India: United Breweries eyeing strong growth in premium beer segment
Bengaluru-based United Breweries (UBL), makers of Kingfisher beer, is eying strong growth in the premium beer segment, driven by changing consumer preferences towards premiumisation, Business Standard reported on June 3.
“Across categories, premiumisation is taking place as people are looking for better choices and beer is no different. People are upgrading to better beer and newer brands. We have a good offering of premium brands — Kingfisher’s premium variants are Ultra and Ultra Max,” Vikram Bahl, chief marketing officer (CMO), UBL, said in an interview.
Two years ago, the company introduced Heineken Silver, a premium lager variant, catering to those who prefer more “sessionable” beer. This refers to those with a lower-than-average percentage of alcohol.
Recently, UBL launched Queenfisher, a new lager variant positioned as “a celebration of sisterhood.”
The company's go-to-market strategy emphasises partnering premium bars and restaurants. This ensures consumers experience top-tier brands in the best settings.
UBL identified increasing beer demand, driven by growing affluence in India's booming economy, as a key growth driver for the company.
“Apart from this, we make sure that our execution is good, the product is available, well distributed, and displayed – getting all the fundamentals right,” Bahl added.
“Spirits are what people are used to having more often than not. Additionally, historical factors and tax-related pricing reasons have made whiskies and spirits available at affordable rates. But I think things are changing. Beer is today the fastest-growing large beverage category,” Bahl said.
Bahl said UBL has the most extensive supply network, encompassing breweries and contract manufacturers across 30 locations.
The goal is to enhance efficiency within this network and increase production capacity, he said. The beer maker stated that the ultimate goal is to make Queenfisher available globally.
For London Pilsner, the primary markets will be Maharashtra and Karnataka.
Currently, it is available in 50-60 countries worldwide and the company will continue seeking opportunities to expand its non-alcoholic brand extensions.
“We remain positive on our revenue growth for FY25, driven by our commitment towards category growth and premiumisation, positioning us for sustained growth throughout the year,” added Bahl.
During the fourth quarter of FY24, UBL reported a consolidated net profit of Rs 82 crore, an eight-fold increase from the same period last year. Revenue rose by 17.3 per cent to Rs 4,788.68 crore. In Q4, the volume surged 10.9 per cent, primarily driven by the South and East regions. The premium segment saw notable growth of 21 per cent, fuelled by strong performances from Kingfisher Ultra and Kingfisher Ultra Max.
03 June, 2024
