UB set to launch flavoured drink

United Breweries, which holds around 50 per cent share in beer market in the country, is firming up plans to launch Kingfisher Buzz, its first flavoured alcoholic beverage in the second quarter of 2010. This is part of the company’s strategies to tap new markets in the coming year.

Kingfisher Buzz, most likely in a 330 ml bottle, is expected to have less than 5 per cent alcohol content and will be launched in three variants — cola, berry and lime. Company officials said that details on pricing and marketing were still being worked out. The launch is part of the company’s conscious efforts to enter newer segments this year.

To increase consumption of beer in India during winter and monsoons, the company has just entered the segment of ‘all-season beer’ with its product ‘Kingfisher Red’. Beer in India, according to market studies, has traditionally fallen out of favour with consumers during winter and monsoon since spirits are preferred over chilled beverages like beer during these times. To offset the high seasonal variation, UB will market Kingfisher Red as a product that does not need to be chilled for best results.

“In places like Delhi and Punjab, nearly 40 per cent of the annual sale happens during April, May and June alone. Similarly, in Maharashtra, where the first quarter nets 35 per cent of its total sales, the second quarter owing to the monsoons could dip to 25 per cent,” said Shekhar Ramamurthy, deputy president, United Breweries Ltd.

Recently launched in Punjab, the company plans to cover north and east Indian markets by June 2010.

Meanwhile, along with its new launches, the company’s flagship brand, the Kingfisher Strong is expected to close the financial year with sales of 45 million cases.

The market size for beer in India is 190-200 million cases which is seeing a growth of 10 per cent. The company had sales of 83 million cases in March 2009 and is looking to touch 100 million cases in March 2010.

The company has 16 breweries that are its own and seven on contract manufacturing. It has a total manufacturing capacity of 12 million hecto litres of which 85 per cent is utilised. It has over 20 brands in its portfolio.

Siddhartha Mallya moves into United Spirits fold

Siddhartha Mallya, son of UB Group owner Vijay Mallya, has moved in a step closer, in what is seen as a move, to assume a greater role in United Spirits, the flagship Rs 5,700 crore spirits firm of the UB Group. Siddhartha, after a stint at global spirits major Diageo has moved into a marketing & sales position at Scotland based Whyte & Mackay, which United Spirits acquired for Rs 4,800 crore during 2007.

W&M is now a wholly owned subsidiary of United Spirits. Sources close to the UB Group indicate that post the stint at W&M, it is expected that Siddhartha will be moved into United Spirits in the near future under the tutelage of Vijay K Rekhi, who is the MD of USL. Rekhi, 63, is a veteran of the UB Group having steered the company to be the second largest spirits firm globally in volume terms.