Mangaluru Braces for Price Hike in Beer Amid Rising Heat – Shifting Trends Expected
As the Karnataka state government contemplates a price increase of 5-15% for Indian beers and 20-25% for foreign-made beer brands, Mangaluru, often considered the state’s second-largest beer-consuming city, is preparing for a potential shift in drinking habits. With summer approaching next week, the demand for chilled beer is anticipated to soar. However, the impending price hike may dampen the enthusiasm of local beer enthusiasts, with some already considering switching to harder liquors as more affordable alternatives.
Mangaluru’s pub culture, tightly woven into the coastal lifestyle, has long seen beer as the drink of choice for youngsters and working professionals alike. Yet, with rising beer prices, many fear that their casual outings for a beer might soon become an expensive luxury. A local beer aficionado shared, “Beer has always been our go-to drink because it’s affordable and perfect for Mangaluru’s humid weather. If prices rise, we might have to cut back or seek stronger alternatives.”
Sources within the industry suggest that the price hike is part of Karnataka’s strategy to boost excise revenue. Beer, traditionally taxed lower than spirits, has grown in popularity due to its affordability and social acceptance. However, the proposed price revisions may cause a shift in consumer behavior, with some turning to cheaper locally distilled spirits instead.
Pub and liquor store owners in Mangaluru anticipate changes in sales patterns should the hike come into effect. A local retailer mentioned, “We expect a drop in beer sales initially, but hard liquor sales might rise as people seek more cost-effective options.” Beer consumption traditionally spikes during the summer months, with bars and beachside shacks seeing a surge in customers. Yet, with the price hike on the horizon, Mangaluru’s beer drinkers may need to reconsider their beverage choices.
In addition to local price increases, the region near the Karnataka-Kerala border is witnessing a surge in liquor tourism. Historically, people from Kerala have frequented border towns in Karnataka to enjoy cheaper liquor. Even though stricter controls have been implemented on cross-border liquor transport, residents and visitors from Kerala still make their way to Mangaluru, Puttur, and other nearby towns, eager to indulge in more affordable drinking options. Prakash Shetty, a bar owner in Thokkuttu, located near the Kerala border, stated, “Liquor was always expensive in Kerala, so people used to come to Karnataka to find cheaper options.”
While the border areas have seen a rise in the movement of people seeking cheaper alcohol, there is also a growing concern about the tightening of regulations and the reduction in illegal supply chains. Sunil Poojary, a bar owner in Vittal, Buntwal, mentioned that although illegal liquor transport has decreased, the demand for alcohol from across the border remains high.
The implications of this increased liquor demand and potential sales shifts remain to be seen. Excise Department officials note that while there may be a slight increase in Karnataka’s liquor market, it’s difficult to determine the full extent of the effect. In any case, the ongoing changes in alcohol consumption patterns could further shape Mangaluru’s pub and drinking culture, making the coming months pivotal for local businesses.
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