India Brew - Beer and India

Vote for Your Favorite 'Desi' BEER

2009-04-23T11:40:00.004+05:30

I’ve heard many beer enthusiast boast of their favorite BEER. Here’s you chance to express your feelings and vote. One vote per person.

Here are the caveats. I’ve put this initial list together based on brands brewed in India (some are of foreign origin, yet now we call them "Indian"). I’ll be happy to add other brands if you feel so.

Till then keep voting........... Cheers!!

Imported Beer in India

2009-04-22T01:17:00.007+05:30

India has the largest population of whiskey drinkers in the world, beer on the other hand is a different story. Though there are foreign brewers like SABMiller who brew both local and international brands in India, finding a pint of imported beer in India is quite hard. Here are a few I've come across in Delhi. I will review them individually over a series of posts.

Hoegaarden

It is a Belgian witbier(white beer) with 4.9% alcohol content. This has to be one of my favourite imported beer for 2 reasons.
> It is easily available in most high end liquor stores
> It tastes like heaven!

Tasting Notes(courtesy betterbeerblog.com)

Hoegaarden pours out a clear, pale straw color with a white head. The aroma is comprised of a slightly sweet wheat malt component, fresh citrus notes, a low yeasty pepperiness with coriander undertones and a very, very slight tartness. No discernible hop aroma. Hoegaarden has a medium-low spicy/peppery aspect in the flavor that is supported by a low, wheat malt sweetness. There is a low level of spice/herb quality that is from the coriander that persists into the finish. Very, very low hop flavor. Hoegaarden is medium-low bodied and effervescent in it’s carbonation.

The Glass

Different styles of glassware complement different styles of beer for a variety of reasons, including enhancing aromatic volatiles, showcasing the appearance, and/or having an effect on the beer head. The traditional Hoegaarden glass is a Belgian Witbier glass, i.e., a multi sided tumbler that displays the hazy, straw body and voluminous white head.

What its Costs, Where you get it?

Hoegaarden in Delhi can cost you between Rs 120 - 150 at a liquor store and between Rs250 -500 at restaurants/pubs. Also you should look out for the Hoegaarden draught beer straight out of the keg! Its really something else and surprisingly not that hard to find. Available in most fine dining restaurants and high end liquor stores, it is easily one of India's most common fully imported beer.

Have a say? Let me know!

Cheers!

India's Pride - Indus Pride

2009-04-01T16:35:00.002+05:30

SABMiller eyes overseas venture for Indus Pride

SABMiller believes that its newest beer brand in India, Indus Pride, could rise to become an international success.

Indus Pride, which was launched in Rajasthan last October, could be taken overseas once it has established itself nationally in India.

SABMiller developed Indus Pride, a 100% malt beer, to mount a challenge to the Kingfisher beer brand owned by billionaire Vijay Mallya's United Breweries. Both Kingfisher and Indus are classed in the growing 'mild' beers category, due to an abv of less than 5%.

BLOG HANDOVER

2008-12-04T16:29:00.002+05:30

Due my other engagements I wont be able to contribute to the blog anymore which has not been updated for a long time now.

In case anyone is interested in taking up the mantle, please post your willingness to do the same and I am ready to transfer ownership and blog posting rights to the concerned person.

IN THE PAST I HAVE ALSO RECEIVED MANY REQUESTS FROM VARIOUS READERS WHO VISITED MY BLOG BUT UNFORTUNATELY I WAS NOT ABLE TO RESPOND TO ANY OF THEM, MY SINCERE APOLOGIES FOR THE SAME.

WOULD APPRECIATE IF SOME BEER ENTHUSIAST CAN TAKE IT UP FROM HERE...............

ALCOHOL CONSUMPTION TREND IN INDIA

2007-09-13T17:44:00.000+05:30

Globally consumption of spirit is on decline and wine has stabilized. Only small drinks are on slight rise. Growth rate of consumption of spirits and wine has been highest over 1992-97 in UK, India and Australia (over 33%).

The following histogram shows that globally alcohol is imbibed largely through Beer & much less through spirits & wine, whereas, the case of India is just the opposite.

INDIAN ALCOHOL CONSUMPTION TREND (FY 2005)

INDIAN LIQUOR:
Branded spirits market in India is 119 million cases out of which Whisky accounts for
55%, Rum 27%, Brandi 14%, Gin 3%, Vodka 1%. North and west India consumes more of
whisky and South, more of Brandy and Rum. The UB Group (35%) has a market share of 35% + 13% = 48% after merger of Spirits Division of Shaw Wallace (13%), Jagajit (7%), Mohan Meakins (7%) and IDL (3.5%). The key MNC’s operating in the India include Diageo, Seagram, Bacardi. About 80% of whisky is sold at below Rs.200 per bottle and 1% above Rs.600.

AP (24), TN (19.3), Karnataka (11.2), Kerala (10.9) & Rajasthan (5.7) consume 60 % of the total IL, which is growing at about 11%.

COUNTRY LIQUOR:
About 115 million cases of CL is sold in the country and the growth rate is 0.5%. The
CL market is highly regulated, sold generally as commodity, often dominated by cartels, traders get disproportionate share of MRP. CL companies predominantly are state centric e.g. Saraya & Radico in UP, GM Brewery & Vasant Dada in Maharashtra, IFB Agro in West Bengal, Som Distillers and Kedia in MP, Glenn in Haryana etc.

A.P., Karnataka and Tamil Nadu have abolished RS based CL in favour of cheap ENA
based IMFL. UP (19.5), Maharashtra (19.3), Karnataka (13.6), Punjab (10.2) & Haryana (9.4) consume 63% of the total CL.

BEER:
The Indian beer market is 93 million cases and has grown at 5.54% p.a. over 2003-05.
Several parts of India are showing much higher growth rates. Five States, Andhra Pradesh (18.3), Maharashtra (16.2), Tamil Nadu (9.0), Karnataka (9.0), & Rajasthan (5.6) account for 63% of total beer consumption and top 10 States for 85%.

Indian beer industry due to merger and acquisition is dominated by two top players
(i.e. UB and SAB Miller together have a market share of 75%) and provide attractive
profit margins due to the consolidated nature of the industry. The Chinese beer market in contrast is marked by intense competition with 400 brewers. The top 10 brewers account for only 45% of the market. Lower taxes on beer, falling distribution margin and prices have contributed to the surge in the consumption of beer in India.

Credits: Information sourced from the Model Policy for Alcoholic Beverages & Alcohol.
For more information mail @ Vinod.

SURROGATE LIQUOR ADS UNDER LENS

2007-09-11T18:00:00.000+05:30

Action taken by the Advertising Standards Council of India (ASCI) on surrogate liquor advertisements in the last few months, puts the spotlight on the rising number of consumer complaints against such advertisements.

In one of our previous posts "THE RISE OF SURROGATE ADVERTISEMENTS" we had discussed the factors which have lead to the birth of the same in India.

Between April and June this year, three liquor ads which were termed as 'surrogate' by the consumer complaints council (CCC) of ASCI, have been withdrawn. In case of a few other advertisements which ASCI felt were surrogate, assurance of compliance is awaited from the advertiser.

Among the ads which were withdrawn, is United Breweries' Kingfisher Premium ad which showed a visual depiction of a dancing couple with "packaged drinking water" written in fine print.

ASCI felt that the visual and the headline ("the night rocks") did not bear any relevance to the product advertised - packaged drinking water. In the absence of specific information, ASCI felt the advertisement appeared to be a surrogate advertisement for a liquor brand. Another ad which was withdrawn after being declared surrogate, was from Diageo India.

The complaint against this ad was that while it mentioned the brand name 'Johnnie Walker', it talked about CDs and cassettes, which bears no relation to the product or service being promoted. ASCI upheld the complaint against the advertisement, which was subsequently withdrawn.

