E-Malt.com News article: China: United Spirits joins Chinese market

United Spirits Ltd (USL), the world's third-largest alcohol beverage company, has joined a host of international rivals in the Chinese market, China Daily reported May 23.

The Indian company formally announced its march into China over the weekend at SIAL China 2007, an international food and beverage fair held in Shanghai.

Vijay Mallya, chairman of both USL and its parent company United Breweries (Holding) Ltd, said the company has made the Chinese market a top priority.

"We will offer a complete range of alcohols of different flavors," said Mallya, a prominent business leader in India and a member of the Indian Parliament.

Initially, USL plans to launch five alcohol brands in China, including the Bagpiper Deluxe Whisky, the world's best-selling whisky. USL markets more than 140 alcohol brands, among them 15 are so-called millionaire brands - those with annual sales above 1 million cases.

Mallya is optimistic about the Chinese market.

"I believe the taste of Chinese people and Indian people are very similar. Our products will be enjoyed, especially the first five products we are going to launch," he said.

"We are looking forward to the start of a very successful business in China. We will start in Shanghai and then extend to other parts of the country," said Mallya, who is also an avid aviator, yachtsman and lover of Chinese food.

USL also plans to bottle locally here in China. "I don't think any other international companies have offered to bottle their products locally," he said.

"When you go to a market as important as China, you have to prepare to do whatever it takes... and USL is in China for the long-term," the 51-year-old said.

Mallya said major manufacturers in the spirits business are stocking their products because they expect high demand from China and India.

A relatively late starter in the Chinese market, Mallya said in business, it's never too late.

He gave the example of Kingfisher Airlines, which he owns. Kingfisher started it's aggressive expansion just two years ago and has already increased its market share in India to 9.8 percent and has ordered dozens of aircraft to enable growth and expansion.


23 May, 2007