2014

Summer internship project on

Descriptive study on alcohol industry

Submitted to

Amity University, Uttar Pradesh

In partial fulfilment of the requirements for the award of the degree of

Bachelors In

Business studies - Business development By

Yamini gaur (A0650713020)

Under the guidance of Dr. Renita dubey

DEPARTMENT OF COMPETITVE INTELLIGENCE AMITY INSTITUTE OF COMPETITIVE INTELLIGENCE AND STRATEGIC MANAGEMENT AMITY UNIVERSITY, UTTAR PRADESH NOIDA (U.P.) 2014

DECLARATION

I, YAMINI GAUR, student of BBS-BD hereby declare that the summer internship project titled “descriptive study on alcohol industry” which is submitted by me to

Department of Competitive intelligence, Amity institute of competitive intelligence and strategic management, Amity University, Uttar Pradesh, Noida, in partial fulfillment of requirement for the award of the degree of bachelors of business studies, has not been previously formed the basis for the award of any degree, diploma or other similar title or recognition.

Noida

Date:

Name: Yamini Gaur

Roll No: A0650713020

CERTIFICATE

On the basis of project submitted by YAMINI GAUR, student of BBS-BD, I hereby certify that the project titled “descriptive study on alcohol industry” which is submitted to Department of competitive intelligence, Amity institute of competitive intelligence and strategic management, Amity University, Uttar Pradesh, Noida, in partial fulfillment of the requirement for the award of the degree of bachelors in business studies, is an original contribution with existing knowledge and faithful record of work carried out by him under my guidance and supervision.

To the best of my knowledge this work has not been submitted in part or full for any Degree or Diploma to this University or elsewhere.

Noida

Date:

Dr. Renita dubey

(Faculty Guide)

Amity institute competitive intelligence and strategic management , Noida

ACKNOWLEDGEMENTS

The preparation of this work has been successful due to the help and inspiration received from various sources. I would like to express my gratitude to all those who gave me the opportunity to complete the project entitled “descriptive study on alcohol industry”.

I am very thankful to Dr. Renita dubey for her valuable suggestions. This constant, sincere inspirations and liberal co-operation in all respects are really unforgettable experience for me. I have been very much benefitted from her technical advice and support during the period of my work on this research.

Abstract

Alcohol (ethyl alcohol or ethanol) is made by the processing of fermented grain, fruit juice and honey.

Fermented beverages also existed in Egyptian civilization, and there is evidence of an early alcoholic drink in China around 7000 B.C. In India, an alcoholic beverage called sura, distilled from rice, was in use between 3000 and 2000 B.C.

The Babylonians worshiped a wine goddess as early as 2700 B.C. In Greece, one of the first alcoholic beverages to gain popularity was mead, a fermented drink made from honey and water. Greek literature is full of warnings against excessive drinking.

Several Native American civilizations developed alcoholic beverages in pre-Columbia times. A variety of fermented beverages from the Andes region of South America were created from corn, grapes or apples, called “chicha.”

In the sixteenth century, alcohol (called “spirits”) was used largely for medicinal purposes. At the beginning of the eighteenth century, the British parliament passed a law encouraging the use of grain for distilling spirits. Cheap spirits flooded the market and reached a peak in the mid-eighteenth century. In Britain, gin consumption reached 18 million gallons and alcoholism became widespread.

The nineteenth century brought a change in attitudes and the temperance movement began promoting the moderate use of alcohol—which ultimately became a push for total prohibition.

In 1920 the US passed a law prohibiting the manufacture, sale, import and export of intoxicating liquors. The illegal alcohol trade boomed and by 1933, the prohibition of alcohol was cancelled.

Today, an estimated 15 million Americans suffer from alcoholism and 40% of all car accident deaths in the US is caused due it.

Chapter :1 Introduction

WHAT IS ALCOHOL?

Photo credits: StockxpertAlcohol is a drug.

It is classed as a depressant, meaning that it slows down vital functions—resulting in slurred speech, unsteady movement, disturbed perceptions and an inability to react quickly.

As for how it affects the mind, it is best understood as a drug that reduces a person’s ability to think rationally and distorts his or her judgment.

Although classified as a depressant, the amount of alcohol consumed determines the type of effect. Most people drink for the stimulant effect, such as a beer or glass of wine taken to “loosen up.” But if a person consumes more than the body can handle, they then experience alcohol’s depressant effect. They start to feel “stupid” or lose coordination and control.

Alcohol overdose causes even more severe depressant effects (inability to feel pain, toxicity where the body vomits the poison, and finally unconsciousness or, worse, coma or death from severe toxic overdose). These reactions depend on how much is consumed and how quickly.

