Tag: liquor

  • United Spirits Popular Liquor Sales Fall 22.7% to Rs 181 Crore

    United Spirits Popular Liquor Sales Fall 22.7% to Rs 181 Crore

    United Spirits posted a 22.7 per cent drop in net sales value for its popular liquor segment to Rs 181 crore during the second quarter of FY2027.

    The Diageo-owned alco-bev giant reported the decline on Wednesday, attributing the drop to increased taxes on non-local brands in Maharashtra and excise duty changes in Karnataka.

    Overall net sales value across the company nonetheless climbed 2.8 per cent to Rs 3,258 crore for the quarter, bolstered by growth in its premium and luxury liquor portfolios.

    State Levies Hit Entry Shelves

    Maharashtra created a regulatory split by establishing a preferential framework for Maharashtra Made Liquor. The state instituted a separate category for locally produced spirits with lower duty rates, while hiking excise duties on standard Indian-made foreign liquor. The tax gap handed domestic distillers an immediate retail edge across neighborhood bottle shops.

    Karnataka simultaneously overhauled its excise slabs. The southern state began shifting its tax collections from product retail value toward alcohol content, compressing the total number of pricing bands. The revision squeezed manufacturer realizations and stalled distribution volumes across lower-priced labels.

    Premium Labels Cover the Margin Gap

    Higher-margin spirits filled the gap created by the mass-market pullback. The Prestige and Above portfolio advanced 6.3 per cent in net sales value in the second quarter, aided by flavoured Smirnoff line extensions, the market relaunch of J&B Scotch, and broader gains in its luxury portfolio.

    The shift insulates Diageo from local excise volatility in low-margin categories. Premium spirits buyers absorb periodic tax increases far better than daily-wage or price-conscious consumers, allowing the company to defend total top-line numbers even when provincial tax boards target cheaper bottles.

    Distillers Diverge on Mass Brands

    State-level alcohol policy in India forces beverage manufacturers to pick a lane. Distillers with heavy mass-market footprints must either accept lower factory-gate realisations when local governments protect domestic producers or abandon low-margin distribution entirely. Several domestic rivals continue to chase mass volume through localized bottling units, but the economics look increasingly precarious under content-based excise systems.

    United Spirits has steadily reallocated capital toward upper-tier bottles, leaving low-margin labels exposed to state tax shifts. Distributors and liquor store operators now face a clear split: thin margins on commoditised local booze or higher ring sizes on imported and premium Indian-made bottles.

    Exports and Local Regulations Cool First-Half Momentum

    Prestige and Above net sales value grew 7.8 per cent over the full first half of financial year 2027. That performance lifted company-wide half-year net sales value by 4.2 per cent to Rs 5,961 crore.

    Management reported that stronger demand for local innovations was partially curbed by regulatory barriers in Maharashtra and logistics friction within export operations. Total volumes would have tracked higher without the supply interruptions overseas.

  • Vinarchy Appoints Nicole Battistessa as Managing Director for ANZ

    Vinarchy Appoints Nicole Battistessa as Managing Director for ANZ

    Vinarchy appointed former Nestlé and Unilever executive Nicole Battistessa as managing director for Australia and New Zealand earlier this year to overhaul how the wine group targets younger consumers.

    The appointment brings more than 20 years of packaged goods experience to a wine group formed barely 12 months ago.

    FMCG Playbook for Wine

    Battistessa joined Vinarchy after senior commercial roles across Nestlé, Unilever and Kimberly-Clark. Her remit focuses on importing standard fast-moving consumer goods discipline into a domestic wine market long shaped by heritage branding and traditional cellar-door distribution.

    Wine producers across Australasia face falling consumption rates among legal-drinking-age consumers under thirty-five. Beer, ready-to-drink spirits and zero-alcohol substitutes have steadily taken retail shelf space from mid-tier wine labels across major retail banners.

    Portfolio Modernisation

    Vinarchy manages a blended portfolio that combines heritage regional labels with newer commercial lines. Applying packaged goods discipline means tighter stock management, faster product development cycles and packaging formats tailored to grocery aisles rather than fine wine specialists.

    For liquor retailers and supermarket groups across Australia and New Zealand, dealing with FMCG-trained leadership usually means firmer volume targets, structured promotional calendars and data-driven category management. The operational friction sits between established winemaking cycles and the speed demanded by modern convenience retail.

