Getting listed in state liquor retail as a craft brewery

First, check what your licence allows

In many states, a microbrewery or brewpub licence allows sale only on the premises where the beer is brewed. Packaged beer for retail usually needs a different licence, such as a full brewery licence, or a contract brewing arrangement with a licensed brewery that has a packaging line. Before thinking about shelves, confirm with your licensing adviser what your current licence permits and what you would need.

Our guide to on-trade and off-trade explains the difference between selling in bars and selling through shops. It also shows why the economics differ.

How retail is organised varies by state

India has several models. In some states a government corporation runs the retail shops itself, as TASMAC does in Tamil Nadu. In others, a state corporation acts as the wholesaler and buys from brewers before selling to private retailers, as KSBCL does in Karnataka. Some states have private wholesale and retail under licence. A few have shifted between models as policy changed.

So the first question is always: in this state, who buys from the brewery? The answer decides who you register with, who you sell to and who pays you.

Brand and label registration

Most states require each brand and pack size to be registered with the excise department before sale, often every excise year. That usually means submitting the label for approval, with details such as alcohol content, volume, the maximum retail price, statutory warnings and the manufacturer's details. A label approved in one state is not automatically approved in another.

Fees and timelines vary and change, so plan label registration months ahead of launch and keep a calendar for renewals.

Price approval

States usually require brewers to declare or get approval for prices. Those declared prices then flow through duties, corporation margins, retailer margins and taxes to the maximum retail price on the shelf. Small changes at the brewery end can move the shelf price a lot. Once a price is approved, changing it mid-year may not be easy.

Build a price ladder backwards from what drinkers will pay on the shelf, through every margin and levy, to the price you receive. If the number at the bottom does not cover your cost per litre and a profit, the listing will lose money.

Getting chosen, not just listed

A registered brand is not a stocked brand. Retailers and corporation depots order what sells. Shelf and fridge space is limited. Craft beer competes with big brands that sell high volumes and support retailers with coolers and visibility.

• Start with a small number of shops where your drinkers already go. Support them with staff tastings where allowed and point-of-sale material.
• Keep supply steady. Running out after a launch teaches retailers that you are unreliable.
• Watch the cold chain. A hoppy beer that sits warm in a shop window for weeks will damage your name.

Packaging choices that suit retail

Retail generally means cans or bottles. The choice affects cost, shelf life and how the beer survives Indian heat. Cans block light and usually let in less oxygen than crown-capped bottles. Our guide to kegs and cans as a business choice covers the trade-offs. Whatever you choose, measure dissolved oxygen and run shelf-life tests before you go wide.

Contract brewing as a first step

For a brewpub without a packaging licence, contract brewing can be a way into retail: a licensed brewery with a canning or bottling line brews your recipe under an agreement. The beer is registered as your brand where the state allows it. You avoid building a packaging hall, but you hand over part of the margin and some control over the beer.

If you go this way, write the specification tightly, taste every batch before release and agree in writing who owns the recipe and the brand.

Cash and credit

Payment terms depend on the state system. Some corporations pay within set periods. Others are slower. Retail growth ties up cash in packaging, stock and receivables, so model it before you sign up for large orders. Our guide to beer distribution in India covers the logistics and the people between brewery and shop.

Working out the price ladder and the cash cycle for a retail launch is exactly the kind of planning that saves a brewery from growing into a loss.

Common questions

Can a microbrewery sell packaged beer in shops?

In many states a microbrewery licence only allows sale on its own premises. Retail usually needs a different licence or a contract brewing arrangement. Check your state's rules.

What is label registration?

Most states require each brand and pack size to be registered with excise, usually including label approval and price details, often renewed every excise year.

Who buys beer from a brewery for retail?

It depends on the state. It may be a state corporation, a licensed private wholesaler or, in some systems, the retailer directly.

How do I make sure the retail price works?

Build the price ladder backwards from the shelf price through every margin and levy to your ex-brewery price. Check it covers cost and profit.