There are different kinds of alcohol. Ethyl alcohol (ethanol), the only alcohol used in beverages, is produced by the fermentation of grains and fruits. Fermenting is a chemical process whereby yeast acts upon certain ingredients in the food, creating alcohol.

What is alcohol industry?

The alcohol industry is the commercial industry involved in the manufacturing, distribution, and sale of alcoholic beverages. The industry has been criticised in the 1990s for deflecting attention away from the problems associated with alcohol use. The alcohol industry has also been criticised for being unhelpful in reducing the harm of alcohol. The World Bank works with and invests in alcohol industry projects when positive effects with regard to public health concerns

and social policy are demonstrated.[3] Alcohol industry sponsored education to reduce the harm of alcohol actually results in an increase in the harm of alcohol. As a result it has been recommended that the alcohol industry does not become involved in alcohol policy or educational programs.

What is alcoholism?

Alcoholism is a broad term for problems with alcohol, and is generally used to mean compulsive and uncontrolled consumption of alcoholic beverages, usually to the detriment of the drinker's health, personal relationships, and social standing. It is medically considered a disease, specifically an addictive illness. In psychiatry several other terms have been used, specifically "alcohol abuse", "alcohol dependence," and "alcohol use disorder" which have slightly different definitions.[1] Alcohol misuse has the potential to damage almost every organ in the body, including the brain. The cumulative toxic effects of chronic alcohol abuse can cause both medical and psychiatric problems.

Alcohol content

Fermented drinks, such as beer and wine, contain from 2% alcohol to 20% alcohol. Distilled drinks, or liquor, contain from 40% to 50% or more alcohol. The usual alcohol content for each is:

Photo credits: StockxpertBeer 2–6% alcoholCider 4–8% alcoholWine 8–20% alcoholTequila 40% alcoholRum 40% or more alcoholBrandy 40% or more alcoholGin 40–47% alcoholWhiskey 40–50% alcoholVodka 40–50% alcoholLiqueurs 15–60% alcohol

Chapter :2 History

The origins of alcoholic beverages

Alcoholic beverages have been used by all cultures through most of their recorded history. When practices such as these appear to have a near-universal quality, despite the fact that in some cases they may have some apparently negative consequences, we are obliged to consider their potential for positive, culturally adaptive mechanisms. We take the view, quite uncontroversially, that it is unreasonable to suppose that such practices could have survived in such a dominant, pan-historical and pan-cultural manner if they were wholly maladaptive.

The earliest brews

The production of an alcoholic beverage requires only the presence of a simple organic process – that of fermentation, by which sugar is transformed by the action of yeast to produce ethyl alcohol. Sugars, in the form of glucose, fructose, maltose and lactose are obtainable from honey, fruits, sprouting grains and milk, producing in turn, mead, wine, beer and koumish. The availability of such sugars however, while taken for granted in modern-day Europe, was undoubtedly much lower in pre-historic times.

First beers

The first documentary evidence of alcoholic beverages was written in Sumerian around 3200 BC, most certainly concerns beer rather than wine production and employs a specific pictograph for beer itself – an outline of a clay vessel marked with short, diagonal lines. The clarity of such picotographs indicates that beer was, by this time, commonplace and that the brewing process had been developed at a considerably earlier period in Mesopotamia. (Stamp seals with a similar pictograph have been dated back to 4000 BC).

Indian spirits

Allchin (1971) suggests that the true home of distillation is the Indian subcontinent, and what is now Pakistan in particular. Archeological evidence now indicates that stills were in regular use in this region in 500 BC and the use of distillation for the production of medicines, rather than beverage alcohol, is undoubtedly much older. The early Indian production of distilled spirits was probably a radical technological development from the fermentation process. There is considerable documentary evidence of the fermentation of sugar cane juice, grapes and rice dating back to 1200 BC. They also consumed a drink known as soma. This has been convincingly demonstrated by Wasson (1969) to have been made from the Fly-Agaric mushroom, Amanita muscaria, and would, therefore have had deeply intoxicating properties.

The ‘dangers’ of alcohol

Early Man’s desire to achieve altered states of consciousness through the use of intoxicants would have presented a number of dangers within developing cultures. Alcohol, in the form of the early beers, would have presented the lowest risks because of their relatively low strength and the ability of drinkers to gauge the amount ingested quite accurately. Such beverages also lent themselves most readily to social and group activity rather than solitary consumption. Nonetheless, unrestricted consumption would have presented debilitating states of consciousness which would have outweighed the individual and social benefits, and even the nutritional gains, that beer provided.

Early controls on alcohol

One of the earliest codes of alcohol control is that of Hammurabi, dating back to about 1,720 BC, although less formal strictures on excessive drinking were in evidence much earlier. The Hammurabi code, inscribed on a basalt stela tablet, placed many obligations on tavern-keepers, who were mainly female, and specified prices and quality standards for beer and even the credit terms for purchase that could be applied. Overcharging for beverages was punishable by drowning and the code also included apparently effective strategies to curb drink-related disorder.

