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Table of Content

Industry Basics...........................................................................................................4
Alcohol Market.......................................................................................................4
Location of consumption & Sale...........................................................................4
Business hours prescribed in Maharashtra.........................................................5
Universe for selling Beer in Mumbai....................................................................5
Beer..............................................................................................................................6
Different Strokes of Beer.......................................................................................7
Alcoholic strength of Beer.....................................................................................8
History of Beer.........................................................................................................10
General History....................................................................................................10
History of Beer in India.......................................................................................11
Overview of Indian Beer Market ...........................................................................13
Market Definition.................................................................................................13
Market Segmentation I........................................................................................14
Market Segmentation II......................................................................................14
Market Share .......................................................................................................15
Comparison of Indian & US Beer Industry...........................................................16
Indian Beer Industry...........................................................................................16
US Beer Industry .................................................................................................17
Determinants of growth of Indian Beer Market...................................................18
Indian Brewing industry.........................................................................................23
Breweries in Maharashtra...................................................................................23
Mashing.................................................................................................................27
Sparging................................................................................................................27
Boiling...................................................................................................................27
Fermentation........................................................................................................28
Pasteurisation.......................................................................................................28
Packaging..............................................................................................................28
Ingredients of Beer...................................................................................................30
Water.....................................................................................................................30
Malt.......................................................................................................................30
Hops.......................................................................................................................30
Yeast......................................................................................................................31
Clarifying agent....................................................................................................31
Categorizing beer by................................................................................................32
Yeast......................................................................................................................32
Ale..........................................................................................................................32
Lager.....................................................................................................................32
Lambic beers........................................................................................................33
Pale and dark beer...............................................................................................33
Serving......................................................................................................................34
Draught and keg...................................................................................................34
Cask-conditioned ales..........................................................................................34
Bottles....................................................................................................................34
Cans.......................................................................................................................34
Vessels....................................................................................................................35

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Serving temperature................................................................................................35
By-products / Waste.................................................................................................36
Taxation Policies ......................................................................................................37
Excise Duties.........................................................................................................37
Octroi ...................................................................................................................37
About APB................................................................................................................38
Corporate Profile.................................................................................................38
Fraser & Neave, Limited ....................................................................................39
Heineken ..............................................................................................................39
Members of the Asia Pacific Breweries Group......................................................40
Senior Management of APB....................................................................................42
APB - INDIA............................................................................................................43
Core Values ..........................................................................................................43
Locations of Operation........................................................................................45
Organization Structure............................................................................................46
Brand Portfolio .......................................................................................................47
Tiger Beer.............................................................................................................47
Baron's Strong Brew ...........................................................................................48
Cannon 10000 Super Strong Beer .....................................................................48
APB International Brands......................................................................................50
Heineken ..........................................................................................................50
ABC Extra Stout .............................................................................................50
Anchor ..............................................................................................................50
Marketing Mix of Tiger Beer..................................................................................51
Product..................................................................................................................53
Price ......................................................................................................................58
Factors affecting pricing decisions ................................................................58
Primary considerations in price setting ........................................................58
Pricing in Mumbai...........................................................................................59
Place......................................................................................................................61
Distribution Network.......................................................................................62
Distributors of APBI........................................................................................63
Promotion.................................................................................................................65
Major Tools in Marketing Beer......................................................................65
Marketing Activities at APBI .........................................................................65
Sales Promotion....................................................................................................71
Various sales promotions techniques adopted at APBI................................74
Permit Room Activation..................................................................................76
Tracking Effectiveness of sales promotion.........................................................78
Designing a Powerful Sales Promotion..........................................................78
Packaging .................................................................................................................79
Beer Advertising ......................................................................................................82
Surrogate Advertising in liquor industry ..........................................................83
Surrogate for Tiger Beer - Tiger Translate .......................................................84
Why Tiger Translate in India..........................................................................84
Competitors of Tiger Beer in Mumbai ..................................................................86
Carlsberg .............................................................................................................86
Budweiser..............................................................................................................87

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Kingfisher Mild....................................................................................................89
Fosters ..................................................................................................................91
Health effects............................................................................................................92
Community & Environment ..................................................................................94
A Responsible Beer Company ............................................................................94
Asia Pacific Breweries Foundation.....................................................................94
Responsible Alcohol Consumption.....................................................................95
SWOT Analysis of APBI..........................................................................................97
Why Beer better than Milk.....................................................................................99
Top 10 Reasons Beer is Good for your Health ....................................................101
The Future..............................................................................................................104
Conclusion .............................................................................................................106
Questionnaire.........................................................................................................108
Bibliography & Webliography .............................................................................112

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Industry Basics
Alcohol Market
1. Spirits –Whisky, Rum (Dark, White) Vodka, Brandy, Gin, Ready To Drink
(RTD)

2. Beer – Mild, Strong

3. Wine & Champaign – Red Wine, White Wine, Champaign

4. Country Liquor

Location of consumption & Sale


ON PREMISE OFF PREMISE

Clubs Hyper Marts

Restaurants & Bar Super Marts

Permit Room Wine Shops

Modern on Trade (MOT): Pubs, Beer Shoppee

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Business hours prescribed in Maharashtra
Business hours for Policy

FL-III 11.30 a.m. to 1.30 am in Mumbai & Thane


(Permit Room) 11.30 a.m. to 11.00 p.m. elsewhere

FL-II 10.00 a.m. to 10.30 p.m. in Mumbai & Thane


(IMFL Retail Shops) 10.00 a.m. to 9.30 p.m. elsewhere

CL-III 10.00 a.m. to 12.00 Midnight in Municipal Area


(CL Retail shops & Permit room) 10.00 a.m. to 10.00 p.m. elsewhere

E & E – II (Beer Bar & Wine Bar) 9.00 a.m. to 12.00 Midnight

Universe for selling Beer in Mumbai


Name of Location Number

Institutions 450

Permit Room 1172

Retail Shops 570

Beer Shoppee 60

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Beer
Beer is the world's oldest and most popular alcoholic beverage. Some of the
earliest known writings refer to the production and distribution of beer. It is
produced by the fermentation of sugars derived from starch-based material—the
most common being malted barley; however, wheat, corn, and rice are also widely
used, usually in conjunction with barley.

The starch source is steeped in water. Enzymes in the malt break down the
starch molecules, producing a sugary liquid known as wort, which is then flavored
with hops, which acts as a natural preservative. Other ingredients such as herbs or
fruit may be added. Yeast is then used to cause fermentation, which produces
alcohol and other waste products from anaerobic respiration of the yeast as it
consumes the sugars. The process of beer production is called brewing.

Beer uses many varying ingredients, production methods and traditions.


Different types of yeast and production methods may be used to classify beer as ale,
lager or spontaneously fermented beer. Some beer writers and organizations
differentiate and categorise beers by various factors into beer styles. Alcoholic
beverages fermented from non-starch sources such as grape juice (wine) or honey
(mead), as well as distilled beverages, is not classified as beer.

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Different Strokes of Beer

LAGER Brewed using bottom-fermenting yeast that ferments slowly at a low


temperature to create a smoother, mellow beer

ALE Uses top-fermenting yeast, is a more aromatic and fruity product

STOUT Dark and heavy, with roasted unmalted barley and, often, caramel
malt or sugar

MILD BEER Developed as a sweeter and cheaper alternative to dark ales

BITTER Highly hopped for a more dry and aromatic beer. It is pale in colour
but strong

DARK BEER Barley is kilned for a longer period of time which creates richer
flavours

FRUIT BEER Fruit , usually berries, is added either during primary fermentation or
later

WHEAT BEER Malted wheat and barley are used for this German style beer
(WEIZEN)

A great many beers are brewed across the globe. Local traditions will give
beers different names, giving the impression of a multitude of different styles.
However, the basics of brewing beer are shared across national and cultural
boundaries.

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Alcoholic strength of Beer
While we all love the taste of beer, it's the alcohol content thats responsible
for beers standing in most societies. Its the alcohol content of beer that makes it the
number one social lubricant. The alcohol content of beer is generally denoted by the
"percent alcohol by volume", or % ABV. "Percent alcohol by wieght", % ABW,
could also be used. It's easy to convert between them. ABW = 0.8 × ABV.

Beer ranges from less than 3% alcohol by volume (ABV) to almost 30%
ABV. The alcohol content of beer varies by local practice or beer style. The pale
lagers that most consumers are familiar with fall in the range of 4–6%, with a typical
abv of 5%.
"Low alcohol beer", also known as "non-alcoholic beer" contains less than 1% ABV.
The strongest beer ever made was the Hair of the Dog Brewing Company's barley
wine named "Dave", which was 29% ABV.

The alcohol in beer comes primarily from the metabolism of sugars that are
produced during fermentation. The quantity of fermentable sugars in the wort and
the variety of yeast used to ferment the wort are the primary factors that determine
the amount of alcohol in the final beer. Additional fermentable sugars are sometimes
added to increase alcohol content, and enzymes are often added to the wort for
certain styles of beer (primarily "light" beers) to convert more complex
carbohydrates (starches) to fermentable sugars. Alcohol is a byproduct of yeast
metabolism and is toxic to the yeast; typical brewing yeast cannot survive at alcohol
concentrations above 12% by volume. Low temperatures and too little fermentation
time decreases the effectiveness of yeasts, and consequently decreases the alcohol
content.

