The Hindu Business Line : UP beckons tipplers with Model Shops

THERE is some cheer for the much-maligned alcoholic beverage industry in the heartland of the country. The Uttar Pradesh Government, in its latest excise filings, has envisaged setting up of 150 Model Shops, extending its "progressive approach" to this sector in recent years.

The State excise policy for the financial year 2004-05 indicates a resolve to move ahead with the Model Shop concept, which has already made a beginning in the last few months of the current financial year. While setting a target of 150 shops for the next year, the Excise Department has listed out four conditions that are required for Model shops.

This include a minimum carpet area of 600 sq ft air-conditioned premises, shops should be located in commercially approved areas and must have a toilet facility. "Anyone who fulfils these conditions can apply for a Model Shop with the district excise officials," Mr Ravi Mathur, Principal Secretary, Excise Department, Government of Uttar Pradesh, said.

In a bid to get the concept moving, the department has structured the licence fee for Model shops according to the size of the markets in which they operate and has decided on allotment for five years.

The annual licence fee for Model Shop in metropolitan (district) towns is kept at Rs 20 lakh and in the case of other towns at Rs 8 lakh.

Further, these shops are allowed to serve Indian Made Foreign Liquor (IMFL), beer including draught and other low-alcohol beverages at an additional fee of Rs 50,000.

The industry, which is still struggling to exorcise the demons of prohibition in the country, has lapped up this State initiative aimed at giving a facelift to the trade, which is often carried out from small dingy outlets.

"The impressive aspect here is that State action is not tentative," said Mr Vinod Giri, Director, Marketing, Shaw Wallace Breweries Ltd.

Mr Ashwin Malik, Chief Operating Officer (North), UB Spirits Division (UBSPD), said, the Uttar Pradesh Government's move would help in "uplifting the shopping and drinking experience of the consumers."

This could increase sales through these shops as it normally happens when the consumer gets a better experience, he argued.

These shops with good décor offer better avenues for in-store brand building through sinages and other POP materials, Mr Malik said. Incidentally, the shops are also allowed to undertake retailing of accessories like glasses providing another channel for surrogate branding for the spirits companies.

Uttar Pradesh, with annual IMFL and beer sales of four million cases each, has witnessed what Mr Mathur and other State officials claim as "pathbreaking" excise moves in the last four years that included delinking of country liquor, IMFL and beer from each other for the purpose of taxation and retailing.