New Delhi: Anheuser-Busch InBev, the maker of beers like Budweiser, Corona Xtra and Hogagarden, has launched a new brand of beer Seven Rivers for the Indian market.
The new product is being rolled out in parts of Karnataka and Maharashtra first, and will reach states like Delhi, Goa, Haryana and Uttar Pradesh within the current financial year.
The company said that its products are made from locally sourced ingredients with flavors to suit Indian tastes. The brand will retail only in India for now.
In 2020, the beer maker launched a brew pub ‘7Rivers’ in partnership with IHCL-owned Taj Hotels at its Taj MG Road hotel. The two companies co-operate the outlet, AB InBev provides freshly brewed beer and IHCL manages the hospitality side of the business.
Vineet Sharma, Vice President (Marketing) South Asia for the firm said, “Consumers with strong creditor tastes have greatly influenced the beer market. However, the past few years have seen a gradual shift towards less bitter, tastier and smoother beverages. This shift is being driven primarily by the growing popularity of microbreweries and consumers who are more open to experimenting and preferring the repertoire of offerings, paving the way for the Indian wheat beer market to carve a niche for itself. it happens.
“We believe we can shape the wheat beer segment in the country. We already have a great offering with Hoggarden that plays into the wheat beer category at a premium price point. It is an affordable beer and we are looking forward to it throughout. Want to expand in the region. India. We are creating brand from two different world, one is coming from Belgian heritage while the other is built on modern Indian story. And that’s why it is not cannibalizing in the other market will do,” he said.
Sharma said without disclosing investment details for the category that the wheat beer industry has grown at a CAGR of 35% in the last five years, with the industry growing 5 times in size, standing at 130 KHL or 13 million litres.
Seven Rivers price in Karnataka is Rs 130 for 500 ml can and In Maharashtra 165 for a 500 ml can and ‘strong wheat beer’, a Hefeweizen (a type of German “white beer”) and mild wheat beer, is available in a Witbier (“white beer” from Dutch).
Vikram Achanta, founder and CEO of drinks training and consulting firm Tuliho, said the company’s fortified wheat version marks further integration from its brewpub business into packaged retail. Once they launch brewpubs in Mumbai, he said, they could potentially retail to sizable producers as well. These are large glass bottles used to sell fresh draft beer directly from breweries.
“The company has taken the second most popular style of beer in India (wheat) and combined it with a high ‘Alcohol by Volume’ category. High ABV beers have the lion’s share of the market in India. Of course, they have to compete with their competitors. This has to be countered with what already exists, but it shows that large companies are ready to take risks and innovate and try to build local brands instead of relying on their international ones,” said Achanta.
According to BlueWeave Consulting, India’s beer market was worth $4.34 billion in 2020. The market is expected to reach $9.36 billion by 2027 and is projected to grow at a CAGR of 12.0% during 2021-2027.
It states that beer is the second most popular alcoholic beverage in India after whiskey. The growth of India’s beer market can be attributed to the growing workforce of the country as well as the growing demand for various beer brands in India.