Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Alcoholic drinks market on a high
The alcoholic drinks market in India registered strong double-digit volume
growth for the second year in succession in 2007. Favourable demographics in
the form of a strong economy, improving lifestyles and higher disposable
incomes encouraged consumer expenditure on alcoholic drinks over the review
period. Increasing deregulation in the form of lower taxes and greater
retailing opportunities for beer and wine through supermarkets/hypermarkets in
certain states such as Maharashtra, West Bengal and Chandigarh further
increased the affordability and accessibility of alcoholic drinks.
Domestic manufacturers embark on global plans
Even as international players set their sights on developing markets such as
India for the next phase of growth, Indian manufacturers increased their
global footprint in 2007. Indian manufacturers stepped up the aggression by
not just expanding their product offerings in the domestic market but also
entering into joint ventures, increasingly tapping into international markets
and exhibiting a greater appetite for expanding overseas through the inorganic
route. For example, United Spirits completed the acquisition of major Scotch
whisky player Whyte & Mackay in 2007 and wine manufacturer Bouvet Ladubay in
August 2006. Champagne Indage acquired Australian wine company Tandou Wines,
while Radico Khaitan has been building up its exports in the Middle East and
Africa by establishing a joint venture in the UK and United Spirits has been
exporting its brands to China.
UB Group consolidates its lead even as multinationals step up competition
UB Group, the parent company of United Spirits and United Breweries, further
established a firm footing in the Indian alcoholic drinks market in 2006. A
number of new product launches, product relaunches and packaging changes as
well as promotional activity surrounding its key brands, Kingfisher and
McDowell' s, ensured yet another good year for the alcoholic drinks behemoth.
Meanwhile, multinationals such as Diageo, Beam Global and Anheuser-Busch
rolled out affordably priced made-in-India products to challenge the position
held by UB Group.
Easing regulations allow sales through supermarkets
The legislation surrounding the retailing of alcoholic drinks witnessed some
liberalisation efforts in the latter half of the review period. With state
governments easing regulations for the off-trade retailing of alcoholic
drinks, the alcoholic drinks industry has much cause for cheer. Maharashtra
has been at the forefront of these changes with retailing of beer and wine
being permitted in supermarkets. The eastern state of West Bengal has also
given the green light to the retailing of beer and wine through supermarkets.
Chandigarh also jumped on the bandwagon, with excise policy changes allowing
retailing of wine through supermarkets. Diageo tied up with retail giant
Reliance Retail for the distribution of wine in 2007.
Bright growth prospects for alcoholic drinks
Alcoholic drinks are expected to post a strong performance in the forecast
period, riding on changing demographics, higher disposable incomes, increased
social acceptance of drinking liquor and regulatory changes. With a number of
international players slated to launch their brands in the Indian market,
category investment, product availability and promotions are bound to
increase, which will provide a wider range of choices for Indian consumers.
Moreover, current low per capita consumption in India is expected to provide
room for growth in the forecast period.
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