Similar was the outcome of United Spirits' Antiquity ad. Though the ad stated "indulge in Blue Antiquity", it mentioned CDs and cassettes without showing any visual depiction of the same.

After ASCI's decision that it was indeed a surrogate advertisement, the advertiser informed the watchdog about the temporary suspension of the campaign as regards new ads. The existing advertisements of Blue Antiquity have been withdrawn.

Complaints against Seagram India's Royal Stag ("Make it large") and Chivas Regal (which mentioned CDs and cassettes in fine print) were also upheld by ASCI.

The complaint against Seagram's Royal Stag ad was that it showed photographs of sports personalities, though the line "make it large" has a connection with alcoholic drinks.

In absence of any visual depiction of cricket gear, and the mention of the brand name 'Royal Stag', the complainant felt that the advertisement was a surrogate ad for a liquor brand.

One of the Chivas Life ads mentioned "ice fishing in Alaska". The complaint against the ad was that while it mentioned CDs and cassettes in the fine print, there was no visual depiction of the same.

HOW TO TASTE BEER

2007-09-11T14:42:00.000+05:30

When analyzing a beer, you can't just swill it down, burp and say "it's great" or "it's crap." And, even though tasting is an individual art, there are a few steps, which if followed, will take your beer tasting to a blissful level.

LOOK
Take pause and marvel at its greatness before you partake of it. Raise the beer in front of you, but don't hold your beer to direct light as this will dilute its true color. Describe its color, its head and its consistency.

AGITATE
Swirl your beer, gently in the glass. This will pull out aromas, slight nuances, loosen & stimulate carbonation and test head retention.

SMELL
90-95% of what you experience is through you sense of smell. Breathe thru your nose with two quick sniffs, then with your mouth open, then thru your mouth only (nose and mouth are connected in the experience). Let olfaction guide you. Agitate again if need be, and ensure that you are in an area that has no overpowering aromas. Enjoy its bouquet.

TASTE
Now sip the beer. Resist swallowing immediately. Let it wander and explore your entire palate. Let your taste buds speak. Note the mouthfeel, the consistency of the liquid's body, and breathe out during the process of tasting. This process of exhaling is called "retro-olfaction" and will release retained stimulations at the mucus and mouthfeel level, but at a higher temperature. At times this will be the same as the olfactory process if not different and complimentary. Try to detect any sweetness, salty flavors, acids and general bitterness. Explain what they are, or what they are similar to.

Also, try tasting the beer after it warms a bit (just a bit mind you). Really cold beer tends to mask some of the flavors. As a beer warms, its true flavors will pull through, become more pronounced.

HOW TO POUR BEER

2007-09-11T14:25:00.000+05:30

Pouring beer is an art, and definitely part of the overall tasting experience. It is always suggest that you drink a beer out of a glass, and recommend that you read Glassware for Beer. It's a great primer to understating why, and a guide to pairing a beer to its appropriate glass.

The following demonstrates the most common pouring technique which can be applied to most beers and glassware types. You'll also find that most bartenders pour draught beer as follows too.

Use a clean glass. A dirty glass, containing oils, dirt or residuals from a previous beer, may inhibit head creation and flavours.
Hold your glass at a 45° angle. Pour the beer, targeting the middle of the slope of the glass. Don't be afraid to pour hard or add some air between the bottle and glass.
At the half-way point bring the glass at a 90° angle and continue to pour in the middle of the glass. This will induce the perfect foam head. And remember, having a head on a beer is a good thing. It releases the beer’s aromatics and adds to the overall presentation. You may also want to gradually add distance between the bottle and glass as you pour, to also inspire a good head. An ideal head should be 1" to 1-1/2".

BEER AND CHAMPAGNE IN ONE BOTTLE

2007-09-07T18:30:00.000+05:30

Krait Prestige (US)/ King Cobra (UK) is Cobra Beers newest entry into the high quality beer world. Cobra beer, started in 1989 in the UK by Karan Bilimoria, a Cambridge law student, brews Indian style lagers. While not many of you may have heard of the brewery, they produce excellent beer that is now exported to over 35 countries. In 2005 and 2006 they won countless awards including 12 Gold medals in 2006 at the prestigious Monde Selection in Brussels- The World Selection of Quality competition. Unable to use the Cobra trademark in the US they launched Krait, a snake in the Cobra family, in 2004. They are available in around a dozen states so far.

Cobra Beer is having Poland's Browar Belgia and the famous Rodenbach brewery in Belgium make a special pilsner style lager for them. What is most interesting is that this 8% abv. brew is re-fermented in the bottle for natural carbonation. Now this is done with quite a few other fine beers, but they say they are going for a product more similar to "champagne" and is sold in a similar style bottle. In the Beverage World article they claim that it looks and has a head like a "champagne", and the taste is "extra smooth, soft, slightly fruity, and it's incredibly drinkable. The Beer Advocate says it tastes "very dry, medium bodied with subtle flavors" make it sound pretty tasty to me.

This will be a tasty brew that will go great with all types of food, whether a mild dish like fish, or with complex foods, and even spicy curries. This brew will be at its best chilled to the same temperature you would for a sparkling wine, a bit colder than the usual beer. I look forward to trying it as soon as I find a bottle or two.

GREAT INDIAN BEER RUSH

2007-09-03T16:27:00.000+05:30

Indians love their booze, but beer, it seems, leaves them cold. The country ranks tops globally in consumption of whisky, but it's somewhere near the bottom in beer drinking. So why is just about everyone in the brewing industry scrambling to get a piece of the market?

Pretty small is putting it mildly. Although India boasts the world's second most populous nation, when it comes to beer it barely figures on the map—leaving plenty of upside for brewers who can get in early. Annual per capita consumption is very low estimated at 0.8 litres per annum. If you look at the statistics of other countries it tells a very different story.

Getting Indians to switch from liquor to beer won't be easy. Brewers must contend with a dizzying list of bureaucratic restrictions that make it tough and expensive to win customers and to build a national footprint. Steep tariffs render imports uncompetitive. And state excise taxes of as much as 150% can push the price of a pint of domestic brew up to more than $3, or about triple what a shot of local whisky might cost.

Ads for beer are banned. As a result, brewers have to be creative in building their brands on a national scale. SABMiller, for instance, sells a mineral water called Royal Challenge—not coincidentally the name of one of its lagers. Vijay Mallya, launched Kingfisher Airlines—named after United's flagship brew, India's top seller—and emblazoned the planes with its logo.

In short, international brewers will be charged with crafting a beer culture in India largely from scratch. In that, at least, they have demographics in their favor. Roughly 60% of the population is under 30. What's more, incomes are rising, powered by an economy that's growing at 9%-plus. These trends are expected to fuel growth in beer consumption of up to 15% a year through the end of the decade.

THE RISE OF SURROGATE ADVERTISEMENTS

2007-08-20T12:45:00.000+05:30

Advertisements have a strong influence in our life. We like them because they provide information and create awareness about the market. But many times, some advertisements are accused of misleading people. When such accusations are proved, some advertisements are scrapped off from media. Such instances have been reported in the advertisements endorsing alcoholic drinks and cigarettes. Hence the Government had imposed a ban on advertisements of these products in the media in the year 2002.

ORIGIN OF SURROGATE ADVERTISEMENTS

As a reaction to the directive of Government, the liquor & tobacco majors sought other ways of endorsing their products. They have found an alternative path of advertising through which they can keep on reminding their liquor brands to their customers. They have introduced various other products with the same brand name. Launching new products with common brand name is known as brand extension, which can be carried out for related products (eg: Kingfisher Airlines and Kingfisher Beer). In this case, the companies launch other products with the same brand name for the purpose of reminding their old customers. Heavy advertising is done so that the customers do not forget their liquor & tobacco brands, for which advertisements are banned. The advertisements for such new products are placed under the category of "Surrogate Advertisements". Their only objective is to compensate the losses arising out of the ban on advertisements of one particular product (i.e. liquor). This is a loophole challenging the Government's action.

