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India primarily beer market; Beers with 5-8% account ABV for 80% share
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Monday, 17 November, 2014, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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fiogf49gjkf0d India is primarily a strong beer market, with beers with an alcohol by volume (ABV) ranging between five and eight per cent accounting for over 80 per cent of the total market. This was stated by a spokesperson for SAB Miller India.
“However, beer consumers in India are not different from consumers elsewhere looking for refreshment and social interaction. What is different is the environment in which we operate and live,” he added, when quizzed about the Indian beer industry’s standing vis-a-vis developed nations.
The spokesperson said India was diverse culturally, historically, topographically and linguistically. “Hence, a fair comparison would be tough to make, but having said that, there are many countries across the globe where beer is being sold,” he added.
“Over the years, consumers have shown a preference towards moderate forms of alcohol. The premium beer segment has been growing faster than the overall beer segment, and has grown at a compound annual growth rate (CAGR) of almost 40 per cent over the past two years,” the spokesperson said.
“SABMiller India is one of the players in this segment. The company’s brands include Miller High Life, Indus Pride, Peroni Nastro Azzurro, and now, Miller ACE,” he added.
When asked about the regulations laid down by the government for the beer industry, the spokesperson said, “The Indian market is predominantly a hard spirits market. Beer comprises just five per cent of the total alcohol consumed in India.”
“There are lower taxes per ml of alcohol on hard spirits, making it more attractive for the Indian consumer. Therefore, tax is regulating the market, and not consumers’ preferences,” he added.
“The All India Brewers’ Association (AIBA), the industry body for beer, is collectively working and taking forward issues, which are critical to the future growth of the industry,” the spokesperson said.
When quizzed how SABMiller is different from other players, he said, “We offer our consumers one of the widest and best-known brand portfolios that meet the needs of consumers in each market.”
“The advantage of a full-brand portfolio is that we can access opportunities that make sense, from the consumers’, customers’ and commercial point of view,” the spokesperson added.
“Our core brands are well-placed to maximise the opportunities in Tier-II and III towns, and the premium brands are focussed to win in the metropolitan and Tier-I cities,” he added.
“The marketing and communication approach for each of our brands is, therefore, developed and delivered against these priorities,” the spokesperson added.
“While Haywards 5000 is the hallmark of original and authentic strong beer targeted at men, Foster’s intends to be associated with all occasions of relaxing or enjoying with friends,” he added.
“Miller High Life is positioned as a premium beer targeting professionals above the legal drinking age in metropolitan cities, who embody the brand’s philosophy, namely ‘Work hard, party harder’,” the spokesperson said.
“Peroni Nastro Azzurro, our super-premium Italian brand highly representative of Italian style and flair is aimed at the premium segment of beer segment,” he added.
“Indus Pride, the latest addition to our portfolio is targeted at individuals who are socially versatile, regular consumers of premium beers and proud of India’s emergence,” the spokesperson said.
“Royal Challenge Premium Lager is the beer for the discerning, who have the confidence to make their choices based on their superior taste and knowledge rather than following the crowd,” he added.
“Our diverse portfolio of brands caters to the different consumers at different price points. As such, consumers have wider choices of brands, depending on their affordability,” the spokesperson said.
When asked about the consumer behaviour for beer in India, he added, “The beer market in India is growing steadily, and has undergone a number of changes in the past few years.”
“Beer was a seasonal drink, but is now accepted as an all-year drink. It is seen as a trendy beverage by consumers of legal drinking age, who are also keen to experiment with newer tastes and variants,” the spokesperson stated.
“India has a young population and increasingly, more legal drinking age consumers are entering the market each year. The new Indian consumer for beer has a larger income at his disposal and, therefore, greater spending power,” he added.
“He is more exposed to global trends, is more open to experimenting with newer tastes and variants, and is eager to try out his best. This could only augur well for the industry,” the spokesperson said.
When quizzed about the steps being taken to overcome the challenges faced by the Indian beer industry, he added, “India is a diverse market in terms of demographics, geographies, religious make-up and state environments vary considerably.”
“Focussed growth by the state, therefore, is a more meaningful measure of success than the national share for us,” the spokesperson said.
“Our strategy is to continue to grow the market on all fronts, develop local brands with growth potential, new brands and introduce our international brands into the market,” he added.
“It is our endeavour to innovate and bring to the Indian market world-class technology and best practices that we have access to because of our global presence,” the spokesperson said.
When asked how multinational corporations (MNC) perceive the Indian market, he said, “The Indian beer market has been growing steadily. More and more international brands are setting their footprints in India, because of the huge potential of the Indian beer market.”
“Innovation and packaging are driving the beer industry, and companies are differentiating on this basis,” the spokesperson added.
When asked what trends the Indian beer sector was likely to witness in the coming years, he added, “We see a huge opportunity in India, as beer consumption is on the rise driven by an increase in the number of legal drinking age consumers entering the beer category due to the changes in lifestyle patterns and the rising disposable incomes. These are the main factors leading to the strong growth of the beer industry.”
The spokesperson said that in the future, many more brands and beer varieties would be available in India, offering a wider choice to consumers.
Some of the trends which would define the Indian beer market could be:
Innovation
“We have been category leader when it comes to product and packaging innovation. We have set a new benchmark in the Indian beer industry with the introduction of beer in PET bottles,” the spokesperson said.
“Our brand, Knock Out, took the beverage industry to a new level with the introduction of an innovative thermochromatic label, which indicates temperature of the beverage,” he added.
“The new positioning of Foster’s also brings forward a cold refreshment proposition through its thermochromatic label offering a damn cold experience to its consumers,” the spokesperson said.
“Indus Pride by SABMiller India is India’s first specialty beer brewed with authentic Indian spices,” he informed.
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