Premium beer segment picking up
India is traditionally a strong beer market, but the consumption pattern in this exciting market has been showing signs of change lately. Strangely for a country with a billion plus people, one doesn’t get many beer varieties. Its either strong or mild, one gets to hear at most of the places. Although strong beers still have a strong four fifth of the market, the mild segment started calling attention to itself.
The market
In the financial year 2011 ( India’s financial year is from April - March. 2011 FY would be April 2010 - March 2011), the total beer market in India stood at around 242 million cases, of which strong beer accounted for 79 percent, while the rest 21 percent was mild beer. In the mild beer segment, premium mild beer accounts for 76 percent of total sales, while super premium mild beer makes up for another 7 - 8 percent.
Much awaited launch
India’s top beer producer and retailer United Brewery (UB) has launched Heineken beer in India after a long waiting period. Initially the beer has been launched in Metro cities such as national capital Delhi, Mumbai and India’s Silicon Valley, Bangalore. The company is planning to launch the beer in 20 markets in a couple of years from now.
UB, which signed an agreement in 2009 with Netherlands-based Heineken Group for manufacturing and distribution of Heineken beer in India, expects the brand to secure a 5 percent market share in the premium mild segment in India within two years. Heineken had indirectly acquired a 37.5 percent stake in United Breweries Limited, following its worldwide takeover of Scottish & Newcastle (S&N) in January 2008.
UB brews Heineken at its Taloja facility, near Mumbai. Heineken comes in imported green embossed bottles in 650 ml and 330 ml sizes priced at INR 150 (USD 3.12) and INR 90 (USD 1.90) in Bangalore. The visual identity includes the iconic brand elements like the racetrack label, the Heineken type face with the smiling ‘e’s and the red star, one of the most recognized beer symbol, worldwide. High-quality malted barley and hops are imported from Europe, in addition to the all-important Heineken A-yeast, and water treated to Heineken specifications. Heineken production capacity at Taloja facility is sufficient to cater to demand for the first two years. UB will initially focus on promoting the much awaited beer at premium pubs, bars, lounges, restaurants and retail outlets. According to the company, Heineken would be launched in the states of West Bengal, Goa, Haryana and Punjab in a phased manner. The company will further decide about its launch strategy, after the brand gets a foothold in these markets.
Cobra – realigning
Another premium brand, Cobra, is preparing a new strategy to revive its operations in the country. Cobra is available in six states in India and is planning to enter into more states. The company is also streamlining its manufacturing operations in India. Earlier, American Molson Coors picked up a majority stake in Cobra brand in June 2011 (for South Asia).