The type of beer plays a large role in the alcohol content. While it's not exact,
if you know the type of beer you can generally estimate how much alcohol you will
be imbibing. This is an important skill to have. For instance if you go to a pub and
all your friends are drinking pale ales, and you start ordering barley wines; if you try
to keep up with them, you might not make it out of the pub without being carried.
The following chart will help in these situations:

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Beer Alcohol Content Table

Beer Type %ABV

Lager 4–5

Pilsner Lager 3–6

Wheat (Weissbier) 4–5

Porter 4–5

Bitter (ESB) 3–7

IPA (India Pale Ale) 5–7

Stout 5 – 10

Double (Dubbel) 6.5 – 9

Tripel (Trippel, Triple) 7.5 - 9.5

Barleywine 8 – 12

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History of Beer

General History
Beer is one of the world's oldest beverages, possibly dating back to the 6th
millennium BC, and is recorded in the written history of ancient Egypt and
Mesopotamia. The earliest Sumerian writings contain references to beer. A prayer to
the goddess Ninkasi known as "The Hymn to Ninkasi" serves as both a prayer as
well as a method of remembering the recipe for beer in a culture with few literate
people.

The earliest known chemical evidence of beer dates to circa 3500–3100 BC


from the site of Godin Tepe in the Zagros Mountains of western Iran. As almost any
substance containing carbohydrates, namely sugar or starch, can naturally undergo
fermentation, it is likely that beer-like beverages were independently invented
among various cultures throughout the world. The invention of bread and beer has
been argued to be responsible for humanity's ability to develop technology and build
civilization.

As for the close link between bread- and beer-making, women produced
most beer prior to the introduction of hops in the thirteenth century, selling the
beverage from their homes as a means of supplementing the family income.
However, by the 7th century AD beer was also being produced and sold by
European monasteries. During the Industrial Revolution, the production of beer
moved from artisanal manufacture to industrial manufacture, and domestic
manufacture ceased to be significant by the end of the 19th century. The
development of hydrometers and thermometers changed brewing by allowing the
brewer more control of the process, and greater knowledge of the results. Beer was
also known by Slavic tribes in early 5th century.

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History of Beer in India
Modern beer brewing began for India in the early days of the British Empire
— the mid-1700s. The demand for beer in the hot climate of many parts of India by
the British administrators and the troops was so great that it led to the creation of a
completely new style of beer by George Hodgson in his London brewery — India
Pale Ale also known as IPA. IPA is strong, highly hopped ale designed to survive the
five month ocean voyage to India without spoiling. India Pale Ale was shipped with
every voyage for over a century and became very popular in Britain and North
America.

In the late 1820s Edward Dyer moved from England to set up the first
brewery in India at Kasauli (later incorporated as Dyer Breweries in 1855) in the
Himalaya Mountains, near Shimla, producing Asia's first beer called Lion. The
brewery was soon shifted to nearby Solan (close to the British summer capital
Shimla), as there was an abundant supply of fresh spring water there. The Kasauli
brewery site was converted to a distillery which Mohan Meakin Ltd. still operates.
Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay.

Another entrepreneur, H G Meakin, moved to India and bought the old


Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet,
Dalhousie, Chakrata, Darjeeling and Kirkee. In 1937, when Burma was separated
from India, the company was restructured with its Indian assets as Dyer Meakin
Breweries, a public company on the London Stock Exchange. Following
independence, in 1949 N.N. Mohan took over management of the company and the
name was changed to Mohan Meakin Ltd. The company continues to produce beer
across India to this day and Lion is still available in northern India. Lion was
changed from an IPA to a lager in the 1960s, when due to East European influence,
most brewers in India switched from brewing Ales to brewing lagers.

Today no brewer in India makes India Pale Ale. All Indian beers are either
lagers (5 % alcohol — such as Australian lager) or strong lagers (8 % alcohol - such
as the popular MAX super strong beer). International Breweries Pvt. Ltd. have
recently announced an intention to work with Mohan Meakin to produce and launch
an India Pale Ale called Indian IPA from India's first brewery at Solan. Kingfisher,

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Haywards, Kalyani Black Label, Soumitree, Jaguar, Foster's, Castle Lager, Royal
Challenge, Max, Kings and Belo are popular Indian beer brands.

In various parts of north-eastern India, traditional rice beer is quite popular.


Several festivals feature this nutritious, quite intoxicating, drink as part of the
celebrations. The rice is fermented in vats that are sometimes buried underground.
Elephants are known to attack villages, with the primary agenda of drinking from
these vats. Following one such raid in north-eastern India, a police officer in Dumka
was quoted in the press as saying: "Tribals who love rice beer brew the liquor at
home. Elephants too are fond of this beer. Often it is found that, attracted by the
strong smell of the liquor, wild elephants tear down the tribal houses where the brew
is stored."

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Overview of Indian Beer Market

Market Definition

The beer market consists of ales, stouts & bitters, low/no alcohol beers,
premium lager, specialty beers and standard lager. The market is valued according to
retail selling price (RSP) and includes any applicable taxes. The Indian beer market
delivered strong, stable growth over the last five years. Looking forward, this trend
is expected to persist through to 2011.

The Indian beer market generated total revenues of $874.2 million in 2006,
this representing a compound annual growth rate (CAGR) of 6.6% for the five-year
period spanning 2002-2006. Standard lagers proved the most lucrative for the Indian
beer market in 2006, generating total revenues of $760.3 million, equivalent to 87%
of the market's overall value. The performance of the market is forecast to follow a
similar pattern, with an anticipated CAGR of 6.8% for the five-year period 2006-
2011 expected to drive the market to a value of $1,213 million by the end of 2011.

Market Value

Year $ million INR billion % Growth

2002 677.7 29.9

2003 722.5 31.9 6.60%

2004 769.4 33.9 6.50%

2005 819.4 36.1 6.50%

2006 874.2 38.6 6.70%

CAGR 2002-2006: 6.6%


Source: Datamonitor

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Market Segmentation I

Sales of standard lager form the most lucrative sector of the Indian beer
market, with an 87% share of the market's value. In addition, sales of premium lager
generate a further 6.2% of the market's revenues.

Category % Share

Standard lager 87.00%

Premium lager 6.20%

Ales, stouts & bitters 3.20%

Low/no alcohol 2.90%

Specialty beer 0.70%

Total 100.0%

Market Segmentation II

India accounts for 1.3% of the Asia-Pacific market by value. In comparison,


Japan generates 45.5% of the market's revenues

Geography % Share

Japan 45.50%

China 36.40%

South Korea 9.50%

Rest of Asia-Pacific 7.30%

India 1.30%

Total 100.0%

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Market Share

United Breweries is the leading company in the Indian beer market, with a
50.3% share of the market's volume. In comparison, SAB Miller accounts for 34.2%
of the total market's volume.
Market share in volume

Company % Share

APB 4%

United Breweries Limited 50.30%

SAB Miller India 34.20%

Mohan Meakin 10.10%

Other 5.30%

Total 100.0%

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Comparison of Indian & US Beer Industry
Indian Beer Industry
The Indian beer industry has been witnessing steady growth of 7-9% per year
over the last ten years. The rate of growth has remained steady in recent years, with
volumes passing 100m cases during the 2005-2006 financial year. With the average
age of the population on the decrease and income levels on the increase, the
popularity of beer in the country continues to rise.

The Indian beer market was estimated to be 6.7 million hectoliters (hl) in
2002-03. Beer consumption has been growing rapidly at a CAGR (Compound
Annual Growth Rate) of 7% over the last 9 years, while growth in 2002-03 was 11
per cent. Indian growth rates compare favorably with the global beer industry, which
grew by about 2.6 per cent in 2001-02 Apart from providing strong growth; India
also provides attractive profit margins due to the consolidated nature of the industry.

A comparison between China and India, for example, reveals that the
Chinese beer market is marked by intense competition, with several players being
marginalized.
In China there are about 400 brewers, of which the top 10 account for only 45 per
cent of the market. This has resulted in low profit margins for the Chinese beer
players.

In contrast, the top two beer players in India account for about 75 per cent of
beer sales in India and the industry stands a chance to see more consolidation in the
near future. The effect of this consolidation can be seen in the fact that beer prices in
India rarely go down with the competitive pressures of new product or brand
launches. In the past, whenever beer prices have gone down, it has been due to either
the lowering of duties by the government or the deregulation of distribution (leading
to lower margins for the distribution channel partners). In neither scenario have the
margins or revenues of beer manufacturers been affected.

Per capita consumption in India is hovering around a measly 1 litres per


annum. These figures pale into insignificance if one compares them with those of
Czech Republic that has the highest per capita consumption of 156.9 litres per

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annum. Per capita consumption is directly related to the taxation, according to an
industry observer.

US Beer Industry
The U.S. brewing industry is dominated by three firms – Anheuser-Busch,
SAB-Miller, and Coors – who together account for about 80% of beer shipments.
Anheuser-Busch has been the leading firm in the industry every year since 1957.
Miller joined the top three in 1976, following the introduction of Lite beer. Coors
became one of the top three brewers in 1989 after it expanded nationally and
displaced Stroh. However, despite a high level of industry concentration, the real
price of beer has been stable or declining since 1963. In recent years, a number of
marketing concerns have affected the industry leaders, including growth of beer
imports to an 11% share; a decline of sales of leading premium brands (Budweiser,
Miller High Life, Miller Genuine Draft); competition from new products and
marketing methods (flavored malt beverages, direct shipments of beer and wine);
competition from specialty-craft brewers; and continued attempts by neo-prohibition
groups to demonize the industry, especially its advertising and marketing practices.

