Indian alcobev sector set to reach $64 Billion by 2030: ISWAI

May 2, 2024

The substantial rise in the disposable incomes of Indians has spurred significant growth in the alcobev sector within the country. According to the International Spirits & Wines Association of India (ISWAI), the alcobev industry in India is set to touch $64 billion by 2030.

The sector provides employment opportunities, both directly and indirectly, to an astounding 7.9 million individuals in India, as stated in the report titled “Economic Value of the Indian Alcoholic Beverage Industry” by ISWAI.

The country’s burgeoning middle class is also driving significant premiumization in the sector as demand for premium liquor is surging. Additionally, according to experts, Indian alcobev producers have not only met the colossal domestic demand but have also established a significant global presence.

Continue Exploring: India’s alcoholic beverage market surges to record highs, premiumization and home consumption drive growth

“The Indian beverage sector has changed its focus over the last ten years from producing just in India to developing products especially for the Indian market. Nowadays, discerning consumers are searching for products with Indian heritage. The emphasis has switched over the past two years to “Made for India” and “Made in India for the world,” particularly since the COVID-19 outbreak,” according to Kunal Vasudeva, co-founder and managing director of the Indian School of Hospitality.

“For the past 3-4 years, the leading single malt globally has hailed from India, while the finest infused gins are also crafted in India for international markets. Additionally, Bira now exports to the Middle East from India, meaning that 10-15% of all ‘Made in India’ products are also ‘Made for the World,’ remarked Mr. Vasudeva.”

Experts also assert that the entire industry is experiencing a significant upheaval across various sectors, including supply chain, cold storage, manufacturing, logistics, and consumer behavior.

In response to these shifting trends and to provide global travelers with unparalleled experiences, esteemed hospitality institutions are also establishing international partnerships with leading hospitality education institutions.

“We are a member of Sommet Education, and we have strategic partnerships with Les Roches & Ecole Ducasse across Europe. International faculty members join ISH to improve the learning experience and provide a global perspective. Furthermore, our students have the option of moving to Les Roches and Ecole Ducasse, where they can get an extra degree and take advantage of worldwide placement prospects,” added Vasudeva.

Adapting to the shifting landscape of the alcobev sector and addressing the preferences of contemporary travelers, prominent hospitality education institutions like the Indian School of Hospitality are introducing initiatives such as the Concocting Conclave. These events serve as platforms for aspiring beverage managers to grasp the nuances and evolution within the beverage industry.

Continue Exploring: Indian alcoholic beverages industry set for margin improvement and sales surge in FY2025: ICRA

The National Education Policy (NEP) 2020 facilitated the globalization of education by permitting foreign universities to establish their International Branch Campuses (IBCs) in India. This development is mutually beneficial for Indian students and foreign educational institutions, as the establishment of IBCs contributes to the improvement of higher education quality in India.

“Presently, India is bolstering the entire Middle Eastern hospitality sector. With a keen understanding of international tourists’ and consumers’ preferences, Indian students can enhance guest experiences. Just as India exported its IT expertise, in the coming five years, we aim to export hospitality worldwide,” Vasudeva elaborated.

Walmart launches store-label food brand ‘Bettergoods’ to attract younger shoppers

SnackTeam

May 1, 2024

Walmart is introducing its largest store-label food brand in two decades, offering a wide range of items. This move aims to attract younger customers who aren’t committed to specific grocery brands but crave chef-inspired cuisine at wallet-friendly prices.

The new brand, Bettergoods, is now available at Walmart stores and on the company’s online platform. Walmart announced on Tuesday its plans to expand the line to include 300 products by fall, spanning frozen foods, dairy items, snacks, beverages, pastas, soups, coffee, and chocolate. Prices vary from under $2 to under $15, with the majority of products priced below $5.

