The Great Indian Liquor Maze

Fragmented policies, steep taxes, and regulatory hurdles continue to shape India's alco-bev landscape, forcing brands to innovate, adapt, and find new ways to reach the consumer.

- By Geetika Sachdev

India's alcohol industry is unlike any other in the world. Here, liquor isn't just a product; it's a puzzle. Unlike global markets governed by uniform regulations, alcohol in India is a state subject, with each region charting its own path for regulation, pricing, taxation and retail distribution. Step across a state border, and the same bottle of whisky can tell a completely different story — its price, availability, and even the way it sits on the shelf all changing in an instant.

For brands, this isn't just a logistical headache; it's a labyrinth of laws, local practices and consumer expectations to navigate. Crack the code of one state and a product can flourish; misread another and it might barely reach the consumer. Success here demands not only strategy and marketing acumen, but also a deep understanding of regional nuances that can make or break a launch.

“The alco-bev industry in India operates within one of the most complex regulatory environments in the world. Since each state has its own framework for taxation, distribution, and retail access, brands must build deep, state-wise expertise rather than applying a one-size-fits-all strategy. Over time, this fragmentation has also made the industry remarkably agile and locally attuned,” says Vikram Achanta, Founder & CEO of Tulleeho and Co-Founder of 30BestBarsIndia and India Bartender Show.

Different states, different systems

Even the route to market differs dramatically from one state to another, highlights Utsav Kedia, Vice President (Business Growth) at Great Galleon Ventures Limited. “In Madhya Pradesh, the State Beverage Corporation acts as a middleman. In contrast, the neighbouring state of Maharashtra is a distributor-driven market while in Kerala, the state government operates both distribution and retail.”