Kerala's beer market seems to be growing faster compared with the national scene thanks to robust consumption in smaller towns.

Against the industry growth rate of 3-5 per cent nationally, the overall market in Kerala for beer consumption has registered a 14 per cent growth in 2011-12. Though brandy is the dominant category in the State, the consumption of beer is also witnessing a growth in recent times, especially in smaller towns, Mr Gurupreet Singh, general manager (marketing), United Breweries Ltd, said.

Mr Singh, who was here in connection with the Kingfisher Kochi International Fashion Week, told Business Line that Kerala is the seventh largest beer consuming State in the country. United Breweries has got dominant market share in the State with 77 per cent, which is expected to grow by two per cent next year, he said.

The company had sold 98 lakh cases in 2011-12 against 86 lakh cases in the previous year. It had already garnered a sales turnover of Rs 19 crore from the market in 2011-12. The all-India sales in the last three quarters of 2011-12 was Rs 2,600crore, Mr Singh said.

The introduction of the new brand Kingfisher Ultra Super Premium will play a leading role in achieving a comfortable market share. He said the new product, which was launched in Kerala in early February, has already registered a market share of 4 per cent.

The company is expecting a 7 per cent market by the end of April once it completes the opening of all its depots. The bulk of the beer sales are coming from retail outlets in the State, contrary to the company's estimate that it comes from hotels, he said.

UB has launched various promotional programmes in the State as part of brand promotion. Kingfisher Kochi International Fashion Week is one such event. Investments of this nature will happen in the State and this will help the company increase its market share, Mr Singh added.

sajeevkumar@thehindu.co.in

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