The Bettergoods line is categorized into three sections: plant-based selections like desserts crafted with oat milk and non-dairy cheeses; offerings tailored to various dietary preferences, such as gluten-free options or those free from artificial flavors, colors, or added sugars; and “culinary experiences,” which include delights such as creamy corn jalapeno chowder and authentic Italian pasta.

As inflation pushes shoppers to explore more budget-friendly options, the introduction by the nation’s leading retailer is timely. This trend has propelled the popularity of private-label brands, which constituted nearly 26% of total units sold in the food and beverage category last year, up from 24.7% the year before, as reported by market research firm Circana. In contrast, national name brands accounted for 74.5% of sales last year, down from 75.3% in 2022.

Continue Exploring: Walmart aims to triple sourcing from India to $10 Billion annually by 2027, focuses on expansion and collaboration

In 2023, private brands captured 36.6% of the market share in dollars for core pantry items like breakfast meats, baking essentials, fresh bread, and savory snacks, marking a slight increase from 36.2% in 2019. In contrast, national brands held 63.4% of the market share last year, a slight decrease from 63.8%, according to Circana.

However, store brands are evolving to offer tastier and higher-quality options, comparable to national brands. Walmart’s competitors, such as Target, have been expanding and enhancing their own labels. Target’s Good & Gather food and beverage brand, introduced in 2019, has broadened its offerings to include dishes like chicken tikka masala.

Many grocery retailers are facing increased competition from Trader Joe’s, known for offering shoppers an adventurous treasure hunt experience with its diverse selection of high-quality meals, ingredients, and snacks.

Alongside Great Value and Equate, Bettergoods is another Walmart store label food brand offering more affordable options compared to national names. Bettergoods, on the other hand, claims that many of its products are made just for Walmart, introducing the retailer’s customers to new flavours and trends.

Scott Morris, Walmart’s Senior Vice President of Private Brands, Food, and Consumables, stated, “We’re observing a shift in younger customers towards brand neutrality, emphasizing quality and value, which is fueling greater interest in private brands within the industry.”

Continue Exploring: Walmart experiments with AI to enhance customers’ shopping experiences

Fast-fashion giant Shein plans to diversify: Now eyeing skincare, toothpaste, and toys!

SnackTeam

May 1, 2024

In a bid to expand its product range and appeal, online fast-fashion retailer Shein is actively courting brands like toothpaste conglomerate Colgate-Palmolive and toymaker Hasbro, aiming to sell more household names on its platform.

Renowned for its affordable in-house clothing and accessories, Shein is diversifying into additional categories, extending access to its platform to brands and retailers across nine European countries. This expansion follows its successful ventures into the United States, Brazil, and Mexico last year.

As part of Shein’s overarching strategy to enhance credibility and bolster competition against Amazon, this initiative facilitates the business’s expansion and innovation in sales methods, laying the groundwork for its anticipated stock market listing later this year.

Last month in Madrid, Shein showcased its marketplace services in conjunction with prominent brands such as Colgate-Palmolive, Hasbro, Suntory Beverage & Food (the maker of Orangina), and Spanish cosmetics brand Bella Aurora.

Continue Exploring: Shein considers London IPO amid US listing hurdles

At a conference in Paris on April 17th, Christina Fontana, Senior Director of Brand Operations for Europe, Middle East, and Africa at Shein, emphasized, “While Shein is widely recognized for fashion, we’re actively involved in all verticals.”

Fontana stated that witnessing shoppers opening Shein and exploring other brands served as the driving force behind this initiative.

“Our consumers desire brands, if that’s what they are searching for, that’s what we are going to give them.”

Fontana, formerly with Alibaba, is among a group of marketplace specialists that Shein has recruited from prominent companies, including the Chinese e-commerce giant and others.

This recruitment drive has contributed significantly to rapid expansion. Shein garnered an average of 108 million monthly active users across European Union member states in the six months leading up to January 31st.

However, the company’s expansion has introduced new challenges, such as adhering to new EU regulations mandating the monitoring of its platform for illegal or harmful products.