SURROGATE ADVERTISEMENTS PROMOTED BY LIQUOR AND TOBACCO INDUSTRY

The liquor industry is a prominent player in this game. Few surrogate advertisements shown in print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Haywards soda, Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water, Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs, Imperial Blue cassettes & CDs, Teacher's achievement awards etc. These products bear exactly the same brand name and logo, which we had seen earlier in liquor advertisements. It was little surprising to know that liquor giants like McDowell's and Seagram's have entered into new segments like cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc. This brand extension is an act of bypassing the advertisement ban.

THE CORPORATE STANDPOINT

The industry segment has its own standpoint in defense. The liquor lobby claims that everything is in accordance to the Government regulations. They clarify that they have stopped showing liquor advertisements and they are free to use the brand name for any other products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC) advertising code maintains that advertisement of products (real brand extensions) by the liquor industry must be allowed.

HAYWARDS 5000 - SURROGATE AD

SOME GREAT BEER BRANDS - EVERY BEER LOVER SHOULD KNOW

2007-08-17T12:39:00.000+05:30

Whether you are just beginning to explore the world of beer or you are a seasoned beer snob, these are brews that you should know. In compiling this list I’ve tried to put together a list of beer that are 1) solid representatives of their respective styles 2) seem to have a decent market saturation so you will have a chance of finding them 3) generally cover the spectrum of beer styles.

Sierra Nevada Pale Ale
In no particular order, I begin with Pale Ale. Sierra Nevada's Pale Ale is a great example of the American interpretation of this classic English brew. It is amber colored and has a nice balanced flavor. It is hopped with distinctive Cascade hops.
Beer Link

Fuller's ESB - Bitter
Fuller’s ESB is my selection for the huge family of bitters. The name might stand for Extra Special Bitter though no one really agrees on what ESB means. This beer is dark with rich malt flavoring. Light hops and low alcohol makes this a good session beer.
Beer Link

Samuel Smith's Taddy Porter - Porter
Samuel Smith’s Taddy Porter might be as close to the original porter that you can get in the beer world. Taddy has a rich dark color and a medium body.
Beer Link

Pilsner Urquell - Bohemian Pilsner
Bohemian Pilsner can only really be represented by the one beer – Pilsner Urquel, the original. Despite changes in brewing and lagering methods over the years, this is more or less the same beer that came out of the Plzen casks on October 5, 1842 and harkened a new era in brewing.
Beer Link

Guiness - Dry Stout
Guinness is my choice for dry stout. This famous beer is perhaps one of the best known beers in the world. With a small dose of beer soured by lactic acid bacteria in each batch, Guinness might not be the prototypical dry stout but it is so ubiquitous it is hard to deny it a spot on my list. Other perhaps more correct choices for this style would be Murphy’s or Beamish Stout.
Beer Link

Warsteiner - German Pils
For my German pils entry I suggest Warsteiner. With pronounced hops and a lighter malt profile than even Bohemian Pilsner, German pils will be the most familiar beer on this list to those that normally drink megabrewery beers like Coors or Bud.
Beer Link

Haywards 5000
Haywards 5000 is India's largest selling strong beer brand, which perfectly combines strength with quality credentials that meet the high expectations of today’s demanding consumers.
Beer Link

Goose Island IPA - India Pale Ale
India Pale Ale is a brew whose history is as interesting as the beer itself. Recently it has become a favorite of that odd breed – the American hop-head. Goose Island's India Pale Ale is an ode to the hop cone. To get an idea of the way this brew probably originally tasted, find a McEwans’ India Pale Ale. McEwans was producing IPA all the way back when this style was earning its name.
Beer Link

Hoegaarden - Belguim White
Hoegaarden is at the fore of a revival of the Belgium white, an unusual wheat beer. This is one of the best examples of the mix of spicy yeast and cloudy white that marks a Belgium white.
Beer Link

Chimay Trappist Ales
The Trappist ales, a rich malty style noted for being crafted by monks, is Chimay. You will find that there are a few different varieties available from the Chimay brewery but any of them will do nicely.
Beer Link

INDIAN BEER TASTING - THE TASTE OF INDIA

2007-08-10T15:14:00.000+05:30

The situation of beer in India is really much like the "single-genre" film world. All we got is Pilsners! Just imagine someone who has to sit down and painstakingly taste these similar varieties and come back with their tasting notes – each different and unique.

Lets take the case of Kingfisher, Fosters, London Pilsner, Royal Challenge and the latest on the block Cobra. All belong to the mild segment.

Colour: All the beers are in the straw to golden colour range. Fosters and Cobra are slightly darker than the others. LP, Kingfisher and RC are slightly paler, more yellow and straw-like in colour comparatively speaking. But this is only just slightly and only if you've got superior eyesight.

Carbonation & Head Formation: The Kingfisher and the RC do a good job as "fizzies." The Cobra is good enough to be third noticeably the bubble size (like the Fosters) is slightly bigger than the others. The heads of the Fosters and London Pilsner especially the latter prove great at the disappearing act. The carbonation too appears to be in the following descending order Kingfisher, RC, Cobra, Fosters and London Pilsner.

Mouth feel: Very little really to differentiate. However Fosters and Cobra have slightly heavier bodies. Again this is to a very minute degree.

Aroma: The London Pilsner lets out a pungent, sharp yeasty aroma. The Kingfisher has a hoppy and almost piney sort of an aroma. Also you might sense the warmth of the alcohol in the aroma. The Cobra aroma is a lot less intense and at the same time its balanced. You don't need to cringe while drawing a deep breath over a glass of Cobra. Hints of fruitiness also emanate. Fosters has an almost sour aroma with strong hints of yeast.

Flavour: All the beers seem to balance maltiness with the bitterness of the hops. London Pilsener is watery bland for the first second or two and then its slightly sour (like vinegar) and then lots of hoppy flavour. The Kingfisher has a mild maltiness with sour/estery notes in between (sour notes are in the beginning only). There are hints of a piney/wooden flavour. Then follows a long, hoppy, bitter but pleasant finish. Cobra is more full flavoured than the other beers. It does exercise your taste buds. You may also sense smoky notes in the middle. The bitterness grows slowly and finishes with hints of bittersweet fruits (pear perhaps). The finish is typically long. Lastly the Fosters left me baffled. Its quite full flavoured not so much as the Cobra but more than the Kingfisher. A fine balance between the malts and the hops. But there are hints of burnt toast and a medicine like sourness.

Please feel free to add your personal experience here……………….

UB, SABMILLER IN FROTHY BATTLE OVER TOP SPOT

2007-07-24T15:04:00.000+05:30

United Breweries (UB) and SABMiller, the country’s biggest beer companies, are engaged in a frothy battle over market leadership of their respective brands. UB claims its Kingfisher Strong has consolidated its position as the largest selling beer brand, having sold 95 lakh cases in the first quarter of the current fiscal, while SABMiller says its Haywards 5000 has reclaimed leadership in the same period.

According to SABMiller, its Haywards 5000 sold 88 lakh cases in the first quarter of this year, against Kingfisher Strong’s 87 lakh cases. When contacted, SABMiller’s director (corporate affairs) Sundeep Kumar said: “Haywards 5000 has outsold Kingfisher Strong by one lakh cases.” But UB’s executive V-P (sales & marketing) Shekhar Ramamurthy begs to differ.

“We have been ahead of Haywards 5000 for several quarters now. We believe we had a substantial lead over them in FY07. In Q1, we are ahead by over a million cases,” he told ET. In FY07, Kingfisher Strong reported a volume depletion of 26 million cases, which the company said was well ahead of Haywards 5000. SABMiller did not divulge standalone volume figures for Haywards 5000 during FY07 but said its entire portfolio of strong beers sold about 35 million cases.

