In a strategic move, the UB Group has decided to shelve plans to grow its beer brand Kingfisher Gold, and has put its moves to launch McDowell's and Bagpiper beer brands on the backburner.
"It (Kingfisher Gold) is no longer a viable proposition for us and hence we have dropped plans to extend it nationally," UB Ltd president Kalyan Ganguly said.
While Kingfisher Gold was launched as a flanking brand for its largest selling beer brand, Kingfisher, the group was planning to cash in on the brand equity of McDowell's and Bagpiper whisky brands to extend them to beer category.
"As of now we have decided to put these brand extensions (McDowell's and Bagpiper) on hold," UB Group's spirits division vice-president for marketing Alok Gupta said.
The move to shelve growth plans for Kingfisher Gold was because of UB's decision to take London Pilsner national. The London Pilsner brand came into UB's portfolio after its acquisition of Mumbai-based Associated Breweries.
Ganguly said Kingfisher Gold was planned as a flanking brand which is launched to protect the main brand and in this case, country's largest selling beer brand, Kingfisher. Kingfisher Gold was initially launched in Hyderabad and will now continue to be a regional brand.
"Kingfisher Gold was launched before we acquired London Pilsner. Now, we have decided to de-emphasise Kingfisher Gold in favour of London Pilsner," Ganguly said.
The decision to extend London Pilsner nationally was taken because of its international appeal and the goodwill it commends. The company has now totally revamped the brand including its packaging and has a new advertising campaign.
"London Pilsner appeals to the slightly older people and yet at the same time is a fun brand," UB Ltd's divisional vice-president for sales and marketing Shekhar Ramamurthy said.
UB Ltd's Kingfisher brand sells 18 million cases and has a market share of 37 per cent while Kingfisher strong which was launched in June 1999 already sells 6 million cases. The total market share of UB's brewery division in the beer market is around 50 per cent. The brewery division expects to grow 25 per cent for the next year.
Both McDowell's and Bagpiper whisky brands are the largest selling brands in their categories. While McDowell's No 1 sells close to 4 million cases, Bagpiper sells around 5 million cases.
McDowell's has a 56 per cent market share, while Bagpiper has a 30 per cent market share in their respective categories.
The decision to have beer brands under McDowell's and Bagpiper umbrella was taken after the group decided to cash in on their huge popularity. But the plan was put on hold as the think tank felt the need to focus more on growing their whisky brands with better advertising campaigns and marketing efforts.
The UB group spirits division which has McDowell's and Bagpiper as its main brands, is the largest spirits' manufacturing and marketing company in India with a market share of 35 per cent and sells 26 million cases a year.
