United Breweries Forays Into Craft Beer Category

United Breweries Limited, is betting big on the growth of alternate beer category, especially craft beer business in the country. The craft beer market may still be at less than 1 per cent of India’s beer market, pegged at 4.7 billion litres in 2017, but is growing at over 40 per cent a year, aided by a young, well-travelled population with higher disposable incomes, going by a Deloitte study. United Breweries is keen on tapping this fast-growing segment. It has therefore forayed into alternate beer category with the launch of the Kingfisher Ultra Witbier - the first non-lager beer from the stable of Kingfisher. The craft-styled beer is brewed with the authentic Belgian wheat beer recipe.

Interestingly, the change is beer consumption habit is also palpable. Going by a study by Craft Brewers Association of India, over the last five years, the number of microbreweries in India has jumped from 20 in 2013 to 120 now. Compared to this, in the US, where craft beer is considered to have originated, there are over 6,000 craft breweries and 12 per cent of beer sales are from craft. The other significant change taking place in India is that in the initial years, the trend was to set up brewpubs, but now it seems to have shifted to selling packaged beers. The overall craft beer segment is expected to reach $900 million by the end of 2024.

Debabrata Mukherjee, chief marketing officer, United Breweries Limited, said that every consumer need across categories is important to them, and it is their responsibility to provide choice in their portfolio. With their first offering in speciality beer segment, Kingfisher Ultra Witbier wideness their footprint and provides another innovative beverage option in the beer category. Consumers today expect more from their beers - they crave uniqueness in flavor, taste & experience. Ultra Witbier will retain the sense of style and authenticity of the parent brand ULTRA, and they are confident it will appeal to their consumers across country, he said.

Kingfisher Ultra Witbier is available in 3 SKUs, a 330ml bottle, a 500ml can and a 650ml bottle, priced at Rs. 110, Rs. 150 and Rs. 185 respectively in Karnataka state. The new offering is packaged with a blend of old school and modern graphic design, and the wheatish label is inspired by the product’s key ingredient. Kingfisher Ultra Witbier is geared up to capture markets with its authentic Belgian wheat beer recipe, and is now available across Karnataka and Goa. It will soon be available in Maharashtra, Delhi and Haryana.

Interestingly, South India accounted for the largest market share of more than 42 per cent in terms of beer consumption owing to the significant rise in urban and female alcohol consumers in the region. North Indian and Western Indian markets are expected to be fastest-growing markets owing to the growing number of urban cities in these regions and the presence of favorable demographic factors. The per capita consumption of beer is 1.5 liter and has been budding at over 15 per cent in the last few years.