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Analysis of Beer Brands in India

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Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

Published: Tue, 02 Jan 2018

Introduction

Beer market has been rising quickly, especially in India beer market is rising over the previous 10 years, by virtue of the effective consequences of statistical styles and predictable transforms, like:

  • Growing income stages: – Grow in the income levels of person has direct effect the beer consumption. As the income of the people increases then the beer consumption is also increases and the Indian beer consumption is continue growing, but at a very minimum growth rate.
  • Changing age profile: – As a result of high birth rates, a huge percentage of Indian people are in the age group of 20-34 years. So, this age group is the almost suitable aim for beer marketers. That age group provides a improve enlargement of beer utilization in India.
  • Changing lifestyles: – Now the alcohol consumption has becomes the traditional feature of the Indian society but it’s not adapted by all. Still it’s adapted by those urban consumers who become more exposed to western life styles. In the present scenario women are also consuming more and more beer.
  • Reduction in beer prices: – Reduction in beer price is also responsible for rising beer consumption. The Indian customer usually values a hard drink on the base of its ‘kick’ factor in opposition to its value.

In India the upcoming of beer manufacturing is very much expectant because India has essentially a hot and sizzling weather and the beer drinkers in the nation are too younger than the usual beer drunkard in another place in the globe This builds them extra to be expected to bear the brand name with them for a life span (http://www.indianmba.com/Faculty_Column/FC519/fc519.html).

Beer Brands in India

These are brands in the Indian markets Kingfisher, Foster’s Beer, Dansberg, Carlsberg, Golden Eagle, Carling Black Label, Haake Beck, Flying Horse Royal Lager, Guru, Haywards skol, Haywards 5000, Haywards 2000 Beer, Maharaja Premium Lager, Hi-Five, Heinekin, Taj Mahal, Ice, Legend, KnockOut, Kirin, Kingfisher Strong, Kingfisher Diet, London Diet, London Draft, London Pilsner, Sand Piper, San Miguel Lager, Royal Challenge, Sand Piper, Zingaro and Strohs. (http://www.indianmba.com/Faculty_Column/FC519/fc519.html).

Beer industries in india

In India there are many Beer Industries both Indian Industries and Foreign Industries (FDIs) are serving in India, some International Industries serves in India by having acquisitions, strategic alliance with Indian Brewing Industries. Some multinational Indian brewing industries are also serving in foreign countries their Head Office is in India but they serves in India and foreign both countries. Some foreign companies established their Head Office both in India and in their country.

Some Breweries Industries in India are as under:-

  • United Breweries Limited
  • Mohan Meakins
  • Radico Khaitan

United Breweries Limited

United Breweries Limited (UBL), United Breweries is a type of conglomerate company with a main focal point on the brewery (beer) and alcoholic beverages industry and was founded in 1857 by Scotsman, Thomas Leishman who is the real founder if the UB Group (http://en.wikipedia.org/wiki/United_Breweries).On 15th March, 1915  Mr. Thomas Leishman acquired 5 breweries to form United Breweries Ltd. with its registered office at 17 Armenian Street, Chennai -1 (INDIA), then headquarter of this group is moved to Bangalore in 1950’s,( http://www.kingfisherworld.com) means it’s a South Indian based British breweries. At the age of 22, Vittal Mallya was elected as the company’s first Indian director in 1947, after a year he replace as the chairman of the company and now, Dr. Vijay Mallya (who is also a member of the Indian Parliament) is the Chairman and Owner of this UB Group (http://en.wikipedia.org/wiki/United_Breweries) the UB Group are deep-rooted in the forerunner company, United Breweries Limited, also assigned to as the Beer Division of the UB Group (http://www.kingfisherworld.com) UB Group is the market manager in the Indian beer market with a 40% market stake. Its forerunner Kingfisher brand commands 25% market stake alone (http://www.indianmba.com/Faculty_Column/FC519/fc519.html). UB is the Indians largest producer of beer with market share by volume about 48%.

Brands of ub group

The active beers of flagship Kingfisher Brand of UB Group are:-

  • Kingfisher Lager
  • Kingfisher Light Lager
  • Kingfisher Strong Lager
  • Kingfisher Super Strong Lager
  • Flying Horse Royal Lager
  • Kalyani Black Label Strong Lager
  • Premium Ice Beer
  • Raj Cobra
  • Taj Mahal Premium Lager (http://en.wikipedia.org/wiki/United_Breweries).

