Beer guzzlers in India have never had it this good. The number of brands available in the country is growing by each passing quarter, and while a few years back, brands such as Carlsberg, Barons or Budweiser were gulped down on foreign trips, they can be found at retail stores all across the country. But what about the market?
The beer market in India is pegged around 12 million hectolitres and is expected to double in the next five years or so.
But in spite of the growth, the market is one of the toughest to break among alcoholic segments and continues to be dominated by two main players -- Kingfisher and SABMiller.
So what do the latest entrants such as Barons and Carlsberg plan to do? Brands like Cobra as well have started brewery operations in India and are looking at the Indian market in a big way.
"The beer market in India has enormous potential and we hope to make a dent in the market," says Chetan Gupta, Marketing Director, Asia Pacific Breweries, which has launched Barons in the country.
Carlsberg, the other new entrant, is positioned as premium beer, compared to Kingfisher or Fosters. A pint of Carlsberg retails for Rs 35 in Delhi compared to Kingfisher, which sells around Rs 25.
"Increase in purchasing power and growing popularity of beer makes India a market of high potential, with 15 per cent to 30 per cent annual growth," says Joakim Sande, Marketing Director, India, Carlsberg.
Asia Pacific Breweries, which launched its flagship brand Barons, last month, is also gearing up to face the competition. But it is positioning itself in the strong beer market as according to Gupta "it is the fastest growing segment." Barons too is positioning itself as a premium beer brand, with a pint costing around Rs 40.
But will the consumers shift their brand loyalties considering the higher price point? "It's difficult to change the mindset of people but since the target audience is between 25 and 35 who are willing to try out new things, it might work," says a Delhi-based analyst.
The newer players are looking to make an impact in the metros first and then move to the smaller towns. "We plan to launch Carlsberg in key metros across India creating a new category of super premium beer range in India. The focus will be on creating a strong presence in key metros before going into other markets," says Sande.
With Heineken, Tiger and Budweiser soon reaching the Indian market, the consumer stands to gain the most. Will the brands too feel the same, remains to be seen.
