US/INDIA: A-B finally unveils India plans
Anheuser-Busch has confirmed its long-rumoured entry into the Indian beer market.
The US brewing giant today (22 February) announced that it would set up a local venture with Indian brewer Crown Beers.
The venture, Crown Beers India, will include a state-of-the-art brewery in the Indian city of Hyderabad. The business will produce and sell a number of brands in India, including Budweiser.
A-B has been mulling whether to enter India's fast-growing beer market for months. The US brewing giant is the latest brewing multinational to be attracted to the potential of the Indian beer market. Per capita beer consumption remains low but India's growing middle classes are showing an increasing thirst for beer.
"While India is a small beer market today, it is growing rapidly and has tremendous long-term potential," said A-B president and CEO August A. Busch.
A-B and Crown will both hold a 50% stake in the venture. The brewery in Hyderabad, which will produce Budweiser for the Indian market, is expected to be completed next month. Budweiser will go on sale in India in May.
Srikanth M. Reddy, joint managing director at Crown Beers, said the site and the brand would be "symbols of excellence throughout India".
The Indian beer market is dominated by Kingfisher brewer United Breweries - in which Scottish & Newcastle holds a 37.5% stake - and SABMiller. Between them, the two brewers control around 80% of the market.
However in the last year, other brewing multinationals have taken the plunge into the Indian beer market. Heineken - through its Asian venture Asia Pacific Breweries - has bought a majority stake in one Indian brewer and announced plans to set up a greenfield site in the last 12 months, while Carlsberg is planning to build a greenfield brewery in Rajasthan.
The global market for premium beer is set for further strong growth over the coming six years, according to a recent report published by just-drinks, but there will be marked variations in the growth ...
Anheuser-Busch has quashed rumours that it has plans to build a second brewery in India....
Plzensky Prazdroj has reported an increase in sales volumes in its half-year sales results due to exports and an early start to the summer....
United Spirits' debts have risen following the acquisition of Scottish whisky firm Whyte & Mackay, according to reports....
China's leading beer producer Tsingtao Brewery is planning to increase its production capacity by 1m tons by the end of 2007, according to local reports....
Heineken has launched a campaign to help publicans make the most of sales opportunities in the UK during this year's Rugby World Cup....
Heineken has prepared an addition to its off-trade draught beer system in the US....
Asia Pacific Breweries has seen its investments in new breweries take a chunk out of its third quarter profits....
- Has Diageo added Beer to its 'Non-Core' List?
- Focus - Diageo's FY Performance by Region
- Diageo " knew United Spirits would be complicated”
- It's not all bad for Diageo - Analysis
- Diageo, Heineken and NBL in South Africa & Namibia
- NPD: Tomatin Contrast, Cù Bòcan
- Challenges remain as Diageo posts flat FY sales
- Diageo, Heineken end South Africa, Namibia JV
- Bacardi creates Bacardi rum marketing role
- Tesco pulls small carton-size Ribena, Rubicon, Cap
- Global gin insights - market data, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Global liqueurs insights - market forecasts, product innovation and consumer trends research
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global cachaca insights - market data, product innovation and consumer trends research