New Delhi, Apr 19 (PTI) Restaurateurs have said the Delhi government’s decision to reject the sales licences of French spirits major Pernod Ricard, Indospirits and Brindco has hurt their business as customers now prefer to visit neighbouring Gurugram and Noida for their drinks of choice.
They said that some of the premium brands of these firms have been unavailable in the national capital since September last year, when the excise policy for 2021-22 came under the scanner of investigation agencies and was scrapped. Their sales licences were cancelled last week.
Manpreet Singh, the treasurer of the National Restaurant Association of India, said, “The decision has hurt the business of restaurants here. There are premium customers who demand these brands and since these brands are not available, that chunk of customers is not coming to restaurants.” “The people of Delhi can easily drive down to Gurugram and Noida for having these brands. Also, since there was a healthy competition between companies earlier, they would offer us concessions, but that too has ceased now,” Singh, who owns Zen Restaurant, said.
Shabad Mehta, another restaurateur, said some of the labels of these brands are very popular. “We are paying all the taxes but due to the disturbance in the supply chain, our business is getting affected,” he added.
Pernod Ricard is the world’s second-largest wine and spirits organisation and its portfolio comprises over 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club and Jacob’s Creek.
Pernod Ricard also owns Indian brands such as Blenders Pride and Royal Stag.
Official sources had said that the decision to cancel the sales licences of these companies was taken on the ground of ongoing investigation linked to the excise policy case.
Vishal Prabhakar, the owner of Limitless and Sky High, said they have suffered a 40 per cent loss in business due to the cancellation of sales licences.
“Owing to the unavailability of these brands, patrons of these premium brands are shifting to cheaper brands, which is of course affecting the business. Customers are also going to neighbouring towns to get these premium brands,” he added.
Rahul Singh, Founder and CEO of The Beer Cafe, said, “Customers are suffering as well because of this…. Customers have choices and one cannot expect them to change their preferences overnight.” The Delhi government implemented the excise policy on November 17, 2021, but scrapped it after a CBI probe was recommended amid allegations of corruption.
The government went back to its old excise policy, which was operational before November 17, 2021, from September 1, 2022, in which private players in retail liquor sales were replaced by its four corporations. PTI SLB/VIT SMN
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