In Europe, Shein’s marketplace is currently accessible in the following countries: Britain, France, Germany, Italy, the Netherlands, Poland, Portugal, Spain, and Sweden.

According to experts, the success of Shein’s new marketplaces and its ability to rival Amazon and AliExpress will hinge on the brands it manages to attract.

Continue Exploring: H&M bets big on glamour to rebuild profit margins amidst growing competition from Shein

Xiaofeng Wang, an e-commerce analyst at Forrester in Singapore, emphasized, “For Shein to establish itself as a reliable and respected marketplace platform, securing endorsements from prominent Western brands is crucial.”

During a Zoom webinar tailored for potential sellers in the United States, Claire Lin, Shein’s Head of Seller Marketing, presented an enticing opportunity for brands to tap into millions of shoppers and “supercharge” their sales.

“Our shopping experience is highly engaging; it’s like playing some sort of game,” she explained. “Browsing our site is enjoyable, which is reflected in our minimum shopping time of around eight minutes, surpassing the industry average.”

According to Lin, Shein’s shoppers primarily consist of Gen Z and millennials, with a notable majority being female, accounting for approximately an 80-20 split between women and men.

She mentioned that home, electronics, beauty, and health are currently the top-performing categories. Interestingly, the only category Shein doesn’t offer is food and beverages.

As per a slide displayed during the webinar, the gross merchandise value (total value of products sold) in the home category saw a threefold increase in 2023. Likewise, electronics experienced a 2.5-fold growth, and beauty & health products surged by 2.1 times.

Before opting to sell directly through a marketplace, brands often seek assurances that the platform aligns with their target audience and that they’ll maintain control over pricing and promotions. This ensures they can maximize their sales potential through the platform.

Many third-party retailers have been drawn to Shein’s platforms.

Currently, third-party shops in the United States, Britain, Brazil, and Mexico are selling products on Shein’s platform; these merchants include Caudalie, CeraVe, Shiseido, The Ordinary, and Weleda.

Jayn Sterland, the UK & Ireland country manager at Weleda, stated that the Swiss cosmetics brand had no plans to sell directly on Shein.

Sterland added that when evaluating a marketplace, factors such as reputation, perception, and environmental impact are crucial considerations for the brand. She pointed out sustainability initiatives that Weleda collaborates on with Amazon, where it directly sells its products.

Continue Exploring: Fashion giant Inditex to introduce Bershka, Zara Home to Indian market this year

There was no response from Colgate-Palmolive to a request for comment. A spokesperson from Hasbro mentioned that the company took part in the Madrid event to discuss the advantages and disadvantages of marketplaces in general.

According to a spokesperson from Suntory, the company does not currently sell any of its beverages on Shein’s marketplace, nor do they have any plans to do so. Their participation in the event was solely an opportunity to exchange best practices.

Simply Good Foods to acquire plant-based protein shake brand OWYN in $280 Million deal

SnackTeam

May 1, 2024

The Simply Good Foods Company has finalized a deal to acquire the plant-based ready-to-drink protein shake brand, Only What You Need (OWYN).

OWYN, a nutrition company, crafts its products from top-notch, pure ingredients, void of any artificial additives. Presently, the brand boasts five shake and powder options featuring plant-based protein.

The agreement, amounting to $280 million, aims to strengthen and broaden Simply Good Foods’ portfolio, enhancing its footprint in the ready-to-drink protein shake market segment.

Simply Good Foods’ acquisition of OWYN from United Nutritional Brands, an affiliate of Purchase Capital, and other minority investors, reinforces its standing in the nutritional snacking sector, further solidifying its position within the market.

Continue Exploring: Epigamia launches India’s first 25g protein milkshakes with zero sugar

Through the deal, Simply Good Foods will elevate OWYN products by utilizing combined research and development capabilities to improve core product performance and tap into untapped growth opportunities.

