UP excise policy eyes beer demand

Lucknow: Expecting strong demand for brew, alcoholic beverages companies are going to focus on introducing new products in the 2026-27 financial year in UP. Brewers Association of India (BAI) said that the excise policy introduced by the state is expected to encourage consumption of high-quality products with lower alcohol content. As taxes and charges levied on spirits and country liquor went up, the demand of a significant number of consumers is expected to shift towards beer from Apr 1."While there could be a marginal hike in the consumer prices of hard liquor, beverages with low alcohol content like beer were spared. The recently released excise policy brings more transparency in the licensing and approvals process and adds clarity across licensing, distribution and taxation while reinforcing a stable and growth-oriented environment for the beer industry," said director general of BAI, Vinod Giri.
The price of IMFL and country liquor is slated to go up by a slight margin, while that of beer cans and bottles would remain stable. As a result, leading beer companies are expected to launch new products, particularly ones that have lower alcoholic strength by volume. As a licence to open an outlet providing low-alcoholic beverages can be availed at lower fees, a shift in demand could be witnessed during the summer months, added Giri.Apart from investing close to Rs1,400 crore to set up greenfield breweries, the beer industry, through backward and forward linkages (such as the glass industry, raw material procurement and logistics), could generate economic activity amounting to Rs5,500 crore for the state.