The Hindu Business Line : SAB Miller to focus on growing the beer market

SAB Miller, the Indian arm of the beer major SAB Miller plc, says its focus is on making beer part of the local culture. "Its penetration is very low in India. Our focus is on growing the market," Mr Vinod Giri, Director (Marketing), said.

As part of this effort, the company, along with the All India Breweries Association, is taking up the issue with various State Governments and the Union Government on deregulating the low alcoholic drink.

Talking to reporters here on Tuesday, he said the consumption of beer in the country was just 3 per cent of the global average. "It doesn't mean that penetration of alcohol is low. In fact, it is very high. They take, what we consider, the harder form of alcohol. We believe that the milder form should be promoted," he said. Mr Giri was in the city to launch a month-long promotion of one of its beer brands.

While the penetration of beer was very low, the consumption of alcohol was 65 per cent of the global average. "It is quite close," he said. The consumption of beer in India was 8 million hectolitres as against 300 million hectolitres in China and 16 million hectolitres in Vietnam. "It is so underdeveloped. The primary task is how to develop it," he pointed out.

The company has a market share of 37 per cent in the Indian beer market.

Contending that beer contained a very low alcohol content, Mr Giri said that de-regularisation would mean better prices and choices for consumers. Citing the example of Punjab, he said that the prices of beer fell by almost 50 per cent to Rs 40-45 from Rs 70-80 overnight in that State following a decision to go for the licensing system instead of the auction system.

Uttar Pradesh, Haryana and Rajasthan too were taking similar measures. It was a long process and "happens in bits and pieces," he added.

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