Blisswater Industries, the Bengaluru-headquartered alcobev and lifestyle company, has launched vodka brand, Salty Nerd, across Karnataka. The brand will be available in liquor stores across the state right in time for the Valentine’s celebration.
Distilled from premium grains and charcoal-filtered for a clean, smooth finish at 42.8% ABV, the vodka is crafted to be enjoyed chilled and neat, while also offering versatility for cocktail experiences.
In Karnataka, Salty Nerd is being introduced in three distinct variants — Classic, Imperial Salted Caramel and Capitalistic Cola. While the Classic offers a crisp and smooth profile, Imperial Salted Caramel delivers a rich, balanced sweet-salty finish, and Capitalistic Cola brings the awesomeness of Cola. Together, the range reflects the brand’s flavour-led approach and its focus on offering something unconventional yet premium.
Commenting on the Karnataka launch, Varna Bhat, Founder & CEO, Blisswater Industries, said, “People in Karnataka let’s raise a glass! Our Salty Nerd Vodka range is here and we are extremely happy to share this creation of ours with such a vibrant market that loves well crafted and premium spirits. There is a nerd in all of us and Salty Nerd is crafted for all individuals who enjoy making confident choices and expressing their personality through what they drink. Launching the brand in our home state is an important milestone as we continue to expand our presence across India.”
Andhra Pradesh Deputy Chief Minister K. Pawan Kalyan has directed Excise Department officials to crack down on liquor shops charging prices above the Maximum Retail Price (MRP), calling the practice a clear violation of rules and a blow to the credibility of the government.
In a post on X on February 3, Kalyan said he had received complaints from across the State, including Kakinada district, alleging that certain outlets were selling liquor at inflated rates. Similar grievances, he noted, had been reported from several other districts.
After reviewing the complaints, the Deputy Chief Minister made it clear that liquor retailers must strictly adhere to government-prescribed pricing norms. “Selling liquor above MRP is not only against the rules but also damages the credibility of the government,” he observed, underlining that enforcement cannot be lax in a regulated sector like excise.
He instructed officials to maintain continuous surveillance of liquor outlets statewide and to initiate stringent action against shop owners found violating pricing norms. Enforcement, he emphasised, must be firm, consistent and visible to deter repeat offences. The State government, he asserted, would not tolerate deviations from prescribed rules and remains committed to ensuring transparency and compliance in the excise system.
Andhra Pradesh’s evolving excise landscape
The warning comes at a time when Andhra Pradesh’s excise policy is under renewed scrutiny. Over the past few years, the State has maintained tight control over the retail liquor trade, with the government playing a dominant role in retail operations and pricing structures. The policy framework has aimed at regulating consumption, curbing illicit trade, and increasing revenue mobilisation through calibrated pricing and monitored distribution.
Excise remains one of the State’s largest sources of tax revenue. In 2025, the state’s excise revenue was projected to reach ₹33,882 crore. The excise revenue has seen a rise due to increased liquor sales and a new excise policy implemented in 2024. Periodic revisions in duty structure and retail pricing have been used both to shore up revenues and to streamline the product mix available in government-run outlets.
In recent policy cycles, the government has sought to balance revenue considerations with consumer transparency. Measures have included clearer display of MRP at retail counters, digitised billing systems in many outlets, and tighter monitoring of supply chains to prevent diversion and overcharging. Officials have also indicated that enforcement drives would focus on ensuring that consumers are not charged beyond the printed price, particularly in semi-urban and rural areas where monitoring gaps can emerge.
The latest directive from the Deputy Chief Minister signals a push to reinforce consumer-friendly practices within the existing framework. By stressing strict adherence to MRP and continuous surveillance, the government appears keen to send a message that revenue generation cannot come at the cost of regulatory discipline or public trust.
With complaints surfacing from multiple districts, the coming weeks are likely to see intensified inspections and possible penalties for errant retailers, as the administration seeks to tighten compliance across Andhra Pradesh’s vast excise network. ————-
ABD Maestro Pvt. Ltd., the super-premium and luxury spirits brand company and a subsidiary of Allied Blenders & Distillers (ABD), has unveiled ‘The Collective’ Limited Editions in India. The first expression launched is a rare 34-year-old Speyside Single Malt, Distilled at Macallan Distillery in 1991.
