THIRUVANANTHAPURAM: When the rains fail, the beer flows, according to a liquor industry veteran. And he may have a point as Kerala’s deficit monsoon this year has coincided with a sharp rise in beer sales.
The sales have jumped 29.2%, with 49.15 lakh cases sold between April 1 and August 23. Sales during the same period last year came in at 38.03 lakh cases, according to data with the Kerala State Beverages Corporation (Bevco).
This is over three times the 9.66% sales growth registered by Indian-made foreign liquor (IMFL) – from 101.35 lakh cases. The same period last year saw 92.42 lakh cases sold.
Beer and IMFL account for the bulk of liquor sales in Kerala. Last year, beer made up for 29.15% of the combined total. This year, its share climbed to 32.66%.
The trend, however, is part of a bigger comeback story, after beer sales fell in the previous two years – dropping 5.9% in 2023-24 and 3.4% in 2024-25.
Beer sales show an upward trend in years with deficit rainfall, said Rajkumar Unni, former president of the erstwhile Kerala Bar Hotels Association and 45-year industry veteran. “Climate is the main reason. Soaring temperatures force even regular IMFL drinkers to switch to beer. We see the trend this year, too,” he said.
The influx of migrant labour has also driven up beer volumes in the state, Unni said. “They form a good portion of beer consumers here. Most of them use gutka or similar products, which leaves them feeling thirsty. This makes them prefer chilled beer over IMFL.”
Beer consumption among Malayalis has also grown with the arrival of more brands, he said. Kingfisher once accounted for close to 85% of total sales when just seven brands were available. That has changed in the last three years, with 10 to 30 brands now on the shelves.
“The middle class and upper-middle class are willing to pay more for beer,” he said.The liquor market has been volatile over the past 15 years, Bevco data shows.
The distributor’s share of the combined beer and IMFL market has swung sharply over the period, from a low of 27.95% in 2020-21 to a high of 43.50% in 2015-16, following the historic closure of bars by the then UDF government.
Soaring Onam sales
Bevco has seen a sharp rise in sales this Onam season. For the six days to Sunday, revenue came in at I512 crore, compared with I460 crore last year. “A scientific stock management system is in place. We have ensured that a prescribed quantity of all brands are available at all outlets. Also, a better display was ensured to help customers,” an official said.