Tuesday, February 25, 2014
Beer in India
One of my friend's friend has recommended that Old Monk Rum should be considered as Indian National Drink. Read his article and enjoy Old Monk Rum. I visited many bars and found Old Monk Rum in all type of bars like road side bars or five star bars or army canteen bars. Rich or poor, Soldier or General all drink Old Monk Rum. There is no hangover. Solan No.1 is also liked by many. I hope you may enjoy this article and certify comments received.
India, the emerging economy : trends and future
India with its estimated 1.23 billion population is one of the fastest growing economies in Asia. While most of the traditionally strong economies in the world suffered greatly under the global crisis, India overcame it quite easily. Today, a strong consuming class in India with disposable income has triggered the world's attention. Many international companies are looking for opportunities to establish business in India.
Global Liquor Firms are making a beeline. Many have started their own production units
Indian Beer Market
Historically, India has always been rather a whiskey and rum market. Even today, whiskey and rum account for close to 85% of the total hard liquor market. Due to increase in a new generation of consumers, growth of beer, vodka ( white spirits and ready to drink products ) and wine segments are contributed in total alcohol products. Indian market is very sensitive and price -conscious. But volumes are justifying the lower prices. To benefit from the strength of the Indian market , one must understand
1.0 350 million middle class population with disposable income and 45 million house holds are consuming middle class segment
2.0 45% of the population is less than 30 years old.
3.0 150 million consume beer and alcohlic beverages
India is divided in to four regions. Climatic charachetristics and proximity to the sea makes the climate bof the western / southern region more humid with temperatures around + 30 degree centigrade. These region account for 75% of beer consumption.
Western region ; 35%
Southern region : 40%
Northern region : 15%
Eastern region : 10%
Strong lager beer market 75 - 80%
Light lager beer market 15 - 20%
Imported beers 5 - 10%
The most promising markets for imported beers are rich ares like Delhi, Mumbai, Bangalore, Kolkatta, Chennai, Goa etc. The international brands Carlsberg, Heineken, and Budweiser are produced in India.
The demographic aspects in India are constantly changing in favour of beer consumption. Today , wine and beer are seen as life style beveragres by India's elite. Every restaurant that opens today has a beer / wine list. Alcohol is no longer tabooed in Indian culture, mostly due to globalisation. The percentage of Indian women as potential customers for the beer and wine segment has also been growing, possibly related to the fact that more Indian women are entering the professional areana as working class.
But still overall per capita consumption leaves room for improvement.
Beer sales in India are growing by 25% per annum. The market has just doubled in last four years. Craft beer segment is supposed to grow much faster as the younger generation understands craft brewing and is looking for a greater variety in the beer segment.. Approximately 100 micro breweries / pubs in India are operational.. India has 29 states and every state has its own excise and taxation structure. States like Uttar Padesh, Punjab, Tamil Nadu etc are controlled by government officers and politicians due to their personal interest. In the commercial sector the competition is very strong. Micro brewery with lower capacity and an annual production up to 50,000 hl maximum in each state is the need of the hour. This shall create brew master controlled breweries with their unique taste. For example at Rockman's beer island beer is brewed in accordance with German Purity Law.
According to Heineken, international premium beer brands constitute 7% of total beer or 126 million hl in 2009. That is if you add up the beer volume these brands sell out side their country of origin. Heineken minus the Netherlands, Corona minus Mexico, Budweiser minus the US etc.This goes to show that building a global beer brand is more like a "3 c" thing. It's complicated, cumbersome and costly. Especially if you do it from scratch as SAB Miller has done with Italion Peroni brand. Anheuser Busch thought that they could conquer the World Roman Style : one battle at a time. Their succes was mixed and in the end they failed. This all shall help the local brewers in India to experiment beer with herbs and sell unfiltered pasteurized beer with sediments.
Source - Brauwelt International
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