At a MRP of ₹11 Lakhs for 700ML in Maharashtra, the expression has been custom-made for ABD Maestro in collaboration with Speyside Capital, Glasgow, Scotland as brand and project partner. It will be available in Travel Retail and a few major cities in India. The Collective Limited Edition is available for pre-orders now.
The Collective’s Speyside Single Malt Scotch Whisky, matured for well over three decades, balances delicate florals, soft citrus, and malty notes with added depth and sherry-led richness.
A total of 60 hand-filled decanters only, each individually numbered, engraved and manually gold-lettered in Scotland, honours the spirit that it holds. Each wooden outer box is handmade with evidence of touch and individuality.
This release offers a rare opportunity to own one of the finest independently bottled distilled at Macallan Distillery, expressions of the modern era with a personally signed letter from Ranveer Singh.
Commenting on the launch, Bikram Basu, Managing Director, ABD Maestro, said: “ABD Maestro curates the very best in Luxury spirits. With the first expression of ‘The Collective’, we present rare, limited editions that are not sold, but acquired – exclusively on pre-order. Defined by quiet luxury and uncompromising craftmanship, each release speaks as much to the collector or connoisseur and those who understand exclusivity as value in itself”.
United Breweries Ltd (UBL) recently announced a productivity and cost-effectiveness programme aimed at delivering sustained annualised savings of 3% to 6%, as it seeks to bolster margins in a high-tax, tightly regulated operating environment.
In a regulatory filing, the company said the savings would be generated through a broad restructuring of operations, including portfolio rationalisation, logistics optimisation, greater reuse of bottles, higher domestic sourcing of raw materials and tighter management of fixed costs. Several initiatives are already underway, UBL noted, adding that the savings would be reinvested to drive growth and strengthen capabilities.
The transformation plan also includes a reorganisation of key business functions. Sales and supply chain roles are being streamlined, while focused teams are being created in corporate affairs, customer service and logistics to enhance execution and stakeholder engagement.
On the manufacturing front, UBL is optimising its brewery network. The company has commissioned a new greenfield facility in Uttar Pradesh, shut its Mangalore plant, and entered into strategic partnerships in priority markets to improve capacity utilisation and supply efficiency.
India remains a structurally under-penetrated beer market with long-term growth potential, but brewers continue to face steep state-level excise duties, rigid price controls and rising input costs. At the same time, competition has intensified, with both domestic and global players vying for share amid relatively muted demand growth. The industry has struggled to fully pass on inflationary pressures to consumers, putting profitability under strain despite steady volume expansion in recent years.
“Recognising current affordability pressures in the India beer category, we are intensifying our investment in building robust brands and consumer engagement programmes,” the company said. “Our overarching aim is to enhance profitability and competitiveness by refining processes and maintaining strict cost discipline.”
UBL added that it remains confident about the long-term opportunity in India’s beer market and will continue to invest in premium brands, localised production and consumer engagement, even as it sharpens operational efficiency. The company said it will provide periodic updates as the transformation programme progresses.
The cost reset aligns with broader trends in India’s alcobev sector, where companies are increasingly focusing on premiumisation, supply chain efficiencies and local sourcing to offset regulatory constraints and input volatility. For UBL, a market leader with brands such as Kingfisher, the margin focus signals a calibrated shift from pure volume growth to sustainable, profitability-led expansion.
In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced changes affecting alcohol and tobacco products. The Tax Collected at Source (TCS) rate for sellers of alcoholic liquor, scrap, and minerals has been simplified to a flat 2%. Previously, these sectors had varying rates, which in some cases were higher. This move is aimed at easing compliance and making the tax system simpler and more business-friendly.
As a result, sellers will benefit from a uniform rate, while it is set to become costlier for consumers. Although alcohol taxation falls under state governments, central budget decisions still influence retail prices through indirect levies and compliance costs.
