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Rina Chandran

"There has certainly been a significant change in attitude towards beer, particularly among women, who seem to be drinking more mild beer."

Mumbai , Sept. 14

MORE urban women are saying `cheers' to beer, and that is one reason why some of the largest global beer players are eyeing India closely, according to a recent report from Rabobank's food and agri-business division.

The size of the Indian beer market was estimated at 6.7 million hectolitres in 2002-03, and beer consumption has been growing at a compounded annual growth rate of 7 per cent over the last nine years. Growth in 2002-03 was 11 per cent, as compared to the more modest rate of about 2.6 per cent for the global beer industry in 2001-02, the report said.

Naturally, foreign brewers like Heineken, Interbrew, Carlsberg and Kirin are attracted to the strong growth prospects and profit margins in the industry, where the top two players account for about 75 per cent of beer sales.

Interestingly, the four southern States - for all their reputation of being conservative - account for about 45 per cent of total beer consumption, and growing at about 8 per cent per annum.

Future prospects are positive, largely because of changing demographic and social trends: besides the rise in income levels, the younger demographic is also fuelling the demand for beer. And, the number of women drinking beer is also on the rise. While drinking has long been regarded as taboo for women, beer drinking is seen as more acceptable.

"There has certainly been a significant change in attitude towards beer, particularly among women, who seem to be drinking more mild beer (which has a lower alcoholic content)," said Mr Pradeep Gidwani, Managing Director, Foster's India. "Beer is one of the mildest forms of alcohol (with alcoholic content of 5-7 per cent)." Also, while beer is commonly associated with the unflattering `beer belly', beer does not have many more calories than a soft drink, Mr Gidwani added. In fact, a standard 12-ounce serving of cola has 140-200 calories, as compared to about 145 calories in a similar serving of beer.

Another factor that has led to increased consumption among women is increased retail availability - not just in wine shops, but even large supermarkets in the south. And, the mushrooming of stylish pubs, bars and lounges in the metros, where women feel comfortable about drinking, Mr Gidwani added.

Foster's has also invested in promotional activities aimed at establishing its flagship lager as a premium, lifestyle drink; its sponsorship of the Lakme India Fashion Week this year is an example. Foster's is also a worldwide sponsor of the Formula 1 Grand Prix and hosts F1 viewing events in select sports bars and restaurants across the country.

"F1 is a very glamorous, fashionable sport, and viewership for F1 has grown tremendously in the last three or four years," Mr Gidwani said. "Particularly in the metros, there is a lot of awareness and interest."

On the regulatory side, too, State Governments are moving to a more open system of granting licences for retail outlets, and are prepared to look at mild beer differently from strong beer, Mr Gidwani said.

Currently, most States do not have a differential tax structure based on alcoholic content, so strong beer is perceived as offering better value for money than mild beer, as the Indian consumer values the `kick' factor. So consumption of strong beer has grown faster than mild beer.

Still, brewers remain optimistic, and are not even concerned about the growing popularity of indigenous wines and ready-to-drink beverages like Bacardi Breezer.

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