Mission

Every company, group has its own mission or operation for accomplishing their desired target so, UB Group also have a mission which is mention under the mission statement given by the Dr. Vijay Mallya says as follows :

  • They focused on assuming leadership in all our target market.
  • They seek to be the most preferred employer wherever they operate.
  • They recognize that our organization is built around people who are our most valuable asset.
  • They will continually increase the long-term value of their Group for the benefit of our shareholders.
  • They will operate as a decentralized organization and allow each business to develop within our stated values.
  • They will be a major contributor to our National Economy and take full advantage of our strong resource base.
  • They commit themselves to the ongoing mission of achieving Scientific Excellence.
  • They will always be the partner of choice for customers, suppliers and other creators of innovative concepts (http://www.theubgroup.com/profile_mission.aspx).

Human Resource Strategy

Every company needs human resources to run their business and to survive so, Dr. Vijay Mallya said Our Company is committed to build an organization that is aggressive, consumer essential and market determined and its endeavour has been to be a magnet for, develop and maintain the most excellent talent available. The human resources systems and procedure are lined up to meet this intention. Over the years the organization has been capable to make an open, visible and encouraging tradition that encourages staff to deliver advanced stage of performance.

Reimbursement surveys and capability evaluation exercises have been commence in order to moderate people-related risks. As an effect of these schemes, the reimbursement levels have now been standards with equivalent organizations in the industry and the capability evaluation has permitted us to sponsor people from within to take on superior responsibilities. Training and Development carries on to be a significant area of focal point for raising the capability levels in the organization to strengthen its functional and leadership foundations.

(http://www.theubgroup.com/PDF/UBL_Annual_Report/UBL_Annual_Report_2008.pdf).

MARKETING Strategies

Marketing is mainly focus on structuring brands that ensures a huge increase in amount in market stake and be capable adequate to accept competition both locally and internationally. Kingfisher was located as a young, stimulating and enjoyable beer symbolized by its influential statement “The King of Good Times”. All communicating on the product was constant with its placing. Kingfisher was linked up with sports and shows like cricket, football, hockey, fashion shows, motor racing and horse racing to add a proportion of speed and fashion to the brand image.

The UBL expend around 20% of net sales on advertisement and sponsorship, which was centered on launching of new brands and rising capacity. The corporation was de-stressing the level of seasonality and supporting utilization of beer throughout the monsoons through promotional and wakefulness campaigns.

Kingfisher brand name was attributed to a local bar in the northern area as part of brand promotion scheme. The bar was not a single kingfisher beer channel, but 80% of the beer served was of United Breweries. (Mittal Amita, Cases in Strategic Management)

Under the marketing strategies, United Breweries Limited has diminished the cost of its tipple beer by 28.5% from Rs2100 each drum to Rs1500 each drum earliest. A mugful of tipple beer will then price Rs25 in opposition to Rs30-35 earliest. This check marketing scheme was set up on October 16, 1998 and is only being made for Karnataka. The company says that it’s a new marketing strategy and not connected to its deprived functioning in the second quarter of 1998, when its net income cut down by 53% and turnover cut down by 29%.

United Breweries Limited recommends expanding its Kingfisher product to vacation wear, like T-shirts and Bermudas. It suggests utilizing its set-up in many cities to advertise these products. United Breweries is using the Kingfisher brand to promote sports. UB also used same brand name for its mineral water. UB looks to have earned from its judgment to sponsor the East Bengal soccer team as the trades of the brand has raised 5 times. (http://www.faqs.org/abstracts/Business-international/THE-MUG-STRATEGY-UB-SLASHES-PRICE-OF-DRAUGHT-BEER-UB-LAUNCHES-SPECIALITY-ICE-BEER.html)

Quality

If we search about quality of Beer of United Breweries then we find that the (http://www.theubgroup.com/profile_mission.aspx) quality and cleanliness are the key essentials of the United Breweries’ manufacturing convictions. For this the Central Scientific Laboratory (CSL), whose headquarter is at Bangalore sets principles for its every breweries. Quality Management Systems put down line of ISO 9000 are rigorously stick on to regulating quality at each phase of production, from raw materials to the finish product(http://www.kingfisherworld.com).

UBL also, organizing the manufacture procedure, the CSL analyses the Company’s beer released market puts on ice all over the Country, the opposition’s beers and beers across the world. These beers are checked as per the principles laid down by the European Brewery Convention on 40 different extents. By these principles, United Breweries’ beers don’t just the same, but even improve on, numerous Dutch and American beers (http://www.kingfisherworld.com).

