Major spike in Bangalore Microbreweries in Bangalore

Bangaluru loves it breweries and on top of that its beer, whether brewed in house or by the bottle. The newest buzz and the hype of the finest microbreweries is a testament to this fact.

Statistics have shown that the number of these breweries in Bangalore has grown in a large number following data from 2017-18 to 2018-19, and also recorded that the number of beer sold in Bangaluru grew a whopping 13% — the highest recorded sale since 2014-15. The maximum growth was registered in Bengaluru north division, comprising areas like Yelahanka, Yeshwantpur, Hebbal and Devanahalli.

The state excise department, smelling an opportunity in the demand for pubs brewing crafted beer, has, in fact, doubled excise duty and additional excise duty for microbreweries from this financial year.

The department, with effect from April 1, hiked excise duty for microbreweries from Rs 5 to Rs 10 per litre. Additional excise duty, which was earlier charged at a rate of Rs 12.5 against 50% of the installed capacity of the microbrewery, is now being charged at Rs 25.

The department’s revenue from beer is also growing, show statistics. Beer accounts for 22.3% of the total liquor sales, including India Made Liquor (IML) and wine.

“Beer continues to gain popularity among Bengalureans, with the growth in consumption being the highest in 2018-19. The number of carton boxes of beer sold crossed 1 crore for the first time last financial year. There is a lot of demand for crafted brew as well, which is why we decided to increase excise duty on microbreweries,” said an official from the state excise department.

Bengaluru Urban, in fact, leads all districts in terms of beer consumption and accounts for nearly 36% of the total sale of beer in Karnataka, followed by Dakshina Kannada at 6.8%. Out of the 59 microbreweries in the state, 55 are in Bengaluru, 3 in Mysuru and 1 in Mangaluru.

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