Premiumisation of the underpenetrated beer market is now a key strategic priority for United Breweries Limited (UBL), stated the company’s CEO. The company is also planning to add brands from the larger global Heineken portfolio. Heineken, which is now the majority shareholder of the company, had recently increased its shareholding in UBL from 46.5 percent to 61.5 percent.
"Other than beer penetration, our other strategic priority is premiumisation of the market. Today the premium segment of the beer market is a small portion of the overall beer market. While we continue to drive the mainstream portions through a category penetration share gain route, we are also focused on how we can premiumise the portfolio in the long run," UBL CEO and Managing Director Rishi Pardal told PTI.
While beer penetration, compared to other countries, remains low, the increasing taste for beer and alcohol among the country’s youth is rapidly contributing to the growing beer market. In terms of market by volume, the market was valued at 5,533.73 million litres in 2020. With an expected CAGR of 10.89 percent, the market is expected to be valued at 9,004.74 million litres by 2025.
Heineken itself sees India as a "significant market," with the aim to turn the world’s second-most populous country into one of its larger markets.
While UBL has not decided which global brands it will be bringing to India yet, the key focus will remain on supplementing Kingfisher with global options instead of supplanting it.
"Our plans are starting with the consumer and understanding what their needs are and based on that where we think a significant gap in meeting the current demand is, we will not be shy of introducing brands from Heineken's portfolio," said Pardal.
(Edited by : Shoma Bhattacharjee)
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