Kingfisher had replaced Haywards 5000 as the country’s biggest beer brand last year, ending the latter’s decade-long run at the top. SABMiller-controlled Shaw Wallace Breweries had been dominating the strong beer market since the mid-1990s. In fact, UB was forced to extend its flagship premium lager Kingfisher into the strong segment as domestic consumption reported significant migration towards strong beer.

While a SABMiller official admitted Kingfisher Strong overtook Haywards 5000 last year, he added that Haywards had regained the top spot in this quarter. Besides Haywards 5000, the other strong beer brand in SABMiller’s portfolio is Knock Out. It also has some regional labels in its kitty. Besides Kingfisher Strong, other strong beers in UB’s basket include Bullet, Zingaro and Kalyani Black Label Strong.

Strong beers now account for 68% of Indian beer consumption, which is a complete reversal of the market dynamics in the mid-1990s. Strong beer has an alcohol content of 6% or more. India’s beer volumes are estimated at 132-136 million cases. In recent months, the beer market has been frothing with action, with a spate of global majors, such as Heineken, Carlsberg, Budweiser and Beck’s, fine-tuning their India strategies. According to industry estimates, beer sales grew 27% in 2006-07.

BEER POSITIONING AND DIFFERENTIATION

2007-04-19T19:26:00.000+05:30

The perceptual map above indicates the positioning strategies of the various brands operating in the Indian beer market. The brands as can be seen are fighting on different positioning platforms. However, in many cases there are overlaps and any lack in the effectiveness of the brand’s communication strategy serves only to further enhance the negative effect of these overlaps. The question marks (???) show possible new positioning strategies, though financial viability of these is not reflected by the map.

In this map, the perceived distance (dissimilarity) between Foster’s and Kalyani is the largest. Further, Zingaro and Thunderbolt are perceived to be the closest pair among this set of brands. The clusters of beers such as Knockout, Kalyani and Haywards help to identify (sub)categories of beers that may be different from the way that the company defines its competitors.

In looking at the vectors, moving in a northeast direction from the origin, beers increase in their popularity with men. Haywards is the most popular with men. The horizontal axis (in the east direction) is most closely associated with attributes "premium," "dining out," and "special occasions", areas which have no brands operating in the Indian market and are possible areas of new brand launch positioning. In the west direction, the horizontal axis is most closely associated with the attributes "on a budget" and "good value." Thus, the horizontal axis (the west to east direction) indicates an underlying dimension of "budget-premium," along which customers seem to characterize their perceptions of the differences between these beers.

Source: http://www.foolonahill.com/mbabeer.html

HISTORY OF BEER IN INDIA

2007-04-19T19:07:00.001+05:30

Modern brewing began for India in the early days of the British Empire — the mid-1700s. The demand for beer in the hot Indian climate by the British administrators and the troops was so great that it led to the creation of a completely new style of beer by George Hodgson in his London brewery — India Pale Ale also known as IPA. IPA is a strong, highly hopped ale designed to survive the five month ocean voyage to India without spoiling. India Pale Ale was shipped with every voyage for over a century and became very popular in Britain and North America.

In the late 1820s Edward Dyer moved from England to set up the first brewery in India at Kasauli (later incorporated as Dyer Breweries in 1855) in the Himalaya mountains, near Shimla, producing Asia's first beer called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh springwater there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay.

Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N.N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a Lager in the 1960's, when due to East European influence, most brewers in India switched from brewing Ales to brewing Lagers.

Today no brewer in India makes India Pale Ale. All Indian beers are either lagers (5 % alcohol — such as Australian lager) or strong lagers (8 % alcohol - such as the popular MAX super strong beer). International Breweries Pvt. Ltd. have recently announced an intention to work with Mohan Meakin to produce and launch an India Pale Ale called Indian IPA from India's first brewery at Solan. Kingfisher, Kings and Belo are popular Indian beer brands.

In various parts of north-eastern India, traditional rice beer is quite popular. Several festivals feature this nutritious, quite intoxicating, drink as part of the celebrations. The rice is fermented in vats that are sometimes buried underground. Elephants are known to attack villages, with the primary agenda of raiding these vats and having a good time generally. Following one such raid in north-eastern India, a police officer in Dumka was quoted in the press as saying: "Tribals who love rice beer brew the liquor at home. Elephants too are fond of this beer. Often it is found that, attracted by the strong smell of the liquor, wild elephants tear down the tribal houses where the brew is stored."

GUINNESS - FACT SHEET

2007-04-19T19:03:00.000+05:30

Guinness is the No. 1 stout in the world, famous for its dark colour and white head. Guinness Extra Stout, otherwise known as Guinness Original, is the closest variant to the Guinness Porter originally brewed by Arthur Guinness. Launched in 1820 it has been almost completely replaced by Guinness Draught and now only represents less than 5% of all Guinness sold worldwide.
The largest variant of the stout across the world is Guinness Draught, which was introduced in 1959. Thanks to the innovation of the widget Guinness Draught is now available in cans and bottles and as Extra Cold.

The stout's top markets are GB, Ireland, US, Canada, Australia, France, Italy and Germany.
Guinness is brewed in over 50 countries worldwide, and sold in more than 150. Diageo claims that 10m glasses are consumed every day around the world.

Associated links: www.guinness.com

GUINNESS ROLL OUT IN INDIA

2007-04-19T18:59:00.000+05:30

Diageo is looking to up the presence of its Guinness stout beer in India. The company, which began a limited roll-out of the beer in Delhi and Bombay earlier this year, has confirmed that a national roll-out can be expected within the next few months.

Diageo plans to introduce Guinness in Bangalore in the near future followed by a roll-out across the whole country. The focus would primarily be on locations where people are already familiar with stout, such as high-end restaurants and five-star hotels.

ARE THERE ANY COCKTAILS FOR BEER?

2007-03-21T12:01:00.000+05:30

Which kind of food goes best with Beer and are there any cocktails available for Beer? Can somebody tell me?

RISING HOPS & MALT PRICES IN INDIA WORRY BEER COMPANIES

2007-03-16T12:10:00.000+05:30

The making of beer is turning out to be costlier as the domestic industry grapples with steep increases in the prices of raw materialslike hops and malt.

Most of the Indian brewers which imports hops, have absorbed the cost instead of passing them on to the customers. A major fire at a hops storage facility in the US late last year and poor crop in the Czech Republic, one of the biggest producers, had more than doubled the price of hops at its peak.

The price has, over the last one year, increased from 16-22 euros a kg from a low of 9 euros.

Most of the beer is made from hops, malted barley, water and yeast. Hops are added to beer to give it a bitter taste, aroma and flavour.

The shortage of malt has also lead to increase in prices to around Rs. 17000 a tonne from Rs. 9000. The shortage is also because of increase in beer consumption, which grew 30 percent last year. While the malt capacity has not grown, the beer consumption has grown 30 percent.

For some of the key brewers in India, during the first nine months of the fiscal year F06-F07, cost of production has grown by 55 percent.

CHILLED BEER ON WHEELS

2007-03-16T11:09:00.000+05:30

The Delhi State Civil Supplies Corporation is requisitioning refrigerators on wheels to serve chilled beer. Is it a good idea??

With the hot summers approaching fast, the DSCSC has decided to requisition refrigerators on wheels to store and chill beer. These wheeled refrigerators would be kept outside the shop during the day and wheeled inside the shop at the time of closure in the evening.

The sale of beer increases 2-3 times in the summer. As the shops have limited space and most of them already have fixed refrigerators, the requisition of refrigerators on wheels will make sure that customers get chilled beer at any time of the day. The Delhi government owned corporation has around 100 liquor shops in various parts of the city and the refrigeration facility for beer would double with the new facility and help increase the sales and excise revenue for the government.