Production break-up of UB

 

UB Owned Breweries

Contract Breweries

Total

UB Owned %

2000-01

14,84,163

5,09,146

19,93,309

74.6

2001-02

9,85,059

6,72,344

16,57,403

59.4

2002-03

12,62,025

10,50,493

23,12,518

53.3

2003-04

13,06,636

13,39,650

26,46,286

49.4

(Cases in Strategic Management)

Markets of UB

Government Market: In a government market, the respective state government was the wholesale distributor of beer and acquired beer directly from manufacturers based on an annual tender system, via its own agencies. The government controlled the price at which beer was procured from the manufacturer. This beer was then retailed through private vends (e.g., Tamil Nadu, Andhra Pradesh) or a combination of government and private vends (e.g., Kerala, Delhi).

Open Market: In this market, there was little or no government intervention in the pricing and distribution of beer. The manufacturers sold beer to the wholesaler/distributor who in turn sold it to the retail outlets. Pricing was free and determined by market forces. The government issued wholesale/retail licenses for a fee. However, in certain markets, new licenses were not freely available.

Exports: The company’s products were exported indirectly through UB Global Corporation Limited a subsidiary of UBHL. The Company had a tie-up with S&N, which had a long established track record of distribution of third party brands, for the international distribution of ‘KINGFISHER’. The company also entered into an exclusive Licensing and Distribution Agreement on May 24, 2004 with Independent Liquor Limited (ILL) to manufacture, package, market, distribute, and sell the products of the company in Australia and New Zealand for five-years. They worked closely with Scottish &Newcastle to extend the reach of products, particularly, Kingfisher to more global markets. Kingfisher was a well-established brand in many countries and leveraging Scottish & Newcastle’s distribution strengths would increase the franchise of the brand (Cases in Strategic Management).

Beer manufacturing process

The manufacturing process of beer has nine steps such as milling, mashing, filtration, wort boiling, wort cooling, fermentation, lagering, filtration then beer is ready to be packed in barrels.

This process can be cleared by the image given below-

http://mpstateagro.nic.in/Project%20Reports%20pdf/BREWERY.pdf

Milling: For capable evocation with water, malt must be crushed. Early on milling processes used stones compelled by hand or by water or animal power, but current brewing uses automatically compelled roller mills. The chart of the mill and the space among the rolls are important in acquiring the accurate reduction in mass of the malt. The aim is to hold on to the husk comparably perfect while breaking up the frangible, customized starch into particles (http://www.britannica.com/EBchecked/topic/58378/beer/236419/Milling).

Mashing: Mashing is the process of mixing crushed grain (usually malted or cracked grain) with water, and heat-up this mixture with remains at certain temperature (www.sterkensbrew.be/sbm/beer_making.html) and this temperature should be between 150-158 degrees F for just about one hour (www.homebrewmart.com/recipes.html) to allow bacteria’s in the malt to smash down the starch in the grain into sugars, usually maltose (www.sterkensbrew.be/sbm/beer_making.html).

Filtration or Mash Filter: A mash filter is a plate-and-frame filter. The vacant frames have the smash, counting the exhausted grains, and have a capability of approximately one hectoliter. The plates contain a affirm body structure for the filter cloths the plates, frames, and filter cloths are ordered in a carrier frame like so: frame, cloth, plate, cloth, with plates at every end of the arrangement. Newer mash filters contain vesicae that can push the fluid out of the grains between spargings. The grain does not perform similar to a filtration medium in a mash filter (www.sterkensbrew.be/sbm/beer_making.html).

Wort Boiling: Boiling the gained distills, called wort, assures its infertility, and thus keeps a lot of infections. For the duration of the boil suds are added, which give bitterness, taste, and fragrance complexes to the beer, and, beside with the heat of the boil, induces proteins in the wort to condense and the pH of the wort to drop. At last, the vapors developed through the boil volatilize off tastes, together with dimethyl sulfide usher.
The boil must be carried on so that is it even and acute. The boil lasts between 50 and 120 minutes, calculating on its strength, the hop addition agenda, and volume of wort the brewer anticipates evaporating (www.sterkensbrew.be/sbm/beer_making.html).

Wort Cooling: After malt filtration process, the wort must be cut down to temperatures of fermentation prior to yeast is added. In present breweries this is accomplished through a plate temperature exchanger. A plate temperature exchanger has lots of ribbed plates, which form two abstracted paths. The wort is distend into the temperature exchanger, and goes throughout each other space among the plates. The cooling measures, generally water, goes through the other spaces. The ribbed in the plates make sure disordered flow. The last few plates frequently use cooling measures which can be refrigerated to below the sub-zero point, which allows a better-quality control over the wort-out temperature, and also facilitates cooling around 10 °C. After cooling, oxygen is frequently dissolved into the wort to refresh the yeast and support its procreation (www.sterkensbrew.be/sbm/beer_making.html).

