India: AB InBev CEO in India to review Indian operations

Anheuser-Busch InBev Chief Executive Carlos Brito is in India to review Indian operations barely four days after the ban on highway liquor shops in the country. This is the first India visit for Brito after the world’s largest brewer acquired rival SABMiller Plc six months ago, the Economic Times reported on April 5.

“Carlos Brito regularly visits our markets and is currently in Bengaluru as part of a standard market visit,” confirmed the company without divulging specific agenda.

While the maker of Budweiser, Fosters and Hoegaarden is the second-largest beer company in India, it has been losing share to rivals including Carlsberg. “The business is slowing down in India and discussing issues in distribution and workforce due to integration with SABMiller is on the agenda,” said an official who didn’t wish to be identified adding that Brito has no plans to meet government representatives or trade.

The India headquarter has been recently shifted from Gurgaon to Bengaluru, reporting into the Zone President for Asia Pacific South, based out of Melbourne, Australia.

“The company has been losing share since the past few years — from about 24% in 2014 to 19% now,” said the official. “The recent decision to ban alcohol on highway will further dampen their operations, something that will surely be discussed by Brito. Few of SABMiller’s warehouses and plants especially in the north are also located near highways which may have to be relocated.”

AB InBev — which produces one in four beers around the world — was a fringe player until last year in the market where leader United Breweries controls about half the beer market with 51% share. It acquired SABMiller which sells brands such as Haywards and Knockout and is the second-largest firm followed by Carlsberg that controls nearly 17% of the market. More than a year ago, the company parted ways with its New Delhi-based joint venture partner RJ Corp to operate a wholly-owned subsidiary — Crown Beers India.

The Indian operations now have a team of over 325 people with flagship brand Budweiser brewed locally out of two manufacturing locations in Telangana and Maharashtra. The portfolio in India also includes imported international brands such as Stella Artois, Leffe and Corona, which are mainly restricted in the premium end beer in a country where mass and strong beer segment dominate nearly 80% of the overall segment.

05 April, 2017