Financial Times

Beer industry against proposed govt. prohibition on supermarket sales
By Duruthu Edirimuni
The possibility of a prohibition on selling liquor at supermarkets, has prompted the liquor industry to allege the government is creating a climate of asceticism. Beer manufacturers are going to get hit hard if the authorities implement such a plan.

Chandana Ukwatte, chairman of Three Coins, told The Sunday Times FT the proposed ban on liquor sales at supermarkets is yet to be implemented, but even if it were there is very little they could do about it. "As a policy we do not protest individually or collectively," he said, adding that it is futile to make representations to the government. This prohibition is being contemplated by the government because supermarkets are placed too close to places of worship and schools and fears that it would promote disrespect and make it easier for school going youth to get alcohol. "Supermarkets are critical to establishing beer as a functional and tasty alcoholic beverage and beer is sold in settings similar to dispensaries, which encourages the idea of beer as a low end commodity for which manufacturers should ruthlessly compete," Ukwatte said, emphasising that a ban on supermarket sales will affect sales of the company's value added beers.

A Three Coins statement said the alcoholic beverage industry is in a situation in which it is being allowed to be consumed by regulatory insanity. "An environment provoked by the desperate ethic of asceticism rooted in the fear of desire and fed on a sense of despair and impotence." If this is taken seriously, it would be difficult to admit informed discussions on the value of functional alcoholic beverages like beer, it added.

Suresh Shah, CEO of Ceylon Breweries Ltd, manufacturers of Lion's Beer and licensed brewers of Carlsberg, said a ban on liquor in supermarkets will affect the company's bottom line very badly. "In Sri Lanka as long as people drink behind closed doors, no one is concerned, but the moment it is done in the open, albeit responsibly, there is a vociferous minority, making a fuss about it," he said. "This is absolute hypocrisy," he said adding "the culture of drinking in hiding also leads to irresponsible consumption."

He said drinking behind closed doors also promotes the consumption of illicit alcohol as few would want to admit to consuming this type of liquor. The alcohol content in beer is at four percent and illicit liquor 35 percent.

"No government so far has had the guts to reform the country's alcohol policies and bring them in line with international norms," he declared, adding that successive governments continue to listen to a vocal minority, allowing the country's alcohol problem to grow to frightening proportions.

Gladwyn Anandappa, CEO, United Breweries Lanka Ltd., said beer should be allowed to be sold in supermarkets as it is considered a soft liquor. "Banning supermarket sales will definitely affect the bottom line of beer companies," he said, adding this will hamper the industry's growth, which currently stands at three to four percent. Beer has a six percent stake while illicit liquor has an overwhelming 64 percent in the alcohol market.

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