by KSBC?

In the supply contract KSBC has specified the standards in which liquor/wine/beer is to be supplied. The supplies made to KSBC has to have a certificate by the Chief Chemical Examiner of the State in the case of IMFL/Wine and Brew master in the case of Beer. If a certificate is not produced at the time of supply those stocks are freezed from sale till such time the certificate is produced or samples of the stock is independently certified by the competent authority in the State. Besides this frequent random samples are subjected to Chemical Analysis.

What is the quantity of different categories of Liquor sold in Kerala?

The quantities sold in percentage values of different categories are as below: Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Rum 55% 66% 65% 62% 57% 62% 61% 60% Brandy 40% 30% 32% 36% 40% 35% 36% 38% 4% 3% 2% 1% 2% 1% 1% 1% Whisky Gin/Wine/Vodka 1% 1% 1% 1% 1% 2% 2% 2%

How is pricing of liquor fixed?

Please see pricing of liquor separately placed in the site.

How many liquor/beer brands are registered for sale in Kerala Market?
During the current year at present 2008 Category a) For IMFL b) For wine c) For Beer item 302 7 19

Total Brands

What is the minimum and Maximum MRP?

Minimum & Maximum MRP of 5 popular packs of IMFL as on January 2008 are ml a) b) c) d) e) 1000 750 500 375 180 Rs.168 Rs.127 Rs. 83 Rs. 71 Rs. 38 Minimum Rs. 980 Rs. 1651 Rs. 265 Rs. 500 Rs. 181 Maximum

Top selling IMFL and Beer brands in Kerala?

a)

Top selling 10 brands of IMFL as on January, 2008 are, Name of Brand

1 2 3 4 5 6 7 8 9 10

OLD PORT XXX RUM MCDOWELL OLD CASK XXX RUM NO.1 HONEY BEE BRANDY NO.1 McDOWELL'S BRANDY 0 HOUR XXX RUM OLD ADMIRAL VSOP BRANDY ROYAL ARMY XXX RUM HATRICK XXX RUM EMPEE'S SIXER XXX RUM NEW JAWAN XXX SPL RUM

b) Top selling 3 brands of BEER as on January, 2008 are,

Name of Brand 1 2 3 United Breweries (Premier) Malabar Breweries United Breweries (Cherthala)

Which Company sells maximum in Kerala?

As per the data for January, 2008, the top ten Companies which had maximum sale in the month is as below:

Supplier United Spirits, Palakkad Amrut Distilleries Ltd (Bangalore) Devicolum United Spirits, Cherthala

Cases Sold in thousands 117.97 117.48 120.67 99.43

Imperial Spirits United Spirits, Nassik Radico Khaithan Empee Distillery Palakkad Super Star Ugar Sugar

81.93 72.75 72.49 53.19 47.76 44.67

Beer highest selling three companies listed (In lakhs) United Breweries (Premier) Malabar Breweries United Breweries (Cherthala) 4.26 0.95 0.35

Why Foreign brands are not available in Kerala?

a. Foreign brands bottled in India and supplied are available in the market. b. Foreign brands manufactured outside India were not quoted for supply upto now.

Can a new supplier request for signing a contract with the Corporation?

Yes, only when the notice inviting offers is published and the formalities of the contract completed during February/March. No brands or supplier are allowed after a contract year starts except supplier of FMFL from foreign countries.

Can you explain the manner the liquor business is carried out in Kerala.

a. Supplier to contract with KSBC. b. Monopoly purchase by KSBC. c. Wholesale distribution by KSBC from 16 Warehouses situated in 12 Districts of Kerala. The wholesale issue of stocks is made to various retail licensees as below: i) 330 KSBC retail shops ii) 46 Consumerfed Retails Shops iii) Private Bars iv) Private Clubs v) KTDC Beer parlours

(updated as on 05 January 2009)