This change, the industry says, will have a cascading effect on supply chain, eventually impacting shelf price. Besides, States generally revise excise duties, a common post-budget move, further adding to the burden on consumers. Since excise structures vary widely, there will be varying price increase across India.
United Spirits Ltd. reported a resilient performance for the third quarter and nine months ended 31 December 2025, navigating policy headwinds in key markets while sustaining growth momentum through premiumisation and portfolio strength.
The Diageo-controlled company posted consolidated net sales value (NSV) of `3,694 crore in Q3FY26, marking a year-on-year growth of 7.6%, while nine-month consolidated NSV stood at `9,888 crore, up 9.4%. The performance was largely driven by the standalone business, which continued to benefit from strong traction in the Prestige & Above (P&A) segment and improving product mix.
Sharp Uptick in Profitability
Consolidated EBITDA for the quarter rose 5.5% year-on-year to `599 crore, with EBITDA for the nine-month period reaching `1,903 crore, reflecting a growth of 6.7%. Excluding a one-off indirect tax item impact of `40 crore recorded in the first quarter of FY26, underlying EBITDA for the nine months was higher at `1,943 crore, translating into a stronger growth of 9.0%. Profitability showed a sharp uptick, with consolidated profit after tax for Q3FY26 rising 24.7% year-on-year to `418 crore, while nine-month PAT increased 11.9% to `1,299 crore.
On a standalone basis, United Spirits reported Q3FY26 NSV of `3,683 crore, up 7.3% year-on-year, and nine-month NSV of ` 9,402 crore, reflecting a growth of 9.0%. Growth was driven by the company’s strategic focus on premiumisation, with the Prestige & Above segment recording NSV growth of 8.2% in the quarter and 9.8% over the nine-month period. The performance of the higher-end portfolio helped offset the impact of regulatory and policy-led disruptions in Maharashtra, as well as the lapping of a one-time retail pipeline fill in Andhra Pradesh in the prior-year quarter. The Popular segment, however, declined 4.6% in Q3FY26, largely due to the Maharashtra impact, though it returned to growth over the nine-month period with a 4.7% increase in NSV.
Margin expansion remained a key highlight during the period, supported by favourable mix, pricing actions and productivity initiatives. Standalone gross profit for Q3FY26 grew 12.6% year-on-year, with gross margin expanding by 219 basis points to 46.9%. For the nine months, reported gross margin stood at 46.2%, while underlying gross margin, excluding the one-off tax impact, expanded 179 basis points over the previous year. The company attributed this improvement to sustained revenue growth management interventions, headline pricing flow-through, continuous productivity gains and a relatively stable commodity basket, barring bulk scotch.
Advertising and promotion (A&P) investments remained elevated as United Spirits continued to back its key trademarks. The A&P reinvestment rate stood at 14.0% of net sales in Q3FY26, reflecting higher investments behind the top-end of the portfolio, while the nine-month reinvestment rate moderated to 10.6% on a focused and disciplined allocation strategy. As a result of higher A&P spends during the quarter, standalone EBITDA margin for Q3FY26 came in at 16.8%, contracting 35 basis points year-on-year, even as EBITDA rose 5.1% to `618 crore. For the nine-month period, reported EBITDA grew 9.8% to `1,705 crore, with underlying EBITDA growth accelerating to 12.4% and underlying EBITDA margin expanding to 18.6%.
Profitability at the standalone level remained robust, with Q3FY26 profit after tax rising 11.8% year-on-year to `529 crore, translating into a net profit margin of 14.4%. For the nine months, PAT stood at ` 1,259 crore, up 13.7%, with a net margin of 13.4%. Interest costs for the quarter declined 5.0% year-on-year to `19 crore, while nine-month interest expense was higher at `89 crore due to the one-off tax-related interest component, with underlying interest costs trending lower.
Commenting on the performance, Praveen Someshwar, CEO and Managing Director of United Spirits Ltd., said the company delivered a resilient quarter despite policy headwinds in one of its most salient markets, adding that strong momentum in the rest of India and at the top end of the portfolio positions the business well for sustainable long-term growth. Reflecting confidence in cash flows and balance sheet strength, the Board of Directors also approved an interim dividend of `6.0 per share, underscoring United Spirits’ commitment to shareholder returns even as it continues to invest in brand building and execution capabilities.
