As temperatures rise in Delhi, more people are heading to liquor stores to buy chilled beer. However, the absence of their favourite and well-known beer brands from the shelves has disappointed many. The majority of government-run liquor stores are carrying unknown labels from Bhutan and Nepal as well as lesser-known local brands.
Hotels, clubs and restaurants have a slightly better selection, but even there, customers say they have very limited choices. Well-known beers are often absent from the menus, replaced by unfamiliar names.
Buyers moving to different states
Thus, several people are travelling to nearby cities in Haryana and Uttar Pradesh to buy the beer brands they like. Some even switch to other alcoholic drinks. The beer sales have fallen by 37 per cent in Delhi in the 2023-24 fiscal, whereas it grew by close to 10 per cent in the rest of the country, TOI reported citing data sourced from the industry.
Pratyush Ranjan, an IT professional in Dwarka, told TOI, "Instead of trying a new brand every time, we prefer going to Gurugram, which is only a few kilometres away, to buy beer whenever we have a party at home. We got used to the taste of some premium beer brands, which are never available in Delhi.”
Reasons contributing to this trend
According to the experts, there are several reasons behind this trend. First, beers from Bhutan and Nepal do not face import duties, so retailers make more profit from selling them. As a result, they get priority on the shelves and in chillers at liquor stores. Second, there seems to be a lack of clear policy or decision-making in the system.
Vinod Giri, director general of the Brewers Association of India, explained that although popular brands can be found in some restaurants and bars (known as “on-trade”), they are missing from the government-run liquor stores (“off-trade”). TOI quoted him saying that national and multinational beer companies struggle to work with the way these shops operate.
"The challenge is mainly in govt-owned retail shops where popular national brands are hardly available. Our estimate on market shares tells a revealing story. National companies and multinationals are unable to cope with the trade practices at govt-owned outlets," Giri said.
Declining sale of national beer brands
Data shows that in Delhi, national beer brands make up only 36 per cent of the total beer sales. In contrast, regional brands and those imported from Bhutan and Nepal each account for 32 per cent. This is very different from the rest of India, where national brands dominate with an 85 per cent share.
A senior Delhi government official admitted that there are issues with beer availability in the city. "Since there is no import duty on beer from the neighbouring countries, the margin or profit is much higher on them. The wholesalers, thus, don't hesitate to share a part of it with the staff of liquor vends to get more space on the shelves and chillers in the shops. Since customers want to buy ‘chilled' beer, they don't have many options," TOI quoted the official.
He said the excise department is working on a plan to improve things. The government is also reviewing brand registration fees and profit margins to understand why certain brands are not selling well in Delhi.
This issue has affected the entire supply chain, including hotels, bars, and restaurants. Many popular beer brands struggle to survive on sales through restaurants alone. Zorawar Kalra from the National Restaurants Association of India told TOI that issues with distribution, regulations, and licensing are limiting customer choices in Delhi’s hospitality sector. The association is in talks with the government to simplify rules and improve brand access.
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