“The purchase of Only What You Need is strategically attractive as it adds a third, complementary brand to Simply Good Foods & strengthens our position in the rapidly expanding RTD shake market,” according to Geoff Tanner, the CEO and president of Simply Good Foods. To further enhance our category-leading presence with retail customers, OWYN expands its consumer base to include a new, additive group.

He further stated, “We are confident that our go-to-market capabilities will drive profitable growth by accelerating distribution expansion, enhancing household penetration, and leveraging our cost-effective supply chain.”

Mark Olivieri, OWYN’s president and CEO, chimed in, stating, “Since OWYN’s inception in 2017, our aim has been to prioritize truth and transparency in all our endeavors, while delivering the most delicious ready-to-drink protein shakes available. This deal aligns seamlessly with our mission, as Simply Good Foods shares our commitment to offering consumers high-quality products centered around ample protein, minimal sugars, and low net carbohydrate levels.”

Following the completion of the transaction, Simply Good Foods will collaborate with Olivieri and the OWYN leadership team, who will remain in their current positions.

Continue Exploring: Nestlé tackles protein gap with affordable, plant-based Maggi Soya Chunks

Roark Group successfully acquires Subway sandwich chain

SnackTeam

May 1, 2024

Subway, the American sandwich chain, has finalized its sale to affiliates of the private equity firm Roark.

The agreement, initially disclosed in August 2023, has been finalized following approval from federal regulators.

While the financial specifics were not publicly disclosed by the companies, reports from Reuters and Bloomberg suggest that the winning bid surpassed $9.5 billion.

Roark’s acquisition comes on the heels of a notable growth phase for Subway, marked by three consecutive years of sales upticks and the first positive global net restaurant growth since 2016.

Continue Exploring: Subway partners with T. Marzetti to launch bottled sauces in retail stores

Following the takeover, neither its executive staff nor the overarching plan will change, and it will continue to maintain its distinctiveness from the rest of Roark’s brands.

Subway CEO John Chidsey expressed, “The entire Subway system is thrilled that our sale to Roark has been finalized.”

“As we gaze ahead, our journey of growth is still unfolding. With an ongoing strategic commitment to providing superior food and enhancing the guest experience, our forthcoming chapter promises to be the most thrilling yet.”

Subway remains committed to its “Build a Better Subway” mission for its franchisees, employees, and customers alike.

This encompasses a dedication to culinary and digital advancements, the modernization of its restaurants, and a strategic expansion into international markets.

In 2024, the restaurant chain furthered its innovation by introducing Subway Sidekicks, a new category of hot food, along with a fresh selection of wraps served on a new lavash-style flatbread.

The company’s forward-thinking strategy is geared towards enriching the Subway experience on a global scale.

Continue Exploring: Subway unveils new lavash-style wraps, expanding bread lineup for first time in three years

Starbucks Canada joins forces with Dairy Farmers of Canada to advance dairy sustainability

SnackTeam

May 1, 2024

This week, Starbucks Canada initiated a fresh partnership with Dairy Farmers of Canada (DFC) to propel sustainability forward in the dairy industry.

Starbucks Canada has pledged CAD 500,000 (approximately $364,426) to fund dairy sustainability projects throughout this year, championing the endeavors of Canadian dairy farmers as they strive for net zero emissions.

The partnership encompasses three projects. The first, already underway, involves collaboration with Farm Credit Canada (FCC) and Lactanet for FCC’s Dairy Sustainability Incentive program. This program recognizes farmers who effectively implement environmental best practices and promotes ongoing sustainable farming by offering annual incentives to qualifying participants.

David Wiens, president of Dairy Farmers of Canada, expressed, “Starbucks’ support will acknowledge more farmers’ dedication to environmental stewardship and illustrate to Canadians that sustainability starts with the individuals producing their food. As farmers aim for net-zero emissions by 2050, we understand we cannot do it alone. DFC warmly welcomes Starbucks as they join us on this part of the journey.”