    Category Pressure

    The Australian wine sector entered 2026 working through supply imbalances and shifting export patterns across Asia-Pacific. Domestic consumption volume has contracted as household budgets tightened and younger demographics diversified their alcohol spend.

    Winning those consumers requires rethinking entry-level price points, brand messaging and format sizing. Traditional 750ml glass bottles carry less appeal for casual social occasions than single-serve cans and lighter alcoholic alternatives.

    What to Watch

    Battistessa has completed her first seven months running the Australia and New Zealand operation. The next operational test will be the release of Vinarchy’s upcoming commercial product slate and retail ranging agreements ahead of the peak summer trading quarter.

  • Chalk Hill Wines Names Former Top Shelf Chief Trent Fraser as CEO

    Chalk Hill Wines Names Former Top Shelf Chief Trent Fraser as CEO

    Australian producer Chalk Hill Wines named former Top Shelf International executive Trent Fraser as chief executive officer on Monday. He brings two decades of premium drinks leadership to the business.

    Fraser spent four years at ASX-listed distiller Top Shelf International, leading operations as chief executive for two years. He now takes charge of commercial strategy at Chalk Hill.

    Luxury drinks veteran takes charge

    Prior to joining Top Shelf in 2021, Fraser spent 11 years at French luxury conglomerate Moët Hennessy. He served as global chief executive for Volcan De Mi Tierra Tequila. He also worked as vice president of prestige champagne house Dom Pérignon. Those roles gave him direct oversight of international distribution channels across the Americas, Europe and Asia.

    At Chalk Hill, Fraser partners directly with managing director Tom Harvey. The family-owned wine business was established in 1964. It produces estate-grown wines across multiple vineyard sites in South Australia. The new leadership structure pairs traditional viticultural assets with an executive experienced in scale distribution and premium brand marketing.

    Shifting dynamics in premium wine

    Wine producers across Australia face tight domestic retail competition and shifting export patterns in major regional markets like China, Japan and Southeast Asia. Independent wineries rely on premiumisation to protect gross margins against rising production costs. Chalk Hill is aligning its executive team around commercial operators who understand high-end hospitality and overseas accounts.

    Fraser’s background in global spirits distribution changes how the South Australian maker can position its portfolio against corporate wine groups. Smaller independent labels frequently struggle to secure overseas shelf space without multinational sales networks. Bringing in an executive with Moët Hennessy credentials signals a sharper push toward premium tiering and select export programs.

    Building beyond spirits turnaround

    The appointment returns Fraser to the wine sector following a turnaround period at Top Shelf International. He relocated to Australia in 2021 to build out Top Shelf’s agave and whisky operations in Queensland and Victoria before taking the top post. His move to Chalk Hill shifts his focus from emerging Australian craft spirits to an established regional wine label.

    Next, the company plans to outline its initial joint operational priorities with managing director Tom Harvey before the vintage harvest cycle begins.

  • Metcash Boosts Sales 2.8 per Cent but Warns of Food Margin Pressures

    Metcash Boosts Sales 2.8 per Cent but Warns of Food Margin Pressures

    Wholesaling giant Metcash lifted sales by 2.8 per cent in the first 18 weeks of the financial year, excluding tobacco, but warned investors that elevated food inflation could dent profit margins.

    Hardware and tools led the gains with a 6 per cent rise, while wholesale liquor climbed 5.1 per cent over the same period.

    Hardware and Drinks Outpace Core Food

    Core food expanded 2.6 per cent against the previous year, with group chair Peter Birtles noting that cost inflation continues to challenge the company’s bottom line.

    Logistics and retail expenses stayed elevated. Supply lines held stable, however, with no material disruption from Middle East shipping conflicts.

    Birtles told investors that Metcash’s “diversified portfolio, disciplined execution” and independent retail model have supported resilience despite external challenges.

    Cost Pressures Squeeze Independent Grocers

    For independent supermarkets, rising wholesale prices present a direct dilemma. Passing costs to shoppers risks losing market share to dominant chains. Absorbing them erodes thin retail margins.

    Margin pressure shifts the burden onto wholesale inventory. Distributors must lean on categories like trade hardware and commercial tools, where pricing flexibility beats daily grocery staples, to protect profits.

    New Zealand Liquor Exit Nears Completion

    Trading updates follow fiscal 2026 results of higher sales revenue but lower net profit. Warehousing and freight costs weighed on full-year earnings despite steady turnover.