Carlsberg India recently inaugurated a new can line at its Mysuru Brewery, strengthening production capabilities. This milestone reinforces the company’s long-term commitment to Karnataka, following its ₹350 crore expansion pledge made at Invest Karnataka 2025 to further expand the Mysuru facility.
The new can line has been established with an investment of ₹100 crore and offers a production capacity of 22,000 cans per hour (CPH). The addition significantly enhances the brewery’s ability to meet growing consumer demand and forms an integral part of Carlsberg India’s broader expansion strategy across the country.
Commenting on the development, Nilesh Patel, Managing Director, Carlsberg India, said, “Our continued investment in Karnataka underscores our long-term commitment to the state. Through this expansion, we aim to sustainably produce international-quality beers for consumers, contribute to state excise revenues, and generate additional direct and indirect employment opportunities for the local community.”
Speaking at the inauguration, Yathindra Siddaramaiah, Member of the Legislative Council (MLC), said, “We appreciate Carlsberg India’s continued investments of ₹350 crore in Karnataka, particularly in Mysuru, and their impactful work that contributes positively to society. These efforts reflect the company’s strong confidence in the state’s industrial ecosystem. We encourage more companies to step forward with increased local investments and job creation, especially in Mysuru, to support inclusive and sustainable regional development.”
Located in Nanjangud taluk, the Mysuru brewery is spread across 28 acres and manufactures Carlsberg and Tuborg brands. The facility reflects Carlsberg India’s strong focus on responsible and sustainable brewing practices. It operates biomass boilers using husk and biogas as fuel. Additionally, 85% of the brewery’s power requirements are met through solar energy. Carlsberg India is also actively engaged in water sustainability initiatives in Karnataka, working in partnership with WaterAid and local communities to promote responsible water stewardship.
Maharashtra has secured a ₹500-crore investment commitment from global brewing major Carlsberg, reinforcing the state’s appeal as a key destination for foreign investment in the food and agro-processing sector.
The Memorandum of Understanding (MoU) was exchanged at the World Economic Forum (WEF) Annual Meeting in Davos in the presence of Maharashtra Chief Minister Devendra Fadnavis and Carlsberg CEO Jacob Aarup-Andersen.
Under the agreement, Carlsberg will invest ₹500 crore in Maharashtra, a move expected to generate approximately 750 new jobs. The investment will be directed towards sustainable, long-term projects aligned with the state’s industrial and agricultural development priorities.
State officials said the partnership underscores Maharashtra’s growing attractiveness for global investors, particularly in value-added agro and food-based industries. The project is also in line with the state government’s broader agenda of driving employment generation, promoting sustainability, and accelerating industrial growth.
The Carlsberg MoU adds momentum to Maharashtra’s investment outreach at Davos. On the first day of the WEF, the state signed 19 investment MoUs collectively valued at ₹14.5 lakh crore. These proposed investments span sectors including green energy, food processing, steel manufacturing, IT-ITES, data centres, electric vehicles and automobiles, shipbuilding, and digital infrastructure.
According to a government press release, the cumulative investments are expected to generate nearly 15 lakh job opportunities across Maharashtra.
The Union Minister of Commerce and Industry, Piyush Goyal, who concluded a significant two-day visit to Brussels on January 8, as part of the India-European Union Free Trade Agreement negotiations has said this will be the ‘mother of all deals.’ Negotiations are in the final phase and several media reports suggest that the historic FTA will be signed January end.
“I have done seven deals so far. All with developed economies. This one will be the mother of all,” the minister said. Goyal has successfully negotiated FTAs with UAE, Australia, the UK, Oman, New Zealand, Mauritius and the four-nation free trade association (Iceland, Norway, Switzerland, and Liechtenstein).
During their engagement, Union Minister Piyush Goyal and Commissioner Šefčovič carried out detailed deliberations across key areas of the proposed agreement. Both sides took note of the steady progress achieved across various negotiating tracks including Market Access for Goods, Rules of Origin, Services etc. Both sides emphasized the strategic importance of concluding a fair, balanced, and ambitious agreement that aligns with their shared values, economic priorities, and commitment to a rules-based trading framework.
