Liquor sales down to 60% due to drunk driver checks

KATHMANDU, AUG 11 -

Liquor sales in the Kathmandu valley have dropped sharply due to the anti-drunk driving campaign being carried out by the police. Traders said that sales had plunged by more than 60 percent resulting in massive losses to them. Sales of especially hard liquors like whiskey, vodka, rum and gin have gone down tremendously.

“Normally, liquor sales remain low during the period mid-July

to mid-August as it is a holy month for Nepali people, and ceremonies like marriages and life cycle rites are not held during this time,” said Sudhar Pradhan, president of the Federation of Liquor’s Association of Nepal (FLAN). “Moreover, the anti-drunk driving campaign being carried out by the police has furthered pushed down sales like never before.”  According to him, sales are down 60 percent in the Kathmandu valley and 40 percent in other parts of the country.

According to the association, the Kathmandu valley consumes 25,000 bottles of domestic liquors and 3,000 cartons of imported liquors monthly. Whiskey and vodka are the most popular alcoholic beverages in the country, followed by beer and wine.

According to Arjun Bhandari, managing director of Ray Global Trading which markets a number of wine and vodka brands, the dismal sales figure has now started hitting suppliers hard. “Initially, the impact was limited to retailers and restaurateurs. But now suppliers too are witnessing the effect, and the situation seems to be worsening day by day,” Bhandari said.

According to him, many traders are not collecting their imported consignments from the customs fearing losses. Two containers of alcoholic beverages imported by Bhandari’s company remain to be cleared from the customs. “The consignments are worth around Rs 8 million,” he said.

Falling sales have prompted some dealers to slash their profit margin. Ray Global Trading, which markets Mark Davidson wines and a number of other white spirits, have slashed prices by around 10 percent. “We have reduced the profit margin to make sure that all our stocks are cleared on time,” Bhandari said. He added that they were stuck with a huge stock of alcoholic beverages which were imported before the  anti-drunk driving campaign.

Traders said that business might worsen if the government continues the campaign without changing the checking system. According to Pradhan, they are not asking the government to stop the campaign but to conduct it in a scientific manner. “Many countries have such laws to control road accidents caused by drunk driving. However, they have a set specific limit regarding alcohol consumption,” Pradhan said. “But in Nepal, people are being fined after just smelling their breath. We have asked the government to specify the legal amount.”  

Apart from liquor traders, restaurant operators too have been feeling glum. According to the Restaurant and Bar Association of Nepal (REBAN), business during peak hours has gone down by almost 50 percent after the anti-drunk driving campaign. Even a shuttle service started by restaurants in Jhamsikhel and Thamel has failed to bring back customers.