Low-alcohol beverages: Bacardi had approached LDF government too; letter surfaces

THIRUVANANTHAPURAM: A letter sent by Bacardi to the previous LDF government seeking support for the sale of low-alcohol beverages has surfaced. The letter surfaced at a time when the Left has intensified its protests against the budget proposal to reduce taxes on such products.

The letter was addressed to M.V. Govindan, who was the Excise Minister in the second Pinarayi Vijayan government. Bacardi had requested that its low-alcohol products, Bacardi Breezer and Bacardi Plus, be included in the category of beer and wine. The company's Kerala senior manager sent the letter on September 17, 2021. It was forwarded to the Tax Department Secretary the next day for examination and submission of a report.

Palakkad-based SDF Industries had also submitted a similar request. Clubbing these identical requests together, the government called for an in-depth report to establish a clear definition for low-alcohol beverages.

Company described products as "women-friendly beverages"
The letter stated that the products would benefit the tourism sector. It also claimed that Bacardi Breezer and Plus are popular at corporate events among people across genders. The company said that since such women-friendly beverages were not available in Kerala, several events had shifted to Goa and Puducherry. The letter also referred to the Justice Udayabhanu Commission report, which suggested increasing the availability of low-alcohol beverages to reduce alcohol addiction.

The company requested that the existing liquor categories include a separate category for low-alcohol beverages. In February 2023, it again sent a letter to then Tax Secretary Rathan Kelkar with the same demand. The company sought tax concessions for the sale of low-alcohol beverages after the state introduced legal amendments allowing such products.