Alcohol Drinks in Lucknow

Key findings

Overhauling regulations to boost excise revenue through alcohol sales

In July 2017, the newly elected government in Uttar Pradesh overhauled alcohol regulations. The regulations dismantled syndicates (associations or cartels that controlled alcohol sales) and helped in creating an open and free market.

Targeting tax evasion and irregularities, the policies had been designed to allow new liquor companies to enter the state market and attract new investments for setting up breweries, distilleries and restaurants.

Increasing model shops and country-made liquor to boost excise duty

Raising the number of model shops by 11%, from 46 in 2016-17 to 51 in 2017-18 and increasing the minimum guarantee quota (MGQ) for country-made liquor to 66,000 litres of liquor for rural areas and 26,700 litres for urban areas, will have impact on alcohol sales.

These measures will not only compensate for decline in distribution timings from 14 hours to 10 hours but also allow tipplers to consume alcohol in model shops, who did not have a legal place to drink and consumed it alcohol on streets.

Inflow of migrant working resulting in changing dynamics of the city’s demographics to boost sales of alcohol

As the city is gaining prosperity, new opportunities are increasing, leading to an increased inflow of migrant workforce, from neighbouring cities and other parts of the state. This growth will help in driving alcohol sales, especially country-made liquor, as majority of the population belongs to weaker section of the society.

Beer gaining popularity in Lucknow

Lucknow has witnessed growth in beer cafes, with companies setting up exclusive beer shops, such as themed German beer cafes like Münick Cafe and Bistro, The Beer Café and The Red Carpet, in 2017. As the taste evolves, it will not be surprising to witness even microbreweries operating in the city, in the future.