The DSCSC expects to generate Rs 372 crore by the end of this month. In the last financial year, it had grossed Rs 344 crore. The profit this year is estimated to be Rs 6.25 crore as compared to last year's Rs 5.63 crores. On two days preceding Holi, the corporation grossed Rs 10 crore, a new record in the sale of liquor.

IMPACT OF LIQUOR TAXES ON INDIAN ECONOMY

2007-02-22T12:19:00.000+05:30

Taxes collected from sales of liquor in various states of India, makes up, on an average, around 12% of the state's income. Topping the list is Karnataka, which makes 18% of its income through taxes collected on Alcohol, amounting to Rs. 4,060 Crores. Gujarat, on the other end, makes a paltry Rs. 58 Crores!!

Everyone knows alcohol is available in Gujarat, and the estimates of the amount that the Government loses because of Prohibition is Rs. 2,500 crores! Around 50% of the price of a liquor bottle sold is comprised of a combination of taxes - except in Gujarat where the taxes are not paid at all since, technically, no booze is sold. Prohibition is a failed experiment. It is a self defeating system, as other countries around the world have also learnt time and time again.

The reasons are simple - for those who drink alcohol do not consider it to be an immoral act and will continue to drink alcohol and the bootleggers will oblige, no matter how hard the Government tries to enforce prohibition. Many drinkers subject to such acts, "tank" up on liquor when they drink, and prohibition is responsible for creating such an unhealthy attitude towards liquor consumption, whereas everywhere else in the world it is seen as a drink of merriment.

GUJARAT READIES FOR MALT MARCH

2007-02-20T11:18:00.000+05:30

Prohibition background

When India gained independence from the British in 1947, all states in India were constitutionally required to have prohibition of Alcohol but none, other than Gujarat, sustained it. Prohibition has been tried in many countries around the world in the 20th century, but later removed because it failed to produce the desired results wherever it was implemented. Gujarat is no exception to that rule – in spite of alcohol prohibition; Gujarat has one of the highest consumption of alcohol in India and has created an underworld economy that tarnishes the potential of a socially vibrant and economically strong Gujarat. Today, Gujarat remains the only state in India to have alcohol prohibition and it has been estimated that the Govt. of Gujarat could generate Rs. 20,000 million in additional state revenues if alcohol were to be made legal in Gujarat.

Mission

MaltMarch shall strive to accelerate the pace of removing alcohol prohibition in Gujarat by:

Providing rationale, hard data and facts against prohibition
Jointly involving various institutions, social activists, and organizations to work together towards removal of alcohol prohibition
Creating transparency and suggesting a framework for gradual removal of prohibition to cope with the social and regulatory change.
Organizational setup

The Inspiration for Malt March

'Malt March' comes, ironically, from Gandhi's Dandi March (also called Salt March) 75 years ago, which protested the salt laws of the British rule in India. Gandhi, who also said that you have the duty to disobey unjust laws, was the chief proponent of an alcohol-free India. One of the main objectives is to make a case that the context under which Gandhi instituted prohibition is not valid today. Today, alcohol prohibition in Gujarat is an outdated, corruption and crime breeding, short sighted law which must be systematically removed. Keeping up with Bapu's spirit, the Maltmarch community plans to march to the Sachivalay and have a drink in defiance of the prohibition law (date undecided).

INDIA PROVES TEMPTING PRIZE FOR INTERNATIONAL BREWERS

2007-02-07T18:10:00.000+05:30

Major brewing groups are clamouring to get into India, which, by dint of its young population, expanding economy and rising personal disposable income offers huge growth potential.

The Indian beer market has attracted major investment from international brewing groups, such as SABMiller and Scottish & Newcastle (S&N), over the last couple of years and, given the growth forecast for the market, it is easy to see why.

Euromonitor International forecasts that Indian beer volumes will grow by over 50% over the next five years, from 9.07m hectolitres in 2006 to 13.69m hectolitres in 2011. This follows growth of 45% between 2001 and 2006.

Expected any day now is an announcement concerning the future of Mohan Meakin. The company’s steady decline in market share to less than 8% has caused intense takeover speculation. Since January, InBev, Heineken, Anheuser-Busch and SABMiller have reportedly each expressed an interest. Meanwhile, Anheuser-Busch has been linked to joint ventures with both Crown Breweries, based near Hyderabad, and the S.K. Jaipuria Group, a New Delhi-based soft drinks manufacturer. Reports have suggested that the company is planning to focus on marketing while agreeing bottling arrangements with mid-sized brewers, rather than opting for an outright acquisition.

UK-based beer group Scottish & Newcastle (S&N) is already present in India, having acquired a 37.5% stake in market leader United Breweries (UB) for US$106m in January 2005. In February, UB and S&N increased their individual stakes in their joint venture, Millennium Alcobev, by 10% each, giving them 50-50 ownership.

One of Japan’s largest beer makers, Sapporo Breweries, is reportedly seeking to enter the market either by forming a joint venture or by acquiring existing breweries. It intends to launch its ‘third beer’ brand Draft One which is a beer-like, low-alcohol (5% ABV) beverage made from pea or soy protein. Due to the absence of malt and wheat, the product is categorised as neither a regular beer nor a low-malt beer. As in Japan, this could liberate Draft One from the high taxes imposed on beer, making it more affordable to lower income consumers.

Strong beer, at around 8% ABV, is characteristic of this market. Companies like Anheuser-Busch will therefore have to introduce new, stronger variants to their portfolios if they intend to make significant inroads in the short term.

Asia Pacific Breweries (APB), the Singapore-based brewer in which Heineken owns a 42% stake, appears to be looking to boost its own portfolio. It is seeking to acquire a 76% stake in Lilasons Breweries, which owns the strong beer brand Khajuraho, present in the states of Maharashtra and Madhya Pradesh. Lilasons is seen as one of the last few independent beer breweries left in India. In May, APB acquired a 76% holding in Aurangabad Breweries for around US$18m, with an option to buy the remainder at the end of 2008, and followed this in June by forming a joint venture with the Jaipuria Group in the state of Andhra Pradesh.

SABMILLER ROLLS OUT ITALIAN BEER, PERONI IN INDIA

2006-11-10T12:15:00.000+05:30

After mild, stout and diet beers, its now the turn of designer beer. SABMiller has launched its Italian beer brand Peroni Nastro Azzurro in India. It is one of the first spirits brand to enter India through the direct import route (company imports the brand) as opposed to the normal route where distributors directly import foreign brands. This would give the brand an edge over other brands in terms of the sales and distribution support that the company would provide.

Initially the premium lager brand would be launched only in select outlets in Mumbai. It would move on top other cities at a later date. In terms of brand promotions the activation would be done predominantly at restaurants and nightclubs where Peroni would be available. In keeping with its international association with fashion, Peroni would look at similar associations with high fashion in India as well.

Priced at a 200-250 percent premium over mainstream brands, Peroni would be competing with international brands like Heineken which are already available in India.

SORGHUM BEER - THE NEXT BIG LITTLE NICHE

2006-10-03T12:31:00.000+05:30

Beer companies appears intent on jumping on a small bandwagon of brewers making beer with sorghum instead of barley. The dominant industry leader already has demonstrated its commitment to attacking tiny niches by rolling out organic beers.

Beers made with sorghum can be consumed by people with a condition called celiac disease. Exposure to gluten -- a protein found in barley -- triggers digestive problems in people with the disease.

Lakefront Brewery, a Milwaukee craft brewer, recently launched a gluten-free beer called New Grist to great success. The beer is available in one-third of the country and has been picked up by big natural food retailers such as Whole Foods Market Inc. and Wild Oats Markets Inc.

The gluten-free market also is drawing attention from St. Louis- based Anheuser-Busch Inc., the nation's largest brewer. People with celiac disease attending a support group in the St. Louis area were recently given samples of an experimental gluten-free beer developed by Anheuser-Busch.

