Big Beer Targets Craft Breweries In India

There’s no truer sign that craft beer has become a force in a country, than when big beer conglomerates introduce their own crafty variations…and that’s what’s happening now in India.

Here’s the deal…

The Economic Times is reporting that Heineken-controlled United Breweries and Anheuser-Busch InBev are launching locally made wheat beer to take on a growing number of craft beer startups that are gaining traction with their wheat ales in India.

Similar to the strategy that MillerCoors successfully implemented with its Blue Moon brand in the US, the goal is to introduce a separate line of wheat beers through breweries that are wholly owned by the global conglomerates which can be marketed as craft beer independents (but aren’t).

Under the 7 Rivers Brewing Co. banner AB InBev will be launching two wheat beer variations, Machaa and Veere, in November. And according to IndiaTimes.com United Breweries (46% owned by Heineken) “will start selling its locally produced wheat beer by the end of the year.”

United Breweries and Anheuser-Busch InBev, who together control three-fourths of India’s frothy beer market, are taking aim at upstarts like Bira 91, Simba and White Rhino, independent breweries that are increasingly challenging their hold on the region.

United Breweries’ Kingfisher Strong (8% ABV) is still India’s bestselling brand and the company is unwilling to cede any part of its newly threatened beer empire.

Strong Beer currently accounts for 85% of the overall market share in India. But the craft beer segment is growing fast throughout the region. There are currently more than 170 microbreweries operating in India with more on the way.

Bira 91, which formally launched in 2015, has managed to acquire an over 5% share in key markets despite the dominance of Kingfisher, Budweiser and Carlsberg.

And now the Big Beer Empire is striking back…

###

Header image credit: Desiblitz