Beer Sales Fail To Keep Pace With Rising Temperatures During Peak Summer

Delhi’s scorching temperatures this year have set new records, but the demand for the summer’s favorite beer has outpaced the supply. Many popular beer brands are missing from the shelves, and several liquor shops lack the facility to sell chilled beer. Despite beer sales seeing growth in other states, Delhi has experienced a marginal decline in sales for the second consecutive year.

Until April 30 this year, Delhi sold 224 lakh liters of beer through its network of nearly 660 liquor stores and over 950 hotels, bars, and restaurants, compared to 228 lakh liters during the same period in 2023 and 369 lakh liters in 2022. The significant spike in 2022 was due to the new excise policy and various schemes and discounts offered by retail outlets on alcoholic beverages.

Karnataka and Maharashtra sold 1,418 and 1,049 lakh liters of beer, respectively, between January and April this year, compared to 1,237 and 1,016 lakh liters in 2023. Despite Delhi’s smaller size, population, and liquor shop network compared to Maharashtra and Karnataka, these numbers highlight the growth in beer sales in other states.

While beer constitutes more than one-third of the total liquor volume sold in stores during peak summer, industry insiders believe the potential demand is much higher given Delhi’s prolonged hot and humid weather. Due to the poor availability of popular brands, residents near the Haryana and Uttar Pradesh borders prefer to cross state lines to purchase beer, leading to an annual growth of 15-20% in neighboring towns while sales decline in Delhi.

Vinod Giri, director general-designate of the Brewers Association of India, noted that the demand for beer in Delhi’s scorching summer has outpaced supply, causing a dip in sales below 2023 levels. He attributed this to the unavailability of a popular brand, low maximum retail prices, and insufficient retail shops and chiller penetration in Delhi.

Delhi’s excise department acknowledged the availability issue of a popular brand but stated that there was no overall shortage of beer in the city, with several new brands now available across stores. Liquor companies are hopeful for improved sales and better returns, especially with consumers increasingly purchasing beer cans for in-home consumption due to their convenience.

As social gatherings rise, the popularity of draught beer is increasing, leading to a surge in demand for higher-quality beers. Breweries are optimistic about improved sales and better returns, focusing on ensuring improved supply to meet the rising demand.