Industry mood upbeat for 2022

Considering the daunting odds, the Black Swan period has taught us many things; it induced us to change the way we think and work, and compelled us to relook at both our business strategies and focus areas. No one is sure what 2022 augurs for us even as clouds of uncertainty have brought out the best among a good many alcobev industry players in India. Home-based drinking has thrown up new opportunities and industry players very well know the show has to go on, since there are no full stops in life.

In this backdrop and as a reflection of what India’s alcobev industry faced since March 2020, we reached out to industry leaders to understand their thoughts and plans in keeping in mind the uncertain future. Just when we thought the pandemic was easing out, in came Omicron, a highly transmittable virus, whose infection is now thankfully showing signs of abating in India.
It is in this complex background that we wanted to know the industry players’ overall outlook for 2022. We also wanted to know what precautions they will bear in mind and what bold decisions they are likely to take.

According to an IWSR drinks analysis report, consumers are increasingly comfortable with returning to the on-trade, especially the millennial and Gen X cohorts. E-commerce has developed into a sophisticated and nuanced channel, and digital engagement has become a crucial part of the customers’ journey. As e-commerce and the on-premise grow in strength, structural long-term changes to the off-trade B&M will present a very different beverage alcohol market landscape for India in the years to come.

Many industry players are not fazed by the extended Corona pandemic and their never say die attitude has offered fresh avenues for the year 2022. Most players sound upbeat about their prospects in 2022. While many other industry players have decided to introduce new products, improve operational capabilities and are putting in place a more efficient procurement system since they are thinking that the worst of the pandemic seems to be over. There is a wave of enthusiasm apparent among distillery owners and packaging giants in the country; taking calculated risks has become the order of the day among many of them.

Most alcobev industry people in India whom we interviewed to understand their prospects for 2022 were found to be upbeat about taking risks. Having learnt harsh lessons from the lockdowns, many of the companies are hopeful of a good 2022 for the entire industry; creating more consumer experiences and interactions at key touch points.

Many players’ strategies are to take calculated risks and focus on premium and luxury products. It is also said that difficult situations bring out the best among entrepreneurs and many of the India’s alcobev players seem to be positive about what the future has in store for them. The positive attitude has begun to provide stimulus for many players in India’s alcobev industry and this is bringing out the innovative best in some of them. They have learnt to navigate the worst period and today are sounding more confident since they learnt to survive during the pandemic.

Striking a more positive note, one industry player says Covid-19’s economic impact has ignited a rethinking of many traditional assumptions about work. While embracing innovations and engaging with bold players, India’s alcobev industry is willing to fight it out to restore parity and balance.

Our Cover Story lends many new industry dimensions on how to go through a more risk-averse year and come up with a workable strategy for 2022. And yes, don’t forget to explore the responses to the template-driven bucketful of choices, which we asked our respondents leaders to share with our readers.