AB InBev India bets on Budweiser to drive growth
Anheuser-Busch InBev, the world’s largest brewer, is banking on its popular Budweiser brand of beer to extend its reach into smaller Indian cities in the second phase of expansion.
“Budweiser is the brand that helps us lead our overall play here in India,” AB InBev marketing director Kartikeya Sharma said in an interview. “I think I can say Budweiser will continue to be a big bet. India has started to become one of the biggest markets for Budweiser globally.”
AB InBev, which operates as Crown Beers India Ltd, began selling Budweiser in India in 2007. The firm, which started manufacturing Budweiser in India in 2010, reported a revenue of ₹238 crore in FY15, according to data from the Registrar of Companies (RoC). This is a long way from its initial revenue of ₹3.49 lakh in FY08, as per its first reported set of financials according to RoC.
However, the company is yet to turn profitable, posting an operational loss of nearly ₹60 crore in FY14-15, and a total loss of nearly ₹200 crore (after adding loss carried forward from the previous fiscal), as per the company’s latest filings with RoC.
After nearly a decade in the country, Sharma said, the brand’s strategy of focusing on only major urban centres is finally paying off. “Our strategy dates back to nearly 2008-09, when we finally found our footing and got more active. We have resisted being pulled into the very natural appeal of a country as big as India with so many markets and so many consumers.”
AB InBev focused on the top metropolitan cities— primarily Delhi, Mumbai and Bengaluru—to help grow the Budweiser brand among the “aspirational” young consumers. Sharma declined to share sales and revenue numbers for Budweiser beer in India.
The brewer is now banking on the new manufacturing facilities and distribution muscle that the company’s acquisition of SABMiller India brings. AB InBev acquired rival SABMiller Plc in 2015. The acquisition was completed at end of 2016 in India.
The company is now focussing on rolling out the next phase of the brand’s (Budweiser’s) targeted city-wise expansion. It is considering expanding the brand to “secondary urban centres” such as Visakhapatnam, Vijaywada, and Puducherry.
It’s strategy is to market Budweiser through sponsorships of events such as music festivals and other niche local events.