E-Malt.com News article: India: SABMiller launches Indian beer to take on Kingfisher

Not long ago, a top SABMiller official quipped that his biggest headache in India was fighting Kingfisher. “It is one helluva brand,” he had remarked in a candid conversation, TNN reported May 7.

Now, SABMiller, arguably the world’s most aggressive brewer, is revisiting the strategy to take on brand Kingfisher — India’s top selling beer — and the flagship beer of Vijay Mallya-led United Breweries (UB). The result: a new, authentic Indian beer appropriately named Indus Pride and pitched against Kingfisher in the mainstream lager market.

And if sources are to be believed, this could well be the biggest brand launch till date in the domestic brewing industry. The reason: after spending Rs 550 crore to buy out Foster’s and investing heavily in propping up the international brand, Castle, SABMiller is still struggling to fight Kingfisher’s overwhelming dominance, especially in terms of brand recall.

For SABMiller, which nurses the ambition of toppling UB as the largest domestic brewer, challenging Kingfisher is becoming an imperative. And the figures tell the story. UB’s flagship Kingfisher Premium sold about 27 million cases (of 7.8 litre each) in FY08, leaving SABMiller’s leading lager brand Royal Challenge way behind with just over 10 million cases.

UB’s lager portfolio, comprising Kingfisher, Kalyani Black Label, Sandpiper and UB Export, reportedly depleted around 35 million cases. India’s lager volume is estimated at 55 million cases, with SABMiller — through Royal Challenge and Foster’s — selling some 14-15 million cases.

Lager volume accounts for a third of the domestic beer consumption, which is skewed in favour of strong beers with higher alcohol strength. However, the lager (or mild beer) segment is fighting back as beer increasingly becomes a lifestyle product on the back of changing preferences and economic expansion in urbanising India. If its strong variant is accounted for, Kingfisher’s combined sales cross 57 million cases in an overall market pegged at 157 million cases, giving it a standalone market share of 36%.

A top SABMiller official said it was too premature to comment on Indus Pride. “We have nothing to comment on the details of this brand at the moment.” Sources said the introduction of Indus Pride is a closely-guarded affair, with not many outside SABMiller’s Bangalore headquarters aware of it. “The idea is to position Indus Pride as an Indian beer to tackle Kingfisher in the mainstream lager market. This is a big move, and should be happening rather soon,” a source said.


08 May, 2008