UPDATE: Gluten-free beers aren’t going to be as popular as light beer or even porters, but with 1-in-133 Americans with celiac disease combined with thousands, perhaps millions, of autistic kids on gluten-free diets who will begin reaching the age of majority in the coming years, and you’ve got a sizable little market that’s likely to emerge. So look for many more gluten-free beers in the market soon.

GOVERNMENT REAPS BENEFIT FROM INCREASED BEER SALES .....

2006-09-28T18:13:00.000+05:30

North India is enjoying beer like never before. During the first quarter of 2006, nearly 5 million cases of beer were sold in Punjab and Haryana as against 600,000 cases in Q1 of 2005-06. Overall the 105 million cases-a-year Indian beer market is set to register a 15 percent growth in 2006-07 to cross 120 million cases, thanks to the phenomenal growth in the two states.

Punjab, Haryana and Chandigarh witnessed record growth in government taxes following the recent policy changes. If we look at the April to July 2006 figures, the recent policy changes have increased the govt revenue in Punjab by 15.07 percent, Haryana by 19.65 percent and Chandigarh by 500 percent. The prime reason for this growth in government revenue can be related to the growth in beer sales in these three states. The new alcohol policy has come as a boon for these states in economic distress. In previous years, government revenue in Rajasthan and UP also increased by 50–100 percent due to similar policy changes.

.....WEST BENGAL FOLLOWS SUIT

As a step towards implementation of the model policy for alcohol , the West Bengal govt has recently announced a reduction in the Import Duty and Local Excise Duty, to be implemented from 1st November 06.

The detail of the duty changes are as follows:

MARKET SHARE BREAKUP - INDIAN BEER INDUSTRY

2006-09-25T16:48:00.000+05:30

The Indian Beer industry pegged at Rs. 6000 crores is rapidly growing with sales of over 100 million cases a year. With almost 55% of the population in the age group of 21 to 59 years, the potential for growth is huge. Higher income level, changing lifestyle and consumption patterns are all expected to drive this growth.

Last year the growth rate in the sector was a record 14% where a slugfest is on between the domestic players like UB Ltd., SABMiller India, Mohan Meakins Ltd., Mount Sivalik Breweries Ltd., and Yuksom Breweries Ltd and global rivals like Heineken, Budweiser, Cobra and APB eyeing this growing market.

Traditionally the South and West have been the traditional markets for beer (TN, AP, Karnataka and Maharashtra have sold about 68 million cases of the 100 million case beer last year) mainly because of high density of urban population in these states, high per capita income and absence of winter which makes it a year long market without seasonality.

Recently some of the Northern states switched from the auction to the licensing system bringing down the price of beer by at least Rs. 20 in several of these states. Consequently the expected volume of sales for 2006-07 in Punjab, UP, Haryana, Chandigarh, Rajasthan and Delhi is pegged at 27 million cases, an eye popping 32% growth from the 20.5 million cases, the previous year.

SABMILLER ACQUIRES FOSTERS INDIA

2006-08-25T15:50:00.000+05:30

SABMiller plc, one of the world’s leading brewers, recently announced that it has entered into an agreement to acquire a 100% interest in Foster’s India for a consideration of US$120 million on a cash-free debt-free basis, subject to certain conditions being fulfilled. Under the terms of the agreement, SABMiller will assume ownership of all Foster’s assets in India including the Foster’s brand in the territory.

Foster’s India currently operates one brewery based in Aurangabad in the state of Maharashtra with a licenced annual capacity of 350,000 hectolitres. The company produces, distributes and supports Foster’s Lager, Amberro Mild and Amberro Strong beer brands in the Indian market. In the year ended 30 June 2006, total beer sales were 236,000 hectolitres (2005: 209,000 hl) with Foster’s Lager representing 88% of total production and sales (2005: 85%).

India is the third largest market for the Foster’s brand globally and it has achieved a CAGR of 13% since operations commenced in 1998. It has a presence in 19 Indian states and has a substantial share of the mild beer segment in the strategic state of Maharashtra.

With Fosters adding around 4.5 million case per year, SABMiller’s production will go up to 35 million cases every year, while its market share will increase by 2-3 percent points to around 37 percent.

In case SABMiller is able to acquire Mohan Meakin’s beer brand, its market share will go up by another 6-8% taking it to around 45 percent.

BEER CONSUMTION TRENDS

2006-07-10T13:04:00.000+05:30

In 2004, annual consumption volume in the world recorded 19 years of consecutive growth. The growth rate against the previous year exceeded 4% for the first time since 1987. The reasons to the expansion of the beer market are attributed to the global economic recovery and high temperature caused by record-breaking heat waves.

The Chinese market, which topped the list for 2 straight years, grew at a more rapid pace than the previous year (up 6.4%), getting a lead of 4o.67 million HL on the US. Its growth was attributed to a population increase and improved standard of living due to economic growth. The beer market in China is characterized by market growth centered on urban areas as well as aggressive market entries by foreign breweries.

Due to changes in economic policies and a growing health consciousness since the late 1990’s, Russia jumped to 4th in 2004 from 9th in 1994, sharing its position with Brazil.

Of the southeast Asian markets, Thailand (up 10%) and the Philippines (up 15.6%) showed remarkable growth.

Japan remained in the same position on the list, but consumption increased (by 0.7%) for the first time since 2001 after a 2-year decline, which was attributed to the heat-wave and introduction of new genre.

BEER SALES NOSEDIVES IN KARNATAKA

2006-07-06T12:30:00.000+05:30

Beer volume in Karnataka is approximately 119 lakh cases (F-06). Growth of the mild segment is stable and overall growth being driven by the strong segment growing at a CAGR of 17.5%, whereas the total industry grew by 10% (F-99 to F-06).

Traditionally Karnataka has been a very high potential market for beer. However, with the new excise policy which was announced a few months back, Karnataka has witnessed a huge drop in sales for the period April – May 2006 over the same period last year.

Excise duty on beer up from Rs. 4 per bulk litre to Rs.5 per bulk litre
Additional excise duty on beer up from Rs.22 per bulk litre to Rs.29 per bulk litre
Policy is not at all in line with international trends where preference is given to beer. Hence this is a regressive policy in technical sense.

The drop in volume can be related to the Price Elasticity of Beer in the state of Karnataka which is (-1.18).

Interestingly due to the progressive approach taken by governments of Punjab, Haryana and Rajasthan, sales have increased – thus increasing the revenues to the exchequer. The same is not the case with Karnataka.

The table below will clearly give you an indication of what we are talking and the kind of slide that the state of Karnataka has seen as compared to the mammoth growth witnessed in the states of Delhi, Punjab and Haryana.

INDIAN BRANDS HEAD FOR BEER RUN IN UK

2006-06-28T11:01:00.000+05:30

Several Indian brands have made inroads into the British market, so much so that beer industry reports say "beers from the Indian subcontinent are now firm favourites with British drinkers.”

The success of pioneer brands such as Kingfisher is persuading other brewers to try their luck. Kingfisher was the first on the scene and, since then Cobra, Lal Toofan, Shere Khan, AdiAdi and Bangla have emerged. Others are in the pipeline and although the focus has inevitably been on Indian restaurants, brand owners are now exploring off-trade opportunities.

In a deliciously ironic twist, one of the brewers that intend to exploit India's growing love affair with beer is Cobra. Cobra, it is not an Indian beer but a British brand brewed in Bedford. It has been the undisputed success story of Indian-style lager in the past few years. Led by entrepreneur Karan Bilimoria, Cobra is made under licence by Charles Wells and, along with some smart marketing, has achieved success with a formulation that is deliberately less gassy than its competitors and so, it argues, a better match for Indian food.

