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Boby Kurian

Bangalore , Nov. 10

THE country's largest brewer, United Breweries (UB) Ltd, has slashed consumer price of 330 ml canned packs of Kingfisher Premium Lager by Rs 4 in Mumbai and could extend it to more markets in a bid to boost takeaway beer sales.

Mr Ramesh Vishwanathan, General Manager-Marketing, UB Ltd, said the company decided on the price cut to see whether takeaway sales of beer could be ramped up. "The response has been immediate and positive," he added.

he canned Kingfisher now costs Rs 26 in Mumbai, which are on a par with 330 ml pint bottles of the same.

The official said the company might look at extending the move to other markets and was in talks with aluminium can manufacturers to bring down the cost.

"The setting up of canning line is expensive. Often in the past, it has been a chicken or egg case. The investment into canning can be amortised if there is substantial volume, and it would even let the can manufacturers to drop price," the official added.

UB accounts for 45 per cent of the domestic beer sales pegged at around 80 million cases annually, and its flagship brand, Kingfisher Premium Lager is the largest selling beer in the country.

UB's decision is also significant on the retail front as a bold move to drive takeaway sales of beer.

"The canned beer is less messy than bottles if you are out on a picnic," the official added. It is estimated that on-trade consumption of beer accounts for over 60 per cent of the overall domestic sales, which is a distortion of the global consumption pattern.

There are about 50,000 outlets serving beer in the country and roughly 600 to 1000 of them offer better consumption experience.

In recent months, UB has also made moves to improve in-home beer consumption. It launched five litre kegs of beer, dubbed as pub@home, through select retail outlets in Bangalore.

The keg that holds freshly brewed draught beer is priced at Rs 354 plus a Rs 250 refundable deposit offering consumers a chance to stock and consume beer at home.

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