Danish brewer Carlsberg A/S will lead a pack of global beer makers rushing to tap the Indian market with the launch of its beer in March 1998, a senior official said on Monday. We are basically ready with the launch of Carlsberg, and hope to be in the market by March 1998, said K. Ganguly, chief executive officer of the brewery division of Carlsbergs joint venture partner, United Breweries Ltd (UB).
I had hoped to launch it this month, but that has not been possible, he told Reuters in an interview in the southern city of Bangalore. Ganguly said the launch had been delayed because the joint venture needed state government clearances after obtaining approval from the federal government.
Analysts estimate annual beer sales in India at about 55 million cases of 12 650-ml (23-oz) bottles, worth about 15 billion rupees ($415 million), and see it growing at seven to eight per cent a year. Other well-known beer makers have either set up operations in India or plan to do so. U.S.-based Stroh Brewing Co and Germanys Henninger Braue AG have already launched their brews.
Among the firms in various stages of setting up are Australias Fosters Brewing Group, Germanys Haake-Beck, the Philippines San Miguel Corp, U.S.-based Anheuser-Busch Cos Inc, South African Breweries and Japans Kirin Brewery Co Ltd.
UB and Carlsberg won government approval last year to form UB-Carlsberg Ltd, an equal joint venture with an investment of 60 million rupees. Ganguly said UB-Carlsberg was only a marketing company and the investment would be increased when required. UB will brew Carlsberg beer and distribute it through its existing network. They will lead the marketing and we will follow, he said.
UB is Indias largest liquor group and two of its beer brands, Kingfisher and Kalyani Black Label, command 35 per cent of the national market. One of every four bottles of beer sold in India is Kingfisher.
UB sees its alliance with Carlsberg as completing its portfolio of brands and as a hedge against foreign competition. Carlsberg is an effective weapon against Budweiser and Heineken, Ganguly said. He said Carlsberg would be produced at UBs Bombay brewery, and initially annual production would be about 25,000 to 30,000 dozen bottles of 330 ml (12 oz). We do not expect to be major volume seller like Kingfisher or Kalyani. He said Carlsberg would be launched in Bombay and then in Bangalore followed by the eastern city of Calcutta. It would be available nationally in about three years, he added.
On pricing, Ganguly said Carlsberg would be a premium brand. We expect it to be about 30 per cent more expensive than Kingfisher, and sell for about 32 to 36 rupees for a 330 ml bottle. We do not plan to launch cans. ($1 = 36.2 rupees)
