International Market Carlsberg Report

Topics: Beer, India, Pale lager Pages: 15 (6079 words) Published: May 14, 2007
Boom predicted in Indian beer market
One of the world's largest breweries plans to invest $100m (£70m) in the Indian beer market in the next five years. South African Breweries (SAB), the world's fifth largest brewer, aims to increase its share of the Indian market from 4% to 25%. SAB says it expects the Indian market, currently selling 72 million cases of beer a year, to treble in size in the next 10 years. A shift in drinking preferences from spirits to beer, and also some relaxation in terms of government restrictions will bring about the increase in consumption, a company spokesman told the BBC's World Business Report. Per capita beer consumption is currently low in India at about half a litre. SAB predicts this will rise to about 18 litres per capita over the next five or six years. SAB has already bought Narang Breweries and Mysore Breweries. The company controls 98% of its domestic market and is strong in Sub-Saharan Africa, China, Central Eastern Europe and Russia. "Those markets are growing in the region of 5-6% per annum unlike the mature first world markets such as the UK which are actually in decline," SAB spokesman Mr Chaloner told the BBC's World Business Report. Attracting consumers

SAB is also producing brands to appeal specifically to Indian consumers. The company has already launched Three Lions beer, brewed in the state of Uttar Pradesh and developed following research amongst Indian beer consumers. SAB also plans to launch its African lead brand, Castle Lager, in India. (

Liters Per Person – Beer in comparison with other Liquids
Bottled Water0.
Distilled Spirits0.
Fruit Beverages0.
All Others*631.9630.6633.6629.3633.7637.0
•Includes tap water, vegetable juices, powders, and miscellaneous others •

Who is our target audience? (Demographic and Psychographic definition) The beer-drinkers in the country are much younger than the average beer-drinker elsewhere in the world. This makes them more likely to carry the brand with them for a lifetime. Also, as the target audience becomes younger, a light beer like Foster's LightIce, is expected to attract first-time drinkers, since it is much milder than any of the other beers in the country. Even if one accounts for the fact that the strong beer market is growing fast in India, we expect that at times when consumers of our product shift to stronger beers, they will restrict themselves to the Foster's brand because of the association they have with it and the positive connotations from the Foster's name. A lot of new variants promise to gain prominence, but mainly in niche urban segments. The sophisticated consumer who drinks beer for the experience and not to get drunk will lap up ice beer or light beer. In urban centres, apart from first time users we are also targeting women, who as ‘the times they are a changing,' are entering the market for beer. Essentially, women shy away from beer consumption because it is associated with calories, and has traditionally been a buddy drink, associated with pot-bellied men sitting at bars and shooting darts. Our product however is light both in colour and body, and mild in flavour. It is highly carbonated with low bitterness and no aftertaste. It has fewer calories lower alcohol content. It thus moves away from the traditional psychographics of the sector and toward the more up-market, college/office going youth, male or female, with aspirations, who sees himself as both physically and mentally fit, has an attitude of...
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