The Hindu Business Line : SAB Miller plans to bring in some global brands

Heady brew
Unlikely to launch blockbuster brand Miller Lite in India.
Consolidates breweries across the country from 11 to 9.
Sees huge opportunities in Indian market.

Bangalore , March 23

Beer giant SAB Miller is considering launching some of its global brands in India but it is unlikely to introduce its blockbuster brand Miller Lite into the country.

"We would like to leverage our portfolio of international brands and are looking at which of these find acceptance in India," the SAB Miller's Director for Corporate Affairs, Mr Sundeep Kumar, told Business Line. He said Miller Lite, a lager beer brand, may not find ready acceptance in India because of a growing demand for strong beer in the country. "Miller Lite is unlikely to come into India," Mr Kumar said. Miller Lite is one of the largest selling brands of SAB Miller and has pushed up the company's share in the US market.

Mr Kumar said SAB Miller might create newer domestic brands to have a better mix in its portfolio but the company will continue to focus on its mainline brand. He said India was increasingly becoming a focus country for SAB Miller apart from other BRIC countries (Brazil, Russia, and China) because of the huge opportunity these countries provide. Countries such as the US are seeing relatively flat growth because the markets there were saturated.

Mr Kumar said SAB Miller had consolidated its breweries across the country. It had 11 breweries earlier which has now been reduced to nine. "Wherever we had two breweries in a single State, we have merged them," he said. Currently, the capacity of all its breweries is around 2.4 million hectolitres. He said SAB Miller has a 35 per cent share in the market. United Breweries leads the industry with over 50 per cent share. SAB Miller has bid for Mohan Meakins beer business and in case it takes over the business, its market share could shoot up by nearly 8 per cent.

He said SAB Miller was concentrating on providing better quality products in the country. "Ours is a maturing business. We want to provide quality brands. We know we will win in the long run," he said. Currently, its domestic brand, Haywards 5000 is the leading strong beer in the country while Royal Challenge in the mid segment was growing at 25-30 per cent annually, Mr Kumar said. Knock Out and Castle Lager cater to the regional markets.

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