Continue Exploring: Starbucks brings fresh flavors to Latin America and the Caribbean with new beverage lineup

Lori Digulla, Senior Vice President and General Manager for Starbucks Canada, remarked, “At Starbucks, we’re dedicated to partnering with others to support thriving communities and safeguard the environment. As a company that relies on the dairy industry daily, we feel a responsibility to innovate and cooperate in responsibly and sustainably sourcing dairy. Teaming up with DFC, we aim to merge our expertise and resources to benefit Canada’s farming community and ensure a sustainable future for dairy production.”

Dairy plays a crucial role on the Starbucks menu, and bolstering the enduring vitality of the dairy industry represents one of the company’s recent strides toward sustainability. Just last week, the coffee giant teamed up with the Environmental Defense Fund’s Dairy Methane Action Alliance on a global scale, alongside Californian dairy brand Clover Sonoma.

The alliance was initially unveiled in December 2023 during the UN’s climate summit (COP28) in Dubai, with Danone, Bel Group, General Mills, Lactalis USA, Kraft Heinz, and Nestlé among its founding members.

By participating in the initiative, these corporations undertake to publicly disclose methane emissions within their dairy supply chains on an annual basis by the end of 2024. Each company has pledged to develop and release a methane action plan by the close of the year.

Starbucks’ action plan will specifically address methane emissions in regions where the company directly procures milk for its stores.

Continue Exploring: Starbucks expands footprint in Chile, opens first store in Osorno

Katie Anderson, Senior Director of Business Food and Forests at the Environmental Defense Fund, expressed, “We’re delighted to welcome Clover Sonoma and Starbucks to the Dairy Methane Action Alliance. With their inclusion, the alliance now encompasses an even broader spectrum of participants within the dairy sector, ranging from regional producers to processors to restaurants. This expansion underscores the growing momentum within the sector toward addressing methane emissions.”

Angela Anderson, Director of Starbucks Sustainable Dairy, further commented, “As a company, we’re dedicated to assisting farmers in our collective effort to decrease emissions throughout our dairy supply chain. We’re enthusiastic about joining the Dairy Methane Action Alliance and engaging in cross-industry collaboration to drive progress toward our resource-positive objectives.”

The Body Shop unveils new Activist Workshop store in Bengaluru’s Phoenix Mall of Asia

SnackTeam

May 1, 2024

The Body Shop, a British-based personal care brand, has inaugurated its new Activist Workshop store in Bengaluru. Situated at the Phoenix Mall of Asia in South Bengaluru, the store covers nearly 584 sq. ft. of retail space.

This marks the second complete workshop store of The Body Shop in the city. Presently, the brand boasts 23 outlets in Bengaluru, with 19 operating independently. Customers can return product packaging to the store for recycling, with over 70% of The Body Shop’s packaging being fully recyclable.

“We are excited to introduce our second Activist Workshop store in Bengaluru, a crucial market in South India, along with Hyderabad and Chennai,” stated Harmeet Singh, Vice President of Product, Marketing, and Digital at The Body Shop South Asia.

The Body Shop set to expand with 100 new stores in India by 2025, eyes double-digit growth

Operating in India since 2006, The Body Shop is managed by Quest Retail Pvt Ltd, a cosmetic manufacturing company based in Delhi.

Currently, The Body Shop operates 200 stores across the nation and extends its reach to over 1500 cities through online channels and partnerships with e-commerce brands in various marketplaces.

Established in 1976 in Brighton, England, by Dame Anita Roddick, the beauty retailer now runs approximately 2,500 retail outlets across over 80 countries.

Recently, Quest Retail reassured the media that the restructuring in the UK will not impact the Indian operations of the cosmetics firm, The Body Shop.