    Metcash is now closing its New Zealand liquor distribution business to simplify operations and protect returns. The wind-down wraps up before the second half of fiscal 2027, reducing total earnings by approximately $2 million.

  • Vodka Reaches Record Share in India as White Spirits Surge

    Vodka Reaches Record Share in India as White Spirits Surge

    Vodka has taken a record share of India’s liquor market as demographic shifts push drinkers toward white spirits.

    Purchases by younger consumers and women are driving the category, altering demand patterns in a sector historically dominated by commercial whisky.

    Shift toward white spirits

    Distillers are adjusting their product mixes to capture changing consumer tastes across retail stores and bars. Radico Khaitan expanded its vodka operations over the past five years to secure stronger positions in urban retail channels. The change pulls volume away from entry-level brown spirits into clear, mixable drinks.

    Premiumisation drives portfolio overhaul

    Spirits makers are overhauling existing product lines to protect operating margins against rising bottling and raw material costs. Radico Khaitan upgraded its whisky portfolio into higher price bands, cutting its exposure to mass-market commodity liquor. Liquor retailers across India are allocating more shelf space to premium white spirits as manufacturers phase out unprofitable lower-tier labels.

    Investors and distributors now await next quarter’s sales filings to assess how volume gains in premium vodka balance margin declines in mass-market spirit lines.

  • Chris Hemsworth Buys Stake in Archie Rose Distilling Co

    Chris Hemsworth Buys Stake in Archie Rose Distilling Co

    Australian actor Chris Hemsworth has acquired an equity stake in Archie Rose Distilling Co, partnering with founder Will Edwards to finance an international retail rollout.

    The Sydney-based spirits producer plans to use the capital injection to enter the United States later this year while introducing three new whiskies across Asia and New Zealand.

    Global push from Sydney

    Hemsworth will work directly on product development at the distillery alongside his co-ownership role. The collaboration focuses on blending three distinct whiskies tailored for regional export markets.

    Archie Rose has built its business on botanical gins, single malts, and rye whiskies in Australia. Securing high-profile backing reflects a broader push by independent Australian craft distillers to secure distribution shelf space in high-margin Asian retail channels and premium hospitality venues.

    Whisky demand in Asia

    Regional consumers across Southeast Asia and East Asia continue to trade up into premium and craft brown spirits. Independent distillers often struggle against established global liquor conglomerates for retail distribution in major commercial hubs without significant marketing support.

    The company plans to complete its initial US market entry before rolling out the three Hemsworth-backed whisky releases to Asian retail partners in the coming months.

  • Champagne Bureau Australia Launches Education Prize for Wine Retailers

    Champagne Bureau Australia Launches Education Prize for Wine Retailers

    Champagne Bureau Australia has launched the Champagne Education Prize for early-career hospitality and fine wine retail staff. Australia ranks as the world’s seventh-largest Champagne export market.

    The training scheme targets frontline workers. It combines technical category study with direct travel to France.

    Focus on frontline wine sellers

    Organisers view sommeliers, bartenders and fine wine retail employees as the primary channel for introducing Australian consumers to the category. The program aims to deepen their technical knowledge through direct interaction with shoppers and restaurant diners.

    Selected participants will travel directly to the Champagne region for on-the-ground study.

    Australia holds seventh place globally

    Sustaining demand across Asia-Pacific liquor retail channels relies heavily on trade education. Premium wine distributors face stiff competition from domestic sparkling producers for shelf space and wine list placements.

    Intake dates and selection details for the inaugural cohort will determine when the first group of Australian trade professionals heads overseas.

  • Australian Grape & Wine Chief Executive Lee McLean to Step Down

    Australian Grape & Wine Chief Executive Lee McLean to Step Down

    Australian Grape & Wine chief executive Lee McLean will step down next month after eight years with the national industry body.

    McLean took the helm in 2022 following five years as general manager of government relations. He brought more than a decade of background in agricultural policy, trade negotiations, and international relations to the peak industry group.

    Leadership transition

    The departure concludes McLean’s four-year leadership term as chief executive, during which he represented Australian grape growers and winemakers through complex regulatory and trade shifts across regional export markets.

    “I’ve given this role everything I have, and I know it’s the right time to step away and allow space for fresh thinking and leadership,” McLean said.

