As temperatures soar in Delhi, many residents have found their go-to beer brands missing from liquor store shelves. Instead of popular names like Hoegaarden, Carlsberg, Budweiser, or Heineken, the capital's liquor outlets are stocked with lesser-known domestic or Bhutanese beers.

Consumers are increasingly crossing borders into Noida and Gurgaon to buy from private liquor vendors that still carry a wide selection of global beer brands. This scenario reflects deep-rooted issues in Delhi’s current liquor policy, which experts argue is outdated, inconsistently implemented, and heavily taxed.

Why Are Popular Beers Missing in Delhi?

The absence of big-name beer brands isn't just due to supply chain challenges—it’s a policy-driven bottleneck. According to industry experts, the issue goes back to Delhi’s shifting liquor policies. Before November 2021, Delhi had both government and private liquor stores, with over 400 private vendors operating.

In 2021, a new liquor policy privatized all liquor stores. However, this move was reversed in July 2022, reinstating the old government-controlled model. While the rollback reintroduced government stores, it did not bring back private outlets, which were the primary sellers of many premium and imported beer brands.

Vinod Giri, Director General of the Brewers Association of India (BAI), emphasized that the lack of private stores is the root of the issue. Without licenses issued to private vendors post-rollback, popular beer brands have lost their primary retail channel in Delhi.

Cold Beer Scarcity Worsens the Problem

Adding to consumer woes, even chilled beer is rarely available. One government store vendor, speaking on condition of anonymity, revealed that their store doesn’t even have refrigerators. When they do stock popular beer brands, they're usually sold out within hours due to high demand and limited supply.

Consumers Are Traveling to Noida and Gurgaon

Delhi residents, especially from South and East Delhi, are traveling to Gurgaon and Noida where private liquor shops are well-stocked with a wide variety of domestic and international beer brands.

For example, Adhiraj Srivastav, a resident of East Delhi, said he has stopped looking in Delhi and now shops exclusively from Gurgaon or Noida for his preferred brands. This exodus of beer buyers is not only inconvenient for residents but also represents a loss of revenue for the Delhi government.

Beer Sales Plunge in Delhi

The lack of availability is not just anecdotal—it’s backed by data. According to industry figures, beer sales in Delhi dropped by 37% year-on-year in 2024.

Popular national and global brands such as Kingfisher, Budweiser, and Tuborg, which command 85% of the national market, only hold 36% market share in Delhi. In contrast, little-known brands like Bee Young, Lone-Wolf, and Delhi-6—which have negligible presence elsewhere—hold a third of the beer market in Delhi.

Bhutanese Beers Fill the Void

The vacuum left by mainstream beers has been filled by Bhutan-based beer brands such as Awitman, Kati Patang, and Druk Lager. These brands enjoy a significant price advantage, as imports from Bhutan are exempt from customs duties.

However, analysts say that importers of Bhutanese beers mark up their prices to match popular beer brands, allowing them to earn hefty margins. There are growing calls for the Delhi government to impose additional duties on these imports to level the playing field.

High Taxes and Policy Inconsistency Hurt Beer Industry

Avneet Singh, Founder & CEO of Medusa Beverages, highlighted two major issues impacting beer availability:

1. Over-taxation of beer in Delhi compared to hard liquor.

2. Frequent policy changes and licensing hurdles.

Despite being a low-alcohol product, beer in Delhi is subject to a 25% VAT, which is among the top seven highest tax rates in India. For comparison, Uttar Pradesh and Tamil Nadu impose taxes of 69% and 58%, respectively.

This taxation policy has made Delhi an unattractive market for popular beer brands, many of which have either exited or refused to list their products in government-run outlets.

Revenue Doesn't Reflect Market Potential

In FY25, the Delhi government earned Rs 5,069 crore from liquor taxes, a figure similar to FY24’s earnings. However, given the high consumer demand, especially during summer months, experts believe the city could earn significantly more with the right policy changes.

A rationalised tax structure, allowing for better pricing, visibility, and availability of beer, could bring popular brands back into circulation and also boost government revenues.

Call for a "Policy Reset"

Indian beer manufacturers are calling for a complete policy reset, demanding:

• Separate and rational tax treatment for beer (different from spirits).

• Support for retail-level visibility and promotion.

• Revival of private liquor stores to improve availability.

Avneet Singh also mentioned that Indian beer brands are gaining popularity in tier-2 and tier-3 cities due to better price points, cultural resonance, and faster local adaptation. For example, Medusa Beverages has seen strong sales growth in such markets where global brands struggle to gain traction.

The Road Ahead for Delhi’s Beer Market

To reverse the decline in beer sales and meet consumer demand, Delhi’s liquor policy needs urgent reforms. Unless the government:

• Reissues licenses to private vendors,

• Rationalises the tax structure, and

• Introduces infrastructure improvements (like refrigeration),

the capital’s beer drinkers will continue to turn to neighbouring cities, and global beer brands will stay off the shelves.

In summary, while consumer demand is at an all-time high—especially with rising summer temperatures—policy failures and regulatory hurdles are depriving Delhiites of their favourite chilled brews. A policy overhaul could unlock greater choices, improved revenues, and a more competitive beer market in the capital.

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