E-Malt.com News article: India: United Breweries expects premium beer to become a much larger part of its business

United Breweries expects premium beer to become a much larger part of its business over the next four years, with the segment likely to account for 18–20% of sales by 2029-30 (FY30), up from around 11% currently. MD & CEO Vivek Gupta said premium beer is growing 20–25% annually and is also becoming an important driver of the company’s profitability, CNBC TV18 reported on September 4.

Premium volumes grew 34% in 2024 and 24% last year, while this year’s performance is ahead of plan. Brands such as Heineken Silver and Ultra are driving the premiumisation push, with Heineken Silver being rolled out across more states.

Gupta said the company is targeting double-digit revenue growth, but wants to achieve it while steadily improving margins. “The quality of that growth is also important because it's a state-by-state business.” He said growth will come from a combination of premiumisation, better price mix and higher volumes.

Margin improvement will also come from better use of United Breweries’ own production facilities, a favourable mix of states and productivity initiatives. The company is investing in technology and aims to produce more cases from existing breweries without significant additional capital expenditure.

Recent policy changes have also boosted beer consumption in some states. Gupta said beer volumes in Karnataka and Jharkhand have risen more than 50% over the past three months following changes in retail policies. He expects similar reforms in other states to provide further support to the category.

The company remains confident about the long-term beer opportunity in India. Gupta believes the country could become the world’s largest beer market, supported by a large young population entering the legal drinking age. At the same time, UBL is responding to changing consumer preferences with more sessionable beers and a bigger focus on non-alcoholic products.

“We truly believe that India is going to be the world's largest beer market.” Gupta said the company’s priority is to fuel category growth while maintaining a balance between investment, revenue growth and margins.

United Breweries is also expanding its Heineken 0.0 offering to create more occasions for consumers who want beer without alcohol, while continuing to innovate around lower after-smell and more sessionable products.

Bengaluru-based United Breweries shares have declined nearly 31% over the past year, while the company’s market capitalisation stands at around ₹33,826.67 crore.


07 September, 2026