Chapter : 3 Side effects of alcohol

ALCOHOL-RELATED PROBLEMS

It is probable, given equal amounts of drinking, that developing countries like India experience more problems than developed countries (Saxena. 1997). Among the reasons for this may be such things as a highly skewed distribution of drinkers in the society, the prevalence of nutritional and infectious diseases, economic deprivation, more hazardous and accident-prone physical environments, and a lack of any organized support system. Although conclusive scientific evidence for alcohol-related health and social problems is lacking for India, there are enough indications in the available literature to infer that these are substantial. The rapid rise in alcohol consumption in recent years has increased the likelihood of further growth of these problems in the years to come.

Health Problems

Few scientific studies from India deal with the health problems linked to alcohol use. Most of the extant studies are hospital-based and can only be used to derive population-level problems in an indirect way.

Mortality

In a four-to-five-year follow-up study of patients diagnosed as alcohol dependent after being examined in a hospital, Sharma and Murthy (1988) found that 11.3% of those who could be traced had died. In another study, Desai (1989) documented a mortality of 5.5% during. an 18-month follow-up among hospital patients with alcohol dependence. Since the majority of these patients were middle-aged or younger, these are high mortality figures.

Cancer

There has been much concern that heavy drinking may have increased the incidence of certain cancers. Although at about 75 per 100,000, the overall cancer incidence in India is lower than in most developed countries, oral cavity and esophageal cancers are particularly common (Indian Council of Medical Research, 1992). Confirming evidence links these cancers with tobacco chewing and smoking, but some studies have also pointed out the contributory role of drinking alcoholic beverages.

Neuropsychiatric Disorders

Alcohol seems to play a significant part in precipitating many neuropsychiatric disorders, including cognitive deficits, epilepsy, psychiatric emergencies, depression, and suicides. Unpublished data from Chennai (a city in Madras State) and Bangalore reveal that a majority of clinic patients who sought help for chronic alcohol problems had neuropsychological deficits. Data from Delhi corroborate this and also demonstrate a high prevalence of epilepsy in such persons. Narang et al. (1992) found a correlation between cognitive impairment and duration of drinking among 30 clinic patients who were alcohol dependent. A study of psychiatric emergencies in a large general hospital showed that 17.6% of these were related to drink (Adityanjee & Wig, 1989). Alcohol dependence also is a common reason for inpatient referral to a psychiatric unit

Health Effects of Impurities and Adulterants in Alcoholic Beverages

A lack of quality controls results in many impurities and adulterants being present in or added to illicit alcoholic beverages. These include heavy metals like lead and arsenic (Narang et al., 1987), organic solvents, and sometimes sedative drugs like benzodiazepines and barbiturates. However, the most dramatic effects are seen when methyl alcohol (usually in the form of industrial spirit) is added. This almost always leads to deaths or serious organ damage, including loss of eyesight. An estimated 300 deaths per year occur in India from this type of poisoning, and these incidents get covered regularly in national newspapers.

Social Problems

Excessive drinking produces a variety of closely interrelated social problems in India.For ease of description these have been divided into the following broad categories.

Violence and CrimeViolence within and outside the home is frequent in India and a substantial proportion of it is believed to be alcohol-related. Wife beating and child abuse under the influenceof alcohol are common, and street brawls and group violence also happen often after drinking. Clear statistics are not available, but it appears that about half of serious violent crime is related to alcohol use, although alcohol may not be the only factor that contributes to the criminal act.

Workplace Effects

Heavy drinking affects work performance in a number of negative ways. When compared to their sober counterparts, drinkers are more frequently absent, are less efficient, have more accidents at work, and also show maladjustment with other workers which leads to overall decreased performance.

Economic Effects

While alcoholic beverages are inexpensive in India. their purchase may still require a substantial portion of a poor person's meagre income. With one in three people in India falling below the poverty line, the economic consequences of expenditures on drink attain special significance. Besides the money spent on alcohol, a heavy drinker also suffers other adverse economic effects. These include fewer wages (because of missed work and lowered efficiency on the job), increased medical expenses for illnesses and accidents, legal costs of drink-related offences, and decreased eligibility for loans.

DRINKING AND DRIVING

Photo credits: Bigstockphoto

In the United States in 2007, the death toll from teenagedrunk-driving accidents was 1,393—nearly four fatalities every day of the year.

Motor vehicle accidents are the leading cause of death among teenagers in the US and are responsible for more than one in three deaths of American teenagers. Of the teen drivers killed on the road in 2006, 31% had been drinking, according to the National Highway Traffic Safety Administration.

