'Bacardi Breezer women-friendly, popular in events': Company's letter to MV Govindan surfaces

Bacardi India Private Limited had requested the inclusion of a new category, 'low-alcoholic beverage', to boost revenue and the tourism sector, in its letter to the then Excise Minister M V Govindan. The letter, sent by Joji J Kakkattil, Senior Manager, Bacardi India Private Limited, on September 17, 2021, sought steps to introduce the 'low-alcoholic beverage' category to ensure the availability of quality liquor. 

Govindan forwarded the letter to the Secretary of the Tax Department to prepare a proposal and submit recommendations. While countering allegations of graft, Chief Minister V D Satheesan mentioned this letter in the assembly on Wednesday. 

The letter notes that the company sold liquor worth ₹150 crore in 2019-20. "Bacardi Breezer and Bacardi+, both low-alcoholic beverages, are the most sold among our products, but these products cannot be sold in Kerala. These products are women-friendly and irrespective of gender, it is hugely popular in corporate events in the tourism sector. Almost all the international event companies are our customers," the letter said. 

The company pointed out that since Bacardi Breezer and Bacardi+ are not available in Kerala, many events are held in Pondicherry and Goa. The letter also quotes the LDF policy and the Udayabhanu Commission's recommendation to increase the availability of low-alcoholic beverages to reduce addiction. 

The firm noted that Beer and wine with 15% alcohol content are currently categorised as low-alcoholic beverages in Kerala, and hence Bacardi Breezer and Bacardi+ with less than 15% alcohol content cannot be sold in Kerala. The letter called for an amendment in the category to facilitate the sale. "Low-alcoholic beverages have a high number of customers in the tourism sector and corporate events in all states except Kerala. This will boost the revenue and tourism sector of the state," the letter cited. 

In 2024, in an assembly reply, then Finance Minister K N Balagopal said Bacardi had submitted a request on the sale of low-alcoholic beverages and fixing a tax structure. In 2022-23, the government introduced an amendment to enable the sale of liquor with alcohol content between 0.5% vv and 20% vv. Balagopal had also said the State GST commissioner was asked to prepare a report on the tax rate and that the report was under consideration of the government.