Good news for the alcohol industry! Beer sales are doing better than other drinks, thanks to more parties and weddings happening like before COVID, says Nuvama Institutional Equities.

Nuvama’s report says that the alcohol business is getting back on track, making more money in 2023 because they’re making better choices in what they sell.

Abneesh Roy from Nuvama says that before COVID, beer was more popular than other drinks because people thought it was healthier. He adds that worldwide, more people buy beer than other drinks, but in India, the rules for taxing beer and other drinks are different.

Shares of liquor manufacturers like United Spirits, Radico Khaitan, and United Breweries have gained 12-28% over the last six months.

Roy predicts that in the next one to three years, beer will grow even more. JK Arora, who runs Som Distilleries, thinks that more people are buying both beer and Indian-made foreign liquor (IMFL) because of how people act after COVID.

Arora explains that before COVID, people were careful with money, but now they spend more on things like travel, holidays, drinks, and food. Som Distilleries expects to make more than ₹1,200 crore this year.

Companies like United Spirits, Radico Khaitan, and United Breweries have seen their stock prices go up by 12-28% in the last six months.

Roy is hopeful about beer companies doing well, thinking they’ll make more money as the cost of barley, a key ingredient, goes down. Nuvama thinks United Spirits and Radico Khaitan will lead the way, making about 43.6% profit, and United Breweries will be close behind with 40.6% profit.

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The above news was originally posted on news.google.com

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