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Determinants of growth of Indian Beer Market
The Indian beer market has been growing rapidly over the last 10 years, due
to the positive impact of demographic trends and expected changes, like:

Rising income levels:


India is home to nearly one-sixth of the global population and is one of the most
attractive consumer markets in the world today. Various research studies have shown
that a rise in the income levels has a direct positive effect on beer consumption. The
National Council for Applied Economic Research (NCAER) projects India's 'very
rich', 'consuming' and 'climbers' classes to grow at a CAGR of 15 per cent, 10 per
cent and 2 per cent respectively. With this growth in income levels, Indian beer
consumption is expected to continue growing, at the very minimum, at the growth
rates witnessed in the last decade.

Changing age profile:


As a consequence of the high birth rates prevalent until the 1990s, a large proportion
of the Indian population is in the age group of 20-34 years. This age group is the
most appropriate target for beer marketers. This population trend will give a further
boost to the growth of beer consumption in India. Many global players are planning
to enter the Indian beer sector and they realise that a partnership with a local player
is important to establish a successful presence in India in a short time frame.

Changing lifestyles:
A deep-seated traditional social aversion to alcohol consumption has been a
traditional feature of the Indian society. However, as urban consumers become more
exposed to western lifestyles, through overseas travel and the media, their attitude
towards alcohol is relaxing. Social habits are undergoing a transformation as mixed
drinks are becoming more popular. The greatest evidence of this trend is the increase
in beer consumption among women. With increasing urbanisation, this acceptance is
only going to rise.

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Reduction in beer prices:
The Indian consumer typically values an alcoholic beverage on the basis of
its 'kick' factor versus its price. The following two factors therefore, affect the
market for beer. Firstly, as most states do not have a differential tax structure based
on the alcohol content, strong beer.

In India the future of beer industry is very much optimistic


because:

1. India has predominantly a warm/hot climate

2. The beer-drinkers in the country are much younger than the average beer-
drinker elsewhere in the world. This makes them more likely to carry the
brand with them for a lifetime.

3. Also, as the target audience becomes younger, a light beer is expected to


attract first-time drinkers, since it is much milder than any of the other beers
in the country.

4. Increasing exposure to beer and wine drinking, mainly due to media and
consumer mobility.

All these factors combined make the scenario very promising for beer
industry and are 'in sync' with their strategy for India.

UB (United Breweries Ltd.) is the market leader in the Indian beer market
with a 40% market share. Its flagship Kingfisher brand alone commands 25%
market share. The company has however been focussing on strong beer, which has
driven growth. The company introduced its strong beer, Kingfisher Strong during the
year 2000 in the selected market of Maharashtra and Karnataka. The move came as a
reactive move following increasing shift of consumers towards strong beer, a trend
started by Shaw Wallace. While the overall market grew marginally by 2%, the
strong beer market grew at 8-10% during the year at the expense of lager beer. The
market is now skewed towards strong beer with more than 60% of the market being
strong beer market.

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Beer mix today is approximately 60 percent lager beer and 40 percent strong
beer. This ratio was very different 4 years ago. Over the last four years strong beer
has been the fastest growing segment. This was completely usurped by Shaw
Wallace. As of today while Shaw Wallace has approximately 28 to 30 percent of the
strong beer market, UB already has achieved 14 to 15 percent of that strong beer
market and is growing very fast. It launched Kingfisher Strong only in May of 2001.
And once it is able to take Kingfisher Strong national, it will try to match Shaw
Wallace's market share over the next few years.

Apart from Kingfisher, and Foster's Beer, the other brands in the Indian
market are Carling Black Label, Carlsberg, Tiger, Baron’s, Heinekin, Budweiser,
Corona, Dansberg, Golden Eagle, Guru, Maharaja Premium Lager, Haake Beck,
Haywards 2000 Beer, Haywards 5000, Haywards skol, Flying Horse Royal Lager,
Taj Mahal, Hi-Five, Ice, Kingfisher Diet, Kingfisher Strong, Kirin, KnockOut,
Legend, London Diet, London Draft, London Pilsner, Royal Challenge, San Miguel
Lager, Sand Piper, Strohs and Zingaro.

The major brands which belong to large groups in the industry (apart from
UB) are – Shaw Wallace - Royal Challenge Premium Lager, Haywards 2000
Premium Lager, Haywards 5000 Super Strong, Hi-Five and Lal Toofan.

South African Breweries India Ltd. - Knock-Out, Continental and Three


Lions, a new brand that was launched in the autumn of 2001 by SAB in Uttar
Pradesh, Chandigarh and Himachal Pradesh.

Other possible competition – Radico Khaitan and beer international


Interbrew has formed a joint venture to distribute Interbrew's Beck's brand of beer in
India. The premium lager beer segment in India will be targeted. Radico has also
announced the launch of its international division.

A lot of new variants promise to gain prominence, but mainly in niche urban
segments. The sophisticated consumer who drinks beer for the experience and not to
get drunk will lap up ice beer or light beer. In urban centers, apart from first time
users companies are also targeting women, who as 'the times they are a changing,'
are entering the market for beer. Essentially, women shy away from beer

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consumption because it is associated with calories, and has traditionally been a
buddy drink, associated with pot-bellied men sitting at bars and shooting darts.

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Indian Brewing industry
Today, the brewing industry is a huge global business, consisting of several
dominant multinational companies and many thousands of smaller producers
ranging from brewpubs to regional breweries. More than 133 billion liters (35
billion gallons) are sold per year—producing total global revenues of $294.5 billion
in 2006.

InBev is the largest beer-producing company in the world, followed by


SABMiller, which became the second-largest brewing company when South African
Breweries acquired Miller Brewing in 2002. Anheuser-Busch holds the third spot.

Breweries in Maharashtra
Sr. Name of Brewery District Factory Address Phone No.

1 Associated Breweries Thane Plot D103, Trans 022-27671939


& Distilleries Thane creek ind area,
Sion- Panvel Rd,
A/P Shirwane

2 Hindustan Breweries & Thane C/23-24, Wagle


Bottling Ltd. Industrial Estate

3 Bombay Breweries Raigad Plot M-1, MIDC, 022-27410632


Industrial Area

4 Mohan Rocky Spring Raigad Mohan Wadi, Khopoli, 02192-262461


Water Breweries Ltd.

5 Skol Breweries Raigad Kegaon, Tal Uran 022-27222139

6 Skol Breweries Ltd Satara E-1, MIDC Industrial


(Unit of Doburg Ltd.) Estate

7 Arlem (Aurangabad Aurangabad Plot No H-9, 10,11,& 0240-2564172


Breweries/Asia Pacific 13, MIDC Industrial
Breweries-Heineken) Area, Walunj

8 Inertia Industries Aurangabad Plot No 1-10, MIDC 0240-2554979


Area, Walunj

9 Foster’s India Aurangabad M-99, MIDC, Walunj 0240-2554563

10 Lilasons Breweries Aurangabad 1-1-7 MIDC, Walunj, 8 0240-2555198

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Bansilal Nagar

11 Pals Distilleries Aurangabad L-5, MIDC, Walunj 0240-2555236

Brewing Process
Beer is made by brewing. The essential stages of brewing are mashing,
sparging, boiling, fermentation, and packaging. Most of these stages can be
accomplished in several different ways, but the purpose of each stage is the same
regardless of the method used to achieve it.

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Image Courtesy: Aurangabad Breweries Ltd.
Batch Size: 100 HL
Time Taken for each brew – 8.5 Hrs
Max. No. of Brews/ Days - 06 Nos.

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Fermentation Flow Chart

Image Courtesy: Aurangabad Breweries Ltd.


Total No. of Unitanks:9
Total Fermnters : 8 Nos.
Total Storage Tanks : 12 Nos.
Total No. of Bright Beer Tanks : 04

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Stages in Beer Making
Mashing
Mashing manipulates the temperature of a mixture
of water and a starch source (known as mash) in order to
convert starches to fermentable sugars. The mash goes
through one or more stages of being raised to a desired
temperature and left at the temperature for a period of time.
During each of these stages, enzymes (alpha and beta
amylase primarily) break down the long dextrins that are
present in the mash into simpler fermentable sugars, such as
glucose. The number of stages required in mashing depends
on the starch source used to produce the beer. Most malted
barley used today requires only a single stage.

Sparging
Sparging (a.k.a. Lautering) extracts the fermentable liquid, known as wort,
from the mash. During sparging the mash is contained in a lauter-tun, which has a
porous barrier through which wort but not grain can pass. The brewer allows the
wort to flow past the porous barrier and collects the wort. The brewer also adds
water to the lauter-tun and lets it flow through the mash and collects it as well. This
rinses fermentable liquid from the grain in the mash and allows the brewer to gather
as much of the fermentable liquid from the mash as possible. The leftover grain is
not usually further used in making the beer. However, in some places second or even
third mashes would be performed with the not quite spent grains. Each run would
produce a weaker wort and thus a weaker beer.

