Beer in India

PROSPECTS

Beer sales back on track after difficult year

Total volume sales of beer were stagnant in 2017, mainly impacted by the highway ban and the lingering effects of demonetisation, coupled with some excise duty hikes. Consequently, these effects started to wane at the beginning of 2018, with the category witnessing growth, partly due to the low base of 2017.

Microbreweries venture into packaged beer to expand consumer reach

Microbreweries are extending their offerings to retailers in cans and bottles and to on-trade establishments such as pubs in the form of cans, bottles and kegs. Several others are planning to capitalise on this trend, as they want to take advantage of the increasing demand for craft beer by leveraging the equity and expertise built through running the operations.

Non alcoholic beer offers new product development possibilities

Companies believe that there is a huge opportunity for non alcoholic beer in India, especially in states such as Gujarat, where consumers do not have access to alcohol. Such products not only target Indians who do not consume alcohol or have no access to it, but also provide existing consumers with an additional lighter option.

COMPETITIVE LANDSCAPE

B9 Beverages eyes mass brands such as Kingfisher and Carlsberg

B9 Beverages is one of the fastest growing players in Indian beer. Until 2018, it had focussed on producing low alcohol beer.

UB Group retains dominance of beer

UB Group had 21 of its own breweries and 10 contract units in May 2019, located across the country, which helps facilitate its national distribution network. Its portfolio has a varied mix of domestic and imported brands that cater to all major segments of local consumers.

Companies invest in premium brands to drive sales

Three of the largest players in beer, UB Group, Anheuser-Busch InBev and Carlsberg, are investing in premium offerings to consolidate their positions. Premiumisation continues to capitalise on demand from millennials and rising disposable incomes which promote trials of premium products.

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