Continue Exploring: No impact on The Body Shop India amid UK restructuring, assures Quest Retail

Myntra Rising Stars programme onboards streetwear brand Urban Monkey

SnackTeam

May 1, 2024

Myntra‘s Rising Stars initiative, dedicated to bolstering indigenous direct-to-consumer (D2C) brands in India, has onboarded Urban Monkey, a streetwear brand, into its fold.

The brand is set to showcase more than 170 styles on Myntra’s platform, spanning various categories including apparel and accessories. Urban Monkey will feature a diverse range of products such as t-shirts, caps, sweatshirts, shirts, backpacks, jeans, and shorts.

“In our pursuit of delivering top-notch trend-focused fashion to our customers, we’re excited to introduce Urban Monkey on our platform. We have full confidence in the brand’s ability to captivate our fashion-forward clientele nationwide with its stylish array of premium apparel and accessories,” stated Maneesh Dubey, Senior Director of Category Management Marketplace at Myntra.

Continue Exploring: Myntra sees 75 Million new users in 12 months, non-metro areas drive majority growth

Established in 2013 by Yash Gangwal, Mumbai-based Urban Monkey operates within the mass premium market segment, catering specifically to millennials and Generation Z.

The brand will additionally utilize Myntra’s social commerce features, including Myntra Minis and Myntra Studio, to amplify customer engagement, improve overall visibility, and enhance brand recall.

“We’re thrilled to announce our collaboration with Myntra. With their extensive reach and solid presence, Myntra offers us an ideal platform to engage with our audience and broaden our footprint. Through this partnership, we aspire to triple our growth within the next two years, harnessing Myntra’s platform to achieve new milestones,” Gangwal expressed.

Flipkart-backed Myntra provides a diverse selection of over 6,000 fashion and lifestyle brands, featuring esteemed names such as H&M, Levi’s, U.S. Polo Assn., Tommy Hilfiger, Louis Philippe, Jack & Jones, Mango, Forever 21, Marks & Spencer, W, Biba, Nike, Puma, Crocs, M.A.C, and Fossil. Servicing more than 19,000 pin codes across the nation, this Bengaluru-based company ensures widespread accessibility for its customers.

Continue Exploring: Myntra’s marketplace reports positive EBITDA in Q4 2023 amid strong growth

Adani Wilmar’s Q4 net profit surges 67% YoY to INR 157 Crore; revenue down 5%

SnackTeam

May 1, 2024

Adani Wilmar, a fast-moving consumer goods (FMCG) company, reported a 67% growth in its consolidated net profit to INR 157 crore for the quarter ended March 2024. This marks a significant increase from INR 94 crore in the year-ago quarter.

During the reporting period, revenue from operations experienced a 5% year-on-year decline to INR 13,238 crore. This contrasts with the company’s revenues of INR 13,872 crore in the same period last year.

The company noted robust growth in sales volume, particularly in its edible oils and foods segments, both for the quarter and the entire fiscal year. This growth was primarily driven by increased retail presence.

Although edible oils saw an 11% increase and food and FMCG products experienced a 9% rise in volume, a notable decrease in the export of oil meals contributed to an overall volume growth of 3% year-on-year in the March quarter.

Continue Exploring: Adani Wilmar’s Q3 profit slides 18% YoY to INR 201 Crore; revenue witnesses a 17% decline

Breaking it down by segment, the edible oil division achieved revenues of INR 10,195 crore in the fourth quarter, accompanied by an 11% year-on-year growth in volume.

The growth rate of domestic branded sales volume surged even faster at 13% year-on-year, outpacing the overall growth. This marks the second consecutive year of faster growth in the branded portfolio, leading to notable gains in market share.

In the fourth quarter, the food and FMCG segment generated revenue of INR 1,341 crore, reflecting a solid underlying volume growth of 9% year-on-year.

In the fiscal year 2024, domestic revenue and volume both surged by 39%, while export volumes of rice plummeted by 46% due to imposed export restrictions.