Boiling
Boiling sterilises the wort and increases the concentration of sugar in the
wort. The wort collected from sparging is put in a kettle and boiled, usually for
about one hour. During boiling, water in the wort evaporates, but the sugars and
other components of the wort remain; this allows more efficient use of the starch
sources in the beer. Boiling also destroys any remaining enzymes left over from the

27
mashing stage as well as coagulating proteins passing into the wort, especially from
malted barley, which could otherwise cause protein 'hazes' in the finished beer. Hops
are added during boiling in order to extract bitterness, flavour and aroma from them.
Hops may be added at more than one point during the boil. As hops are boiled
longer, they contribute more bitterness but less hop flavour and aroma to the beer.

Fermentation
Fermentation uses yeast to turn the sugars in wort to alcohol and carbon
dioxide. During fermentation, the wort becomes beer. Once the boiled wort is cooled
and in a fermenter, yeast is propagated in the wort and it is left to ferment, which
requires a week to months depending on the type of yeast and strength of the beer. In
addition to producing alcohol, fine particulate matter suspended in the wort settles
during fermentation. Once fermentation is complete, the yeast also settles, leaving
the beer clear. Fermentation is sometimes carried out in two stages, primary and
secondary. Once most of the alcohol has been produced during primary
fermentation, the beer is transferred to a new vessel and allowed a period of
secondary fermentation. Secondary fermentation is used when the beer requires long
storage before packaging or greater clarity.

Pasteurisation
Pasteurisation is an optional stage of the beer process in which the beer is
slowly heated and cooled to kill off any existing bacteria in order to maintain longer
shelf life. This is generally a stage not included in higher end beers, but is quite
common in mass-produced beers such as American-Style lite beers, and other mass-
produced lagers. It is less common in ales as pasteurization can change the many
flavours.

Packaging
Packaging, the fifth and final stage of the brewing process, prepares the beer
for distribution and consumption. During packaging, beer is put into the vessel from
which it will be served: a keg, cask, can or bottle. Beer is carbonated in its package,
either by forcing carbon dioxide into the beer or by "natural carbonation". Naturally
carbonated beers may have a small amount of fresh wort/sugar and/or yeast added to

28
them during packaging. This causes a short period of fermentation which produces
carbon dioxide.

29
Ingredients of Beer
Beer is made from 4 simple ingredients; water, grain
(barley, wheat, rice, corn, or other cereals), yeast, and hops.
Other ingredients are used by many brewers to create
distinctive tastes and characters. Brewing beer is a mix of
both chemistry and art. The most successful brewer will not
only understand all aspects of brewing but will also have
the love and devotion of the beer drinker.

Water
Beer is composed mostly of water, and the water used to make beer nearly
always comes from a local source. The mineral components of water are important
to beer because minerals in the water influence the character of beer made from it.
Different regions have water with different mineral components. As a result, it is
argued that the mineral components of water have an influence on the character of
regional beers.

Malt
The starch source in a beer provides the fermentable material in a beer and is
a key determinant of the character of the beer. The most common starch source used
in beer is malted grain. Grain is malted by soaking it in water, allowing it to begin
germination, and then drying the partially germinated grain in a kiln. Malting grain
produces enzymes that convert starches in the grain into fermentable sugars.
Different roasting times and temperatures are used to produce different colours of
malt from the same grain. Darker malts will produce darker beers.

Hops
The flower of the hop vine is used as a flavouring and preservative agent in
nearly all beer made today. The flowers themselves are often called "hops". Hops
contain several characteristics that brewers desire in beer: hops contribute a

30
bitterness that balances the sweetness of the malt; hops also contribute floral, citrus,
and herbal aromas and flavours to beer.

The acidity of hops acts as a preservative that—after its introduction—gave


brewers the ability to transport their product over longer distances, thereby allowing
for the rise to commercial breweries. The bitterness of beers is measured on the
International Bitterness Units scale.

Yeast
Yeast is the microorganism that is responsible for fermentation in beer. Yeast
metabolizes the sugars extracted from grains, which produces alcohol and carbon
dioxide, and thereby turns wort into beer. In addition to fermenting the beer, yeast
influences the character and flavour. The dominant types of yeast used to make beer
are ale yeast and lager yeast; their use distinguishes ale and lager.

Clarifying agent
Some brewers add one or more clarifying agents to beer. Common examples
of these include isinglass finings, obtained from swimbladders of fish; Irish moss, an
seaweed; Polyclar (artificial); and gelatin. Clarifying agents typically precipitate out
of the beer along with protein solids, and are found only in trace amounts in the
finished product.

31
Categorizing beer by
Yeast
The most common method of categorizing beer is by the behavior of the
yeast used in the fermentation process. In this method of categorizing, those beers
which use fast-acting yeast, which leaves behind residual sugars, are termed ales,
while those beers which use a slower and longer acting yeast, which removes most
of the sugars, leaving a clean and dry beer, are termed lagers. Differences between
some ales and lagers can be difficult to categorize.

Ale
Modern ale is commonly defined by the strain of yeast used and the
fermenting temperature. Ales are normally brewed with top-fermenting yeasts. The
important distinction for ales is that they are fermented at higher temperatures and
thus ferment more quickly than lagers.

Ale is typically fermented at temperatures between 15 and 24 °C (60 and 75


°F). At these temperatures, yeast produces significant amounts of esters and other
secondary flavour and aroma products, and the result is often a beer with slightly
"fruity" compounds resembling apple, pear, pineapple, banana, plum, or prune,
among others.

Lager
Lager is the English name for bottom-fermenting beers of Central European
origin. They are the most commonly consumed beers in the world. The name comes
from the German lagern ("to store"). Lagers originated from European brewers
storing beer in cool cellars and caves and noticing that the beers continued to
ferment, and also to clear of sediment. Modern methods of producing lager were
pioneered by Gabriel Sedlmayr the Younger, who perfected dark brown lagers at the
Spaten Brewery in Bavaria, and Anton Dreher, who began brewing a lager, probably

32
of amber-red colour, in Vienna in 1840–1841. With improved modern yeast strains,
most lager breweries use only short periods of cold storage, typically 1–3 weeks.

Lambic beers
Lambic beers, a speciality of Belgian beers, use wild yeasts, rather than
cultivated ones. Many of these are not strains of brewer's yeast, and may have
significant differences in aroma and sourness.

Pale and dark beer


The most common colour is pale amber produced from using pale malts.
Pale lager is a term used for beers made from malt dried with coke. Coke had been
first used for roasting malt in 1642, but it wasn't until around 1703 that the term pale
ale was first used.

Dark beers are usually brewed from a pale malt or lager malt base with a
small proportion of darker malt added to achieve the desired shade. Other colourants
—such as caramel—are also widely used to darken beers. Very dark beers, such as
stout use dark or patent malts that have been roasted longer. Guinness and similar
beers include roasted unmalted barley.

33
Serving
Draught and keg
Draught beer from a pressurized keg is the most common method of
dispensing in bars around the world. A metal keg is pressurized with carbon dioxide
(CO2) gas which drives the beer to the dispensing tap or faucet. Some beers, notably
stouts, such as Guinness and "smooth" bitters, such as Boddingtons, may be served
with a nitrogen/carbon dioxide mixture. Nitrogen produces fine bubbles, resulting in
a dense head and a creamy mouth feel. Some types of beer can also be found in
smaller, disposable kegs called beer balls.

Cask-conditioned ales
Cask-conditioned ales (or "cask ales") are unfiltered and unpasteurised beers.
These beers are termed "real ale" by the Camra organisation. Typically, when a cask
arrives in a pub, it is placed horizontally on a stillage and allowed to cool to cellar
temperature, before being tapped and vented—a tap is driven through a (usually
rubber) bung at the bottom of one end, and a hard spile or other implement is used to
open a hole in the side of the cask, which is now uppermost. At this point the beer is
ready to sell, either being pulled through a beer line with a hand pump, or simply
being "gravity-fed" directly into the glass.

Bottles
Most beers are cleared of yeast by filtering when bottled. However, bottle
conditioned beers retain some yeast—either by being unfiltered, or by being filtered
and then reseeded with fresh yeast. It is usually recommended that the beer be
poured slowly, leaving any yeast sediment at the bottom of the bottle.

Cans
Many beers are sold in beverage cans, though there is considerable variation
in the proportion between different countries. People either drink from the can or
pour the beer into a glass. Cans protect the beer from light and have a seal less prone
to leaking over time than bottles. Cans were initially viewed as a technological
breakthrough for maintaining the quality of a beer, then became commonly

34
associated with less-expensive, mass-produced beers, even though the quality of
storage in cans is much like bottles.

Vessels
Beer is consumed out of a variety of vessels, such as a glass, a beer stein, a
mug, a pewter tankard, a beer bottle or a can. Some drinkers consider that the type
of vessel influences their enjoyment of the beer. Some breweries offer branded
glassware intended only for their own beers.

Serving temperature
The temperature of a beer has an influence on a drinker's experience. Colder
temperatures allow fully attenuated beers such as pale lagers to be enjoyed for their
crispness; while warmer temperatures allow the more rounded flavours of an ale or a
stout to be perceived. Beer writer Michael Jackson proposed a five-level scale for
serving temperatures:

• Well chilled (7 °C/45 °F) for "light" beers (pale lagers),


• Chilled (8 °C/47 °F) for Berliner Weisse and other wheat beers,
• Lightly chilled (9 °C/48 °F) for all dark lagers, altbier and German wheat
beers,
• Cellar temperature (13 °C/55 °F) for regular British ale, stout and most
Belgian specialties and
• Room temperature (15.5 °C/60 °F) for strong dark ales and barley wine.