AdiAdi is the new kid on the block, fresh out of Bangalore. It is being imported by Essential Garden, a company specialising in bringing food items into the UK from India. Founded by Pradeep Kumar and John Eipe and based in London's Canary Wharf, the business is concentrating its launch activity in the Indian restaurants but says the off-trade is in its sights.

Like Shere Khan, the lager launched in the Manchester that accom-panies Indian foods of the same brand name, AdiAdi claims to be a "smooth" but "zesty" beer that is made with Eastern cuisine in mind. The Far East Brewing Company, part of the Refresh UK group, has two Indian-style lagers in its portfolio: Lal Toofan and Bangla.

Meanwhile, the new Bombay Pilsner of London has also launched a "smooth" beer that is promoted as a good accompaniment to Indian food.

WHAT SHOULD BE THE IDEAL LEGAL DRINKING AGE??

2006-06-21T10:37:00.000+05:30

If we can vote at 18, why can't we drink?

Delhi government has ignored the Centre's recommendation to lower the drinking age to 18. In its draft excise legislation, it has lowered the age to 21 from 25. Why an 18 year old can drive a car and vote but not drink is a question to which we are yet to find an answer....

While pub owners are happy with this more ‘‘realistic’’ approach of the government, a section of Delhiites has expressed concern that this would lead to more cases of drunken driving.

As for 18-year-olds, they feel if they’re allowed to drive, vote, marry and start a family at this age (if they are girls), handling drinks should hardly be an issue. The decision shows the double standards of our law-makers. If an 18 year old can be trusted with the future of the country, why not otherwise??

The government-run liquor shops don’t ask for an identity card, even when they know that the person buying alcohol is underage, let alone the pubs. So what’s the point? Most of the teenagers try a drink much before they turn 18 and if one is legally allowed to do so, things would be simpler.

In most countries the drinking age is 18. In many, it's even less. The US has fixed it higher at 21 and that's caused huge controversy. The Delhi government’s proposal to lower the drinking age from 25 to 21 has failed to lift the spirits of teenagers, who were desperately waiting for the age limit to be reduced to 18.

For more information on LEGAL DRINKING AGE

DRAFT MODEL ALCOHOL POLICY: SALIENT FEATURES

2006-06-08T16:46:00.000+05:30

The Ministry of Food Processing Industries has finalised its Draft Model Policy for the alcohol sector. The last time such an exercise was attempted was over a 100 years ago! To be sustainable and effective, the Policy recognises the role of drinking and the need to be practical and relevant to the lives of those they target. It is a well known fact worldwide — that policies cannot control consumption, hence they need to control harm. In view of this, policies now encourage consumption of drinks containing moderate forms of alcohol such as beer and wine. The Model Policy aims to achieve this by introducing tax structures which favour low alcohol products and by removing ambiguities from the existing system. The Policy also appreciates that the job and income multiplier of beer is greater than wine and spirits. Consequently, in most developed countries, taxes are relatively lower on beer as it has the highest share of about 60 percent in alcohol consumption.

In India however, the picture is entirely different and the new Policy seeks to address this. Share of beer is a mere four percent and while per capita consumption of spirits is at 65 percent of global average, per capita consumption of beer is just three percent of global average — a direct consequence of the archaic tax structure which instead of favouring beer actually discriminates against it. Globally average tax on beer is about half than on spirits, while in India tax on spirits is in line with global average but tax on beer is 60 percent higher than spirits and more than three times the global average. No wonder beer in India is unaffordable and the consumption of hard spirits is on the rise.

Salient Recommendations of the New Policy

Tax on Beer 35% of MRP (ED 15% + ST 20%) Spirits/Country 60%; Wine 20%: States are further encouraged to reduce tax on beer by another five percent in phases if revenue gains are achieved. The proposal will help bring taxes on beer in line with global average, down from the current India average of 42 percent. It is also proposed that the fixed component of levies in terms of license fees should not exceed five percent of the MRP.
Uniform MRP: Consumer prices to be uniform across all states and determined by manufacturers based on market forces and not dictated by government policy, as in other consumer goods.
Interstate levies to be removed: Free movement of goods between states to encourage competition and enable manufacturers to get economies of scale. This is particularly pertinent in case of breweries where capital investments are high and large capacities are much more efficient.
Retail outlets to be on fixed fee, longer term basis (no auction system): Remove monopolies and cartels that still prevail in some states, thereby encouraging competition, reducing consumer prices and leading to a better retail environment.
Communication at point of sale / consumption for beer and wine: In order to enable consumers to make an informed choice and to promote responsible drinking.
Modern breweries are to be permitted to have multi-purpose process areas/vessels, blending, flavouring, HG brewing, wort streaming etc. to improve efficiencies and enable innovative products. Moreover, with the recognition that brewing unlike distilling is a continuous process; the stages of monitoring and control have been greatly reduced. No wonder the current rules formulated in the early 20th century with largely distilling operations in mind, are obsolete and inappropriate in today's context.

NORTHERN STATES TO FUEL GROWTH FOR BEER INDUSTRY

2006-06-07T11:55:00.000+05:30

Taking a leaf out of the Model Excise Policy mooted by the Ministry of Food Processing Industries, the states of Punjab, Haryana and Chandigarh moved from the archaic auction to a retail fee system, removing the monopolistic nature of the business which was hurting consumer, manufacturers and government interests.

Some of the advantages this will have:

Consumer gets a better choice of brands at reasonable prices
Ensures that the distribution system (especially retail) does not capture a disproportionate amount of the value chain by leveraging their monopoly
The retail environment improves due to increased competition
Illicit liquor and smuggling from the neighbouring states will stop as the prices fall in line with the neighbouring states.

These markets have already begun to see the impact of this policy change with beer prices coming down to more realistic levels.

The previous year had seen the Rajasthan government effect a similar change. As a result, beer prices in Rajasthan nosedived from almost Rs. 60 to Rs. 45 per bottle and the Government increased its revenues from Rs. 1276 crore in 2004-05 to Rs. 1350 crore in 2005-06.

On the other hand in Maharashtra, Karnataka and Orissa, the latest dose of State Excise has sent prices of the golden brew skyrocketing. In Maharashtra, a bottle of mild beer that previously cost Rs. 52 with taxes, now costs Rs. 65 – showing a whopping 25 percent jump.

Predictable the beer market has been impacted adversely with Karnataka and Orissa witnessing negative growth at – 4% and – 14% percent respective. (Apr-May06 over Apr-May05).

HAYWARDS BLACK ROCKS KOLKATA

2006-06-06T15:39:00.000+05:30

With the scorching summer pushing the Celsius to the 40-plus mark, what better news than the launch of a new beer.

After the debut launch in Noida, Calcutta is the second place where Haywards Black stout beer was launched. Stout beer is a dark beer. Haywards Black is a blend of Caledon Valley roasted barley malt, pale malt and Alpha hops from New Zealand.

The beer, being brewed at Rochees Breweries Limited in Rajasthan, ensures that a slow brewing process with special yeast creates a creamy head and a rich, smooth taste.

In keeping with the Indian palate, Haywards Black is less bitter and more smooth than regular stout beer. The use of dark roasted malt renders the dark colouring along with a smoky taste.

Currently in Kolkata the beer is available at Taj Bengal, The Park, Hyatt Regency Calcutta, ITC Sonar Bangla Sheraton & Towers and select liquor shops in the city.

Pocket pinch: Haywards Black is available in 330 ml bottles and is priced at Rs 32.

INDIAN ALCOHOLIC BEVERAGE INDUSTRY STATISTICS: IWSR REPORT

2006-05-30T15:25:00.000+05:30

Below is an over-simplified analysis of the very real differences between India and all other markets; this is drawn from the opinions of Indian management who understand the markets in great depth.

