Page 50 - Forbes - India (January 2020)

Enterprise

infographics: sameer pawar
Café, a chain of beer bars. “Drive
10 km away from any city and the Beer Market Size in India Faster Growth In Smaller Towns (%)
world of beer transforms. It is value (Volume in million hectolitres) 2018 2019
for money and gives a better kick 40 37.8 tier I
for the buck,” he explains, adding: Q1 71
“Bira 91 seized the opportunity.” 35 48
The strong beer market, reckon 30 27.4 Q2 78
analysts, was also ripe for disruption. 25 22.1 46
Over the last few decades, the Q3 40 76
alcoholic beverages segment has 20 60
been bereft of innovation, says N 15 Q4 40
Chandramouli, chief executive officer 0 10 20 30 40 50 60 70 80
of brand insights company TRA 10
Research. While there has been a 5 tier II, III and Iv
dramatic shift in the openness among 0 Q1 29
consumers to experiment, the bigger 2013 2018 2023 (Estd) 52
and older players stuck to the tried- Q2 22
and-tested course. “Boom is likely to Boom Factor (Sales, number of cases) 54
give a stiffer fight to the oldies who 700000 607,367 Q3 24
have ruled the roost for long,” he says. 600000 60
Demographics and beer statistics, 500000 507,339 Q4 40
too, are loaded in favour of any 400000 497,477 60
challenger brand that dares to 300000 0 10 20 30 40 50 60
innovate. While an estimated 25 200000 159,766
million turned 21 in 2019, 30-odd 100000 Jan-March April-June July-Sept Oct-Dec Headroom for Growth
50 million will be of drinking age that source Bira 91 (Beer per capita consumption in 2019)
most states allow by 2024. The
per capita consumption of beer Bira 91: On a Roll
in India stands at a low 2 litres us russia
compared to China (36 litres), Gross revenue 78 litres 76 litres
Russia (76 litres) and the US (78 FY18 `328 crore
litres). “The headroom for growth FY19 `410 crore `700
FY20
is massive,” says Chandramouli. (Projections) crore
The David of the Indian beer 0 100 200 300 400 500 600 700 800
market is taking on the Goliath. Given
Kingfisher’s market share—over 50 net revenue China
percent—the only way for Bira 91 to FY18 `150 crore Brazil 36 litres
FY19
grow is either to capture new markets FY20 `183 crore `320 65 litres
—millennials—or go head-on. “Bira (Projections) 0 50 100 150 200 250 300 350
crore
91 is doing both,” says Jessie Paul,
founder of Paul Writer, a marketing volume
advisory firm. Lighter, more expensive FY18 24,46,000 cases
beers would restrict Bira to the urban, FY19 26,80,000 cases India
millennial market that can afford (Projections) 50,00,000 cases 2 litres
FY20
them. Boom exploits an understanding 0
of the Indian preference in both 1000000 2000000 3000000 4000000 5000000
taste and pricing, she adds.
Investors in Bira 91, too, are happy source Bira 91 source kpmg report
with the shift from the craft beer
theme. “Today Bira 91 is not just a It is also an aspiring pan-India brand market,” she says, adding that Bira
reimagined craft beer brand for a that appeals to consumers across price 91 has forced some of the large
niche market,” says Sakshi Chopra, points and age groups. “We backed incumbents to sit up and take notice.
principal at Sequoia Capital India a disruptive and innovative brand What has made them react is the
Advisors, an investor in B9 Beverages. in an otherwise-fairly-oligopolistic pace of the growth of the premium

forBes indiA • january 31, 2020