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Regular-article-logo Monday, 16 June 2025

Beer price rise on the cards

An excise pinch on the pint could raise the price of some brands of beer by up to 50 per cent.

PINAK GHOSH Published 05.02.18, 12:00 AM

Calcutta: An excise pinch on the pint could raise the price of some brands of beer by up to 50 per cent.

Earlier this month, the state government had raised excise duty from 30.1 per cent to 45.5 per cent on the maximum retail price of beer.

The move is followed by a decision to squeeze the retailer margin from 6.1 per cent to 5 per cent of the maximum retail price.

After taking into consideration the compounding impact of hike in excise duty and additional excise duty of 27 per cent, the prices of a 650ml bottle of popular beer brands such as Heineken, Carlsberg, Budweiser and Kingfisher are expected to go up to Rs 165 to Rs 250.

The current price range of these products is Rs 110 to 180.

"Not all manufacturers have finalised their prices and the process is going on. But the general expectation is of a 1.5-time rise. This will not only make beer costly but will put it in the same bracket as some hard liquor options available in the market," a south Calcutta-based retailer said.

A 650ml bottle of Mexican Corona or Belgian Hoegaarden is now priced Rs 270. The expected 1.5-time increase will make it priced Rs 400-plus.

Retail sources said Anheuser-Busch InBev - which has major brands such as Corona, Carlton and Castle Lager in its basket - has already effected price increase in some global markets in certain brands and may explore the same option in other markets, including Asia Pacific.

If there is a price increase by the manufacturer, it will have a cascading effect on the final retail prices as duties are ad-valerom.

"Not just consumers, retailers will also have to adapt to the new reality. The warehousing infrastructure of the state beverage corporation is ready and we have started sourcing some brands. Beer was always a low-margin, high-volume product. With the increase in prices, the consumer preference might change," said a central Calcutta multi-brand retailer.

The liquor business in Bengal has turned a new page last year with the state government entering the distribution business through a state-run beverage corporation.

Under the new system, the government will fix the margins for wholesellers and retailers.

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