New Delhi alcohol policy: AC sales, upscale stores, alcoholic beverage discounts
The Delhi government on Monday released its excise policy for 2021-2022 which provides for a uniform distribution of alcohol outlets in the city, including at least two air-conditioned vending machines in each municipal district, five super premium stores and 10 stores at Indira Gandhi International Airport.
The policy clearly states that the government will withdraw from the sale of alcohol through its companies such as Delhi Consumer’s Cooperative Wholesale Store Ltd (DCCWS) and Delhi State Industrial and Infrastructure Development Corporation (DSIIDC). Licenses from existing retailers are valid until September 30.
The government has issued tenders to set up retail sales under the new policy, which will not allow alcohol manufacturers or wholesalers to bid for retail stores and vice versa. This was done to prevent “the formation of unions leading to overcharging and brand influence / promotion by entering into exclusivity agreements with some brands at the cost of excluding others”.
According to the policy, the city’s 272 municipal wards have been divided into 30 zones. Each zone – with nine to 10 wards – will have a maximum of 27 distributors, with an average of three distributors in each quarter. The licensee for each zone will be required to operate at least two vending machines in each district.
The total number of sales, however, will remain at 849, but more evenly distributed. Of the total number of stores, 276 are managed by the private sector according to the agreements in force.
There will be 29 outlets in NDMC and Delhi cantonment areas and 10 retail outlets at the airport. Airport stores will be allowed to operate 24 hours a day. “Every sale must offer a walk-in experience and be designed accordingly. For example, customers will not be allowed to crowd outside a store or on the sidewalk and buy at the counter. Each customer must have access to the interior of the sale and the entire selection and sale process must be carried out on the premises of the sale. The vendor has closed glass doors and must be air conditioned and well lit… The license holder will ensure that no dry snacks or ready-made food outlets are open just outside the store. which encourages people to drink and hang out in the store itself, ”the policy states.
Separate licenses will be issued for the five proposed super premium sales, which are expected to span 2,500 m² each. These high-end stores will be allowed to sell products only above Rs. 200 in the case of beer and above Rs 1,000 for all other spirits, including whiskey, gin, vodka. “Super Premium Vends can devote up to 10% of their space to the sale of ancillary products such as cigars, alcohol chocolates, etc., high-end art paintings, high-value merchandise such as as bottle openers, coolers, bar glasses, etc. the excise policy.
The price of alcohol brands will be decided after taking into account inputs from retail stores and taking into account the price of the product in neighboring states such as Haryana, Uttar Pradesh, Punjab and Rajasthan, states the policy document. Liquor prices are significantly cheaper in Haryana than in Delhi, resulting in widespread smuggling.
“The licensee is free to grant a concession, discount or discount on the MRP,” the policy adds. Currently, owners of liquor stores in Delhi cannot offer any discounts on the brands MRP.
“The current system of excise duty in Delhi is very cumbersome and the alcohol trade is conducted in an archaic manner. Excise revenue, currently generated in Delhi, is at a sub-optimal level and there is significant potential for increasing revenue and delivering a decent level of customer experience to match the national capital ”, the government wrote in the introductory policy segment. .