India is 28 countries in the context of one. (There are 31 states but some are very small). There are at least 23 quite different markets of importance. In practice, these are largely self-contained markets, with limited cross-border sales, except by smuggling.
Each state levies taxation on alcohol at its own determined rates and excise duties, and controls distribution channels in its own way. It is a state-by-state not a national market. Taxes are levied, often at relatively high rates in relation to Indian prices, on all alcoholic products crossing the state borders. The result is that it is essential to have centres of production spread over the major states.
The intention to reduce alcohol consumption is written into the Constitution.
The population is evidently huge (945 million in 1996 and over 1.1 Billion during 2004). It is still growing by 20 million plus every year, though this may have eased in 2003. However, 600 million at least are still outside the market for anything except very cheap Country Liquor. Advertising has always been officially illegal. In practice, all major brands spent heavily on Surrogate brands under the same brand name (on glasses, mineral waters, bottle openers, fashion articles for men etc.).
The Distribution system is still the same for Beer as for Spirits and Wine. All outlets must be licensed; Wholesalers, Retailers, Bars and Restaurants, and Bonded Warehouse operators. They pay the, varying, States licence fees. These can, at present, only sell Indian-made Liquor over most States. It continues to be expected that Beer and Wine may shortly be permitted to sell in more outlets.
South India is the largest consumer of IMFL and Beer. It is more important than North and West together. Tax-paid Country Liquor is most important in North and West.
The West is declining due to high taxes, and the North increasing in Country Liquor and Beer particularly.

Download the full report: India Alcoholic Beverages Industry Statistics.pdf

BREWING INDUSTRY VITAL TO EUROPE’S ECONOMY

2006-05-26T16:26:00.000+05:30

A study conducted by Ernst & Young has confirmed that Europe is the most important region in the world for beer production.

It is claimed to be the first report to comprehensively quantify the economic contribution of the brewing sector in Europe. According to the report, there are more than 3,000 small and medium-sized enterprises in Europe’s brewing sector, which helped to foster Europe’s regional development and the competitiveness of its agriculture.

The report also estimated that the total employment effect of the brewing sector in the EU amounts to 2.6m. Direct employment from brewing in the EU is put at 164,000, but indirect employment is significant. According to the study, for each job offered in the brewing sector, one job is generated in retail, two in supply sectors and almost 12 in the hospitality sector, as well as 147,000 jobs in agriculture. The brewing industry generates total tax revenues of around EUR39bn (US$50.4bn), more than the annual government expenditure of Finland or Poland, the report claimed. The total contribution of the brewing sector to the European economy in terms of value added is EUR57.5bn, the report said, equivalent to the GDP of the Polish or Austrian economy in the last quarter of 2004.

If you are interested in the full report (pdf format) please mail your requests to Brew Master

AIBA RECOMMENDS BEER RETAILING ON FIXED FEE BASIS

2006-05-25T11:38:00.000+05:30

In order to give a fillip to the Indian beer industry, the All India Brewers Association (AIBA) has called the state governments to draft their excise policies on the basis of the Model Excise Policy suggested by the food processing ministry. AIBA has also called for adopting the retailing of beer on a fixed fee basis as opposed to the auction system.

In 2004-05, the beer market was pegged at 9.4 crore cases and registered a growth of 14% to touch 10.9 crore cases, because of the excise policy of Rajasthan and Karnataka.

These two states also moved from the auction system of retailing to a fixed fee system, thus impacting the volume sales of beer. If other states also follow this, it would promote the beer industry, which is by far safer than hard liquor. AIBA is also recommending removal of inter-state levies and restriction of licence fees to exceed 5% of MRP.

The food processing ministry in its model excise taxation paper has called for the preferential treatment to beer. It has argued that the growth of beer industry, will lead to multi-fold benefits to the farmers.

"If the demand for beer in India were to grow to the same level as spirits, the demand for malted barley along with other crops used for beer production would increase 20-fold, and over 10 lakh farmers would benefit. Similarly, the economic value generated at the farm level from barley used by the beer industry would go up from approx Rs 60 crore to Rs 1,200 crore," the paper said.

Cultivation of hops (flavouring and stability agent in beer) presents another major opportunity for farmers, as it is grown in hilly regions where crop opportunities are few, the paper adds. As per industry estimates, 45-50 tonne of hops worth Rs 70 lakh is currently being grown in India impacting 650-700 farmers.

INDIA'S FIRST STOUT BEER - HAYWARDS BLACK

2006-05-24T09:57:00.000+05:30

In one of the biggest and most courageous new product launches, SAB Miller has launched Haywards Black, India's first stout beer, which with an alcoholic percentage of around 7% will rank as a strong stout beer. We will say no more. Taste it and form your own opinion.

Deep, dark and flavourful, stout earns its character from brewing with highly roasted malts. Stout features intense malt and caramel flavours, and depending on the variety, ranges from sweet to dry and distinctively bitter.

RAJASTHAN CASE STUDY

2006-05-24T09:55:00.000+05:30

Year 2005 saw Rajasthan government changing from auction system to a new system of corporation. The aim was to remove the monopolistic nature of the business wherein the contractors were becoming more powerful and in the process consumer, manufacturers and government interest were not being protected.

This new system will make sure that this monopolistic cartel is broken and the situation is a win – win for the other stakeholders. The consumer will get the product at a realistic rate and the government will benefit in terms of revenue. According to a rough estimate the government is set of get revenue of Rs 1350 crore this year Vis a Vis a revenue of Rs 1276 crore last year. Therefore just by doing some structural changes the government will be able to earn Rs 74 crore, not to mention the benefits to the manufacturing companies and the consumer.

No wonder that more brewers have announced their plans to enter the state given the wise move taken by the government to minimize the impact of the middlemen on the entire value chain.

Listed below are some of the benefits this policy has given to the state.

Fixed MRP – Consumer is protected as no arbitrary pricing as is the case with the auction system.
Brand availability – Now brands are available as per consumer demand and not driven by contractors desire to push high margin lesser known brands.
Manufacturers get a better deal with the State Corporation in charge of wholesale distribution
No credit exposure
Not at the mercy of the contractors arbitrariness
Better price realization
It is an investment friendly change in policy, forward looking and pragmatic

Going forward, the government should keep up the process of reforming system while creating policies which are beneficial to the state economy and to its people.

NO CHILLED SUMMER FOR BEER INDUSTRY

2006-05-11T10:58:00.000+05:30

May be Chilled Beer??

Interesting article which appeared in Mumbai Mirror recently.

Age-old excise policy on liquor and multiform regulations are hitting the beer industry

Brewers in the country are asking not to be regulated under the Punjab Excise Policy of 1905 for distilleries as it now affects them adversely. The government’s policy, which inadvertently discourages breweries, while encouraging distilleries, has put the beer industry at a disadvantage.

With regard of the Punjab Excise Policy, there are certain compliances mentioned in the policy, which are no longer feasible – and despite repeated pleas to the government there is no amendment to the age-old law.

According to the policy, liquor manufacturers cannot operate at nights and the operator is required to close operations after dark till the next day.
This policy is alright for the distilleries as there are chances of making spurious spirits and also of excise theft during the wee hours. However, there is no scope of making spurious beer as that process is as costly.

Also, there are different regulations in different states. An individual of 18-years and above can consume alcohol in Goa but not in Mumbai. Mumbai’s age criterion is 21-years whereas in Punjab, the age bar is 25 years.

Average global taxes on price of the beer are 33.6 per cent whereas, in India, taxes on beer are about 49 per cent and therefore, affordability of beer in the country is lowest compared to world standards. This way, the government is encouraging hard-liquor that is more harmful to the consumers.

INTRODUCTION

2006-04-24T12:11:00.000+05:30

Welcome to the exclusive blog for the Indian Beer and Brewing industry. The attempt is to bring to scan the latest national and international environment which impacts the Beer Industry. We would like to improve on our attempt hence would be looking forward for your feedback & views.