E-Malt.com News article: India: Carlsberg topples SABMiller as second-largest beer maker in Delhi

Brewing giant Carlsberg A/S has toppled SABMiller to emerge the second largest beer maker in Delhi, and third largest nationally, as it makes strong inroads in India's urban markets, The Times of India reported on March, 29.

Carlsberg's Delhi coup is the first top deck rearrangement in the domestic beer market, heavily consolidated between United Breweries (UB) and SABMiller, in the last one decade.

Danish brewer Carlsberg - which sells the strong and lager variants of Tuborg and Carlsberg beers - has been ahead of SABMiller in Delhi for six months with 16-17% market share. It moved into the second spot in July and has maintained the lead except in November, said industry sources quoting market share data.

SABMiller's market share average is estimated at 14-15% in the same time frame. UB, owned by Vijay Mallya and Heineken, remains the overwhelming industry leader with national market share crossing 55%.

India's beer consumption is poised to report modest growth of 3-4% in the just ending fiscal to about 240 million cases (of 7.8 litre each) after a bruising summer in 2011. UB and SABMiller, which acquired Shaw Wallace Breweries, together hold around 80% share of domestic market, but new foreign brands and niche beers are beginning to make a dent in the metros. SABMiller and Carlsberg declined to comment on the story.

Carlsberg has made slow but steady climb with 4.5% share of the national market, moving past struggling domestic brewers like Mohan Meakin and Mount Shivalik. It's still a distant third to SABMiller (22%) in the overall Indian market after making significant investments into five greenfield breweries in last four years. Carlsberg's gains in the urban centres come at a time when SABMiller has seen its international brands like Miller Hi-Five, Foster's and Peroni make sluggish progress here.

"SABMiller's problem is that it's still dependent on Haywards 5000 strong beer (acquired from Shaw Wallace) for volume. It needs a more lively portfolio in the metros," said the chief executive of a rival MNC brewer who did not wish to be named. SABMiller's market share slipped in bigger metros like Delhi and Mumbai where ales and craft beers are making their presence felt in upmarket restaurants.


30 March, 2012