The risk of a driver under the influence of alcohol being killed in a vehicle accident is at least eleven times that of drivers without alcohol in their system.

For most people, these are only statistics—shocking, perhaps, but only statistics. But for the families and friends of those who die as a result of teenage drinking and driving, each number represents a tragic loss.

Understanding how alcohol affects the body

Alcohol is absorbed into the bloodstream via small blood vessels in the walls of the stomach and small intestine. Within minutes of drinking alcohol, it travels from the stomach to the brain, where it quickly produces its effects, slowing the action of nerve cells.

Approximately 20% of alcohol is absorbed through the stomach. Most of the remaining 80% is absorbed through the small intestine.

Alcohol is also carried by the bloodstream to the liver, which eliminates the alcohol from the blood through a process called “metabolizing,” where it is converted to a nontoxic substance. The liver can only metabolize a certain amount at a time, leaving the excess circulating throughout the body. Thus the intensity of the effect on the body is directly related to the amount consumed.

When the amount of alcohol in the blood exceeds a certain level, the respiratory (breathing) system slows down markedly, and can cause a coma or death, because oxygen no longer reaches the brain.

YOUNG PEOPLE VERSUS ADULTS. WHAT'S THE DIFFERENCE?

Photo credits: Stockxpert

A young person’s body cannot cope with alcohol the same way an adult’s can.

Drinking is more harmful to teens than adults because their brains are still developing throughout adolescence and well into young adulthood. Drinking during this critical growth period can lead to

lifelong damage in brain function, particularly as it relates to memory, motor skills (ability to move) and coordination.

According to research, young people who begin drinking before age 15 are four times more likely to develop alcohol dependence than those who begin drinking at age 21.

WHAT IS BINGE DRINKING?

Binge drinking is the practice of consuming large quantities of alcohol in a single session, usually defined as five or more drinks at one time for a man, or four or more drinks at one time for a woman.

About 90% of the alcohol consumed by youth under the age of 21 in the United States is in the form of binge drinks.

WHAT IS ALCOHOLISM OR ALCOHOL DEPENDENCE?

Alcohol dependence (alcoholism) consists of four symptoms:

Craving: a strong need, or compulsion, to drink.  Loss of control: the inability to limit one’s drinking on any given occasion. Physical dependence: withdrawal symptoms, such as nausea, sweating, shakiness and

anxiety, occur when alcohol use is stopped after a period of heavy drinking.

Serious dependence can lead to life-threatening withdrawal symptoms including convulsions, starting eight to twelve hours after the last drink.

Tolerance: the need to drink greater amounts of alcohol in order to get high.

INTERNATIONAL STATISTICS

Alcohol kills more teenagers than all other drugs combined. It is a factor in the three leading causes of death among 15- to 24-year-olds: accidents, homicides and suicides.

There are 1.4 million drunk driving arrests in the US every year. A US Department of Justice study found that as many as 40% of violent crimes occur

under the influence of alcohol. In 2005–2006, there were 187,640 National Health System alcohol-related hospital

admissions in England. There were 6,570 deaths in England in 2005 from causes directly linked to alcohol use. In

2006, alcohol-related deaths in England rose to 8,758. This amounts to an annual increase of 7% from the previous year.

According to one study, of the 490 million people in the European Union, more than 23 million are dependent on alcohol.

In Europe, alcohol contributes to nearly one in ten of all cases of illness and premature deaths each year.

39% of all traffic deaths involved alcohol in 2005. 40% of violent crimes occur under the influence of alcohol.

Chapter : 4 Effects of alcohol

SHORT-TERM EFFECTS OF ALCOHOL

Depending on how much is taken and the physical condition of the individual, alcohol can cause:

Slurred speech Drowsiness Vomiting  Diarrhea Upset stomach Headaches Breathing difficulties  Distorted vision and hearing  Impaired judgment  Decreased perception and coordination  Unconsciousness  Anemia (loss of red blood cells)  Coma Blackouts (memory lapses, where the drinker cannot remember events that occurred while

under the influence)

Long-term effects of alcohol

Binge drinking and continued alcohol use in large amounts are associated with many health problems, including:

Unintentional injuries such as car crash, falls, burns, drowning  Intentional injuries such as firearm injuries, sexual assault, domestic violence Increased on-the-job injuries and loss of productivity  Increased family problems, broken relationships  Alcohol poisoning  High blood pressure, stroke, and other heart-related diseases  Liver disease  Nerve damage  Sexual problems  Permanent damage to the brain  Vitamin B1 deficiency, which can lead to a disorder characterized by amnesia, apathy and

disorientation 

Ulcers  Gastritis (inflammation of stomach walls)  Malnutrition  Cancer of the mouth and throat

THE YOUNGEST VICTIMS

When consumed by pregnant mothers, alcohol enters the bloodstream, passes through the placenta and enters the fetus (unborn child).

