Mangaluru: Liquor vendors across Dakshina Kannada are grappling with a persistent beer shortage weeks after the state introduced the Alcohol-in-Beverage (AIB) taxation system, which reduced retail prices and sparked a sharp increase in demand.
Price Cut and Summer Heat Drive Demand
Retailers report that the combination of lower prices and soaring summer temperatures has significantly boosted beer consumption, catching suppliers off guard. With the supply chain struggling to keep up, numerous outlets are facing empty shelves and limited stocks, leaving customers disappointed and vendors worried about lost sales.
Since the introduction of the AIB system, prices have dropped, particularly in the premium beer segment. According to vendors, supply has remained inconsistent since early May. Several retailers said they are being forced to stock whatever brands are available, rather than what customers request, as popular labels are frequently unavailable.
Vendor Perspectives on Supply Issues
Ramesh D Nayak of Rathna’s Wine Gate noted that beer supply has been poor from May to date, even as sales have climbed steeply. He highlighted a sharp year-on-year increase in May sales, with 50 lakh boxes sold this May compared to 37.1 lakh boxes during the same month last year. In Dakshina Kannada alone, sales were higher by about one lakh boxes. Despite increased demand and a delayed monsoon, supply remains weak, forcing outlets to purchase brands that can be sourced. The supply constraints are also affecting liquor categories beyond beer, he added.
A vendor operating multiple outlets said beer shortages are common during summer, but the current situation is more acute, with several brands missing from shelves. He attributed the disruption to the recent price reduction in premium beers, adding that companies may still be relabeling products and updating packaging, delaying supplies. “Demand is high, but stocks are not reaching us,” the vendor said.
Allegations of Overcharging
It is alleged that some liquor outlets continue to charge old prices despite the recent reduction. Vendors, however, maintain that they are still selling inventory purchased at previous rates and have not yet received fresh stocks with revised price labels. They said the issue affects both beer and premium liquor.
Bindushree P, deputy commissioner of the excise department in Dakshina Kannada, said she has not received complaints specifically about a beer shortage so far. On allegations of overcharging after the price cut, she said bar and restaurant pricing is not regulated by the department, while complaints related to wine shops will be examined.
Department sources said the AIB rollout has not significantly changed hard liquor sales, which continue to remain subdued across the district.
