Beer only seen as revenue generator

The premium beer market in India is getting more crowded and difficult to penetrate as more brands jostle for shelf space. There has been a huge jump in marketing costs. This goes to the advantage of the multinationals with their deep pockets, says Prem Dewan, MD – Devans Modern Breweries.

Premiumisation is the in thing, not only in India. Consumers all over the world are shifting slowly to premium beer brands for perceived better quality and better show off appeal. Most Indian breweries have also launched their premium products in the market though such products require much more marketing effort. “Devans is also shifting focus slowly and steadily to premium beer brands; we already have our Kotsberg range of strong and light beers in the market. We have only last year launched our Six Fields wheat beer in some states. Plans are afoot to launch a couple of more premium beers in the market next year,” shares Prem Dewan, Managing Director, Devans Modern Breweries by way of opening remarks while talking about the concept of drinking less but better. “The premium beer market is getting more crowded and difficult to penetrate as more brands jostle for shelf space. There has been a huge jump in marketing costs. This goes to the advantage of the multinationals with their deep pockets,” asserts Dewan. The biggest issue concerning Indian companies is the huge tie-up expense associated with introduction of the beer brands in premium outlets, especially in hotels, bars and clubs and the listing cost of the brands in the menus. “Foreign companies are spending tonnes of money on pan-national tie-ups with hotel’s and restaurant chains thereby effectively pushing out the local Indian beer brands from such segments,” he discloses.

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