E-Malt.com News article: India: Young and affluent beer drinkers turn to newer and more exotic brews

Before, drinkers in India typically only had a handful of options for a cold pint - Kingfisher and Haywards.

But young and affluent beer drinkers in the country are turning to newer, more exotic brews and opening up a whole new marketplace, Channel NewsAsia reported on August 28.

Mumbai’s first brewpub was launched in 2013 and since then another 50 bars have opened serving locally brewed craft beer. It has industry leaders placing their bets on the growth potential of craft beer.

“People will always demand a better product,” said Shailendra Bist, co-founder of The Independence Brewing Company.

“Craft beers are made with the finest of ingredients. Almost all of them don’t use any chemicals. We don’t use any preservatives plus craft beers also give the consumer a serious variety,” he said.

“People are getting little bored drinking the same lager. If you go into the market, 99 per cent of all beers are the same.”

But while the craft beer industry is gaining popularity there are headwinds, such as rigid state liquor laws, licensing procedures and a lack of skilled labor. These challenges are not putting off the more ambitious brewers though.

"Country-wide, in 2015 we probably are selling close to about 7 million litres a year and a litre on an average at roughly 8 dollars. So you are looking at US$50-60 million the current industry is at,” said Navin Mittal, co-founder of Gateway Brewing Company.

“The way it is growing from 2009 to 2015 from 1 to about 50 or 60 (bars) I see this industry growing at least about 15-20 per cent compounded average growth rate for the next ten years,” he said.

Even at that growth rate, craft brews would still be a tiny part of India’s multi-billion dollar beer industry, which is dominated by Kingfisher with more than 50 per cent of the market. But craft brewers are unfazed, as they are not aiming for mass appeal.

"Craft brewing is very limited so we do small batches of 500 litres each. Also they are too huge and I don’t think we will make much of a difference there unless we get into bottling and then start exporting our products which I don’t think will happen at this very stage,” said Ketan SS Gohel, co-founder of Brewbot Eatery & Pub Brewery.

“Hopefully in another ten years’ time the government norms and the regulations should change and we will be able to do that as well."


28 August, 2015