Beer shortage in Karnataka? Bira, Carlsberg, others to suffer as govt halts third shift operations | Mint
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Business News/ News / India/  Beer shortage in Karnataka? Bira, Carlsberg, others to suffer as govt halts third shift operations
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Beer shortage in Karnataka? Bira, Carlsberg, others to suffer as govt halts third shift operations

In its latest order, Karnataka government has asked beer makers to stop their third shift of production citing the shortage of staff in its excise department

Karnataka government has asked beer makers to halt their third shift of production due to the shortage of staff in its excise department. The move can affect the beer production in the state.Premium
Karnataka government has asked beer makers to halt their third shift of production due to the shortage of staff in its excise department. The move can affect the beer production in the state.

A possible beer manufacturing disruption can affect people's New Year celebration plans in Karnataka. In its latest order, the state government has asked top beer makers, including Heineken-controlled United Breweries, Bira, and Carlsberg to halt their third shift of operation at breweries. 

The state government cited the shortage of full-time excise officials and staff as the main reason behind the order, reported  Economic Times. Due to this, the Karnataka govt has asked the beer makers to stop third shift operation from 10 pm to 6 am.

Also read: ‘India to be exciting beer market in 3-5 years’

The decision can also affect the beer supply in the state, which is the second largest consumer of the product in India. The order to halt the third shift of operation was issued only to beer makers and not to spirits manufacturers. This could lead to a possible shift towards products like whiskey if beer makers face a shortage of supply, highlighted ET in its report. 

In addition to being a massive consumer of beer, Karnataka is also crucial for beer makers as it is home to multiple breweries. Companies like UB, AB InBev, and Bira, own seven breweries in Karnataka. It is worth noting that all of them operate in three shifts, according to ET report. 

The state capital, Bengaluru, is popular as one of India's biggest markets for tap beer. The major players in this segment are Kingfisher, Budweiser, Bira, Geist, and Toit. Beer has continued to be a major source of potential revenue for the state. 

Karnataka earned a total of 30,000 crore in 2022-23 from excise revenue. The revenue from beer holds a 15% share of the total alcohol excise revenue. Moreover, the revenue has doubled over the past two years to 4,500 crore, reported ET.

According to media reports, the recent order is being considered as the government's attempt to boost the sale of India-made liquor (IML) like rum and whisky. 

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Published: 09 Dec 2023, 09:06 PM IST
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