In Bengaluru, drinkers seem to be switching between beer and hard liquor based on the season, but it’s clear that beer remains the favorite. From April to November this year, sales of Indian-made liquor (IML) saw a small dip of just over 0.6%, while beer sales jumped by 10.9% in Karnataka.
According to data from the Karnataka State Excise Department, 466 lakh carton boxes of IML were sold in the first eight months of the year, a slight drop from last year’s 469 lakh. On the other hand, beer sales were much more exciting, with 313.5 lakh cartons sold compared to 282.6 lakh last year. While beer sales slowed down in October and November, IML sales picked up during those months. Both beer and IML sales dropped in June, compared to the same time last year.
Industry insiders believe the slight dip in IML sales is unusual, as liquor sales have generally been on the rise in recent years. The Wine Merchants Association linked the dip to price hikes. Karunakar Hegde, president of the Federation of Wine Merchants’ Association in Bengaluru, explained that the price increases over the past two years, totaling a 10% rise, led to reduced sales. However, a 20% price reduction on premium liquors in the last two months boosted sales again, helping the industry move closer to its revenue targets.
Beer, on the other hand, has been consistently growing, especially after the pandemic. Experts suggest that more affordable prices and increased consumption during festivals and hot weather have led to this rise. The younger generation, especially women, have also contributed to the surge in beer sales.
The excise department’s revenue has grown by 6.5% this year, reaching Rs 23.6 crore, though they are currently at 61% of their annual target, down slightly from 64% last year. However, with the current demand, they are optimistic about meeting their goals.
