AB InBev expects India to be among top 3 markets for Budweiser; enters into whiskey segment

The company, considered to be one of the largest global spirits market, is diversifying its portfolio beyond beer with blended American whiskey

Brewer Anheuser-Busch InBev (AB InBev) expects India to be among the top three markets for Budweiser in the next three years, led by double-digit growth in the premium beer segment, said a top company official on Wednesday.

The company is also increasing the localisation of its two other brands -- Corona and Hoegaarden -- operating in the premium segment and stopping imports in the coming years, said AB InBev President - India & South East Asia Kartikeya Sharma.

Besides, AB InBev India also announced its foray into the Indian whiskey market with the launch of Magnum Double Barrel whiskey on Wednesday.

The company, considered to be one of the largest global spirits market, is diversifying its portfolio beyond beer with this blended American whiskey.

However, the company said beer will continue to remain a core offering for AB InBev India, but it will continue to introduce India-specific innovations across beverage categories in the alcoholic and non-alcoholic segments.

When asked about Budweiser, Sharma said it is a preferred brand in the premium segment. Currently, India is among the top 5 markets for Budweiser globally.

"We think India could become a top three market for Budweiser in the next three years. By 2025, I would be very surprised if it does not become," Sharma told PTI.

The company expects Budweiser to have close to Rs 1,800 crore in sales in 2022.

While its two other brands -- Corona and Hoegaarden -- are smaller in scale and their contribution is in the high single-digit in terms of percentage of AB InBev India's top line.

However, Sharma added that from next year Corona and Hoegaarden would collectively represent a double-digit in their top line.

Gradually AB InBev India is localising the production of both Corona and Hoegaarden, improving its accessibility. It has started local brewing at a facility at Maharashtra and Karnataka.

"We would have available locally made Corona and Hoegaarden in most of the markets," said Sharma, adding, "We would stop importing Corona and Hoegaarden."

About the overall beer market, Sharma said post-pandemic it is having high growth in the premium segment, led by aspirational consumers. The growth is not only coming from big urban centres but also from smaller markets.

"Today AB InBev leads the premium segment (beer) in India, with a 65 per cent plus share. The premium segment growth is almost two times than the total beer industry... we do believe that future growth of India is to come from the premium side," he said.

Now premium beer has become almost 15 per cent of the beer industry.

"That's why we have moved ambitiously with the brands as Corona and Hoegaarden in the industry," he added.

AB InBev India is part of Budweiser Brewing Company APAC (Bud APAC), listed on the Hong Kong Stock Exchange.