The beer category has been consolidating, allowing UB Group, SAB Miller and Foster's to control 80 per cent of the market. The players are now jostling for share in various segments and looking at price cuts. UB Group's London Pilsner is strengthening its brand through affordablility and availability.
It was relaunched earlier this year, in a 250 ml bottle priced at Rs 16 (about 33 US cents), with the tagline, 'Cold drink out'. Ramesh Vishwanathan, GM, marketing, UB Group, said: "We are only stressing that it's affordable. The benchmark of the product, in terms of price, is soft drinks and not another beer."
Market leader Kingfisher, also from the UB stable, which has a 70 per cent share in the mild beer segment, is using fashion and sports to create an international image, something which has been a barrier to growth for other players.
The industry has also been battling a semi-ban on liquor advertising, and while most players have stretched the limits of surrogate advertising, they're now looking at the product itself to give them mileage. Foster's India has developed and launched Amberro lager beer at the low price of Rs 100 ($2.2) for a pack of five pints. "This is good international-standard beer at a very affordable price and we are focusing very heavily on deepening distribution," said Pradeep Gidwani, managing director, Foster's India.
SAB Miller is also exploring the market with similar propositions. Vinod Giri, marketing director, SAB Miller, said: "We do want to drive value, and we could do it by increasing the volume or by image. The industry will witness far greater segmentation on an emotional platform - and that's when brand loyalties will begin to count."
He noted that the industry was moving away from commoditisation. Foster's, which has a six per cent share of the pie, is making waves with its Formula 1 global association.
Growing at 25 per cent per annum, India is not traditionally a beer-guzzling country. Per capita consumption is 0.7 litres per year.
