Lower prices spark 59% surge in Karnataka beer sales

Bengaluru: Six weeks after Karnataka govt launched alcohol-by-volume-based (ABV) taxation system, beer sales have surged nearly 60%, boosting govt revenue 16%. A 330ml bottle of beer is now available for Rs 45, down from the earlier price band of Rs 60-125.Fresh data from the excise department shows that while beer consumption has surged, hard liquor sales have remained near flat.The revised structure, unveiled on May 11, taxes beverages based on alcohol content. In effect, drinks with higher alcohol concentration attract higher taxes.Between May 11 and June 9, beer sales jumped 59% year on year, rising from 32.4 lakh cartons in 2025 to 51.6 lakh in 2026. For the same time period, Indian-Made Liquor (IML) sales grew 2.4%.Traders have reported an almost 20% rise in sales, fuelled mostly by the low-alcohol segment. “The challenge now is shortage of stock. Once stocks are replenished, we expect sales to increase further,” G Shivakumar of SLNS Wines group said.Adithya K, who owns four stores in Shivamogga, said: “Overall sales have grown by 15% in our stores. Products with less than 5% alcohol content have become popular, among younger consumers in particular.”

Sampath Kumar, vice-president of Karnataka Wine Merchants’ Association, said: “The response from customers has been positive. While there is a slight shortage because manufacturers are still adjusting production to the new demand, the market is expected to stabilise soon.”Expectedly, excise revenue rose from Rs 3,023 crore during the May 11-June 9 period in 2025 to Rs 3,510 crore in the same period this year.“The response in the beer segment has been good, combined with season and low-price ranges.

Even though the IML response is lower than that of beer, it has still shown good numbers,” a senior official from the excise department said.GRIN AND BEER IT* 650ml, with 5% ABV: Prices fall from Rs 160-185 to Rs 135-150* 7% ABV: Prices climb up Rs 165-190 to Rs 170-205* 8% ABV: Prices revised from Rs 225-250 to Rs 245-260* At present, lowest price of beer is Rs 4512.75% quota for SC/ST in liquor licencesTNNBengaluru: Karnataka govt has rolled out 12.75% reservation for SC & ST traders in e-auction of retail liquor shop and bar licences in Karnataka, effective from the coming excise calendar year.The reservation applies only to allocation. There is no relaxation in eligibility criteria such as application fee, licence fee or auction bid amount.As per a June 17 notification, an amendment to excise rules introduces category-wise reservation in the allotment of CL-2A licences (or, over-the-counter retail liquor shops) and CL-9A licences (for bars and restaurants). Under the proposal, 5.25% of licences each are reserved for SC-A and SC-B applicants, 4.5% for SC-C and 3% for ST applicants.Excise officials said the proposal is aimed at extending reservation principles to self-employment opportunities for marginalised communities, similar to the model followed in education and govt jobs. Several states, including Andhra Pradesh and Telangana, have adopted similar approaches depending on local requirements, an official added. A similar attempt in Karnataka many years ago had met with a legal challenge.Calling the govt’s decision a negative move, Karunakar Hegde, vice-president, Karnataka Wine Merchants’ Association, said: “Reservation in areas like education is a different matter. Business is a fundamental right. Extending reservation to liquor licence auctions could have a negative impact on the sector. We’ve filed our objections.”