The Hindu Business Line : Japanese co eyeing Indian beer market

One of the largest beer makers in Japan, Sapporo Breweries is likely to enter India either through a joint venture or through acquisition of breweries in the country.

Sources in the industry told Business Line that an official from Sapporo is expected to visit India during the third week of March to explore opportunities in the country.

"Nobody wants to miss out on one of the fastest growing markets in the world," a consultant with the beer industry said. The official is expected to hold meetings with major beer companies in India before finalising plans for the company's foray into the country, sources said.

Sapporo's trump card to make an immediate presence in the country could be its `third beer' brand, Draft One, a beer-like low-alcohol beverage, which it might bring into India, though it could still face competition from the country's booming strong beer market.

While beer is made from malt, third beers use pea or soy protein or soy peptide and have light and crisp taste. They have found an instant market in Japan beating even mainstream beer brands there. At the same time, sales of the big four brewery companies in Japan, Sapporo, Kirin, Suntory and Asahi have shown decline because the growth of the main brands have declined.

Hence most of the main beer companies in Japan are planning to focus more on low-alcohol beverages to push up sales. The entry of Sapporo could come at a time when Indian beer market is on a consolidation mode. The beer market in the country is now largely a two horse race with United Breweries holding nearly 50 per cent of the market and SAB Miller over 35 per cent.

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