Thiruvananthapuram: The State government has decided to issue licenses to more distilleries in Kerala even as the existing 11 are functioning merely as blending units.
The 11 distilleries are licensed to produce spirit and manufacture liquor in the State, but they have been bringing spirit from outside the State, despite Kerala having eight other licensed blending units.
Though three breweries have been issued licences, only one in Palakkad is functional.
While a distillery is a place where spirits are manufactured, blending units are used to mix different products, or add flavours and colours to existing products to arrive at a precise flavour. A brewery, on the other hand, is a building or establishment for brewing beer or other malt liquors.
The government has issued 25 new bar licences in the financial year that ended on Thursday. Most of them have been functioning as beer and wine parlours.
More such parlours are likely to become bars serving hard liquor with the government reiterating in its excise policy that luxury hotels above three-stars would be issued bar licences.
More beer parlours are likely to apply for bar licences once the Central tourism ministry completes its inspection of hotels as part of the classification process by August.
Rs 8-10 crore for setting up a microbrewery
Kochi: Setting up of micro-breweries, as envisaged in the liquor policy, will cost Rs 8-10 crore if entrepreneurs are following the Bengaluru model.
Several entrepreneurs have been visiting micro-breweries in Bengaluru to study their business model.
Micro-breweries in Bengaluru are set up on a minimum of 10,000 square feet of open space. Considering the climate in Kerala, micro-breweries would require air-conditioned buildings, which would further escalate the cost.
Machinery for brewing beer would cost Rs 1.5 to 2 crore, and such breweries would require at least 2000-3000 square feet to function. Going by the current rate, one square feet would cost Rs 3,000, and for 10,000 square feet, one would have to shell out Rs 3 crore.
The expenses will increase proportionate to the luxury offered. A micro-brewery with five-star facility would need Rs 1.5 to 2 crore. This is in addition to the land or building that has to be taken on lease, furniture and licence fee, which could add up to Rs 8 to 10 crore.
Success story in Bengaluru
The microbreweries in Bengaluru have been scripting a success story, with their number doubling to 120 now from the 60 before the outbreak of COVID-19.
A micro-brewery on 10,000 square feet could seat 400-500 patrons. Bengaluru also has micro-breweries that could seat more than 1,000 people.
Licences are issued on remitting a fee of Rs 40 lakh. Besides beer, micro-breweries serve other liquor also.