Barring agriculture, the FTA will include technology, pharmaceuticals, automobiles, textiles, steel, petroleum products, electronics and alcobev sectors.
As regards the alcobev sector, India’s alcoholic beverages industry, analysts believe, will be a significant beneficiary of the proposed India–European Union FTA. The EU agreement is shaping up at a time when India’s domestic alcobev market is undergoing structural change, marked by premiumisation, urban consumption growth and a growing acceptance of imported wines and spirits in metro and tier-one cities. Together, these shifts create a fertile backdrop for a recalibration of tariff and market-access rules governing alcohol trade between India and the 27-nation EU bloc.
Imported $572 million in 2023
The distilled spirits market in India is also fast expanding, with imports valued at $572 million in 2023, indicating a growing demand for both wine and spirits from the EU. Worldwide, the EU exported nearly €29.8 billion worth of alcoholic beverages in 2024, with wine dominating and spirits/liqueurs as a major category, but only a small fraction is accounted for by India.
But, India is fast opening up as a strategically attractive market for European spirits (large population, rising middle class), though there are tariffs & regulatory barriers which have historically constrained trade expansion.
Trade Flow
Product Category
Value (Approximately)
India-EU Exports
Wines
USD 1.5 m
Spirits and Mixed Products
USD 64.9 m
EU-India Imports
Wines
USD 412.4 m
Spirits & Liqueur
USD 22.3 m
FY 2023–24 trade data Ministry of Commerce
At present, India imposes some of the world’s highest import duties on alcoholic beverages, with basic customs duties on wines and spirits going as high as 150 percent, even before state-level taxes and mark-ups are added. These tariffs have historically limited volumes but have not dampened European producers’ interest in India, given the country’s long-term consumption potential and rising disposable incomes.
According to trade data, the EU is already India’s largest source of imported wines and a major supplier of premium spirits, with imports dominated by France, Italy and Spain in wines, and by producers from countries such as France, Ireland, Germany and the Netherlands in spirits and liqueurs. European companies see the FTA as a pathway to improve price competitiveness and expand beyond niche, high-end consumption into broader premium segments.
Hoping for Faster Label Approvals
From the EU’s perspective, the agreement is not only about tariff reductions but also about regulatory predictability, faster label approvals and clearer rules on distribution and state-level taxation in India. Large multinational players such as Pernod Ricard, Diageo, Rémy Cointreau and Beam Suntory, along with leading wine exporters from France, Italy and Spain, have long argued that India’s current duty structure distorts pricing and restricts category development.
A phased reduction in customs duties under the FTA could make European wines and spirits more accessible to Indian consumers who are increasingly trading up from mass-market domestic brands to premium and international offerings.
For Indian producers, the India–EU FTA presents a more nuanced picture. On the one hand, lower duties on imported alcohol could intensify competition in the premium and luxury segments, particularly in wines, brandies, gins and liqueurs, where European producers enjoy strong heritage and brand recall. On the other hand, the agreement could significantly improve export opportunities for Indian spirits and wines in the EU market, where tariffs are already low but non-tariff barriers, branding challenges and distribution costs have limited India’s presence. Indian companies with premium aspirations see the EU as an important destination for Indian-made whiskies, craft gins, rums and niche wines, especially as global consumers show greater openness to new origins and styles.
The likely structure of alcohol concessions under the India–EU FTA is expected to draw lessons from India’s recent trade agreements with the United Kingdom and Australia. Under the India–UK FTA, India agreed to phased duty reductions on certain spirits and limited concessions on beer, while keeping wines largely outside the scope of tariff liberalisation. The agreement reflected India’s cautious approach to protecting domestic wine producers and managing state-level sensitivities around alcohol pricing and availability.
The India–Australia trade pact, which came into force earlier, went further on wines, with duties on premium Australian wines reduced substantially from earlier levels, improving their competitiveness in the Indian market and providing a clear example of how tariff relief can stimulate category growth without overwhelming domestic producers.
