Two international beer giants are heading for the Indian market. After snapping ties with the UB Group, the Philippines-based San Miguel Corporation is re-entering the Indian beer market through an alliance with Anchor Beverages. |
Anchor will also be marketing the Jenlain beer brand from the France-based Duieck stable. Budweiser, the US beer from Anheuser-Busch, is also looking at entering India. |
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Confirming the development, PK Das, managing director of Anchor Beverages, said, "We have entered into a exclusive distribution and marketing tie-up for selling the San Miguel and Jenlain beer brands in the country." |
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The company is also understood to be in talks to market Budweiser, but Anchor declined to confirm this till the deal was inked. |
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The import and distribution arrangement with San Miguel and Jenlein is for a period of seven years. Under the open general licence, Anchor will be importing and selling these brands in India and they will be priced at Rs 35 for a 330 ml can and Rs 50 for a 500 ml can. |
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San Miguel was earlier being sold in India by the Zinia Lawyer-controlled Associated Breweries as it had a exclusive manufacturing and marketing licence from the Philippine company. |
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However, with liquor baron Vijay Mallya acquiring a majority stake along with management control of Associated Breweries, the contract for marketing San Miguel was not renewed. |
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Leading global brands like Heineken, Oranjeboom, Corona have already entered India through distribution tie-ups. |
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The Indian beer market is estimated to be over 6.7 million hecto litres and the beer market is growing by about 7 per cent annually. |
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Currently the Indian beer sector is dominated by two players""the UB -Scottish and Newcastle combine, and the SABMiller-Shaw Wallace combine. |
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The other foreign player is Australia's Fosters. According to analysts, the entry of foreign brands is because of the attractive growth rates and margins in the Indian beer industry. |
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