35
By-products / Waste
Beer brewing produces several byproducts that can be used by other
industries. During the malting of the barley, rootlets form on the grain and drip off.
These can be collected and used for animal feed. The hops that are filtered out from
the finished wort can also be collected and used again as fertilizer. The residual yeast
from the brewing process is a rich source of B vitamins. It can be put to use by
pharmaceutical companies to make vitamins or drugs, or used as a food additive.
Used beer cans and beer bottles are routinely recycled.

36
Taxation Policies
Excise Duties
Government has different policies for charging excise on mild beer and
strong beer which is highlighted in the table below.

Mild Beer Strong Beer

1 100% of Manufacturing cost 1 125% of Manufacturing cost

2 RS. 16 Per Litre 2 RS. 20 Per Litre

Which ever is higher of above two conditions

Octroi
Previously 4 to 7 per cent of octroi duty was charged on beer on billed
invoice, but government came to know the loop hole in the system of which undue
advantage was taken by the companies so to curb this government has decided to
charge 4 – 7% octroi on MRP of product after giving discount of 25%.

37
About APB

Corporate Profile
Listed on the Singapore Exchange, Asia Pacific Breweries Limited (APB) is
one of the key players in the beer industry. A joint venture between the Fraser and
Neave Group of companies and Heineken International, APB was established as
Malayan Breweries Limited (MBL) in 1931. It went on to open its first brewery in
Singapore and launched the award-winning Tiger Beer a year later.

To more accurately reflect the growing regionalization of its business


interests, MBL was renamed Asia Pacific Breweries Limited in 1990. Today, APB
oversees a portfolio of over 40 beer brands and brand variants, including Tiger
Beer, Heineken, Anchor and ABC Stout. The group operates an extensive global
marketing network, which spreads across 60 countries and is currently supported by
breweries in countries including Singapore, Cambodia, China, India, Laos,
Malaysia, Mongolia, New Zealand, Papua New Guinea, Sri Lanka, Thailand,
and Vietnam.

With more than 70 years in the brewing industry, APB has been consistently
ranked by the Far Eastern Economic Review as one of the top companies in Asia.
KPMG also rated APB as among the top ten value creators in Singapore, for having
consistently added value for its customers, consumers and shareholders.

APB benchmarks itself against international brewing standards and observes


the most stringent brewing process that sees no less than 250 quality control
checks. This explains why APB breweries are among the forerunners in their
respective markets with various Quality Assurance Certifications including the
ISO 9002, ISO 9001:2000, and the Hazard Analysis and Critical Control Point.

APB's flagship brew, Tiger Beer commands a strong following in Asia and
is also widely enjoyed in many European Cities such as London, Manchester,
Dublin, Glasgow, Berlin, Copenhagen, Stockholm and many others. The
internationally recognised Singapore beer has accumulated a long list of accolades,
awards and distinctions.

38
APB is also one of the few corporate organizations in Singapore to set up its
own philanthropic foundation, the Asia Pacific Breweries Foundation to render
financial aid to causes in Creativity Development, Achievements in Human
Excellence and Humanitarian Awards.

Fraser & Neave, Limited


Fraser and Neave, Limited (F&N) is a leading Pan Asian Consumer Group
with core expertise and dominant standing in the Food and Beverage, Property and
Printing & Publishing industries. Leveraging on its strengths in marketing and
distribution; research and development; brands and financial management; as well as
acquisition experience, it provides key resources and sets strategic directions for its
subsidiary companies across all three industries. F&N's commitment is to grow and
strengthen its core businesses so as to provide sustainable earnings to shareholders
through geographical expansions.

Today, F&N owns an impressive array of renowned brands that enjoy market
leadership across a mix of beer, dairies, soft drinks and beverages; residential
properties, retail malls and serviced residences; as well as publishing and printing
services. Listed on the Singapore Exchange, F&N's shareholders' funds are in excess
of S$3billion, and its total assets employed exceed S$7billion. F&N is present in
more than 20 countries spanning across Asia Pacific, Europe and USA and employs
more than 14,000 employees worldwide.

Heineken
Heineken has its roots in Amsterdam, where in 1864, Gerard Adriaan
Heineken acquired the Hooiberg (Haystack) brewery. This brewery itself dates back
to 1592. Heineken N.V. is the most international brewer in the world. The Heineken
brand is sold in almost every country in the world and the company owns over 115
breweries in more than 65 countries with a total volume of 113 million hectolitres.
Heineken owns and manages a strong portfolio of more than 120 top selling brands,
which has Heineken at its centre.

39
Members of the Asia Pacific Breweries Group

Cambodia
• Cambodia Brewery Ltd.

China
• Heineken-APB (China) Management Services Co. Ltd.
• Shanghai Asia Pacific Brewery Co. Ltd.
• Hainan Asia Pacific Brewery Company Ltd.
• Kingway Trading (Shanghai) Co. Ltd.
• Jiangsu DaFuHao Breweries Co. Ltd.

India
• Asia Pacific Breweries (Aurangabad) Ltd.
• Asia Pacific Breweries (Pearl) Ltd.

Laos
• Lao Asia Pacific Breweries Ltd.

Malaysia
• Guinness Anchor Berhad

Mangolia
• MCS-Asia Pacific Brewery LLC

New Zealand
• DP Breweries Limited

Papua New Guinea


• South Pacific Brewery Ltd.

Singapore
• Asia Pacific Breweries (Singapore) Pte. Ltd.
• Tiger Exports Pte. Ltd.

Sri Lanka
• Asia Pacific Brewery (Lanka) Limited.

Thailand
• Thai Asia Pacific Breweries Co. Ltd.

Vietnam
• Hatay Brewery Ltd.

40
• Vietnam Brewery Ltd.

41
Senior Management of APB
Mr Koh Poh Tiong
Chief Executive Officer

Mr Chris Kidd
Regional Director, Indochina

Dr Les Buckley
Regional Director, S.E.A / Oceania

Mr Huang Hong Peng


Regional Director, CEO's Office

Mr Lee Meng Tat


Regional Director, China

Mr Vivek Chhabra
Regional Director, South Asia & Director, Group Business Development

Ms Loy Juat Boey


Director, Group Finance

Mr Nah Kok Chun


General Manager, CEO's Office

Ms Sarah Koh
General Manager, Group Corporate Communications

Ms Geraldine Lim
General Manager, Group Legal

Mr Edmond Neo
General Manager, Group Commercial

Ms Yvonne Yeo
Director, Group Human Resource

42
APB - INDIA

Office Address: 405, Rachanaa Magnum Opus,

Shanti Nagar Industrial Area,

Near Grad Haytt Hotel, Vakola,

Santacruz East, Mumbai 400 055

On 2 May 2006, APB made its


Registration No:
second investment in South Asia by B.S.T. NO. 431136-S-17 DT. 01-04-96
expanding its brewery network to CST NO. 431136-C-10 DT. 01-04-96
include India. APB currently holds a
76% stake in Asia Pacific Breweries (Aurangabad) Limited (APB (Aurangabad))
which owns a brewery in Maharashtra. APB (Aurangabad) produces and markets
Tiger, Baron's and Cannon-10000.

Extending its footprint to Andhra Pradesh, APB on 30 June 2006, entered yet
another joint venture partnership to set up Asia Pacific Breweries-Pearl Private
Limited. APB holds the majority stake of 67% in the joint venture company which is
building a Greenfield Brewery just outside Hyderabad. The brewery is expected to
commence operation in 2008.

Today total turnover of the company is approximately 100 crores Asia


Pacific Breweries (Aurangabad) Ltd. & Pearl

Core Values
• Be passionate about your work.
• Instill sense of urgency.
• Maintain the highest standard of ethics and integrity.
• Work as a team, with respect for each other.
• Deliver quality in all that we do.
• Be cost conscious.

43
• Maintain business confidentiality.
• Have fun at work and strike balance between work and personal life.

44
Locations of Operation

• Mumbai & Navi Mumbai

• Thane & Raigarh

• Delhi

• Goa

• Hyderabad

• Aurangabad

• Bangalore

45
Organization Structure

46
Brand Portfolio
APB Maintains approach of a multi-brand portfolio in each market, it enjoys
an extensive reach across different market segments in different countries. Today,
APB oversees a portfolio of over 40 beer brands including Tiger Beer and Heineken
and several brand variants.

APB BRANDS in India


• Tiger beer
• Baron’s Strong Brew.
• Cannon 10000

Tiger Beer

47
Details of Tiger beer are discussed in detail in marketing mix section of this project.

Baron's Strong Brew


Launched in Singapore in 1997, Baron's Strong Brew is European to the last
drop. Traditionally blended from the finest European hops and malt for a strong
smooth taste, Baron's delivers a message of solid European heritage. Its authenticity
has translated into a strong presence in the high alcohol beer category. Baron's
packaging is distinctive in design, reflecting its premium image and quality.

