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SABMiller ventures into value segment with H2K

Boby Kurian

Bangalore , Nov. 27

THE SABMiller-managed Shaw Wallace Breweries has rejigged Haywards 2000 beer as H2K in pints (330 ml) and priced it aggressively at Rs 18 excluding a refundable deposit of Rs 3. The new value pack has already hit the company's new home turf Bangalore and might be extended to other markets depending on the success.

SABMiller's H2K will be positioned directly against UB Export pint which is also priced similarly. It must be mentioned that UB Export's 330 ml packs launched in December 2000 redefined the value segment in beer industry with robust sales. UB Export, which is possibly the single largest brand in Karnataka, sells over two million cases in the State alone and has prompted the owner United Breweries (UB) Ltd to extend brands such as Kalyani Black Label and Kingfisher Strong in pints in other markets.

Mr Vinod Giri, Director of Marketing, SABMiller India Ltd, claimed H2K has evoked good response from the market. It carries 6 per cent alcohol - as against UB Export's 5 per cent - and is positioned on the platform `Ask For More'. Meanwhile, the company sources claimed the H2K initiative would mark the beginning of many tactical strategies the transnational would throw up in the domestic beer market. "It is a low-key experiment to tap growth in the 330 ml value pack category as UB Export seems to have done reasonably well," sources added.

However, UB has dubbed H2K as non-starter as SABMiller was not marshalling enough resources behind it. The rival brewer also claimed that H2K with higher alcohol content would adversely impact the multinational's bigger strong beer Knock Out, which commands 24 per cent market share in Karnataka and the only challenger to UB's otherwise complete domination of the State market.

Prior to H2K launch, Haywrads 2000, which sells about two million cases annually, has had its strong pockets in Mumbai and in parts of Andhra Pradesh.

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