    Trade and policy tenure

    Prior to his appointment as chief executive, McLean directed government relations for five years, shaping industry advocacy on market access and domestic policy. His tenure coincided with major trade adjustments for Australian wine exporters, particularly across key destinations in the Asia-Pacific region.

    The organisation will outline its leadership succession plan ahead of McLean’s formal departure date next month.

  • Australian Spirits Industry Outraged as Tax Relief Measures Favor Beer Over Liquor

    Australian Spirits Industry Outraged as Tax Relief Measures Favor Beer Over Liquor

    In Australia, the spirits industry is set to miss out on tax relief measures currently extended to the beer industry, following a failed debate on alcohol taxation in the Senate.

    The Failed Amendment

    An amendment proposed to extend the excise freeze, currently applied to draught beer, to tap spirits was voted down by the Labor and Greens parties. In addition to this, the amendment suggested a review of the alcohol tax system. The proposed changes, which received support from the opposition and several independent senators, would have served as a cost-of-living measure for patrons of pubs and clubs if approved.

    Steven Fanner, executive director of Spirits & Cocktails Australia, expressed disappointment at the outcome, stating that the amendment had the backing of consumers and also encouraged a review of alcohol taxation in the country.

    He was quoted as saying, “To see the amendment voted down without its supporters even being provided the opportunity to debate it in the Senate is disappointing.” He found it perplexing that the Greens opposed a review of the alcohol tax, considering that tax reform has been part of their policy platform for years.

    Call for Tax System Review

    Industry representatives continue to advocate for a reevaluation of the tax system, highlighting the stark contrast in taxation between different types of alcohol. For instance, a consumer purchasing a gin and tonic is taxed almost three times more than a beer drinker, and up to eight times more than a wine drinker. Fanner believes this system reflects outdated consumption patterns and fails to align with the current market conditions.

    Spirits are increasingly becoming a significant part of the product mix offered in bars, clubs, and smaller venues. The excise on spirits is adjusted bi-annually, and after the most recent adjustment in February, the tax collected on a standard 700ml bottle of gin or whisky stands at about $32.

    During the promotion of the draught beer excise freeze, Government MPs stated that the policy was intended to alleviate cost-of-living pressures and support hospitality businesses. According to Fanner, however, the current measure is only applicable to beer, not all alcohol categories.

    Questions & Answers

    What was the proposed amendment to alcohol taxation in Australia?
    The amendment proposed to extend the excise freeze currently on draught beer to tap spirits. It also called for a review of the alcohol tax system.

    What was the outcome of the debate on the amendment?
    The amendment was voted down in the Senate, with the Labor and Greens parties opposing it.

    What is the current state of alcohol taxation in Australia?
    Currently, the excise freeze is applied only to beer. A gin and tonic consumer pays nearly three times the tax a beer drinker pays, and up to eight times more than a wine drinker. The excise on spirits, which is adjusted twice a year, currently stands at $32 on a standard 700ml bottle of gin or whisky. Industry representatives are calling for a review of this system.

  • DoorDash Expands Aldi Partnership: Liquor Delivery to NSW and Victoria, Special Buys Nationwide!

    DoorDash Expands Aldi Partnership: Liquor Delivery to NSW and Victoria, Special Buys Nationwide!

    Starting January 21, Aldi customers in New South Wales and Victoria will have the option to purchase the retailer’s exclusive range of alcoholic beverages via DoorDash. This new service is a part of the ongoing partnership between Aldi and DoorDash, which was established a year ago.

    Expanding Delivery Options

    In addition to alcoholic beverages, Aldi’s popular Special Buys will also be available for nationwide delivery from most store locations through DoorDash. This move is in line with the company’s efforts to make more of its products conveniently accessible to customers.

    Simon Padovani-Ginies, Group Director at Aldi Australia, has emphasized the company’s commitment to making as much of Aldi’s offerings as possible available for delivery. The inclusion of their exclusive liquor range for shoppers in New South Wales and Victoria, as well as the nationwide availability of Special Buys, means that more customers will be able to access Aldi’s high-quality, low-cost products from the convenience of their homes.

    Improving Customer Experience

    This move is not just about expanding product availability – it’s also about elevating the customer experience. With the current pandemic, online shopping has become the norm and businesses that offer home delivery services are increasing in popularity. By offering delivery of their exclusive liquor products and Special Buys, Aldi is catering to the evolving needs of its customers, making shopping more convenient and stress-free.

