Estonia and Portugal seek entry into Kerala beer market as foreign brands gain traction

Estonia and Portugal have shown interest in introducing their beer brands to Kerala, according to recent discussions between embassy officials from both countries and the Kerala State Beverages Corporation (Bevco). The meetings took place in Thiruvananthapuram, where representatives from the embassies approached Bevco to explore opportunities for selling their beers in the state. Currently, Bevco sells foreign-made foreign liquor (FMFL) and imported wines, but has not yet started offering foreign-made beers.

Harshita Attaluri, chairman and managing director of Bevco, confirmed that the excise department has already approved the sale of foreign-made beer brands. The proposal is now awaiting a decision from the finance department, which is responsible for finalizing the tax structure for these products. Attaluri explained that embassy officials also expressed interest in expanding into the FMFL and wine markets. She said that companies interested in entering the Kerala market have been advised to submit applications and required documents through the designated online portal.

The move comes at a time when sales of FMFL and imported wines are on the rise in Kerala. Bevco reported that 114,000 cases were sold up to the third week of August this financial year, compared to 104,000 cases during the same period last year. Attaluri attributed part of this growth to changes in retail operations. Most Bevco outlets now operate as walk-in stores, allowing customers to choose their preferred brands directly from display racks. This shift has contributed to increased sales of foreign-made liquor and wine.

Beer sales through Bevco outlets have also seen an uptick this year. By late August, 1.828 million cases had been sold, up from 1.736 million cases during the same period last year. However, sales to bars and beer parlors—referred to as warehouse sales—have declined, dropping from 2.262 million cases last year to 1.995 million cases this year.

In response to requests from tourists and stakeholders in Kerala’s tourism industry, Bevco recently recommended that the government introduce low-alcohol beverages. The excise department has approved this proposal, and the finance department is currently working on setting appropriate tax rates for these new products.

The interest from Estonia and Portugal reflects a growing demand for international beer brands among consumers in Kerala. If approved by state authorities, these new offerings could soon be available alongside existing selections at Bevco outlets across the state.