Karnataka Beer Sales Jump 59 Percent After Government Lowers Prices
Beer sales in Bengaluru and across Karnataka surged by 59 percent after the state government introduced a new alcohol-by-volume-based taxation system on May 11, 2026, which significantly lowered the prices of low-alcohol beverages.
According to data from the state excise department, beer sales rose from 32.4 lakh cartons between May 11 and June 9 in 2025 to 51.6 lakh cartons during the same period in 2026. This surge in consumption also boosted government excise revenue by 16 percent, rising from Rs 3,023 crore to Rs 3,510 crore.
Under the revised taxation structure, beverages are taxed based on their alcohol content, meaning drinks with higher alcohol concentration attract higher taxes. This change has made a 330ml bottle of beer available for Rs 45, down from its earlier price band of Rs 60-125.
While beer consumption experienced a massive increase, sales of Indian-Made Liquor (IML) remained nearly flat, growing by just 2.4 percent.
Local traders reported an approximate 20 percent rise in sales, driven primarily by the low-alcohol segment. G Shivakumar of SLNS Wines group noted that the current challenge is a shortage of stock, but expected sales to increase further once stocks are replenished.
Adithya K, who owns four retail stores in Shivamogga, stated that overall sales grew by 15 percent at his outlets, with products containing less than 5 percent alcohol content becoming particularly popular among younger consumers.
Sampath Kumar, vice-president of the Karnataka Wine Merchants’ Association, confirmed that customer response has been positive. He added that while manufacturers are still adjusting production to meet the new demand, the market is expected to stabilise soon.
The price adjustments varied by alcohol-by-volume (ABV) levels. The price of a 650ml beer with 5% ABV fell from Rs 160–185 to Rs 135–150. Conversely, prices for beers with 7% ABV rose from Rs 165–100 to Rs 170–205, and 8% ABV beer prices increased from Rs 225–250 to Rs 245–260.
