E-Malt.com News article: India: United Breweries Group records double-digit growth in each of the last six quarters

India’s largest beer seller United Breweries Group (UBL) has reported a stellar operating performance in the last few quarters, The Economic Times reported on July, 26.

It was able to clock double-digit revenue growth in each of the last six quarters despite increasing competition in the domestic beer market from recently-launched international brands. The company has undertaken capacity expansion which will help it to address the growing beer consumption in the country. However, profitability may remain under pressure owing to volatile raw material costs and intense competition.

With its flagship brand Kingfisher, UBL accounts for over 52% of the domestic beer market of 20 core cases annually. Traditionally, Indian beer consumers have a higher preference for strong beer, but a taste for mild varieties is gradually developing. UBL has expanded its key brand in both segments.

According to analyst reports, for UBL, both strong and mild beer segments are growing at above industry average rates. UBL clocked a three-fold increase in strong beer volumes in the last four years, with a 27% increased. Its mild beer segment grew nearly two times faster than the industry growth rate, according to a recent brokerage report.


27 July, 2011