

Alcoholic beverages market, especially beer market in India is growing with leaps and bounds. The beer market in India is estimated to be over Rupees 3000 corers. Annual consumption of beer is over hundred 10 million cases. CAGR of beer industry in the year 2008 is 14.3%, much higher than most of the countries. Rising income the Indian consumer, change in age profile and lifestyle as well as a reduction in beer prices are major factors pushing this growth. Traditional beer markets like Europe and USA are either flat or in a state of decline whereas consumption in the BRIC countries increased by almost 50% during 2002-2007. In India, beer sales grew at nearly 90% compared to, less than 60% growth for other alcoholic drinks and according to industry sources Indian beer market is expected to nearly double itself to 23.3 million hL by 2012 from 12.5 million hL at present. Another interesting fact is among non-Islamic countries India has the lowest per-capita consumption of beer.
For these reasons international beer companies are coming to India almost every quarter. Three big international brands Budweiser, Carlsberg and Heineken entered India in last 12-15 months. In February this year, Anheuser-Busch, makers of the legendary Budweiser, that calls itself the king of beers, announced its India entry through a 50:50 joint venture with the Hyderabad-based Crown Beers. Three months before that, Carlsberg, the beer brand for soccer fans, announced operations in India through its venture, South Asian Breweries. Last year, the Singapore-based Asia Pacific Breweries picked up a 76 per cent stake in Aurangabad Breweries, paving the way for the launch of Heineken into India. There are others like NRI entrepreneur Karan Bilimoria, who created waves in UK’s Indian restaurants by marketing Cobra, a less-gassy beer, also eyeing the market. Even the big
three brands have siblings. Apart from Heineken, Asia Pacific Breweries (APB) sells Canon, Baron’s and Tiger; Crown Beers India unveiled Armstrong; while South Asia Breweries has introduced Pallone.But Indian beer market is highly saturated and difficult to break into. More than 80% of the market is controlled by the two players, UB and SAB Miller. While UB with brands like Kingfisher, Zingaro and Kalyani Black has a 48% market share, SAB’s bouquetof acquired brands- Haywards, Royal challenge, Knock Out and Foster’s deliver a combined market share of 37%. According to market analysts international brands excepting Foster’s have made little impression in India till date but according to these new entrants Indian beer market just started to evolve and has a huge growth potential. Till now the new entrants are looking at encashing equity with a premium pricing strategy and they cater to only 30% of the market- the mild beer segment. For remaining 70% market this players launched multiple new brands that are competitively priced. However some of the consultants are not confident about the success of this marketing mix since Indian scenario is widely different from other growing markets because of its immense and diversified geography, huge variety of social and cultural setup, differential tax regime across states, are to name a few. Taxes imposed on alcoholic beverages are very high which make the competition tougher for new entrants. Currently spirit manufacturers trying to push forward a policy change which will exempt beer (especially mild variety) from high alcoholic tax regime and accept it as normal refreshment beverage but in Indian socio-cultural and political scenario this proposal has only a few takers.
Classification of beer: Lager: It is stored for a specified period before being bottled or canned. Pilsner: A type of lager beer, it is light with 3.0 – 3.8% alcohol and has a medium hop flavor. Ale: Top fermented, this kind of beer has distinct hop aroma. The alcohol content is around 4 – 5%. Stout: Dark with burnt flavor and strong malt aroma; it is heavily hopped and contains 5 – 6.5% alcohol. Porter: This is less dark than stout, even less hopped and is somewhat sweet. Alcohol content is around 5%. Creamy Ale: A highly carbonated beer that is produced by a combination of Ale and Lager. Malt: A strong flavored, high alcohol content beer that ranges in flavor and colors.
Classification of Beer : –
- Lager: It is stored for a specified period before being bottled or canned.
- Pilsner: A type of lager beer, it is light with 3.0 – 3.8% alcohol and has a medium hop flavor.
- Ale:
For Further Information Visit >>> ManagementFunda