Bengaluru | July 16, 2025
Beer sales in Karnataka have seen a sharp dip in the first six months of 2025, falling by over 18% compared to the same period last year. This drop comes even as excise revenue from beer rose slightly by 0.6%, indicating that price hikes, not increased consumption, drove revenue.
According to the state excise department, beer sales from January to June 2025 totaled 209.9 lakh carton boxes, down from 257 lakh in the same period of 2024.
Here’s a month-wise comparison of sales (in lakh cartons):
| Month | 2025 Sales | 2024 Sales | % Change |
|---|---|---|---|
| Jan | 25.2 | 36.3 | -30.6% |
| Feb | 35.1 | 37.1 | -5.5% |
| Mar | 39.0 | 46.1 | -15.4% |
| Apr | 41.6 | 49.7 | -16.3% |
| May | 37.1 | 50.7 | -26.8% |
| June | 31.9 | 37.1 | -13.8% |
Even during the peak summer months of April and May—when beer sales usually rise—there was a notable slump. January alone saw a massive 30.6% drop.
Why the Decline?
Industry insiders point to frequent hikes in additional excise duty (AED) and rising retail prices as the main reasons. In the last two years, the state government has revised beer and low-cost liquor taxes four times, squeezing both manufacturers and sellers.
“People who used to buy four bottles now settle for one,” said a liquor shop owner in Shivamogga. “I used to sell 10 cartons a day—now I barely sell seven. We even increased food prices to balance things out, but we’re still facing losses.”
Even pubs in Bengaluru’s popular Church Street area are seeing reduced footfall, despite spending more on advertising.
Revenue Numbers (in ₹ crore):
| Month | 2025 | 2024 | % Change |
|---|---|---|---|
| Jan | 2,889.7 | 2,836.2 | +1.8% |
| Feb | 2,920.8 | 2,984.7 | -2.1% |
| Mar | 3,402.1 | 3,352.2 | +1.4% |
| Apr | 2,904.1 | 2,264.2 | +28.2% |
| May | 3,467.9 | 3,312.1 | +4.7% |
| June | 2,885.8 | 3,610.6 | -20.1% |
| Total | ₹18,470.4 | ₹18,360 | +0.6% |
What’s the Government Doing?
To address concerns, the state recently simplified the tax structure. Earlier, beer was taxed at 195% AED + ₹130 per bulk litre, which raised the price of budget beers by ₹15–20 per bottle. The new structure is a flat 200% AED across all segments, aimed at easing the burden on lower-end beer products.
Excise Commissioner Venkatesh Kumar R said the change was based on feedback from manufacturers. However, it’s only been a month since the change, and officials admit that recovery will take time.
The early arrival of monsoon this year also impacted peak summer beer sales.