Cannon 10000 Super Strong Beer

Cannon 10000 is a flagship brand of Aurangabad Breweries which is now


acquired by APB. Cannon 10000 enjoys strong brand recall and reach in Tier 2 and
Tier 3 cities of India. As name suggests brand is famous for its super strong beer
image and stronger kick. Thus calling it strong beer for strong men.

48
49
APB International Brands

Heineken
Embraced by drinkers in over
170 countries, Heineken possesses the widest
international presence of any international
beer brand. Distinctive in a green bottle, its
exclusive image finds rapport with
sophisticated young adult consumers who
enjoy cutting-edge music experiences and
premier sporting events.

ABC Extra Stout


Determined, confident and successful, APB's proprietary ABC Extra Stout
reflects its core drinker's values and self-image. ABC Stout drinkers know what they
want and will go the extra mile to get it. They want the best and do not settle for
anything less. Appreciated for its full-bodied and robust taste, ABC is the leading
premium stout in Cambodia.

Anchor
Anchor was first brewed in Singapore over 70 years ago using German
technology and brew masters. Anchor's value-for-money positioning and its
refreshing and signature crisp taste have clearly struck a chord with drinkers in over
10 countries in Asia.

50
Marketing Mix of Tiger Beer
Marketing mix is defined as the set of controllable tactical
marketing tools that the firm blends to produce the response it wants in
the target market. The marketing mix consists of everything the firm can
do to influence the demand for its product.

51
Robert Lauterborn suggested that the sellers’ 4 Ps correspond to the customers’ 4 Cs.

52
Product

Tiger beer is one of the world's finest beers, It was launched in 1932; Tiger
Beer is enjoyed in more than 60 countries across the globe including Europe, USA,
Latin America, Australia and the Middle East.. The distinctive taste of Tiger Beer is
favoured by the modern man of today. Tiger Beer is synonymous with self-
progression, manliness and social engagement. As a world class, award-winning
quality beer that is winning the world over, Tiger Beer is on track in realizing its
aspiration of becoming
a leading pan-Asian beer brand.

Tiger Story
“Brewed exclusively and with dedication
In Asia since 1932, using the finest quality hops
And malted barely, tiger beer has a distinctive
Clean and crisp taste that’s winning the world over”

Punch Line – It’s Tiger Time / Enjoy Winning

53
54
Various Captions of Tiger Print Ads overseas

Tiger has used various headlines in it’s print ads to capture consumer
attention. Some of it is as follows.

• It’s Tiger time


• Enjoy winning
• Passion for winning
• Sometime it’s OK to let other beat you but only in their dream
• Reserved for winners
• Here’s a way to start your winning streak
• Pick a winner
• I only serve winners
• Don’t stop until you reach the top
• Real winners have lots of love to give.
• Winners go further
• Winners get the best seats
• The view is better when you’re on the top
• Some victories are hollow; others have tiger beer in them.

55
Tiger Beer fact sheet

• Launched in 1932, Tiger Beer is APB's flagship brand. Today, Tiger Beer is
brewed in ten countries and available in over 60 countries worldwide
including Europe, USA, Latin America, Australia and the Middle East.

• Tiger is available in more than 60 countries with strong position in markets


of Southeast Asia such as Singapore, Malaysia and Vietnam.

• In the western markets such as the UK and USA, Tiger Beer has been
embraced as a leading premium brew that hails from the Far East.

• In May 2006, Anheuser-Busch was appointed the importer of Tiger Beer in


the USA. The tie-up has since given APB access to a strong network of 500
wholesalers and Tiger Beer is currently traded in 48 of 50 states there.

• This authentic Singapore brand can be found in over 8,000 premium


bars/clubs and distribution outlets in UK's major cities such as London,
Manchester, Leeds, Newcastle, etc.

• Tiger Beer's award-winning taste has picked up over 40 internationally


acclaimed accolades and awards. The most notable include the Brewing
Industry International Awards, UK, 1998 (the equivalent of the Oscar Awards
for the brewing industry) and more recently, Tiger Beer won the Gold medal
in the European Style Pilsener category of the 2004 World Beer Cup, a
competition which is considered "the Olympics of Beer Competitions" by the
industry.

• Tiger Beer has become such a recognizable and much sought-after import
premium beer in UK that it was named UK Cool Brand Leader each year
from 2004 to 2006 - a recognition given to the coolest brands in UK.

• Tiger Beer also topped a list of 50 beer brands and was crowned the NUTS
(a weekly magazine in the UK) Beer of the Year 2004. These recognitions

56
reaffirmed that apart from industry medals, Tiger Beer is also gaining greater
popularity with its growing number of fans.

57
Price
Price is the amount of money charged for the product or service, the sum of
values that consumer exchange for the benefits of having or using the product or
service.

Factors affecting pricing decisions

Primary considerations in price setting

58
Pricing in Mumbai
Following list provides information regarding number of companies and
brands operating in Mumbai along with their MRP and End Consumer Price (ECP).
ECP = MRP + Taxes. Prices are as in the month of June 2008.

APB (Aurangabad) Ltd


Brand Name Type M.R.P. E.C.P.

Cannon 10000 Strong Beer 54.15 64.98

Baron’s Strong Beer 58.35 70

Tiger Mild Beer 58.33 70

UB Group
Name of Brand Type M.R.P. E.C.P.

Kingfisher Strong Strong Beer 59.95 71.94

Kingfisher Mild Mild Beer 55.80 66.96

London Pilsner Mild Beer 35 42

Zingaro Strong Beer Strong Beer 55.79 66.95

SAB MILLER
Name of Brand Type M.R.P. E.C.P.

Foster Mild Beer 60 72

Royal Challenge Mild Beer 54.17 65

Haywards 5000 Strong Beer 60 72

Haywards 2000 Strong Beer 54.17 65

Knock Out Strong Beer 56.67 68

Castle Lager Mild Beer 45 54

Amberro Lager Mild Beer 35 42

59
LILA SONS
Name of Brand Type M.R.P. E.C.P.

Khajuraho Strong Beer 54.98 65.98

Khajuraho 10000 Strong Beer 54.98 65.98

Khajuraho Lite Mild Beer 33.34 40.01

Other Competitors
Name of Brand Type M.R.P. E.C.P.

Budweiser (Anheuser-Busch) Mild 62.49 74.99

Carlsberg (South Asia Breweries Pvt. Ltd.) Mild 66.66 80

King Cobra Strong 56.66 67.99

Cobra Mild

Meakin 10000 Strong

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Place

APB has breweries in Singapore, Malaysia, Thailand, Vietnam, Cambodia,


China, New Zealand, Papua New Guinea, India and Sri Lanka. It also has joint
ventures in India, Laos and Mongolia, and distributes to over 60 countries
worldwide. The company's stronghold is in Asia Pacific, especially in Singapore,
Malaysia, Vietnam, Cambodia, Papua New Guinea and New Zealand.

In the USA, Tiger Beer’s presence is strong in New York, Miami, San
Francisco and Boston.

In the UK, Tiger Beer can be found in over 8,000 premium bars/clubs and
distribution outlets in UK’s major cities such as London, Manchester, Leeds,
Newcastle, Inverness, etc.

In March 2006, Anheuser-Busch was appointed the U.S. importer of Tiger


Beer. The new agreement significantly broadens Tiger Beer’s U.S. distribution
opportunities by giving Asia Pacific Breweries access to Anheuser-Busch’s network
of nearly 600 independent wholesalers. In 2005, the brand recorded double-digit
growth in the United States.

In India On-trade sales form the leading distribution channel account for
nearly 70% share of the market by volume. Company has appointed total 16
distributors in Maharashtra including Marathwada, & Vidrbha.

61
Distribution Network

APB
Breweries

Distributors

On / Off Premise
Locations

End Consumer

62
Distributors of APBI
Area Number of distributor

Ahmed Nagar 1

Akola 1

Aurangabad 1

Dhule 1

Jalgaon 1

Jalna 1

Kolhapur 1

Mumbai 2

Nagpur 2

Nashik 1

Prabhani 1

Pune 1

Solapur 1

Thane & Ulhasnagar 1

Total 16

Distributors in Mumbai

Surya Sales & Marketing


Ph. 2850 4349
Ray Road (Godown)
Girgaon (Office)

Mansha Agencies
Ph. 2370 0720
Sakinaka

63
64
Promotion
Promotion includes advertising and other forms of sales presentations,
designed to encourage fast consumer or trade up-take of a product or service. The
form of any promotion depends on the product, the marketing plan and its
objectives, and on the imagination of the product management team. It can vary
from a simple in-store demonstration, or sampling, or a tie-in with on premises. A
range of promotional tools, techniques and activities are mixed and matched to meet
the needs of individual marketing campaigns.

Major Tools in Marketing Beer

Publications: Companies rely extensively on published materials to reach and


influence target markets, including annual reports, brochures, articles, printed and
on-line newsletters and magazines, and audiovisual materials.

Events: Companies can draw attention to new products or other company activities
by arranging special events like news conferences, on-line chats, contests and
competitions, and sport and cultural sponsorships that will reach the target publics.

News: One of the major tasks of PR professionals is to find or create favorable news
about the company, its products, and its people. The next step is getting the media to
accept press releases and attend press conferences.