Consequently, the overall food and FMCG revenue soared by 23% year-on-year, reaching INR 4,944 crore. Revenue from branded products in the domestic market has exhibited consistent year-on-year growth of over 30% for the past 10 quarters.

In the fourth quarter, the industry essentials business reported revenue of INR 1,702 crore, and for the fiscal year 2024, it amounted to INR 7,479 crore. However, the segment witnessed a 22% year-on-year decline in volume during the March quarter, largely attributed to a 45% decrease in the oil meal business.

“Our edible oils and foods business sustained robust volume growth, propelled by expanded retail presence. Our focused sales & marketing strategies, along with a regional approach in each category, are driving market share gains from local competitors,” stated Angshu Mallick, MD & CEO.

Adani Wilmar stock concluded Tuesday’s trading session 4.6% up, reaching INR 359 on the NSE.

Continue Exploring: BN Group enters wellness and fitness oil category with Nutrica launch, Targets INR 500 Crore revenue in three years

India’s diverse market landscape demands tailored state-wise focus, says Heineken CFO

SnackTeam

May 1, 2024

Heineken, the second-largest brewer globally, expressed astonishment at India’s accelerating momentum. This isn’t limited to the beer sector, where state governments are increasingly adopting progressive measures, but also extends to its ability to attract and nurture businesses across various industries. This transformation is positioning the Indian market as one of the final frontiers of growth for international companies.

Heineken’s chief financial officer, Harold van den Broek, remarked to investors, “India’s national confidence, coupled with its commitment to fostering prosperity across industries and enabling growth and attraction of work, is truly remarkable.”

United Breweries, under the ownership of Dutch brewer Heineken, commands fifty percent of the Indian beer market, boasting popular brands like Kingfisher, Bullet, and London Pilsner. Despite India’s warm tropical climate, promising demographics, and growing prosperity, it remains one of the largest beer markets for international brewers. However, significant challenges persist, including the disparity in tax rates between beer and spirits, particularly in key states like Karnataka, Maharashtra, and Haryana. Moreover, the limited availability of alcohol retail licenses, totaling just 80,000 across the country, including stores, pubs, and bars, presents additional obstacles.

Despite over 20 million people reaching the legal drinking age annually in the country, beer represents only 10% of the spirits market. Per-capita beer consumption in India stands at just two liters, trailing behind most Asian markets.

Continue Exploring: Heineken surpasses Q1 beer sales targets, maintains 2024 outlook

“We’re witnessing the alignment of perfect branding with market execution, albeit cautiously, as India’s market dynamics vary significantly from state to state. Each state requires its own tailored approach. However, we’re encouraged by the increasingly constructive and enduring dialogues with various state governments. India remains a strategic long-term investment for us,” Broek noted.

“We are observing a normalization of consumer behavior, indicating a growing acceptance of alcohol in several states.”

In India, over 80% of the total volume in the beer market is attributed to strong beer. Interestingly, many consumers of strong beer also show interest in purchasing value and low-priced spirits. This inter-category competition underscores the significance of price, including excise rates. According to the IWSR Drinks Market Analysis report, if regulations result in increased beer prices, the price gap between cheap Indian-made foreign liquor and beer narrows enough to prompt many consumers to switch their preferences.

Heineken reported a 20% organic increase in net revenue in India last quarter, primarily fueled by volume growth and a favorable price mix. Beer volume expanded in the low-teens, outpacing the market, a result influenced by adjustments in route-to-market strategies implemented last year.

In the premium beer segment, United Breweries commands less than a quarter of the market share, trailing behind AB InBev, known for brands like Budweiser and Corona. AB InBev has achieved strong performance in this segment, surpassing the domestic beer market, fueled by increasing demand for its premium offerings.

Continue Exploring: United Breweries unveils Heineken Silver Draught Beer, setting a new standard for crafted refreshment in India

1...508509510...1,399 Page 509 of 1,399

NewsHub