Strong beers are still in high demand

Microbreweries and craft beer have contributed in a big way towards changing the beer drinkers’ mindset in India, during the recent years. Many beer consumers in India presently want to experiment with styles they haven’t tried before, says Sumedh Singh Mandla, CEO, VBev.

The craft beer trend has exposed the young drinker to an array of refreshing beer styles in India. The microbrewery culture has raised a lot of awareness and curiosity among this target audience. This, in turn, has created more scope and opportunity for brands in traditional channels as well. Now brewers in India are largely motivated and driven by openness and passion for crafting beer that are of global standards. Their breweries have become space to express their creativity and they offer consumers new experiences and products more frequently.
These breweries in the country put a lot of focus on driving awareness and encouraging experimentation much like their international counterparts. This, in essence is how Sumedh Singh Mandla, CEO, VBev, describes the present market trends in beer consumption in India. Describing VBev’s portfolio, barring lager, he says: “We currently offer a strong lager beer, Charger Scottish Lager from the historic Wellpark Brewery in Scotland. It was launched in India at the end of 2018.There are limited options available in India, in the strong imported beer category, and we hope to carve a niche in this space with Charger.” He goes on to say that strong beer consumption across the country far exceeds that of mild beer. This coupled with an increase in spending power in tier-I & tier-II cities of the country creates a promising opportunity for this category. Presently available in Mumbai, Delhi, Uttarakhand, Goa, Bengaluru & Chennai, VBev will soon be available in Uttar Pradesh, Pune, the rest of Maharashtra, Punjab, Gurgaon and Pondicherry markets. The company, he says, is building the imprints of this brand and shall target double digit share of the imported strong beer category in India, by the end of fiscal 2020-21. They also plan to add other premium beer styles and brands to the portfolio in the coming year. When asked as to how young beer drinkers in India are moving away from classical lagers, Sumedh is quick to point out that younger drinkers, like generations before them, still gravitate to beers that are light and refreshing. This is mainly on account of Indian cuisine and climate. Wheat beers, he says, continues to grow steadily in the country, followed by craft lagers that are also more accessible than they were before. Young drinkers also base their decision on brands they can identify with, but quality and consistency are as important, he adds with a tone of finality.

Indian Experiment

Talking about whether the Indian beer industry is willing to experiment with flavours, he says that microbreweries and craft beers have contributed in a big way to changing the beer drinkers’ mindset in the country. “Consumers want to experiment with styles they haven’t tried before and breweries have found the addition of flavours and special edition beers as useful marketing tools to drive trials and increase engagement,” he avers. Seasonal and unique flavours and styles for a brand give them a point of differentiation in the consumers’s mind and an edge over their competition, he observes. Elaborating on the VBev’s brand that falls in this category, the CEO says that Charger Scottish Lager is one of the few imported beers in the Indian market today that is sold in a 500ml can. Not only does the young drinker in India not mind spending more for better quality he also appreciates products that offer convenience and ease of use. Charger is one of the few strong beers in the imported beer category in India and the only imported one available in a can in this segment, in India’s fast evolving beer market. When quizzed as to whether they will introduce any new variant of beer this year, he says: “We are exploring the addition of other imported beers that would best peak the Indian consumers’ curiosity in terms of quality and standards.” “The market will have to wait and watch,” he adds cryptically.

Newer Opportunities

When asked if after Bira, another company in India has gone for a tie-up to make its own beer brand abroad, he says the beer market in the country has been dominated by few big brands for decades. “It was good to see that Bira has created a whole new tier within the Indian beer market. Their success is not based only on addressing a gap and an opportunity they saw in the market; it was backed by a strong business plan, competitive pricing, innovative packaging and widespread marketing initiatives that worked in tandem,” he affirms. He adds that Bira has greatly contributed to growing the beer market and revolutionising the way Indian consumers see the category. This has undoubtedly paved the way for new players in India’s beer market. In the current market scenario, it is crucial for new entrants to have a clear point of distinction that makes them unique and memorable, backed with the right pricing, positioning and consistency to really stand out, catch on and sustain. Talking about the difference in consumption of Indian brands of beer as compared to imported brands, he informs that beer consumption in India is believed to have crossed 27 million hector-litres last year and imported beer accounts for a mere 0.11 percent of the overall beer consumed across the country. (Source: IWSR, June 2018). When asked as to how did he foresee India’s beer market growth in the next five years, the veteran goes on to add that the per capita consumption of beer is still quite low in India and would definitely grow in the next five years. He expects to see more styles from newer regions coming in, ranging from refreshing ales to lighter stouts that will find acceptance and appreciation with the inquisitive younger drinkers in India. “Tier-II cities in the country will catch on to experimenting with other styles and trying new beer flavours. This will lead to a definite growth in the imported beer and craft beer segments in India while contributing to the overall growth of the beer market in India,” says Sumedh as he signs off.