Tariff Reductions?
In comparison, the India–EU FTA is likely to be broader in scope given the EU’s dominance in global wine exports and its diverse portfolio of spirits and liqueurs. European negotiators are expected to push for meaningful, though phased, tariff reductions on wines and spirits, Indian industry bodies such as the CAIBC (Confederation of Indian Alcoholic Beverage Companies) have advocated a calibrated approach that links duty cuts to minimum import prices, safeguards against under-invoicing and strong rules of origin to prevent trans-shipment. These demands reflect concerns that overly aggressive liberalisation could disrupt domestic manufacturing and state revenues, even as policymakers recognise the need to align with global trade norms.
Ultimately, the India–EU Free Trade Agreement has the potential to be more transformative for the alcohol sector than India’s recent FTAs. For European producers, it represents access to one of the world’s most promising premium alcohol markets. For Indian companies, it offers both competitive pressure and the opportunity to scale exports to a sophisticated, high-value consumer base. As negotiations move closer to the finish line, the alcohol industry on both sides is watching closely, aware that the final contours of the agreement could shape drinking patterns, brand strategies and investment flows for years to come.
The Karnataka Lokayukta Police on January 17 arrested three officials of the Excise Department after allegations of corruption surfaced involving a bar licence application. The arrested officials include Deputy Commissioner Jagadish Nayak, Superintendent K.M Thammaiah and excise constable
Lakkappa Gani, who were caught red-handed while accepting Rs. 25 lakh from a man.
The action came after one Lakshminarayan filed a complaint against these officials who allegedly demanded Rs. 80 lakh to grant him a C7 bar licence. Based on the complaint, Lokayukta laid a trap wherein Nayak and Thammaiah were caught red-handed while accepting Rs. 25 lakh as part of the total amount. It is reported that the excise constable was in charge of taking the money from
Lakshminarayan and delivering it to the two officials.
Corruption in the Excise Department is nothing new and the amounts are huge. In 2024, a similar scandal broke out in Mandya wherein Excise Department officials allegedly demanded bribes up to Rs. 40 lakh for bar licenses and Minister N.Cheluvarayaswamy’s name was dragged into the scandal. A Congress party worker, Puneet, had filed a complaint with the Mandya Lokayukta, claiming that his repeated attempts to secure a CL 7 bar license were thwarted due to his refusal to pay bribes.
Puneet had alleged that his application was rejected four times for not complying with the officials’ demands for money, despite having submitted all documents. The complaint included audio and video evidence of the bribe demands made by Excise DC Ravishankar and Maddur Excise Inspector
Shivshankar. He also mentioned that the bribes went up to the Minister. According to Puneet, the initial bribe demanded was Rs. 40 lakh, later reduced to Rs. 20 lakh after a “50% discount”.
Systemic Corruption
Corruption in the excise department is systemic and deeply entrenched. For decades, the excise department across states has been regarded as one of the most lucrative postings in the bureaucracy. The reasons are obvious. Alcohol is among the most heavily regulated consumer products in India, touching multiple layers of licensing, approvals, renewals, inspections, quotas, and
enforcement. From distilleries and breweries to bottlers, distributors, wholesalers, retailers, bars, and restaurants, every link in the value chain is dependent on administrative discretion.
The Karnataka case fits a familiar pattern. Licences for bars, wine stores, microbreweries, or spirit manufacturing units are rarely straightforward administrative processes. They often involve ambiguous rules, discretionary interpretations, and time-bound approvals that are delayed indefinitely, leading to ‘unofficial payments’, sometimes openly discussed, sometimes referred to as
facilitation fees.
This reality is hardly confined to Karnataka. From Maharashtra to Tamil Nadu, Telangana to Uttar Pradesh, excise departments have periodically made headlines for corruption scandals. The sums involved are not trivial. Given that alcohol contributes between 15–25% of many state governments’ tax revenues, the financial stakes are enormous. Excise policy itself becomes a tool for extracting rents, through sudden rule changes, selective enforcement, opaque tendering processes, or arbitrary cancellations and renewals.
