22-05-2025
Price hike dampener? In peak summer, beer sales lose fizz in T
Hyderabad: The hike in beer prices appears to have taken the fizz out of its sales in Telangana.
Since the price increase on Feb 11, beer sales have seen a dip in two consecutive months (March and April).
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Overall, sales have fallen by about 15% in the two months compared to the same period last year.
The dip in April was 8%, with sales falling from 50 lakh cases last year to 46 lakh now. In March, the fall was even higher at 23%.
Even the summer heat seems to have failed to spur beer lovers to spend extra buck on their favourite drink as most brands are now costlier by Rs 30-40. Rather, many have opted to buy Indian Made Foreign Liquor (IMFL) instead, spiking its sales in both April and March.
In April, IMFL sales rose from 30 lakh cases last year to 32 lakh cases this year – an increase of over 6% in IMFL in the month when beer sales fell by 8%. A similar trajectory was seen in March too in IMFL and beer sales. While IMFL purchases increased by 39% (from 28 lakh cases to 39 lakh cases) in March, beer sales dipped by 23%.
"I usually buy two premium beer brands, but after prices went up, I reduced my regular intake. Now, I sometimes buy IMFL to keep expenses in check in terms of my consumption," said C Chandrasekhar, a private employee.
The state govt had allowed the Telangana State Beverages Corporation to increase beer prices by 15% after a request from the Brewers Association of India (BAI) and following a brief supply stoppage by United Breweries over prices and payment of dues.
The hike was aimed at increasing revenue as Telangana is a major market for beer, but the fall in sales during peak summer could impact govt plans. Officials, however, said they were not relying on liquor sales alone to boost income and the fall in sales was a short-term phenomenon.
