Dakshina Kannada sees substantial growth in Beer sales with 25 lakh boxes, surpassing IML during 2023-24

By Vinaykumar Patil | First Published May 19, 2024, 4:46 PM IST

In Dakshina Kannada district, a notable shift towards beer over Indian Made Liquor (IML) has occurred, driven by economic factors and changing consumer habits, particularly in coastal areas with high humidity. Beer sales have surged, surpassing IML sales, attributed partly to increased excise duty on liquor, making beer a more affordable option.

The alcoholic beverage preference in Dakshina Kannada district has undergone a notable change, with beer becoming the preferred option over Indian Made Liquor (IML) in recent times. This shift, influenced by economic factors and evolving consumer habits, indicates an increasing fondness for beer, especially evident in coastal areas where the humidity is at its highest.

Amidst the backdrop of the pandemic, Dakshina Kannada district has witnessed a notable change in the alcohol consumption landscape. While the consumption of Indian Made Liquor (IML) has remained relatively stagnant, beer has swiftly taken over as the beverage of choice. This shift observed particularly along coastal regions, signals a broader change in consumer preferences and purchasing patterns.

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According to data from the Excise Department, the sales volume of IML in the district has shown minimal growth over the past few years. In contrast, beer sales have experienced a steady upward trajectory, surpassing IML sales figures. In the fiscal year 2023-24, a staggering 25,03,153 boxes of beer were sold, marking a significant increase compared to the previous years.

One of the key factors driving this shift is the increase in excise duty on liquor imposed by the state government. This rise in duty has led to a substantial hike in the price of alcohol, thereby impacting the purchasing power of consumers, particularly those from lower and middle-income groups. Consequently, many individuals have sought out cheaper alternatives, with beer emerging as a viable option.

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Local liquor vendors attest to this trend, noting a surge in beer sales amidst the price hikes. Despite the lack of growth in IML sales, there has been no significant loss to the government's revenue, indicating a smooth transition in consumer preferences.

The appeal of beer extends beyond its affordability, with many consumers drawn to its refreshing nature, especially in the region's humid climate. Over the past five years, beer sales have witnessed consistent year-on-year growth, averaging between 15 to 20 per cent annually, according to officials from the Excise Department.

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