Alcohol can damage a fetus at any stage of pregnancy, but is most serious in the first few months. There is a risk of alcohol-related birth defects including growth deficiencies, facial abnormalities, and damage to the brain and nervous system.

Chapter :5 alcohol industry in India

Introduction

Large, underdeveloped, and economically poor, India comprises 2.4% of the world's land area and 15.5% of the world's population (953 million people). After independence from British rule in 1947, a federal democracy was established with a central government in New Delhi and 25 state governments. India remains multiethnic, multilingual (with 18 official languages), and multi religious (with five major religions). Although alcohol consumption has existed in India for many centuries, the quantity, patterns of use, and resultant problems have undergone substantial changes over the past 20 years. These developments have raised concerns about the public health and social consequences of excessive drinking. Alcohol-related data remain scarce in India, and so far there have been very few scientific studies. Even routine data collection on alcohol production and sales is difficult to obtain and collate. Significant regional, gender, and social class differences also pose serious limitations on the extrapolation of findings based on small samples

3. TYPES OF ALCOHOLIC BEVERAGES AVAILABLE

Because India has areat variety in topography, climate, vegetation, culture, andtraditions, it is unsurprising that hundreds of kinds of alcoholic beverages are made and consumed. All of them, however, can be grouped into the following four broad categories.3.1 India-Made Foreign Liquor (IMFL)

This category, created for revenue purposes, consists in Western-style distilled beverages such as whiskey, rum, gin, vodka and brandy. These are made in India under government licenses and the maximum alcohol content allowed is 42.8%.

Whiskey is by far the most popular drink in this category, with hundreds of brands available, at least 20 of which have an all-India presence. Several dozen brands of rum, gin and brandy are also available. Wines fall under this category of liquor too, although until recently wine production and consumption in India was almost nonexistent. Some wines are now made in the country, and small amounts of wine are imported for select consumers.These distilled alcoholic beverages are made from any cheap raw material available locally, e.g. sugarcane, rice, or coarse grains. Country liquor is produced in licensed distilleries and sold from authorized outlets within the same district. Common varieties of country liquor are arrack, desi sharab, and tari (toddy). Excise duties are paid, but since production costs are low the retail prices are also low. The licensing system and some governmental monitoring of the production process ensures a uniformity in alcohol content (around 40%) and basic safeguards against adulteration with other harmful intoxicants. 3.3 Illicit Liquor

Besides licensed distilleries, a number of small production units operate clandestinely. The raw materials they use are similar to those in country liquor, but since they evade legal quality controls the alcohol concentration in their products varies and adulteration is frequent. It is common to find samples containing up to 56% alcohol. One dangerous adulterant is industrial methylated spirit, which occasionally causes mass poisoning of consumers who lose their lives or suffer irreversible eye damage. Since no government revenues are paid, illicit liquor is considerably less expensive than licensed country liquor, and thus finds a ready market among the poor. In many parts of India illicit liquor production and marketing is like a cottage industry, with every village having one or two illegal operations

3.4 Beer

Beer is a relatively recent arrival in India, which remains largely a spirits-consuming society. However, beer production and consumption have grown rapidly. Indian beer is manufactured in large licensed breweries and is available under more than 60 brand names whose alcohol content ranges from 5% to 9%. Beer is available mostly in bottles, but cans have been introduced recently.

4. THE ALCOHOL INDUSTRY

Based on beverage type the Indian alcohol industry has three prominent sectors: the IMFL and beer sector, the country liquor sector, and the illicit liquor sector. The structure, marketing and sales practices, and economic issues differ for each of these.

The IMFL and beer sector is the most visible part of the alcohol industry, boasting a few large companies with multiple production units and nationwide marketing networks. These companies control much of the market, have been present in India for several decades, and have established several brand names regionally or nationally.

These companies aggressively advertise and promote their brands and their corporate identities, and constantly monitor and protect their products' market shares. They are also cash rich, since profit margins are high in this industry.

