Date:20/04/2005 URL: http://www.thehindubusinessline.com/2005/04/20/stories/2005042001960400.htm

Back Pint beer fizzes more than UB expects, brews 20 pc of sales

Boby Kurian

Bangalore , April 19

THE pint beer sales now accounts for nearly 20 per cent of market leader United Breweries Ltd's annual sales, according to the Chief Executive Officer, Mr Kalyan Ganguly.

The growth in 330 ml pint beer sales has surpassed even the company's expectations and is seen as an indication of changing beer consumption attitudes in the country.

The Indian beer market, with annual depletions of 90 million cases and abysmal per-capita consumption level of 0.7 litre, has been dominated by the traditional 650 ml bottles.

In 2002, UB took the first step amongst the domestic brewers to aggressively push 330 ml pints at a competitive price to rev up volumes. It had then predicted that pints could account for nearly 10 per cent of its sales within three years.

"We, in our usual reticence, had made projections. But, as we map out our summer production, it is clear that pints will account for 22 per cent of the sales. On an annualised basis, it will be between 15 per cent and 20 per cent, closer to 20 per cent maybe," Mr Ganguly told Business Line.

UB, with the popular flagship beer Kingfisher, said the pint category was responsible for the volume swell in the recent financial years, and stated that it has not come at any significant cost of the 650 ml sales.

The spurt in 330 ml sales is being attributed to beer as a product breaking into new consumption occasions and acquiring a more casual lifestyle image.

According to UB officials, people now go in for a `quick beer' as it becomes a personal drink to go with lunch. The growth in the pint category has resurrected UB Export, one of the oldest brands of the company.

The 330-ml pack also contributes substantially to the sale of Kalyani Black Label, especially in Kolkata, and Kingfisher Strong.

UB, jointly owned by Mr Vijay Mallya and UK brewer Scottish & Newcastle (S&N), recently merged the operational management of allied beer company Millennium Alcobev Ltd, with itself. It closed the financial year 2004-05 with sales of 45 million cases, giving it a 50 per cent share of the domestic beer market, which is growing at about seven per cent.

The flagship Kingfisher Premium Lager and its Kingfisher Strong variant alone account for nearly 33 million cases. Mr Ganguly said the company was hopeful of taking its volume sales to 50 million cases in the current financial year.