    Questions & Answers

    When will Aldi customers in New South Wales and Victoria be able to purchase liquor products via DoorDash?
    Starting January 21, Aldi will offer delivery of its exclusive liquor products to customers in New South Wales and Victoria through the DoorDash service.

    What other products will Aldi make available for delivery via DoorDash?
    In addition to its exclusive range of alcoholic beverages, Aldi will also make its popular Special Buys available for nationwide delivery from most store locations.

    What is the aim of this new service?
    The new service aims to make shopping more convenient for Aldi customers. It is also a part of the company’s efforts to cater to the evolving needs of consumers in the current pandemic climate, where online shopping and home delivery services have become increasingly relevant and popular.

  • Western Australia’s New Liquor Law Reforms: A Toast to Hospitality Growth and Enhanced Tourism Experience

    Western Australia’s New Liquor Law Reforms: A Toast to Hospitality Growth and Enhanced Tourism Experience

    The recently approved revisions to liquor laws in Western Australia are set to streamline processes, reduce bureaucratic hindrances, and inject vitality into the region’s liquor, tourism, and hospitality sectors.

    Enhancements to Alcohol Service and Trading Hours

    The legislation overhaul permits licensed establishments such as hotels, taverns, small bars, and alcohol manufacturers to offer alcoholic beverages with or without an accompanying meal on notable public holidays such as Good Friday and Christmas Day. Furthermore, the trading hours on these holidays, as well as on Anzac Day, will see an extension of up to four hours, permitting operation from 10 am to midnight.

    Introduction of Digital ID Checks

    In alignment with modern technological trends, the Liquor Control Act 1988 will also integrate digital ID checks into its enforcement mechanism. However, the law stipulates that digital evidence such as photographs or screenshots of IDs will not be deemed acceptable.

    Reducing Paperwork and Boosting Growth

    As part of the drive to slash red tape, the new laws will eliminate the need to renew extended trading permits, thus reducing paperwork and related costs for business operators. Small bars stand to benefit from these changes, as the legislation raises their patron capacity limit from 120 to 150.

    Expanding Product Range and Strengthening Penalties

    The reforms also broaden the scope for spirit producers, enabling them to produce a wider array of products, including ready-to-consume beverages like hard seltzers. To address potential alcohol-related issues, the Banned Drinkers Register (BDR) will become a permanent measure in Kimberley, Pilbara, Goldfields, Carnarvon, and Gascoyne Junction. The law will also amplify penalties for unauthorized alcohol sales and distribution.

    According to Racing and Gaming Minister Paul Papalia, these reforms echo the government’s dedication to facilitating business operations in Western Australia. He underscored the legislation’s dual benefit for businesses and customers, stating, “We’re backing growth in tourism, hospitality and the night-time economy with a modern liquor licensing system that works for both businesses and patrons.”

    Questions & Answers

    What are the key changes in Western Australia’s new liquor law reforms?
    The primary changes include extended trading hours on public holidays, introduction of digital ID checks, eradication of extended trading permit renewals, increase in customer capacity at small bars, and expansion of the product range for spirit producers.

    How will the reforms affect small bars?
    The reforms will ease administrative burdens for small bars by dispensing with the need for extended trading permit renewals. They will also allow for an increase in customer capacity from 120 to 150.

    What measures will be taken to address potential alcohol-related issues?
    The reforms will make the Banned Drinkers Register (BDR) a permanent feature in certain areas, and also strengthen penalties for illegal alcohol sales and distribution.

  • Metcash to invest $70 million in new Vic DC

    Metcash to invest $70 million in new Vic DC

    Metcash, the Australian wholesaler and distributor for brands like IGA, Mitre 10, Foodland and more,  has today announced a new distribution centre (DC) planned for Truganina, Victoria alongside the release of its FY22 results detailing a rise in revenue and earnings.

    The approximately 115,000sqm DC will replace the company’s existing Laverton, Victoria facility and will cost Metcash around $70 million to set up, with $20 million scheduled to be incurred in FY23.

    Metcash, which signed a long-term lease with the Goodman Group (ASX: GMG) for the construction of the Truganina DC, says the facility will improve the competitiveness of its independent retailers in Victoria through delivery efficiencies and by providing them access to a wider range of products.