Fermentation: Fermentation, as a stair in the brewing procedure, initiates the moment yeast is added to the chilled wort. This is also the position at which the creation is first called beer. It is through this phase that sugars won from the malt are metabolized into alcohol and carbon dioxide.

Most breweries nowadays use cylindroconical tanks, or CCTs, have a conical (pointed) base and a cylindrical top. The cone’s space is usually 60°, an angle that will allocate the yeast to flow in the direction of the cones top, but is not so sharp as to take up too much vertical gap. CCTs can switch both fermenting and refining in the same tank. At the end of fermentation, the yeast and other frozen which have dropped to the cones top can be simply swill out a dock at the peak.

Then, the tanks to allow the CO2 generate by the yeast to typically carbonate the beer. This spile device can be place to a set pressure to match the kind of beer being generated. The more pressure the spile holds back, the more carbonated the beer developed (www.sterkensbrew.be/sbm/beer_making.html).

Lagering or Conditioning:After the fermentation process, next procedure is conditioning or developing the carbon dioxide to provide the beer its white foamy head (http://www.kingfisherworld.com).When the sugars in the fermenting beer have been more or less totally digested, the fermentation slows down and the yeast begins to settle to the bottom of the container. At this stage, the beer is refrigerated to around freezing, which promotes settling of the yeast, and causes proteins to curdled and settle out with the yeast. Unlikable flavors such as phenolic composites become unsolvable in the cold beer, and the beer’s aroma happens to smoother. For the period of this time force is maintained on the containers to forestall the beer from going flat.

If the fermentation containers have chilling jackets on them, as opposite to the entire fermentation basement being chilled, conditioning can happen in the same tank as fermentation. Other than different tanks (in a separate basement) must be employed (www.sterkensbrew.be/sbm/beer_making.html).

Filtration: Filtering the beer become stable the flavor, and provide beer its polished shine and blaze. Not all beer is filtered.

Filters arrive in many types. Many use pre-made filtration media like sheets or candles, while others use a fine powder made of, for instance, diatomite, also called diatomaceous earth or kieselguhr, which is initiated into the beer and recirculated past screens to form a filtration bed.

Filters series from rough filters that eliminate much of the yeast and any solids (e.g. hops, grain particles) left in the beer, to filters tight as much as necessary to sprain color and body from the beer. Generally used filtration ratings are divided into rough, fine and sterile. Rough filtration leaves some muddiness (cloudiness) in the beer, but it is observably clearer than unfiltered beer. Well filtration grants a glass of beer that you could read a newspaper through, with no detectable muddiness. Finally, as its name involves, hygienic filtration is fine as much as necessary that almost all microorganisms in the beer are detached during the filtration process (www.sterkensbrew.be/sbm/beer_making.html).

Packaging: Packaging is placing the beer into the tanks in which it will depart the brewery. Normally this means in bottles and barrels, but it might contain cans or bulk tanks for high-number customers (www.sterkensbrew.be/sbm/beer_making.html).

So, this is the full process of manufacturing of beer in industries but, some industries follow some additional steps at the time of manufacturing of beer.

Strategic alliance

Upon entering the new millennium, the UB Group became more focused on becoming the second largest marketer of Spirits products in the world. With the acquisition of Shaw Wallace & Company Limited, this Division owned twelve millionaire brands. The market share of the Spirits Division in India was 50%, and exports to the Middle East, Africa, and Asian countries were growing rapidly (Cases in Strategic Management).

In addition, United Breweries Limited has also enrolled into mutli-faceted strategic alliance with Scottish & NewCastle Plc (S&N), an international brewery major, with $6 billion in proceeds and a market capitalization of $5.4 billion. This alliance, distant from having a joint venture in India, will permit S&N to market it International brand names like Kronenbourg in India, while UBL will develop S&N’s global network to further globalize its Kingfisher (http://www.kingfisherworld.com).

Conclusion

United Breweries Limited is the India based breweries and spreading all over the world with successful brand name “Kingfisher”. This brand ‘Kingfisher’ has been ranked amongst the top 10 flashing raising brands in the UK (http://www.kingfisherworld.com). Another subsidiaries of UB Group United Sprits Limited is also spreading all over the world with brand name “McDowell’s”, McDowell’s No.1 is the largest selling brandy all over the world. The policies of United Breweries are suitable for Indian market and that is why this company has got a grand success with in 10 years. If this company is interested to operate in some other countries, it has to revise its policies to get success in another country which will include marketing policies and pricing policies.


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