Marketing Activities at APBI


• Brand Advertising
• Promotional Activities in on & off trade
• Experiential marketing
• Consumer planning
• Relationship marketing
• Consumer PR
• Brand Website & online activities

65
• Packaging

66
Factors Influencing Company Marketing Strategy

There are various forms of marketing which are used for promoting the
product in market. They are pull marketing, push marketing, ATL & BTL activities.
Obviously not every campaign will include every element in the mix, but every
viable campaign must incorporate some of them. They are explained in detail below.

67
Marketing professional need to understand following four concepts viz. Pull
marketing, push marketing, ATL & BTL for effective execution of any marketing
campaign. Company can select on the tool or combination of it based on product
type and marketing objective. Let’s look at them in detail.

Pull marketing
Advertising is one of the most powerful forms of "Pull" marketing—
persuading the customer to try a product and continue to use the product. It is a paid
form of impersonal promotion that can appear in many venues:
• Print brochures or • Point-of-Purchase
flyers Ads
• Billboards & • Television and
Hoardings radio ads

Push Marketing
"Push" marketing occurs when the product is
"pushed" from the seller to the consumer. The most common
type of push marketing is when a company uses a direct
sales force to all on prospective companies or consumers. It
is the salesperson's task to persuade the consumer to
purchase the product.

Above The Line (ATL) Activities


ATL denotes advertising expenditure on mass media
advertising, including press, television, radio, and posters. It
is traditionally regarded as all advertising expenditure on
which a commission is payable to an advertising agency.
Company has appointed various agencies to carry out its
ATL activities efficiently. They are:

• Leo Burnett • 70 Media


• Load Star • Weber Shandwick

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Below The Line (BTL) Activities
BTL Denotes advertising expenditure in which no
commission is payable to an advertising agency. For
example, direct mail, exhibitions, point-of-sale material, and
free samples are regarded as below-the-line advertising.
POPs - Ads at Consumer touch points

• Wobblers • Bar (on-premise)


• Shelf Talkers Merchandise

• Posters • Coaster
• Tent Cards

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APB’s Marketing Supporting Agencies

Ad-agency
• Leo Burnett

Media Planner
• McCann Erickson
• Load Star (Working on the ATL plan)

Event Management Company


• Seventy Media

Sales Promotion / Brand activation Agency


• Market Men
• RW Promotions Pvt. Ltd.
• Candid Marketing

Outdoor Advertising Agency


• Outdoor Advertising Professionals (OAP)

Shop Signage Agency


• Signage World
• Map Arts

PR Agency
• Weber Shandwick (A unit of The Interpublic
Group)

Duties & Responsibilities of PR Agency


• Tracks & Monitors Media Daily.
• Prepares Fortnightly/Monthly reports/ drouchers
• Maintains Clips/Folders
• Provides Collateral
• Maintains Professional relationship with the media,
by regularly sharing information

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• Regularly follows up with media on press releases
related to beer
• Ensures Event Collateral
• maintaining journalists & publications profiles

Sales Promotion
Sales promotion, a key ingredient in many marketing
campaigns, is a collection of incentive tools, usually short
term, designed to stimulate trial of a product or service,
quicker or greater purchase. These include discounts, gifts
or give-away, free goods, cooperative advertising, and trade
shows. Advertising offers a reason to buy; sales
promotion offers an incentive to buy.

Objective of Sales Promotion


Sales-promotion tools can be used to achieve a
variety of objectives. Sellers use incentive-type promotions
to attract new triers, to reward loyal customers, and to
increase the repurchase rates of occasional users.
• Awareness
• Trials

Tools of Sales Promotion

Sales promotion includes Trade promotion Business and sales force


tools for consumer Includes: promotion includes:
promotion:

• Samples, • Prices off, • Trade shows and


• Coupons, • Advertising and display conventions,

• Cash Refund Offers, allowances, • Contests for sales reps,

• Prices Off, • Free goods • Specialty advertising

• Prizes,

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• Free Trials,
• Tie-In Promotions,
• Cross-Promotions,
• Point-Of-Purchase
Displays,
• Demonstrations

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Relationship between PLC & Marketing Strategies

Like human beings, products also have life cycles.


That is, they're born, and then—over time—their sales grow,
mature, and finally decline. The strategies with which you
market a product need to change with each of these life-
cycle phases. The table below shows a few examples of how
this might work:

PLC Characteristics Marketing Market Strategies


Stage Objectives
Product Low sales, high cost per Create product Offer a basic product,
Introduction customer, no profits, few awareness and trial Use heavy promotions
competitors to entice trial
Product Rising sales and profits, Maximize market Offer product
Growth more and more competitors share Extensions
Product Peaking sales and profits, Maximize profit Diversify brands
Maturity stable or declining number while defending
of competitors market share Intensify promotion to
encourage switching
to new brands
Product Declining sales, profits, and Reduce expenditure Phase out weak
Decline number of competitors and "milk" the Products,
brand Cut price;
Reduce promotion

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Various sales promotions techniques adopted
at APBI

1. PRODUCT LAUNCH OFFERS FOR DEALERS


FOR TIGER
• Entry incentive scheme: 10 cases you get 4 cases
free
(one time validity for 45 days from date of
launch)
• Subsequent offer
o 15 cases  1 case free
o 25 cases  2 case free
o 50 cases  5 case free
o 250 cases  Singapore Trip (One person
only)
o 450 cases  Singapore Trip (Two person
only)

2. Rs. 2 for Cap of Baron’s to waiters


3. Gifts (Pens, Openers) to people who preferred to
drink Barron’s over other brand
4. On Premise promotion items like Ice buckets,
Serving tray, Ash Tray, Premium Openers, Wall
Clocks etc. given to Permit room owners
5. Promoters hired for Brand awareness campaign of
Baron’s and Tiger
6. Tiger Bucket offer (Get 4 Tiger in price of 3)
7. IPL Activation promotion
8. Association with MTV splitz villa – a youth oriented
program

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9. Program on Radio One 94.3 FM with “Malini till
mid night moon” for 3 months from 19th May till 18th
Aug.
10. Bar promoter girls promotions
11. Mall Activation
12. Permit room activations
13. Various promotional offers in institutions
• Meal Combo • Exclusive tiger
• Sunday beer tie-ups
Brunch • Bar night
• Tiger Bucket • Food Festivals
(grab 4 pints at • Karaoke Nite
price of 3)

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Permit Room Activation
Points to be considered while permit room promotion
• Time 6.30 pm to 10.30 pm
• Days of promotion: Wednesday, Friday, Saturday,
Sunday
• Promoters need to reach outlet by 6.00 pm
• Promoters need to carry certain items with them viz.
Call Sheet, Tent Cards, Banners, Tiger Quick Card.
• Once they reach outlet they will ask rate of TIGER
in that particular outlet
• While promotions they should keep Tiger Quart
bottle with them, and give it to consumers while they
do quality presentations

Steps followed for permit room activation of Tiger


Beer
1. Identify promotion need

2. Hire Agency

3. Briefing the agency

4. Agency come out with plan / idea to promote


product

5. Approval of idea or asked to come with new idea

6. Cost approvals by company

7. Agency to brief operation department

8. Recce (Reconnaissance) / Field survey by agency

9. Supplying gifts to be given to consumers

10. Start of activity / Execution of plan

11. Report submission by agency at the end of every day


activity

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12. Evaluation of reports submitted by agency

13. Performance evaluation / Tracking of reorders

14. Process complete

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Tracking Effectiveness of sales promotion
There are various ways for checking effectiveness of sales
promotions:
1. Check our sales volumes of outlet pre, during and
post promotion
2. Go to junk yard of outlet where they keep empty
bottles to check actual sales performance of brand.

Designing a Powerful Sales Promotion


• Use sales promotions with advertising: For
example, combine a price promotion with an ad
emphasizing the product's features or with a point-
of-purchase display. Or if you're marketing to
businesses through trade shows or conventions,
combine poster ads with sales-rep selling contests to
get the most impact.
• Be clear about your objectives: Your goals for sales
promotions will vary with your target market. If
you're targeting retailers, persuade them to carry
your company's new offerings, to stock more
inventories, to encourage off-season buying, or to
offset competitive promotions.
• Choose the appropriate promotion tools:
Depending on your objectives, select the right tools.
For salespeople, launch sales contests—with prizes
to the winners. If you're marketing to businesses
through trade shows or conventions, use
publications, videos, and other audiovisual materials
to generate new sales leads, meet new customers
face to face, sell more to existing customers, and
educate customers.

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• Use sales promotions in markets of high brand
dissimilarity: Sales promotions tend to attract brand
switchers who look primarily for low price, good
value, or premiums. You'll get more and longer-
lasting market share if you use such incentives in
markets of high brand dissimilarity.
• Distinguish between price promotions and added-
value promotions:
Sales promotions, with their incessant prices off,
coupons, deals, and premiums, can devalue the
product offering in consumers' minds. Make sure
your promotions enhance your brand image.
• Pretest your sales promotion program Use pretests
(small trial runs) to determine whether the
promotional tools you've chosen are appropriate, the
incentive size will produce enough sales response
without costing the company too much, and the
presentation is efficient.

Packaging
Packaging, as defined by Kotler and Keller, refers to
‘all the activities of designing and producing the container
for a product.’ Though the primary purpose of packaging is
to serve against damage during the movement of the
product, it is no longer the only purpose that it serves.
Packaging, and not the product, is the first touch-point that
the customer comes into contact with. A substandard
product within a unique packaging might be easier to sell as
against a superior product packaged in a substandard pack.
Superior packaging would not ensure repeat sales though.
Packaging is an effective tool to make the product
distinguishable in the clutter.