The IMFL and beer industry spends much effort and money to promote and advertise their brands. Since direct advertisement of liquor is not permitted in the print and electronic media, the industry has found methods to advertise indirectly (Saxena, I 994a). Alcohol brands are advertised in the form of same or similarly named other products (e.g. mineral water. soda, and playing cards) made by the same company. The advertisements display the alcohol product prominently. In addition, beverage ads have become common on satellite cable television beamed to India from neighbouring countries. IMFL and beer producers also financially sponsor major sporting events that attract sustained media attention, including live television coverage of the event. With its new international linkages, the Indian alcohol industry has also gotten into the entertainment and fashion worlds. It is now common for a liquor company to sponsor a fashion show or a musical event. Hence the Indian INIFL and beer industry has initiated a high level of sustained marketing and promotional activities, and these have become especially aggressive in the 1990s.In contrast to the IMFL and beer sector, the country liquor industry is more decentralized. There are many regional producers and most brand names have only a local presence. These producers do not indulge in advertising or sponsorships since manufacture and retailing is under local licensing with little competition. They more or less have a captive market in their area and their low costs ensure high sales. Profit margins are high, and it is widely believed that a part of the profits goes to the licensing authorities.

The illicit alcohol industry also has a local presence and is run with the help of local criminals. They either operate this industry themselves or provide protection for a price of those who do. It is believed that regular payments are also made to law enforcement authorities. Illicit liquor is bought mainly for its very low price, and hardly any marketing is necessary. The whole operation is kept low-key to avoid visibility and possible legal action.

PRODUCTION AND AVAILABILITY OF ALCOHOL

Production and Availability Estimates

National production and availability data are very difficult to obtain in India, since there is no single agency responsible for this task. The production and sale of alcohol is a state, not a federal, responsibility, and so the 25 different state excise departments keep the records. Unfortunately, these are not routinely collated at the national level. The Ministry of Chemicals maintains data on alcohol production, and has a separate head that oversees potable alcohol, but there are gaps in their information because of non-

reporting by some states. The Ministry of Welfare is responsible for tracking alcohol-related problems, but it does not focus on the amounts of alcohol consumed. The Indian Distillery Association keeps data on licensed production from industrial sources, and claims to have accurate figures.The figures for distilled spirits presented in table 1 below have thus been derived from several different sources and crosschecked against each other. They are based on an estimated average alcohol content of 42.8% for IMFL and 40% for country liquor. Beer and wine are not included in this table. As can be seen, the data are incomplete, and the apparent decrease from 1991-1992 to 1993-1994 is inexplicable. Perhaps it is a result of gaps in reporting by some states, rather than an actual decrease in production.

Table 1: Annual Distilled Spirits Production in India, by Year (April to March)

YEAR AMOUNT OF ABSOLUTE ALCOHOL PRODUCED(IN THOUSANDS HECTOLITRES)1982-83 2,862.551983-84 3,104.751984-85 3.310.641985-86 3,407.491986-87 3,204.801987-88 3,432.481988-89 4.190.451989-90 no data1990-91 no data1991-92 4,895.001992-93 3,467.001993-94 3,626.001994-95 6,056.001995-96 7,888.04

The following unconfirmed data are available on beer production in India (see table 2). Wine is not included in this table either, but wine consumption in India is negligible and would not appreciably alter the quantities shown.

Table 2: Annual Beer Production in India, by Year

YEAR AMOUNT OF ABSOLUTE ALCOHOL PRODUCED(IN THOUSANDS HECTOLITRES)1970 17.81980 66.61990 86.21991 96.1

1992 100.51993 136.1

India has recently permitted importation of beverage alcohol for commercial purposes, but the figures for these are unavailable. Indian nationals returning from abroad as a part of their personal baggage bring in significant amounts of alcoholic beverages. In addition, it is believed that illegal imports may contribute to overall consumption in India as well. These are mostly premium international brands of spirits that are consumed by the rich. India has negligible alcohol exports to other countries.

As has been described above, a good deal of alcohol is produced illegally. While the quantities of this vary from state to state and from time to time, illicit and home production, together with illegal imports, probably are equivalent to about half again the nation's legal production. Taking the figure of 8000 thousand hectolitres (800 million litres) of absolute alcohol as the annual legal production, an estimate of 1200 million litres of annual consumption seems likely.

6. PREVALENCE AND PATTERNS OF ALCOHOL USE

No nationwide systematic epidemiological surveys have been conducted on alcohol use, but a number of smaller studies have been completed in different regions whose results are quite consistent. The available studies can be sorted into psychiatric surveys, general population drinking surveys, and special population drinking surveys.6.1 Psychiatric Surveys

Many psychiatric morbidity surveys have been conducted on India's general population, and prevalence data for alcohol dependence have been obtained along with those for other mental disorders. In one of the earlier studies Surya et al. (1964) surveyed 510 households (2731 individuals) in southern India and found the prevalence of "alcoholism" to be 3.6 per 1000. In another part of rural southern India, Gopinath (1968) reported a prevalence of 2.36 per 1000. Another study in a neighbouring state used a stratified random sample of about 2900 individuals and observed an ICD-8diagnosis of alcoholism to be 4.8 per 1000 (Varghese et al., 1973). In contrast to these studies, Dube and Handa (1971) found that 1.38% of the population they studied in northern India habitually abused alcohol. A similar figure of 1.3% was produced in a small survey in eastern India by Elnagar et al. (1971).

