The Hindu Business Line : It’s a party pooper for hospitality, liquor segments

New Delhi, Dec. 31 With slowdown and security concerns acting as party-poopers, the hospitality industry is going slow on its New Year binges this time round. “The mood right now is of caution and not of splurging,” said hospitality industry watchers.

Those who would bet their last buck on five-star revelries are now keeping a low profile. Bookings for New Year bashes are substantially lower this year; in some hotels the offtake has halved. “The traditional five-star goers this year prefer to ring in the new year at home or with friends, safely away from the crowds,” they said.

This in turn has led to a slump in liquor sales. On-premise consumption, in particular, has taken a 15-25 per cent hit. Gifting of premium wines has also seen a downward curve.

“A slew of corporate cancellations have impacted sales in star hotels. Gifting of liquor, which has been traditionally associated with the New Year period, is showing a 20 per cent slump,” said Mr Sumeet Saxena, Marketing Head, Focus Brands, which handles over 30 international brands.

Sales dip

“Traditionally, it is in the last two quarters when sales peak for most liquor companies and half of the sales are realised during this period. However, this year, the security concern and fewer parties are coming in the way of celebrations and in turn, showing a dip in sales,” Mr Amrit Kiran Singh, Chairman, Indian Spirits and Wines Association, and Head, Brown and Forman, said.

Mr Raju Vaziraney, COO, Radico Khaitan, says, “While there has been a spike in off-premise consumption, on-premise or bar sales are showing a 15-20 per cent decline as compared to last year.”