Beer sales dip over 18% in first half of 2025 | Bengaluru News

Bengaluru: Beer sales in Karnataka have taken a hit in the first six months of 2025, with overall sales dropping by more than 18% compared to the same period last year, even as revenue increased marginally by 0.6%.According to the excise department, only 209.9 lakh carton boxes were sold between Jan and June this year, down from 257 lakh cartons in the first half of 2024.The decline was steepest in Jan with sales falling by 30.6%. Even during April and May — months that usually see a surge in beer consumption due to peak summer — sales dipped by over 16% and 26% respectively. Feb saw a marginal 5.5% drop, while March and June recorded double-digit falls of 15.4% and 13.8%, suggesting the decline is not merely seasonal.Industry insiders say the sustained slump is largely due to repeated hikes in additional excise duty (AED) and increasing retail prices. In the past two years, the govt has revised taxes and licence fees on beer and low-end Indian-made liquor (IML) four times, pushing both manufacturers and sellers into a corner.A pub chain owner from Church Street said the numbers reflect the cumulative impact of policy changes. “The main culprit is the constant uncertainty that leaves owners in losses. Even with more spending on advertising, footfall hasn’t improved. We can’t hike food prices either — customers simply won’t come.”The sentiment is echoed by a liquor shop owner from Shivamogga, who has been in the trade for two decades. “People who once bought four bottles now settle for one. I used to sell nearly 10 cartons a day, now it’s down to seven. To recover, we’ve had to raise prices on food and other items, but business is still in losses,” he said.In response to the industry’s concerns, the govt recently altered the AED (additional excise duty) structure. Venkatesh Kumar R, commissioner, excise department, told TOI that the earlier system of 195% duty plus an additional Rs 130 per bulk litre had been revised. “It’s now a flat 200% AED across all segments. Manufacturers told us the Rs 130 slab was pushing up prices for low-cost beer by Rs 15–20, hurting volumes. The change was made based on those inputs,” Kumar added.However, the revised duty structure has been in place for only a month, and officials admit that a full recovery will take time. Kumar noted this year’s early onset of monsoon meant a weak summer, another factor that pulled down beer demand. “April to July is usually peak season, especially in Bengaluru, but that didn’t materialise. Sales have been subdued across the state,” he said.