These psychiatric surveys were carried out to discover the prevalence of mental illnesses in general, and the screening, procedures used were designed to detect only the most severe cases of alcohol dependence. However, these studies created an awareness of alcohol-related problems and paved the way for more focused investigations of

alcohol use.

6.2 General Population Drinking Surveys

Several general population studies have examined the prevalence and pattern of alcohol use. Deb and Jindal (1975) found that 74.2% of adult men in rural Punjab had used alcohol at least once from among a sample of 1251 individuals. In a similar survey from the same region Mohan et al. (1978) reported that 32.9% of all adults had used alcohol at least once during the past year. Lal and Singh (1978) studied about 7000 people from rural Punjab and 25.6% of them drank alcohol, while the rate of drinking in males over age 15 years was nearly 50%. Sethi and Trivedi (1979) surveyed 2010 general population adults from northern India and discovered that 21.4% had abused at least one drug, usually either alcohol or cannabis. Varma et al. (1980) questioned 1031 people from both rural and urban areas of northern India and reported that 60% of these adults had never drunk alcohol. The prevalence of drinking once or more in the previous year was 23.7%, and of past use, 16%. In yet another study among a rural general population, Mohan et al. (1980) found that 58.3% of adult males drank, while only 1.5% of adult females did so. Probable dependence among current male drinkers was 3.9%, and per capita consumption was estimated at 6.62 litres of absolute alcohol. In a methodologically sophisticated general population study in western India, 24.7% ofadults drank (Sundaram et al., 1984). The rates for males were 36.1% and 13.4% for females. Probable alcohol dependence rates were 3% (5.6% for males and 0.5% for females). Mathrubootham (1989) in a southern India study found 33% of the men to be current drinkers. The drinking prevalence was higher among those of lowersocioeconomic status. Chakravarthy (1990) reported alcohol use to be from 26% to50% among rural southern Indian males, and the prevalence was higher among those who were illiterate. Ponnudurai et al. (1991) used the Michigan Alcohol Screening Test

(MAST) to estimate problem drinking in a large city of southern India and found a prevalence of 16.7% among males. In another large community study of approximately 400 000 people, Bang and Bang (1991) estimated that about 25% of their sample were drinkers. Mohan et al. (1992), using rapid survey techniques, assessed substance abuse in poor urban areas of Delhi to be 26%, a majority of whom abused alcohol (with or without tobacco).

6.3 Special Population Drinking Surveys

Some studies have looked at alcohol use among special populations (e.g. students). For example, Mohan et al. (1979) conducted one of the earlier studies among high school students and found that 12.7% were drinking. Another early study by Dube et al. (1978) among university students noted that the prevalence of ever having used

alcohol was 32.6%. Varma and Dang (1980) reported a similar prevalence of 31.6% for drinking by non-student youth. A large study of college students from seven Indian cities found that between 9.3% and 15.1% were current drinkers (Mohan, 1981). The positive features of this multicentre collaborative study were its methodological strengths and the consistency of the results across cities.

Unlike the relatively low figures for drinking by the general university student population, medical students have shown a higher drinking prevalence of from 40% to 60% (Sethi and Manchanda, 1977; Singh, 1979). There are no data on drinking by industrial workers, but a study by Gangrade and Gupta (1978) mentioned that nearly 10% of the factory workers studied near Delhi drank alcoholic beverages.

The findings of these various studies must be treated with caution because their samples are relatively small, they are all regional (rather than nationwide), and the operational criteria for "ever used," "currently use," and "dependent" differ considerably. However, some conclusions can still be drawn. The studies generally agree that 60% or more of the adult population is abstinent. This contrasts markedly with most developed countries, where complete abstinence rates are much lower. A second common finding is the striking gender difference, with women showing drinking rates of fewer than 5% in most of the studies, compared to much higher rates for men.

No clear associations of drinking with socioeconomic categories are available for India, but indications suggest that drinking may be more prevalent among the lower classes and the poorly educated. Drinking is still much more prevalent among males than females, although some evidence indicates that educated urban females are being initiated into drinking. Clinic data also suggest that more young people now indulge in heavy drinking than before. In this regard it needs to be emphasized that the available figures are mostly for "ever used" or "used within the last year," and do not necessarily indicate problem drinking. Alcohol dependence may be present among 1% to 2% of the adult population in India.

There is a need for national level epidemiological studies of drinking, alcohol abuse and alcohol dependence. These studies should be more advanced and employ uniform instruments and standard, internationally accepted criteria and definitions so that comparisons can be made across regions and socio demographic groups within India and with other countries.

