The Hindu Business Line : SABMiller looks to introduce premium beer brands in India

Lifestyles changes are fuelling growth of premium products in the country and premium beers will be priced at least 30 per cent higher than regular brands.

K. Giriprakash

Bangalore, May 7 With the Indian liquor market moving towards premium brands, the world’s third largest beer maker, SABMiller is likely to bring to India, the iconic Dutch premium beer Grolsch, which it acquired for about $1.2 billion late last year.

Miller launch

SABMiller, which has grown mostly through acquisitions, is also likely to launch Miller Lite beer soon.

As reported earlier, it recently won a legal case against a Canadian company paving the way for the Miller launch in India.

“Now that we have won the case, Miller beer can now be launched in India,” SABMiller Director (Marketing), Mr Apurv Nagpal, told Business Line. SABMiller’s Director for corporate affairs, Mr Sundeep Kumar, explained that a Canada-based company had earlier entered into an arrangement with Miller for India, which was subsequently terminated.

“They had filed for damages. Their appeal has been dismissed by a district court in the US, clearing the way for us to introduce Miller in India if we want,” Mr Kumar said.

The uniqueness of Grolsch beer is that it is packaged in a distinct bottle which comes with a swing — topped replaceable cap. SABMiller wants to introduce more of such premium brands in India because of the rapidly expanding premium beer market in the country. Mr Nagpal said even though premium beer market is currently very small, it is showing an exceptional growth in India.

Good response

The premium beer market is a mere 5 per cent of the 155 million case-160 million case (each case consists of 12 bottles of 650 mlts) beer market in the country, but is outpacing the regular beer market touching a growth rate of between 25 and 30 per cent.

He pointed out that its recently launched Italian beer Peroni had shown an extremely good initial response.

Liquor analyst Mr Sandeep Arora said with the entire liquor market in India moving towards premiumisation, beer brands such as Grolsch will find their way into India sooner than later.

More brands

“I think very soon, beer as well as water will be the two main categories which will soon see more premium brands entering the market,” Mr Arora said. Lifestyles changes are fuelling the growth of premium products in the country, he said. He said premium beers will be priced at least 30 per cent higher than regular brands. “They (beer makers) need to price the premium brands right if they want to retail it properly,” he said.

Market leader

SABMiller leads the premium beer market in India with its Foster’s beer being the leading premium beer brand.

Foster’s has grown by 17 per cent in the year ending 2007 and this year, it is growing at around 35 per cent, a statement from SABMiller said.

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