India: SABMiller India plans to procure all its barley in India within the next five years

SABMiller India plans to procure 100% of its barley directly from Indian farmers within the next five years, local media reported on March, 9.

According to a company official, the main reason is to have quality control over the barley used to produce its various beer brands. In India, the company produces Foster’s, Haywards 5000 and Knock Out, and it also sells Peroni.

SABMiller's market share in India has slumped from 35% three years ago to a little above 20%, marred by a regulatory dispute in Andhra Pradesh.

However, group sales volume is growing by 14-15% year-on-year and profits are likely to rise in the current year, added the official.

Commenting on the drop in market share, the official said that SABMiller intends to focus on the more profitable Indian states, like Maharashtra, Karnataka, Haryana and Rajasthan.

11 March, 2011