E-Malt.com News article: India: United Breweries to roll out strong Kingfisher Ultra Max beer

Kingfisher Ultra Max, a strong variant of Kingfisher Ultra beer and the costliest in the Kingfisher line, will be rolled out across India in a year in what its maker United Breweries calls its most aggressive launch in five years, Livemint reported on April 21.

United Breweries, which sells more than half of all the beer sold in India, is trying to fend off rivals such as SABMiller and AB InBev that have flooded the market with expensive versions of strong beer, the most popular among the country’s beer drinkers.

“This is the most aggressive launch done by United Breweries in over five years,” Samar Singh Sheikhawat, senior vice-president, marketing, said in an interview on April 17.

“This is the brand we are banking very heavily on.”

Sold in parts of Mumbai, Pune, Thane, Raigarh and Haryana, UB is cranking up all its 31 breweries across the country to produce Ultra Max, the latest from the Kingfisher stable.

“We’ve spent 1.2 times of what we spent on the launch of Heineken,” he added. To be sure, Heineken beer was launched in India in 2011. Heineken NV of Netherlands is the majority shareholder of United Breweries.

India’s beer market has traditionally been driven by strong beer, which accounts for 85% of all beer consumed in the country. Sheikhawat said he expects strong beer sales to account for 90-100%. In 2014, Indians drank 270-280 million cases of beer.

Some of the strong beers that have debuted in India in the last 12-18 months include Carlsberg Elephant from Carlsberg India and Budweiser Magnum from AB InBev, attracting customers willing to shell out extra for premium variants.

In September, the country’s second-largest brewer SABMiller India launched Miller Ace.

“The quality of competition is much superior than what we have faced before,” Sheikhawat added. With all top four brewers selling popular brands in the market “you have to raise your game to global level”, he said.

A trade analyst, who did not want to be named, said for now, “UB just wants to up its game and really work on improving margins”.

Ultra Max, which comes in gold and black packaging, costs Rs.180 for a 650ml bottle in Maharashtra.

“Carlsberg is clearly stealing the thunder from United Breweries and SABMiller in certain markets, especially in the north and the east, where’s its pumping a lot of money into trade. As a result, UB is clearly doing everything to target a segment that is willing to put extra bucks on the table to get a kick out of strong beer,” the analyst added.

The shift comes even as more buyers take to strong beer, says Sheikhawat. “We are seeing even first-time drinkers opt for such beers, with consumers willing to pay more for a better product,” he said.

After seven years, the beer maker undertook a costly exercise to lift the look and feel of Kingfisher brands earlier this year. “We’ve added a more international feel to our packaging to talk to a more aspirational consumer,” he added.

Over the next few months, the company will continue to roll out communication for its new packaging and design.

Experts expect high single-digit growth to continue through the current year, after the market slowed down last year.

United Breweries Ltd’s net profit fell 28% to Rs.39.94 crore in the December quarter on the back of tepid revenue growth and higher advertising spending. Income in the quarter ended 31 December jumped 5.8% to Rs.1,012.37 crore from the year-ago quarter.

Sales volumes barely increased, while revenue growth came from price hikes.


22 April, 2015