Bengaluru shows 'beer love' as sales hit high note

Bengaluru: Bengalureans are guzzling more beer than Indian Made Liquor (IML), according to data, with the growing uptick of the refreshing brew also fattening the coffers of the Excise Department.

Sales grew by a huge 49 per cent year-on-year in 2022-23 and by 13.03 per cent in 2023-24, a sign of its "strong beer culture" that is best reflected during weekends when beer aficionados pack ever-growing microbreweries and cool and quirky pubs to the brim. 

It is not for nothing that Bengaluru is also known as the 'Pub Capital of India'. 

The burgeoning consumption was confirmed by the manager of a popular microbrewery in Bengaluru. "Since the end of the pandemic, there has definitely been a boost in sales but things seem to be stabilising now," he said.

In contrast, Indian Made Liquor (IML) sales increased by only 11 per cent and 4.76 per cent, respectively. IML comprises vodka, brandy, rum and whiskey among others. 

What is driving the beer consumption? Officials and industry observers cite three reasons for the uptick.

1) A return of Bengaluru's pub culture has helped beer, which is considered a social drink;

2) the emergence of budget beer, catering to many price points; 3) the city's increasingly harsh summers have prompted many to go for a cold, refreshing brew to beat the heat. 

Beer sales had fallen 32.13 per cent year-in-year in 2020-21 — the pandemic year — as pubs and bars remained shut due to the lockdown. That year, the city sold only 6.05 crore litres of beer, down by 32.13 per cent year-on-year. 

In 2021-22, beer sales bounced back but only slightly, recording sales of 6.79 crore litres, as lockdown restrictions on pubs and bars remained in place. 

However, the scene changed dramatically in the following years as pubs and bars reopened. In 2022-23, the city sold 10.17 crore litres of beer, an increase of 49.8 per cent. In 2023-24, beer sales stood at 11.49 crore litres, up 13.03 per cent year-on-year, data shows. 

Other parts of Karnataka also recorded high beer sales. Beer sales increased by 69.9 per cent in Mysuru Rural in 2022-23 compared with the year gone by. 

The sales brought much cheer to the Excise Department, with revenue doubling from Rs 2,757 crore in 2021-22 to Rs 5,703 crore in 2023-24. 

Vinod Giri, Director General, Brewers’ Association of India, weighed in on the increasing sales. 

"Bengaluru has a strong pub culture and beer is consumed mostly in pubs, bars and restaurants while hard liquor is something people like to consume at home," Giri said. "During the pandemic, beer sales took a massive dip because people stopped going outside. It took a while but once people became more social, beer sales naturally went back up." 

"Secondly, the growth seems to be higher because of the emergence of the economy segment of beers. Suddenly, the lowest price point for a bottle of beer decreased which caused an increase in the total volume of beer sold," he added. 

A senior official in the excise department said the boost in beer sales can be attributed to the harsh summers in the state.