New Delhi: AB InBev, the world’s largest brewer, has outpaced India’s beer market in the first half of the year, making the country one of Budweiser’s top three markets globally in June, behind US and China. The strong double-digit growth came despite the West Asia conflict, which disrupted supply chains and triggered can shortages, as premiumisation emerged as a key driver of beer consumption, Kartikeya Sharma, president, AB InBev India told TOI.Premium beers grew about 20% during Jan-June, buoyed by regulatory changes in key markets, such as Maharashtra and Karnataka, helping the company gain share. While the industry grew around 12%, AB InBev grew faster, cornering about 20% share in the overall beer market of 20 million hectoliters in the first half.The premium segment accounts for about 65% of the company’s volumes, with brands including Budweiser, Corona and Hoegaarden key growth drivers.Also, cans are becoming an increasingly important format in India’s beer market, driven by convenience and portability, and account for about 28% of the overall beer market. The company’s share is at over 40%, reflecting its sharper focus.Further, beer category is thriving particularly in states where taxes have been normalised and there is a level-playing field between beer and spirits, with Maharashtra growing about 40%, he said. As against this, the hard spirits category seems to be declining.Indicating a potential shift to moderation in consumer choice, Karnataka has emerged as a test case with the sale of beer below 5% ABV (alcohol by volume) doubling to 20% in three months. In May, it asked manufacturers to state alcohol content to the first decimal. In other states, beer may simply be categorised as above or below 5% alcohol.“That encourages us to innovate around different consumer needs. A consumer may want a mid-week low-ABV beer at 2%, 2.5%, even 0%, depending on occasion. We lead the beer category globally and have examples in many markets where low-ABV products drive participation. Karnataka gives us the ability to test that thesis, and we intend to do so. Favorable policy should ultimately give consumers more choice, more variety, different price points”, Sharma stated.“In the future, if there are opportunities, capabilities we want to bring in, or innovations we first want to test through the import route, those could be areas where we benefit,” he added.