    The DC will house products for both MTS’ food and liquor pillars, and will be equipped with automation to suit the company’s retail network.

    “We are delighted to be able to announce this significant long term investment for our independent retailers in Victoria, which is a reflection of our continued focus on championing their success,” Metcash CEO Doug Jones said.

    “Supporting our decision to proceed was the success of our new DC at Gepps Cross in South Australia, which has been operational since December 2020, as well as strong growth in both our Food and Liquor pillars in Victoria and the recent renewal of a long term agreement to supply Foodworks stores.”

    The announcement coincides with the release of Metcash’s FY22 financial results, detailing an 18.6 per cent rise in underlying profit after tax to $299.6 million.

    In addition, earnings rose by 17.7 per cent to $472.3 million, while revenue grew by 5.9 per cent to $15.2 billion.

    On a statutory basis, MTS’ profit after tax was up by 2.7 per cent to $245.5 million which the company says was backed by strong sales and earnings in all divisions sustained by a shift in consumer behaviour.

    The large difference between underlying and statutory profit can be explained by $22 million for Project Horizon which includes refurbishing stores, expanding e-commerce and cutting costs, as well as $27.6 million in acquisition costs, primarily oriented towards the hardware division.

    Jones said he was pleased to present the FY22 results, his first as group CEO.

    “The results are outstanding, another record year, and represent continued progress on the exceptional performance in FY21,” Jones said.

    “The number of external challenges increased in the second half and our supply chain and retail operations, both our own and those of our retail partners, exhibited significant resilience and flexibility. There were more lockdowns due to the Omicron COVID variant, major supply chain challenges, flooding in South Australia, New South Wales and Queensland which resulted in supply route disruptions, and towards the end of the financial year challenges related to Russia’s invasion of Ukraine and lockdowns in China.

    “A strategic investment in inventory, the flexibility of our operations and the outstanding efforts of our people helped our retailers to keep their shelves stocked and continue serving their local communities through these challenges. A testament to our people and independent retailers is that our focus on keeping shelves stocked did not materially hinder the continued successful execution of our MFuture [growth project] initiatives.”

    Jones said the company’s retail networks in food, hardware and liquor performed well, with sales increasing approximately 3 per cent in the IGA retail network, 20.5 per cent across hardware (which includes Mitre 10, Home Hardware and Total Tools), and 8.7 per cent in the liquor network.

    “Importantly, retailers are increasingly reinvesting in their stores, further improving the quality of their network primarily through the various store upgrade programs we support,” Jones said.

    “We also further strengthened relationships with our independent retailers and were pleased to recently announce long term agreements to continue supplying Foodworks stores and Drakes Supermarkets in Queensland.”

    MTS says forward momentum going into FY23 has helped push group sales up 9 per cent in the first seven weeks of its new financial year commencing on 1 May, partly buoyed by the impact of inflation.

    “While elevated inflation has continued into 1H23, there is uncertainty over the level of inflation going forward, as well as how the impact of inflation and other cost of living increases may impact consumer behaviour in the retail networks of our pillars, and Metcash,” Metcash said.

    “We are continuing to work closely with our suppliers and retailers to help shoppers manage the impact of inflation by providing better value options through offering a wider range of products at competitive prices.”

  • Liquor industry wants tax increase delayed

    Liquor industry wants tax increase delayed

    Liquor companies want the proposed increase in special consumption tax put off until they recover from the effects of the Covid-19 pandemic. The government plans to hike the taxes on beer, liquor, and cigarettes from now until 2030 and is still considering by how much.

    The current rates are 65 percent on beer and 35-65 percent on liquor. Nguyen Van Viet, chairman of the Vietnam Association of Beer, Wine and Beverages (VBA), said the two years of Covid caused beer sales to drop by 20 percent or one billion liters.

    Around half of all breweries and distilleries saw revenues and profits fall in 2020 and 2021, according to a survey by the Central Institute for Economic Management (CIEM). Over 79 percent of them tried to cut costs, and 58 percent postponed expansion plans and laid-off employees.

    It is estimated that 4-7 percent of workers were laid off, and the rest saw their incomes reduce by 7-10 percent. Though the situation has improved thanks to the reopening of the economy this year, the industry is unlikely to see profits rise as input costs have risen to historic highs.