6 ConclusionsGovernment’s alcohol strategy Although the drinks industry remains central tothe government’s alcohol strategy, the details ofthis policy have changed considerably. In some respects, the Government’s policy appears to have hardened against the industry (for example, alcohol disorder zones). Elsewhere it has sought compromise with the industry (for example, on the national standards and the national alcohol fund).It is important that policies be properlyevaluated. Further research must therefore include an independent evaluation of the impact of:

• the national standards

• the new Drinkaware Trust

• when implemented, alcohol disorder zones.

The drinks industry

The drinks industry has not ignored alcohol problems. But it has taken a particular view of them, focusing strongly on individual responsibility, and emphasising the role of education and research. It has accepted that existing commitments to social responsibility must be strengthened across the industry. It remains wedded to education and research as the principal instruments of prevention, while acknowledging that self-regulation and participation in partnership arrangements with Government and other stakeholders may help to prevent alcohol problems. However, it is opposed to policies aimed at regulating overall levels of alcohol consumption in society. The industry is not a monolith. It presents a united front in public, despite private disagreements between different sectors and between traditional corporations and ‘new entrants’. Competitive pressures within the industry are strong and can operate against social responsibility. There is also a danger that social responsibility can be wrongly construed as anti-competitive behaviour. The industry’s response to alcohol problems depends heavily on the willingness and ability of the larger companies, particularly the providers, to lead a diverse and dynamic sector. Critics view much of the drink industry’s efforts as tokenism. Even so, most acknowledge that the industry has a role to play in reducing alcohol problems and could do more, especially in changing marketing practices, improving product development and shaping the drinking environment. Critics remain concerned about the economic and political power of the industry and its influence over policy, and are highly critical of the Portman Group, believing that its regulatory and educational functions should be transferred to an independent body.

The creation of the Drinkaware Trust will remove most of the Portman Group’s educational functions. Although this study has shed some light on the industry and its activities, further research is needed, including:

• an examination of the facilitators and barriers to socially responsible practice within the contemporary drinks industry

• an investigation of the relationships between the different sectors of the industry on social responsibility issues, in particular between the on- and off-trade, and between the traditional producer require a stronger framework in England, where the self-regulatory elements are weakly underpinned by statutory law and official guidance. There are possible lessons to be learned from Scotland where new statutory provisions will give stronger support to

selfregulatory activities (on training, for example). Statutory regulation could also bolster selfregulation by clarifying the position on competition law with regard to socially responsible practice in areas such as point of sale promotions and other efforts to improve standards down the supply chain.

Further research in this area should include the following.

• An assessment of the overall impact of self-regulation, particularly with regard to advertising, marketing and promotion, the drinking environment, under-age drinking and training. The effect of the different approaches to regulating point of sale promotions in England and Wales compared with Scotland (and the Irish Republic) is worthy of analysis. It would also be interesting to compare the outcomes of different regulatory systems for marketing and promotion that have an element of self-regulation, such as those operating in the UK, Australia, the USA and New Zealand.

• Given the potential for training schemes to underpin self-regulation and statutory regulation, more research is needed into the impact of different training schemes and how they support self-regulation and law enforcement.

• As one of the potential barriers to effective self-regulation is the competitive nature of the drinks business environment, there must be further analysis of the relationship between market conditions and competition, management strategies and processes, and regulatory compliance with both selfregulation

and statutory regimes. Furthermore, the impact of contractual arrangements to promote social

responsibility within the industry requires evaluation. There should also be a closer examination of the practices of the so-called ‘rogues and cowboys’ in the industry, how they operate and how they

could be more effectively regulated. Partnership There is clearly scope for partnership working in

this field. But partnerships must be inclusive and accountable, and must operate within a clear

framework. At national and local level, a much more robust framework for partnerships is

needed. Government has a lead role to play in setting this framework, and in protecting weaker

organisations and the wider public interest. This might include a national alcohol forum involving

all stakeholders, including the industry. The drinks industry has a legitimate role to play in

partnerships given its knowledge, resources and expertise. It can also help to secure industry-wide

co-operation with various interventions and initiatives. To exclude it as a matter of principle

would be short-sighted. However, there are dangers of allowing the industry to lead or

dominate partnerships. The profit motive is strong and not necessarily in the public interest.

There needs to be a full, open and public debate on the role of the alcoholic drinks industry in the

governance of alcohol, including partnerships. This must cover issues such as the industry’s role

in education and information campaigns, research and other activities.

Further research in this area should includethe following.- Flagship partnership projects receive

much attention and many have been shown to be effective, at least in the short term. What is needed is a comprehensive review of partnership working to confirm what works and where more action is

needed. This could then be reflected in the dissemination of the lessons of partnership, and in future guidance and monitoring of partnership arrangements.