Liquor companies to fight over non-alcoholic beer in Gujarat
- Published | 23 October 2018
Liquor companies like United Breweries and Anheuser-Busch InBev are planning to launch non-alcoholic beer in the dry state of Gujarat. This will boost the growth of non-alcoholic beverage industry in the country.
India: The breweries United Breweries and Anheuser-Busch InBev will very soon enter the dry state of Gujarat with beers which are non-alcoholic. United Breweries will make its venture into Gujarat with their non-alcoholic beer which they have named Kingfisher Radler. AB InBev will also enter the market within a couple of months. This is expected to boost the beverages’ market in the country since India is the second largest consumer of beer.
According to Ramesh Vishwanathan, chief new business officer at United Breweries said, “Gujarat is an opportunity market for this product as it’s a state with no access to alcoholic drinks.” They have also completed the test launch of Kingfisher Radler in Gujarat and Karnataka. The maker of Heineken, London Pilsner, and Kingfisher beer is now planning to launch a variety of zero-alcoholic beers in Gujarat as well as other places. Anheuser-Busch InBev, which manufactures and sells Budweiser, Beck’s and Hoegaarden in their low or no-alcohol space, said that their global mission is to gain 20% of the total sales from such products by the year 2025, which is now at about 8%. Other beer pub chains are also looking forward to enter Gujarat.
According to BlueWeave Consulting, the western state, Gujarat is one of the largest markets for non-alcoholic beer in the country. The drinks which are mostly served are sold in the state by importers and traders. The products which are currently present in the market are expensive since they are imported, not very well distributed and not supported as well. Non-alcoholic beer is seen as an opportunity for the category of beer which the companies can offer in India, since India is the second largest consumer all around the globe where the level of self-restraint is much higher for various reasons. The companies are trying to shape the category by making it a lace which is more inclusive for consumers and has diversified preferences and choices. Beer mostly contains 1.2-8 % of alcohol by volume, while non-alcoholic beers mostly contain 0.05% ABV or below. However, United Breweries’ Kingfisher Radler is free of alcohol and made from fresh barley malts and natural lemon juice. Thus, with the introduction of non-alcoholic beer in Gujarat, the beverage industry of the country will get a positive boost and it will also help accelerate the growth of the industry.