To be sure, the beer market has a long way to go in a nation
where local spirits brands have traditionally dominated. Annual
beer consumption per capita is below two liters, which is a lot
less than other Asian markets, such as China (more than 35 liters)
and Hong Kong (22 liters), according to Euromonitor International.
Yet consumption is growing faster than spirits and wine, and by the
end of 2012 the beer market in India will account for almost half
-- 46% -- of total alcoholic drinks volume sales, according to
Euromonitor. (The Canadean Global Beverage Forecast pegs beer's
share in India much lower, at 23% of total alcoholic beverages in
2012.)
India-based UB Group remains the dominant beer player by far
with its Kingfisher brand, which has 46% volume share, according to
Euromonitor. But Western brewers see promise in the expanding
market.
The growth is driven by college-going young adults and
professionals ages 18 to 40 who "consider it more fashionable to
drink beer than consume brown spirits," the report stated. Also,
more women are drinking beer. That's a major shift for a country
where female drinking was once frowned upon. Indeed, Indian soap
operas and Bollywood movies often show female villains drinking
alcohol "as a reflection of their unattractive behavior," said
Sunitha Barlota, a Euromonitor analyst. But acceptance is growing
in urban areas, where educated women are drinking socially and bars
are even hosting ladies' nights.
There are a thicket of regulations to navigate. Each state
enforces its own rules, taxes and legal drinking age, which runs as
low as 18 in the state of Goa to 25 in Maharashtra. Gujarat,
Gandhi's birth state, remains dry.
TV advertising for alcohol is banned across India. But companies
get around the rules with so-called surrogate advertising in which
marketers sell bottled water, compact discs and other goods
emblazoned with booze brand names as a way to raise awareness.
SABMiller, for instance, advertises "Miller Time " clocks for High
Life, which was introduced last year and is positioned with a
work-hard, play-hard mentality.
A lot of the attention is on India's "strong beer" segment,
which generally refers to beers ranging from 5.1% alcohol by volume
to 8%, and accounts for some 80% of the market, according to
brewers. (Bud Light in the U.S. has 4.2% ABV.) But rather than talk
about a beer's alcohol strength, SABMiller recently shifted
strategy, using the tagline "strengthen your resolve" for its
top-selling Indian brand, a strong beer called Haywards 5000. The
message pushes the notion that people drink beer -- even strong
beer -- to remain in control, vs., say, doing a shot of
whiskey.
AB InBev launched regular Budweiser (with 5% ABV) in India in
2007. Bud Magnum, which is 6.5% and is only sold in India, entered
the market in June in four major metro areas -- Mumbai, Delhi,
Bengaluru and Hyderabad -- which account for 25% of the nation's
beer drinkers.
It is also the most expensive beer in India, priced at least 2.5
times more than Kingfisher, according to Euromonitor. Ricardo
Marques, Budweiser's global ad director, said the brew is aimed at
India's "rising class of young achievers that work hard and also
like to celebrate." Carlsberg, which entered India in 2006, last
year launched its premium Carlsberg Elephant beer in India,
positioning it as "the new royalty of strong beer."
Heineken is betting that drinkers will eventually dial down the
alcohol content even more over time. Brand Heineken is 5% ABV,
putting it into the mild category in India, where the brewer
partners with UB Group. "We believe [habits] will change in
the long-run and [be] led by health consciousness," said Laurent
Odinot, Heineken's marketing manager for Asia Pacific.
