E-Malt.com News article: India: United Breweries to replenish its portfolio by premium variants of flagship Kingfisher

India’s United Breweries is launching two premium variants of its flagship Kingfisher beer to combat invading international brands like Carlsberg and Budweiser, the Economic Times published on September, 20.

The new introductions—Kingfisher Blue and Kingfisher Ultra—will play in the high-alcohol-content and mild-beer segments, respectively.

As for rivals, Ultra may have a cross positioning with Carlsberg at Rs 80 per bottle in the Mumbai market, even as company officials said it was a tad early to discuss pricing at this point. Kingfisher Blue may have around 6% alcohol content that is higher than the mild beer (the mother brand Kingfisher), but below the existing strong brew (Kingfisher Strong).

The company confirmed plans to launch the two variants, but did not comment on the pricing. However, experts believe that both Blue and Ultra will be placed as premium compared to the mother brand Kingfisher and Kingfisher Strong, which account for bulk of UB’s 48% market share in the country. In Mumbai, Kingfisher retails at Rs 70 per bottle.

Sectoral analysts said UB’s move to launch premium variants of Kingfisher was interesting, as its new partner Heineken may also be keen on introducing its eponymous flagship beer in the country. Heineken inherited Scottish & Newcastle’s 37.5% stake in UB as part of a global transaction earlier this year.

However, has not struck any business partnership with Heineken citing its investment in rival entity Asia Pacific Breweries. Both Heineken and UB are engaged in talks for settling the marketplace conflict involving Asia Pacific Breweries.

Analysts believe the pricing strategy on Kingfisher Blue and Ultra may hinge on the settlement with Heineken. Meanwhile, UB is also working on the introduction of flavoured beers under Kingfisher Buzz brand, even though it is expected to hit the market later.

India’s beer market was estimated at 156-million cases in FY08, and is seen as a long-term growth market, making it attractive for all global brewing majors.


23 September, 2008