 "Brewery, Alcohol")
For all the livelong years it has been around, beer has been associated with leisure and relaxation. Of late, it has become more than just a beverage. Both amateurs and aficionados prefer an uncorked chilled beer to unwind on a sweltering hot day. As the temperature rises, the breweries gear up to capitalise on this growing trend. They anticipate a surge in sales with the summer dog days just around the corner.
The Indian beer market touched Rs 38,360 crore in 2022 and is projected to reach Rs 62,240 crore by 2028, exhibiting a compound annual growth rate (CAGR) of 8.1 per cent during 2023-2028, according to IMARC Group.
Madhya Pradesh-based Mount Everest Breweries Ltd (MEBL), a subsidiary of Associated Alcohols and Breweries Ltd (AABL), is scaling up production of its flagship beer brand STOK. The company is securing a consistent supply of ingredients, and improving inventory management. MEBL aims to expand its distribution network and forge partnerships to ensure the wide availability of its beer, promising to keep customers cool and content throughout the season.
The company is expecting its sales to reach 40-45 per cent of its total volume during the peak summer season. “We aim to venture beyond our established lager and strong variants by introducing our wheat variants into key summer states soon. We plan to partner with breweries in Karnataka and Assam, hoping to increase and build a stronger customer base in these states,” said Vedant Kedia, Chief Growth Officer, MEBL.
Jammu-based DeVANS Modern Breweries expects a surge of at least 40 per cent in its beer sales during this summer season as compared to last year. “We are expecting a major spike this summer, though the overall beer market dipped significantly due to unseasonal rains during the previous summer. We have over the past couple of years expanded our production to at least six states in view of the growing demand for our products, as well as the surge expected during summers,” said Prem Dewan, Chairman and MD, DeVANS Modern Breweries.
More From This Section
The brewery is working on strategic production tie-ups across different parts of the country and plans to increase its beer production capacity to over 10 million cases by the end of 2025. “DeVANS’ global footprint is spread across international markets like Australia, New Zealand, Japan, Hong Kong, the UAE, Singapore and the US. We would soon be expanding into a few other major global markets,” Dewan added.
Bengaluru-based World of Brands (WoB) expects the beer category to grow between 8-9 per cent during the April-June quarter. “The larger macro trends remain very positive for beer with it being a more socially acceptable alcoholic beverage than spirits. Higher spending and resultant socialising are on the rise and beer benefits on account of this. Last but not least, the rising temperatures make consumers prefer chilled products like beer and RTDs (ready to drink) over spirits when the heat is on,” said Gurpreet Singh, co-founder and director, WoB.
A WoB survey on the beer market revealed that over 85 per cent of consumers have been devoid of craft or flavoured beer and are seeking products that are 8 per cent ABV (alcohol by volume) or higher. However, such offerings have predominantly been limited to a niche segment of premium mild beer and craft beer drinkers, constituting less than 5 per cent of the market. Responding to this demand, WoB has introduced the ‘Disco Panda’ brand, aiming to capitalise on both the potential for higher alcohol craft products and the growing interest in flavoured options.
“On ‘Disco Panda’, we have played the spectrum across higher alcohol strengths, as well as different offerings including flavours, all with an objective to cater to smaller taste segments, which the larger manufacturers usually ignore,” added Singh.
