E-Malt.com News article: India: SABMiller launches Miller High Life in the premium beer segment

SABMiller, the second-largest brewer in the country, has launched its iconic American beer Miller High Life and Australian beer Foster's Strong in an aggressive bid to bridge the widening gap with United Breweries, The Economic Times reported on September, 23.

The Indian arm of world's second-largest brewer, which bought Foster's Group in a $10-billion deal on September, 21, is accelerating brand introduction, visibility and innovation after its share in the around 230-million cases Indian beer market fell to 23.5% (year to date) from more than 35% in core markets in 2008.

While Miller High Life was launched in Mumbai and Pune this month, Foster's Strong has been rolled out in Punjab, Haryana and Chandigarh. It's also selling select brands in PET bottles in Maharash-tra. Miller High Life is the first brand from SABMiller's global portfolio being locally brewed, at Aurangabad. Its super-premium brand Peroni Nastro Azzurro is imported.

Positioned in the premium category, Miller High Life will target professionals below 35 across metro cities, expanding its presence in the premium beer market estimated at 40 million cases, company officials said.

In Maharashtra, it's priced at Rs 80 for a pint, the same as Carlsberg, but officials said that is because Carlsberg brand absorbed this year's recent increase in excise duty. In most markets, Miller High Life will be positioned between Foster's and Carlsberg on an average.

Foster's Strong is the second made-for-India product within SABMiller’s portfolio after malt beer Indus Pride was launched in 2008. "Eight out of ten beer drinkers prefer strong beer in India. Foster's was not playing in that segment," SABMiller India Director-Marketing Derek Jones said. It is priced Rs 5 higher than Foster's mild for a 650 ml bottle.

"Consumers need the opportunity to trade up even in strong beer," Jones said. This is an area Danish brewer Carlsberg is already catering to. After the grand success of its Tuborg Strong in the country, Carlsberg recently launched super premium strong beer Carlsberg Elephant. The beer market has been growing at double digits, around 10% until last fiscal, but got depressed this year, mainly because of several excise policy changes.

Once a close second in the market, SABMiller's market share fell to 23.5% so far this year after regulatory changes in Andhra Pradesh, Uttar Pradesh and exit in a bottling arrangement in Tamil Nadu.

Now it's on a comeback trail that includes adapting to the aerated beverages model to sell beer on the go.



23 September, 2011