United Breweries (UBL), a Bengaluru-based company known for producing Kingfisher beer, is eyeing strong growth in the premium beer segment, driven by changing consumer preferences towards premiumisation.
“Premiumization is taking place across various categories as consumers seek superior options, and the beer market is no exception. We’re witnessing a trend of consumers upgrading to higher-quality beers and exploring new brands. United Breweries offers a compelling selection of premium brands, including Kingfisher’s esteemed variants such as Ultra and Ultra Max,” stated Vikram Bahl, Chief Marketing Officer (CMO) of UBL.
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Two years back, the company launched Heineken Silver, a premium lager variation tailored for individuals who favor a more “sessionable” beer, denoting a lower alcohol percentage than the average.
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UBL recently introduced Queenfisher, a fresh lager variant positioned as “a celebration of sisterhood.”
The company’s go-to-market strategy prioritizes collaborations with premium bars and restaurants, ensuring consumers encounter top-tier brands in optimal settings.
Driving Factors for Growth: Rising Beer Demand and Market Trends
UBL pinpointed the rising demand for beer, propelled by the increasing affluence within India’s burgeoning economy, as a pivotal growth factor for the company.
“In addition to this, we ensure impeccable execution, availability of the product, well-managed distribution, and prominent display – ensuring all the fundamental aspects are in place,” Bahl further emphasized.
“Spirits have traditionally been the preferred choice for many consumers because of historical factors and favourable tax-related pricing, making whiskies and spirits more accessible. However, I believe there’s a shift happening. Beer is currently experiencing the most rapid growth among major beverage categories,” stated Bahl.
Bahl mentioned that UBL boasts the largest supply network, spanning breweries and contract manufacturers across 30 locations.
The objective is to improve efficiency within this network and expand production capacity, he stated. The beer maker emphasized that the ultimate aim is to make Queenfisher available worldwide.
The key markets for London Pilsner will be Maharashtra and Karnataka.
Presently, it’s accessible in 50-60 countries globally, and the company intends to persist in exploring opportunities for broadening its non-alcoholic brand extensions.
“We maintain a positive outlook on our revenue growth for FY25, fueled by our dedication to category expansion and premiumization, positioning us for consistent growth throughout the year,” Bahl concluded.
In the fourth quarter of FY24, UBL posted a consolidated net profit of INR 82 crore, marking an eight-fold increase compared to the corresponding period last year. Revenue surged by 17.3 percent to INR 4,788.68 crore. During Q4, volume increased by 10.9 percent, primarily led by the South and East regions. The premium segment witnessed significant growth of 21 percent, driven by robust performances from Kingfisher Ultra and Kingfisher Ultra Max.
Continue Exploring: United Breweries’ Q4 FY24 net profit surges five-fold to INR 80.15 Cr