Demystified » Beer » Indian Scene

Not that we haven't had our share of innovation. Years ago, in the early eighties, Associated Breweries (of London Pilsner fame) launched London Stout into a market not quite ready for such adventure. It was soon shelved. They were also the first to introduce the concept of `diet' beer. This time they were just about there and the consumers were more accepting, albeit slowly. Soon after came the first cans in Seagull (Doburg Breweries) and Jubilee (UB) to a still adolescent market. Both crashed.

Breweries already operate on much smaller margins than the IMFL market. Setting up a beer plant is very expensive and at this rate, the industry is likely to show no appreciable growth. It is already exaggerated at 10%. Maharashtra is the highest consumer of beer and has registered a rise from 100-lakh cases in '91 to 120 lakh cases in '96, an average growth of 3%. Draught beer is around 10% of the beer market here with all three major players enjoying a similar share. Nationally, the draught beer and canned beer shares are under 5%. The only beers that consistently fared well were the strong or fermented beers, which gave rise to the spurt in the category. Khajuraho, Haywards 2000 and 5000, and others of this ilk flourished and continue to do so.

In fact, the strong beer segment is growing at a much faster rate than the mild. From a market share of 28% in 1991, it has cornered between 35 - 40% by the end of '97. In the mild beer segment, the UB group is the market leader once more with a strength of 12 breweries nationally and a market share of over 40% of the approximately 55 million case beer industry. Their two biggest brands are Kingfisher and Kalyani Black labels. Mohan Meakins with its flagship Golden Eagle and others attracts an 18 - 20% market share followed by Shaw Wallace with Haywards and Royal Challenge premium lager at around 15%. Then comes Associated Breweries with London Pilsner at 6%. Mysore Breweries with Knockout, Cobra and Pal's is a serious contender as are Arlem, Mount Shivalik and a plethora of regional brands.

Sandpiper from Inertia Industries, a beer that stormed the Indian market with its aggressive marketing, was thrown by the imposition of prohibition in Haryana where its lone brewery was located. With Haryana's return to the real world, this young brand has its second lease to make it big. Our first taste of an international beer came in a can. Stroh's, the great American beer, stormed the market and within a short period has established itself as a force to reckon with. Hakke Beck in collaboration with Him Neel Breweries has yet to make a dent while San Miguel, the Fillipino giant working with Associated Breweries, is seriously making its presence felt. Its advertising campaign though raises an eyebrow or two! Foster's, Australia's mega brand, has also thrown its hat into the ring and its logos alone have given it great visibility. The ad campaign reinforces the distinct Australian identity of the brand.