The Hindu Business Line : Foster's Beer hopes to break even this year

FOSTER'S India Ltd, makers of Foster's beer, expects to break even this fiscal ending June as its revenues would grow by 50 per cent to Rs 75 crore, a top company official has said.

Foster's, a leading Australian brand, sells just under two million cases in India. "We have a six per cent market in the mild beer market," said Mr Pradeep Gidwani, Managing Director of Foster's India.

Unlike elsewhere in the world, strong beer, which has over five per cent of alcohol content, outsells mild beer in India. Of the 80 million cases of beer sold in the country, strong beer accounts for 68 per cent, Mr Gidwani said.

He said Foster's achieved this growth in India despite the beer market remaining stagnant during the year because of high prices and restricted distribution structure.

"While a 650 ml bottle of beer costs on average Rs 50 in India, it costs only Rs 8 in China," Mr Gidwani said.

Foster's, which started operations in India in 1998, is rolling out a new initiative to emphasise the quality of its beer. Under this strategy, Foster's beer will come in a slightly changed packaging.

Talking about the Kerala market, Mr Gidwani said Foster's is launching the 650 ml bottle at a price of Rs 55. The launch, coupled with the new campaigns, is expected to take its market share in Kerala to five per cent from two per cent.

As compared to the stagnant national market, the beer market in Kerala has grown to 40 lakh cases a year, up from 33 lakh, he said.