Stroh uncorks bottled beer; targets 10% market share
Aparna Kalra
New Delhi, Nov 25: After having burnt its fingers with canned beer, the US-based Stroh International hopes to capture at least 10 per cent share of the Indian beer market after switching over to bottled form.
Stroh International has launched its beer brand `Stroh's' in bottles in a major parts of north India since July. The launch covers Punjab, Jammu & Kashmir, Rajasthan, Bihar, besides Chandigarh, Calcutta and Delhi.
"We are looking for double-digit market share by the end of summer next year," said Stroh International marketing and sales director Glyn Partridge told The Financial Express.
Stroh has had to change both its partner and strategy in India. Its initial tie-up with Rajasthan Breweries Ltd was terminated earlier this year."RBL was not able to deliver the volumes which we wanted. So there was a parting of ways,
" said Partridge. Stroh now has a technical tie-up and licensing agreement with the Delhi-based Mount Shivalik Group. The American company was advised by its current Indian partner to switch from canned to bottled form of beer for the Indian market.
"The Indian consumer is very price-sensitive. A 500-ml beer-can costs Rs 50 while a 650-ml bottle costs Rs 40. So, naturally, there is a preference for the bottled variety of beer," said Mount Shivalik director marketing Monish Bali.
Incidentally, Stroh International's decision to stop production of canned beer in India was also spurred by the fact that its main competitors, Foster's and San Miguel, launched beer in India in the bottled form."Contrary to the world trend, Indians prefer bottled beer," said Partridge.
Stroh is now confident of taking on its rivals. It has already helped in upgrading Mount Shivalik's brewery located near Jaipur. The brewery has a capacity of two million cases annually.
Another brewery in Punjab will also be upgraded to international standards and used for the production of Stroh beer by summer next year. Stroh is in the process of lining-up an ad campaign and celebrity endorsements which will be out just before summer. It may also use product placements in Hindi movies to publicise the beer brand.
While the focus will be on consolidation of the existing standard and strong Stroh brands in the Rs 1500-1800 crore per annum Indian beer market, Stroh is also exploring the introduction of other brands next year if it does well in India.
The beer company is interested in launching its light, low calorie beers in India provided the market is ready for such an exercise.(fe) |
