New Delhi, March 8 -- Karnataka's new alcohol policy marks a significant shift in the state's regulatory landscape. With price deregulation and a transition to a new taxation system, major industry players are expected to benefit while local companies lose ground, according to a report by Nuvama.

The Karnataka State government decided to end its role in liquor pricing. The shift toward a price-deregulated market allows larger companies to capture market share through their superior innovation, distribution heft, and advertising capabilities.

The report highlighted that Karnataka's alcohol reform is seen as a "big positive" as the state will transition to an Alcohol in Beverage (AIB) taxation system starting in April 2026. This framework...