A World Cup sans beer 🍻

You need 3-5 minutes for today's edition

Tons of Red beer cans, Budweiser, Football, and disappointment. 

That is what went through the minds of millions of fans who came to witness the 2022 FIFA World Cup in Qatar. They had arrived in Qatar, and two days before the first match, soccer’s global governing body announced,

“No alcohol at the FIFA 2022 World Cup”. 

This was expected, and maybe in some ways, a consequence of hosting the World Cup in a conservative Middle Eastern monarchy; A simple case of the difference in cultures of Qatar and the rest of the world.

Budweiser’s association with FIFA was not new. Since the 1986 World Cup, Budweiser has signed a sponsorship agreement with FIFA, and fans have enjoyed the game with their favorite beer every year. And every 4 years, Budweiser pays $75 million as part of the distinct association. With the ban, however, they faced a significant crisis when FIFA said that the only drinks fans can drink will be non-alcoholic. Budweiser had to remove sales points from all places near the Qatar FIFA World Cup stadium. If it's any consolation, the sale of alcoholic beverages is allowed in other licensed fan destinations.

While some consider beer to set the stage clear to enjoy the match, others were shocked to hear the news of the ban. Some fans even deduced that the ban may have been because of domestic politics or the royal family's influence. Whatever be, fans must learn to have fun without the kick of alcohol.

Drinking back home

Putting this in context, the alcohol industry is considered rather important worldwide. The alcohol industry back home, in India, is a fast-growing market- even in global terms.

With a grossing market size of 52.5 billion USD in 2020 and an expected growth rate of CAGR 6.8% (2020 to 2023), the way seems up for the industry.

India’s ever-growing population rate makes way for 13 million drinking-age adults. Out of this, at least 3-5 million may be consumers of alcohol, one way or the other. This itself is evidence of the increasing consumption rate of alcohol. And it is no surprise that we are the third largest alcohol market in the world.

Bihar- Nepal alcoholic relation

Despite its popularity and contribution to the GDP, the industry doesn't have a clean slate. Domestic violence, crime, and depletion of earnings, many attempts have been made in the country to ban alcohol.

Bihar, under the leadership of Chief Minister Nitish Kumar and with the insistence of local women, banned alcohol in 2016. It did curb violence and crime. But alcoholics in the land decided to follow, ‘where there is a will, there is a way’ approach.

They knew that the gates of free travel were open with Nepal, with whom Bihar shares a border. And they decided to pay their respects and empty their pockets at the bars of Nepal. And Nepal welcomes them with open arms.

Alcohol consumers contribute to the government

While some states have banned alcohol, one of the states back home where the government thrives on profits from the alcohol industry is Kerala. The state excise collection is a whopping Rs. 2255.28 crores, and its sales tax is Rs. 10,332.39 crore.

Profits over profits, all from drinkers in the state. A week before Onam, the harvest festival of Kerala, in September, liquor sales saw record-breaking sales this year.

Sales raised to Rs. 624 crores, nearly 100 crores more than last year. In fact, the state takes the onus of the highest liquor sales tax at 254%. That is a win for the Kerala treasury.

The poor alcohol burden

But in simple terms, this simply means that a Bacardi Classic Super Rum(750 ml) is sold at an astounding Rs. 1240, which the Beverages Corporation purchases at Rs. 167.36.

It may be a sense of pride for the upper class, but the burden of taxes always falls on the poor. Whether the taxes are high or low, many in the lower strata of society are highly dependent on alcohol.

This means that even at high rates, alcohol is sort of a necessity for them, and therefore their earnings back home reduce by bounds. Leaving them to remain in the lower strata.

So what is the point?

We are a country of people who find joy and companionship in alcohol. While it is a routine for some, it is an element of occasional celebration for others. While it is a ritual to some, it is an antidote to others. And ban or no ban, people shall always find a way to alcohol.