UBL to expand market for Heineken in India

United Breweries today said it is embarking on a major expansion drive for Dutch partner Heineken's beer brand in India, with plans to enter about 20 new domestic markets in the next two years.

The company, which signed an agreement in 2009 with Netherlands-based Heineken Group for manufacturing and distribution of Heineken beer in India, also said it expects the brand to secure a 5% market share in the premium mild segment in these markets.

"In the next two years, we expect Heineken to be in around 15-20 markets in India," United Breweries Senior Vice-President (Marketing) Samar Singh Sheikhawat told PTI.

The company, which has already launched Heineken in various cities such as Mumbai, Bangalore and Delhi, now plans to launch it in various other markets.

"We are planning to launch it in Kolkata (West Bengal), Goa, Haryana and Punjab in a phased manner," he said, adding that UBL expects the brand to have established a foothold in these new markets within the next 18-24 months.

Asked about UBL's target for Heineken beer, he said: "We expect a 5% market share of the premium mild beer segment in the next two years in the markets where it (Heineken) will be available."

As of 2010, the total beer market in India stood at around 230 million cases, of which 80% was accounted for by strong beer and the remaining 20% was mild beer.

In the mild beer segment, premium mild beer accounts for 75% of total sales, while super premium mild beer makes up another 7-8%.

UBL brews Heineken at its Taloja facility, near Mumbai. Sheikhawat did not share details of Heineken production capacity at the facility, but said it was "sufficient to cater to demand for the next two years".

The company has launched the beer in 330-ml and 650-ml sizes in the country. Heineken is among the top five best-selling beers in the world and is available in over 170 countries.

Heineken had indirectly acquired a 37.5% stake in UBL following its worldwide takeover of Scottish & Newcastle (S&N) in January, 2008.

Shares of United Breweries were being quoted at Rs 397.70 per share on the Bombay Stock Exchange in late afternoon trade today, down 2.95% from their previous close.