Increasing liquor price by outwitting government system; strategy to outsmart Bevco making profit for companies

THIRUVANANTHAPURAM: Companies are reaping profit by introducing liquor in the market under a new name at a higher price replacing existing popular brands. The new strategy is to overcome the beverages corporation's constant rejection of the demand to increase the price of liquor. When liquor is issued under a new name, the companies will have to pay an excise fee only for its registration and label. The liquor companies are getting a good profit by making a change in the name and increasing the price.

At the same time, the companies claim that the new liquor is being introduced by improving the quality. The popular item Magic Moments vodka plain grey full bottle was priced at Rs 1,120. It gradually disappeared and was brought under the name 'Magic Moment Verve' with an increased price of Rs 1,420.

When the Contessa Premium was introduced in place of the Contessa Rum Dark, which was priced at Rs 400 per full bottle, it was priced at Rs 450. The price of SNJ normal rum was Rs 390 which was changed to Rs 400 when it was renamed Sixer. Beers are also coming out like this.

Strategy to outsmart Bevco

In the tender invited by Bevco for the supply of liquor, the company can quote the price of one litre per brand. The company cannot increase its price later. Only Bevco has the authority to do so. If the sales tax on liquor is increased in the budget, the price will go up accordingly but the company will not get the benefit of it. Companies are bringing the same brand of liquor under the new name to overcome this. Bevco had last hiked the price of liquor to companies in 2021. Rs 7 per litre.