Beer makers with a large manufacturing footprint in Karnataka are expressing concerns over the State government’s recent notice to shut down third shift operations.

Industry players rue that this move will cause a shortage of beer during the peak demand period around the year-end celebrations and potentially steer retailers and consumers towards stronger alcoholic beverages.

The Karnataka government has issued a notice to all the beer manufacturers in the State. The excise department has cited shortage of excise officers and staff to perform duty in third shift as the reason for the new order, in a notice — reviewed by businessline. However, the broader spirits manufacturers haven’t received any notice. 

“We sincerely urge policymakers in the State to reconsider the decision to cancel the third-shift operation in the brewery. This decision will significantly impact the State’s thriving beer industry, jeopardising employment and causing a shortage of beer during the peak demand period around Christmas, New Year, and beyond which is the peak season for beer sales,” company official from a leading beer company said. 

This will also potentially steer retailers and consumers towards stronger alcoholic beverages. The company trusts the authorities will continue to allow a level-playing field which will stabilise business operations and meet the existing consumer demand for beer, the spokesperson added. 

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 beer industry in volume.

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