The Karnataka government has reversed the order it had issued to beer manufacturers in the state to shut down third shift operations. This comes after the industry had expressed concerns over shutdown resulting in shortage and steering away sales to other alcoholic beverages. 

State excise department, last week, had issued a notice citing shortage of excise officers and staff to perform duty in the third shift. The department in the reversal order noted that companies had bought to its notice that cancellation of shifts would cause financial distress, result in shortage of beer during Christmas and New Year celebrations, and will also cause a loss to the government. 

Order withdrawn

The surge in demand for beer in the upcoming summer season is also being considered. “Considering the request of beer companies and keeping in mind the interest of the government, the issued order is being withdrawn with immediate effect,” the excise department notice-reviewed by BL- read. 

United Breweries, Anheuser Busch InBev India (ABInBev),Carlsberg India and B9 Beverages were among the companies that received notices last week. 

“We express our sincere appreciation to the state officials and policymakers for their reconsideration of the decision. This step will ensure a consistent supply of beer during the festive season. We thank the authorities for their quick resolution of this matter,” a spokesperson at United Breweries Limited said, commenting on the revocation

Karnataka is one of the top two beer markets in the country today. As of 2023, Karnataka Beer Industry would be around 3.8 million hectolitres that is roughly 13 per cent of India’s beer volume today. All major beer brands such as United Breweries, ABInBev, Bira91 and other companies are currently operating in the State of Karnataka. Overall, India has around 33 million hectolitres of beer industry in volume.

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