mainly talks about the beer industry in India, factors affecting, sectoral consumption, future growth

1. Brewery
Industry
Chirag Kohli
Atish Kumar

2. Introduction
World's most widely consumed alcoholic
beverage.
Third most popular drink, after water and tea.
Beer is an alcoholic beverage manufactured by
the hydrolysis of starch and fermentation of the
obtained sugar. This process of preparation of
beer is called brewing.
In India, beer is one of the fastest growing
markets and is highly consumed because of
growing disposable income, the increasing
young population.
Brewery industry has grown at a CAGR of
16.94 percent and 14.57 percent on the basis of
revenue and volume, respectively, over the
period 2013-2016

3. History
Brought up
by
Europeans
in India
First
exported
by bow
brewery in
18th
century
First
brewery in
kasauli-
Edward
Dyer
(1830)
First brand
in India -
lion (still
available)

4. Present state
of Beer
Industry
South India is the dominant market
Imported beers sell in five Star hotels, fine dining outlets, pubs,
resto- bars and in High Income group houses
There are as many Tax/Duty slabs as the number of states. They
also have interstate levies on stock movements. Thus all national
players like UBL, Carlsberg, SAB Miller have multi units located
close to the markets.
The industry has changed to 20% lager (5% abv) to 80% strong
lager (8% abv). The lager sells in on- Premises of Clubs & bars
and Strong sells through off premises mainly and in rustic Bars &
Restaurants.
The reason for preference of strong beer is the cost benefit of
Intoxication.

5. • Tamilnadu/AP/Karnataka (Warm
throughout)-50%
• Maharashtra/MP(Seasonal)-20%
• North-
Delhi/Punjab/Haryana/Rajasthan
(Seasonal)-20%
• WB/North East (Seasonal)-10%
50
20
20
10
Beer consumption

6. 5125.6
7.6
3.1 2.10.2
Market Share
United Breweries
SABMiller
Carlsberg
Mohan Meakin
Anheuser-Busch
Molson Coors
Haywards 15
Knockout 8.7
Foster's 1.3
Royal Challenge 0.6
Okocim 5.1
Tuborg 1.3
Carlsberg 1.2
Budweiser 2.1
Cobra 0.2
Kingfisher 41.2
Kalyani 2.7
UB Export 2
Sandpiper 1.5
Bullet Super 1
Zingaro 0.9
London
Pilsner
0.2
Golden Eagle 1.7
Black Knight 1.1
Vorion 0.2

7. Indian beer
market and
a real GDP
growth

8. Drivers &
Challenges
Drivers
• Beer sale in India is
forecasted at a CAGR
of 17.2%
• India has an emerging
middle-class –which
has inclined to healthy
urban workforce.
• 63% of the population
is between the ages of
19 & above
Challenges
• Brewers must make
innovative and readily
available products to
remain competitive.
• Brewers must create a
sense of loyalty
• Utilization of brewing
capacity –to keep
manufacturing cost
low.
• Clever advertising-to
induce beer drinkers
to buy a particular
brand.

9. Environmental
Analysis
Political
• Stringent legal policies- every time the governments
increase the tax on beer, sales are instantly affected
Economical
• Slow down of developed economies and evolution of
emerging economies
Social
• Change in consumption pattern (adaption of western
culture)
• Rise in middle class and increase in urbanization
Technological
• Innovation and development of new products.
• State of the art of brewery technique.

10. Porter’s 5
Forces
Buyer power
• Shift in nature to explore different test & experience.
• Word of mouth also play significant role in positioning the new product.
Supplier power
• Non-vertically integrated business
• Independent barley growers can find alternative markets
New entrants
• Barriers to entry are medium
• New entries can happen through differentiated products
Substitutes
• Main substitutes are whisky, vodka and wine
• Switching costs are not high for retailers
Rivalry
• Market is highly concentrated –high competition
• Purchasers have relatively low switching costs.

11. Beer
consumption

12. Three Big
Predictions
1. 'Home tainment' is a new way to drink
While restaurants and bars have historically dominated the spirits
market, its expected that in 2018 the focus will be on discovering new
moments in which consumers are drinking.
2. Consumers are getting more savvy
Consumers are more trendy and prone to experiment with new product
in the market.
3. Seen as substitute of soft beverage.
Consumers now prefer beer instead of soft drinks as a refreshment from
hot climate (Mostly Southern-part of India).

13. Thanks!