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2.3.12

 


largest beer consuming people list:-
  • Indian people can drink 2 bottles of beer (famous brand found kingfisher, fosters).
  • one-twentieth the amount consumed by Chinese people(mainland’s beer sales. According to the China Daily, the country’s 513 breweries produced over seven billion gallons of beer in 2004, making it the world’s biggest brewer for the third year running. ).
  • less than one-fortieth by Americans(Budweiser).
 The global brewers are forming partnerships, introducing new products and marketing milder, pricier brews to young Indians. They have yet to overcome a maze of regulations and United Breweries Ltd. (UBBL), owner of top local brand Kingfisher, in a market expected by Euromonitor International to almost double to $9 billion by 2016.  United Breweries so far has beaten back the challenges.
 It started selling Heineken in India over the past seven months to offer more options against foreign rivals. Changing state regulations have already eaten into London-based SABMiller’s market share and all of the brewers still face some Indian taboos on alcohol consumption.  “Everyone fantasizes: Imagine if you had a billion Indian people drinking 50 liters of beer per capita,” said Trevor Stirling, analyst at Sanford C. Bernstein Ltd. in London.

“It’s going to be many decades, if ever, before Indian per capita consumption reaches 50 liters.”  Emerging markets such as India are important to global brewers as growth slows in the developed world and brands like Budweiser fight competition from craft beers in the U.S.  At the same time, the experiences of foreign brewers show how regulations or entrenched competitors are holding back many of the world’s largest companies in the second most populous nation. Retailers such as Wal-Mart Stores Inc. (WMT) faced a setback in December when the government reversed a decision to allow their entry into a market dominated by local mom-and-pop stores.  India also bans advertising of alcoholic drinks, which can make it harder for brewers to introduce consumers to new names. 

Vittal Mallya, father of present chairman Vijay Mallya, bought United Breweries in 1947, and snapped up distillers and brewers on the cheap when the Indian government briefly threatened prohibition in the 1970s.
The sale and distribution of alcohol in India is controlled by state governments, which impose taxes on imports and exports, forcing companies to open distilleries and breweries in each state where they want to sell their products cost-effectively.
“The biggest challenge is, in India, every state has their own system in terms of taxation, labor requirement,” said Joergen Buhl Rasmussen, chief executive officer of Copenhagen- based Carlsberg, which entered the country in 2007. “That does make India not very efficient to operate.”
United Breweries benefits from 28 breweries spread across the country’s 28 states. That tops the 13 that SABMiller uses and Carlsberg’s five.
 
United Breweries, based in Bangalore, increased its beer market share to 57 percent in 2011 from 43 percent in 2006, according to London-based Euromonitor. In the same period, SABMiller’s share dropped to 24 percent from 37 percent. 
Per capita consumption of beer in India at 1.6 liters is a fraction of 35.5 in China, 75.6 in the U.S. and 105.6 in Germany, based on Euromonitor estimates.
“You have a reasonably high proportion of a Muslim population who won’t drink alcohol,” said Stirling. “Also, if you’re a devout Hindu, you won’t drink alcohol.”
Social norms are changing and beer consumption picking up as India’s young adults have more money to spend and travel around the world. The economy has grown at an average annual pace of more than 8 percent for the last four years. Euromonitor estimates India’s beer market will grow to 447.9 billion rupees ($9 billion) from 257 billion rupees in 2011.

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