    Gasoline and malt prices have increased by 50 percent, and that of beer cans by 30-40 percent. Holly Bostock, corporate affairs director of Heineken Vietnam, said any increase in special consumption tax would add to the burden on the beverage and tourism industries, while what they need now are stability and support.

    Phan Tuan Khai, a lawyer for the VBA, said the government needs to come up with a new tax mechanism that would help businesses but also generate more tax instead of just increasing the rates. Economist Ngo Tri Long said a tax hike would exhaust businesses.

    Long said a new mechanism that taxes products with higher alcohol content more would be fairer and more transparent than the current tax mechanism and encourage people to drink responsibly. Taxation by alcohol content is done in Singapore and European Union countries.

    A study by the CIEM from 2010 to 2018 found that despite increases in alcohol tax, consumption actually rose from 6.6 liters per capita per year to 8.3 liters.

    A 2019 study by Lancet, a British medical journal, found Vietnam among the world’s top beer-consuming countries and a 90.2 percent rise in drinking per capita between 2010 and 2017.

  • Russian liquor pulled from shelves in response to invasion

    Russian liquor pulled from shelves in response to invasion

    British Columbia is removing Russian spirits from liquor store shelves, and putting a halt to importing more, in solidarity with Ukraine as Russia continues to wage war on the country.

    “Our province stands with those who understand Europe’s peace following two world wars depends on respecting international law,” Deputy Premier Mike Farnworth said in a media release Friday afternoon.

    Premier John Horgan says efforts are underway to help the people of Ukraine after the Russian invasion began this week.

    “My intergovernmental officials are working with Ottawa to see what we can do with respect to sanctions and what we can do with respect to providing safe harbour for those that are fleeing with the violence that’s been beset upon them by a government that has clearly lost its way.”

    Farnworth said the province is donating $1 million to the Red Cross campaign in support of Ukrainian people.

    Several provinces pulled Russian products from liquor store shelves Friday as a sign of solidarity with Ukraine.

    Opposition Leader Kevin Falcon called for the removal of Russian liquor from B.C. store shelves Friday morning.

    “What is going on in Ukraine is so totally unacceptable to all our democratic values and the things we hold dear,” he said.

    “I just think the province of British Columbia needs to do everything we can do to lend our support against those that are supporting Putin.”

  • DoorDash bets big on liquor deliveries

    DoorDash bets big on liquor deliveries

    DoorDash will offer beer, wine, and spirits through the DoorDash Marketplace in 20 U.S. states and Washington, D.C., as well as Canada and Australia, the company announced on Monday. Customers will be able to order alcohol offerings from grocery stores, restaurants and other local merchants through a new “Alcohol” tab in the DoorDash app.

    Alcohol delivery exploded during the pandemic as COVID-19 restrictions shifted happy hour from bars and restaurants to people’s homes. Lawmakers in many states temporarily relaxed regulations to make alcohol available for home delivery and pickup. E-commerce made up just 1% of U.S. alcohol sales by retailers in 2019 by volume but is expected to grow to 7% by 2024, according the Wine & Spirits Wholesalers of America, an industry trade group.

    The boom has created an opportunity for delivery giants like DoorDash and Uber Eats to capitalize on the higher-margin category. It’s also a boom for restaurants as adding alcohol could increase average order values by as much as 30%, according to DoorDash Chief Operating Officer Christopher Payne. “It’s a win-win for everyone. Customers have a wider selection, restaurants can achieve greater sales and Dashers can earn more,” he said.

    The San Francisco-based company commanded 57% of the food-delivery market as of August and has seen sustained growth across segments even as indoor dining has resumed. The dedicated alcohol operation, which counts more than 10,000 retailers, will also benefit from DoubleDash, a feature that lets customers shop from multiple stores and bundle them into a single order. DoorDash’s move heats up the competition with Uber, which purchased on-demand alcohol delivery app Drizly for $1.1 billion in February.

    Because regulations around alcohol delivery differ city-to-city, the new offering will be available only in select markets. DoorDash has ramped up its lobbying efforts alongside the restaurant industry and have seen “great traction” as legislators have been keen to help businesses that were battered when the pandemic shuttered eateries, Payne said.

    DoorDash will employ ID verification prior to checkout and by couriers before delivery to ensure customers are 21 years old or older, the company said in a statement.

    The company has been delivering alcohol from restaurants and through its Drive service, which handles orders from a merchant’s website rather than through the regular DoorDash Marketplace app.