Curious case of india’s beer consumption pattern
When the Scottish firm Brewdog launched its beer, Tactical Nuclear Penguin with an alcohol content of 32 percent , the beer bottles came with a “how-to – enjoy it”. It read: "It should be enjoyed in small servings and with an air of aristocratic nonchalance...In exactly the same manner that you would enjoy a fine whisky, or a visit from a friendly yet anxious ghost."
Tell that to Indians, who are simply obsessed with the stronger variety, often straight from the bottle leaning on to the wall of the liquor vend or noisily consuming beers at any of the cheap roadside drinking places, and in nine out of ten instances they will laugh at you.
Strong beers – lager with alcohol strength of between 6 and 8 percent – make up 80 percent of all the beer consumed in India, and up to 70 percent of all the liquor sold in the country. "If you don’t have strong beer in your portfolio, it’s almost pointless making a foray into the Indian market," according to an unnamed executive of a global liquor major. That sums up the Indian beer industry in a few words.
In a country virtually obsessed with whiskey, beer used to be a fringe product (Indians consume more whiskey than anyone else in the whole world) till a few years back. But things have changed a lot during these few years. For an ever increasing strong affluent middle class beer is now increasingly attractive, though most of them consume stronger varieties with an unusual “extra bite” as compared to international beers. Humorously named beers such as He-Man 10000 , Knock Out, Godfather, Elephant, Thunderbolt, Zingaro, Bullet Haywards 5000, 10,000 (with numbers indicating the potency held within )suggest that the beers carry a heavy punch.
Some players say this popularity of strong beers is rather due to excise or industry-driven marketing, and not so much a conscious consumer decision. But is it really, or are there other reasons behind this unique consumption pattern?
Beer consumption and market has a long way to go in India, where local spirits brands have traditionally dominated. Per capita annual beer consumption is below two liters. By the end of this year, the beer market in India is expected to account for 46 percent of total alcoholic drinks volume. Consumption pattern and habits are rapidly changing, but it seems there is one constant: India’s fixation with the stronger variety of beers. A majority of beer consumers does not really care about the brand or company, it all boils down to the percentage of alcohol in the bottle. It is very common that if people ask for “a beer” at the shop, the shop keeper will instinctively hand out a strong beer. If you ask a consumer about the choice at any of the numerous roadside vends all over the countryside, he will invariably point out to strong brands. So much so that people consider it a waste to spend money on lagers at these places.
Many of these consumers are graduating from cheap and mid whisky brands to beers and they want to have their fill of alcohol in the same amount of money. A person spending about INR 100 for a nip of whisky will opt for an INR 80 beer bottle but will look for the same kick. Another major reason of popularity of strong beer is the price sensitivity of Indian consumers.
“A bottle of strong beer is seen as value for money and in summer months considered as a lighter option to Indian whisky, the other liquor of choice in India," according to Sanjiv Bali, Managing Director of Mount Shivalik, which brews one of the most popular strong beer, Thunderbolt.
