Global beer brands steal the fizz from local peers

Danish beer maker Carlsberg has steadily consolidated its position in the Indian market, taking share from local players

Danish beer maker Carlsberg, which entered India six years ago, has steadily consolidated its position in the domestic market, pegged at 275 million cases, with its most popular brand Tuborg now standing fourth in the pecking order, after UB's Kingfisher and SABMiller's Haywards and Knockout.

In terms of share, Tuborg is now at 4.5 per cent, from 3 per cent earlier. Kingfisher, meanwhile, leads by a huge margin, standing at 40 per cent in terms of market share. Haywards and Knockout, in the interim, have shares of 14 per cent and 8.5 per cent, according to data sourced from the industry.

The old warhorse Thunderbolt, from Mount Shivalik, which ranked amongst the top four beer brands in the country, now stands at number five with a share of about 2.5 per cent. Two years ago, Thunderbolt had a share of about 5 per cent and was a dominant player in the north.

Tuborg's success, say persons in the know, is partly linked to its ability to grab share from players such as Thunderbolt, which has been struggling in recent years to keep pace with competition. Subodh Marwah, director, marketing, Carlsberg India, says the company has innovated to keep the excitement going, from switching to green bottles from the standard amber ones for Tuborg, to launching products that can be flipped opened easily with a finger and not need openers used in uncorking bottles.

In terms of pricing, Marwah says, Tuborg is in the mid-market segment, competing with Kingfisher and Haywards at Rs 110 for a 650-ml-bottle (called a quart in industry parlance). At the lower end of the market, Carlsberg has Palone 8 in the Rs 95-100 price-point, competing with UB's London Pilsner. At the upper end, there is Carlsberg Elephant Strong, retailing at Rs 165-167 for a quart. Even more premium is the Budweiser Magnum, which retails at Rs 175 for a quart. Carlsberg does not have a product in this price segment.

The Danish beer maker, however, is now rolling out a new variant of Tuborg, priced between the Rs 110-167 price-points, available for Rs 135 for a quart. Marwah says that the new variant is a fruit-flavoured beer with a profile that is sweet compared to the bitter taste that characterises regular beer. "We have rolled out the new product called Tuborg Booster Strong in West Bengal and Maharashtra, and will take it to other cities in the next three-six months."

The company is also in the process of setting up a new plant in Bihar to be able to cater to markets in the central and eastern parts of the country. Since inception, Carlsberg has opted to have a hub and spoke model, setting up plants near its consumption markets. The company has a total of six plants: Three acquired in Himachal Pradesh, West Bengal and Haryana and three greenfield plants, set up in Rajasthan, Maharashtra and Andhra Pradesh.