top of page
  • InduQin

India a large market, must be seen like a continent: Heineken


Heineken, the world's second biggest brewer, said India, a focus market, is similar to how China was twenty years ago and it should be seen as a continent instead of a country given its scale and complexity.


"There are some parallels to draw with China 20 years ago. India is more of a continent than a country and to really understand this large and complex market, you would have to de-average the market," Jacco van der Linden, president APAC at Heineken, told analysts during its Capital Markets event.


The Dutch brewing firm acquired a majority control of UBL, the erstwhile flagship brand of Vijay Mallya's UB Group, in July last year. India's beer market is worth ₹10 billion or 28 million hectolitres (mhl), much smaller than the Chinese market, where beer worth ₹65 billion or 488 mhl is sold annually. The maker of Amstel and Kingfisher beer said beer accounts for just 10% of the spirits market, with per capita consumption of two litres.


"We clearly see opportunities to unlock future growth. We have a job to do - to strive for a more fair regulatory environment for beer. The beer price is also relatively expensive and has very much to do with the excise regime," said Linden, also a member of Heineken's executive team. "And the outlet universe is relatively small. If you compare it to the average FMCG (fast-moving consumer goods) universe of 10 million, it is basically 90,000 licensed outlets that we have in India. And alcohol penetration, for example, is only 1% amongst women."


In India, strong beer accounts for over 80% of total volume and many consumers of strong beer are also potential purchasers of value and low-priced spirits. If regulations push up beer prices, gap between cheap Indian made foreign liquor and beer closes sufficiently for consumers to switch, according to IWSR Drinks Market Analysis report.


Read more at: https://economictimes.indiatimes.com/industry/cons-products/liquor/india-a-large-market-must-be-seen-like-a-continent-heineken/articleshow/96578529.cms

1 view0 comments

Comments


bottom of page