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Packaging, the fifth and final stage of the brewing
process, prepares the beer for distribution and consumption.
During packaging, beer is put into the vessel from which it
will be served: a keg, cask, can or bottle. Beer is carbonated
in its package, either by forcing carbon dioxide into the beer
or by "natural carbonation".

Most products have multiple levels of packaging.


For example, Tiger Beer is packed in a glass bottle (primary
package). These individual bottles are then packed in
cartoon case (secondary package). Each of these packages
serve a different purpose.

Tiger Bottle Shield Tiger Label Design

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Primary Pack – 330 ml Pint Bottle Primary Pack – 650 ml Quart Bottle

Secondary Pack - 4 X 330 ml Bottle Pack Secondary Pack - 6 X 330 ml Bottle Pack
Imported (etch-out) Imported (etch-out)

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Beer Advertising

Advertising of beer is a topic that has frequently


attracted the attention of industrial organization economists.
For beer advertising several interrelated issues should be
analyzed, including:

1. The importance of advertising and product


differentiation for structural change in the brewing
industry

2. The manner and extent to which brewers can


strategically alter market shares using advertising

3. The social costs of alcohol advertising and


marketing.

Analyses of both issues include attempts to


determine the net welfare effects of beer advertising. On the
third issue, economists have analyzed advertising’s possible
influence on alcohol consumption and underage drinking,
and as a contributor to social costs such as drunken driving
fatalities. Several regulatory concerns are related to this
issue, including use of advertising bans; advertising
placements that might target underage youth; legal rights of
states under the three-tier system of alcohol distribution; and
other advertising or marketing restrictions that affect
competition in the industry (e.g., price advertising bans,
price-posting and price affirmation laws)

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Surrogate Advertising in liquor industry

The rule says “Advertisements which lead to sale,


consumption and promotion of liquor should not be
allowed.” So, in Surrogate Marketing, a product which is
different from the main product is advertised, and has the
same brand name as the main product. The product is called
as “surrogate” and advertising through this channel is called
“Surrogate Advertising”. It may include CDs, water,
clothing, Apple juice, fashion accessories, sports goods or
even events sponsoring!

Surrogate advertising has been around ever since


someone decided that certain things were probably not good
in the interests of the community at large. The wisdom of
the Government extends only to banning the advertising of
tobacco or liquor. Not to the manufacture or marketing of
these supposedly deadly substances. It is legal to
manufacture liquor and cigarettes or beedis. It is legal to sell
cigarettes at every roadside stall, even to unsuspecting
children. But it is illegal to advertise it. And that is precisely
why you have to live with surrogate advertising.

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Surrogate for Tiger Beer - Tiger Translate

Tiger Translate is about art, music and


encouragement, the essence of it lies in the fact that it’s an
experience. It is about walking through spaces and feeling
the vibes around.

So with the launch of the very first Tiger Translate


event in India, it is important to introduce people to this
unique Tiger Translate experience again and again again
in different regions of India

Why Tiger Translate in India

Given the fact internationally Tiger Translate was


conceived as a platform for Tiger Beer to interact with the
youth through art and music, post the launch of Tiger Beer
in India it became a natural progression to launch Tiger
Translate in India and expose the Indian youth to this unique
Tiger Translate experience.

While giving this experience, establish Tiger Beer as


the preferred beer with the youth and provides a stage that
brings the best of Asian creativity to the world and the best
of world to Asia.

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On May 24th 2008, Tiger Translate made its Indian
debut at Yashab near Red light in Kala Ghoda, Mumbai. In a
first of its kind event on the Indian scene where creative
talents from across many art forms find home under a single
roof, From live paint artists to musicians, from
photographers to audio-visual artists will come together to
celebrate Asian and in particular Indian creativity on a never
before scale

Tiger Translate launched in India on 24th May 2008

The event was launched through a glittering event in


Red Light and Yashaab. Guest lists comprising of the known
names form the various art faculty were present to pledge
their support to the Tiger Translate platform.

The launch for Tiger Translate was done by having


an interacting session with the media with the artists who
had come participate and perform at the launch of Tiger
Translate. Around 657 guests/artists and numerous media
turned out for this unique Tiger Translate experience
continued till very late in the night.

More info and interaction continues through the


various substances at different places in Mumbai featuring
different Art forms each of these events form a platform for
Tiger Beer to interact with it’s audience/TG. Finalists from
Mumbai are eligible to be showcased in the translate Global
even taking place in London

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Events under tiger translate Judges on the panel
Graffiti Art Brinda chudasama miller
Photography Tino Francorsi
World Music Munir Kabani
Visual Animation Pravina & jamal macklia

Competitors of Tiger Beer in Mumbai


• Carlsberg
• Budweiser
• Kingfisher Mild
• Foster

Carlsberg
The Carlsberg Group is a large brewing company
founded in 1847 by J. C. Jacobsen after the name of his son
Carl (Carl Jacobsen). The headquarters are in Copenhagen,
Denmark. The company's main brand is Carlsberg Beer, but
it also brews Tuborg as well as local beers. After merging

86
with the brewery assets of Norwegian conglomerate Orkla
ASA in January 2001, Carlsberg became the 5th largest
brewery group in the world, employing around 31,000
people.

Carlsberg's tagline "Probably the best beer in the


world" was created in 1973 by Saatchi and Saatchi for the
UK market. It began to appear in company corporate ads
around the world from the 1980s onwards.

Carlsberg operates in India through South Asia


Breweries Pvt Ltd, which manages the company''s
businesses in the Asian region comprising India, Sri Lanka
and Thailand.

South Asia Breweries Pvt. Ltd.


South Asia Breweries Pvt. Ltd., Plot 52, Sector 32,
Gurgaon , India is Foreign direct investment company
formed to brew, market Carlsberg brand beer in India.
Carlsberg beer from South Asia Breweries is launched at
various states in India, including Delhi / NCR, Maharashtra,
Punjab, W Bengal, U.P., Goa with three operational
breweries one in Rajasthan and one at Maharashtra and one
at Himachal Pradesh. South Asia Breweries Pvt. Ltd.
currently employ over 200 professionals and demonstrates
strong market presence in share of premium beer sector in
India. Carlsberg launched in Mumbai on 14th May 2008.

Budweiser

Budweiser (Anheuser-Busch), from


Anheuser-Busch in the United States. Marketed as

87
"Budweiser" in United States and Canada, and marketed as
"Bud" or "Anheuser-Busch B" in Europe.

Budweiser was introduced in 1876 when company


founder Adolphus Busch set out to create the United States’
first truly national beer brand – brewed to be universally
popular and transcend regional tastes. Each batch of
Budweiser follows the same family recipe used by five
generations of Busch family brewmasters. Samples of
Budweiser are flown into St. Louis everyday from each of
A-B’s 12 regional breweries. There, in a special tasting
room, the beer is sampled and judged by our brewmasters to
ensure its quality and consistency.

Anheuser-Busch International and Crown Beers have


signed a 50:50 joint venture agreement to brew market and
distribute The King of Beers and other brands in India.
Crown Beers India Ltd. includes a new 500,000-hectoliter
brewery in the southern city of Hyderabad. Crown Beers
India Ltd. will collaborate on all local management,
marketing and sales decisions, according to a press release
from the St Louis-based beer major.

``The Hyderabad brewery was designed to uphold


Anheuser-Busch's high standard of quality for brewing
Budweiser,'' said Mr Srikanth M. Reddy, Joint Managing
Director of Crown Breweries Ltd.

An Anheuser-Busch brewmaster will oversee local


production of Budweiser at the brewery, to assure the same
crisp, distinctive taste enjoyed by consumers around the
world. Budweiser is an American lager brewed since 1876
using a blend of US and European hops, and a combination
of barley malts and rice, the release added.

88
Crown Beers is planning massive below-the-line
activities to make its presence felt in the market.

Kingfisher Mild

The beginnings of what is today The UB Group


are rooted in the flagship company, United Breweries
Limited, (UBL) also referred to as the Beer Division of
the UB Group. Led by Mr. Kalyan Ganguly, President
& Managing Director, it has around 48% market share
in the country.

Millennium Alcobev Pvt. Ltd., (MABL), is the Joint


Venture Company in which UB along with its subsidiary
and Scottish & Newcastle of the UK have equal stake of
50%.

United Breweries Limited, the flagship company of


the UB Group, has an association with the brewing dating
back over five decades, starting with 5 breweries in South
India in 1915. From bullock cart-loaded barrels or
'hogheads' of frothing ale, the Beer business has gone on to
become the undisputed 'king' in the Indian beer market.

Here, innovative, creative and aggressive marketing


is complemented by a strong distribution network. A
management focused on building brand equity on one hand
and exploiting it to the hilt on the other. UBL today boasts
an impressive spread of own and contract manufacturing
facilities throughout the Country.

Kingfisher has achieved international recognition


consistently, and has won many awards in International Beer

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Festivals. Kingfisher Premium Lager beer is currently
available in 52 countries outside India and leads the way
amongst Indian beers in the International market. It has been
ranked amongst the top 10 fastest growing brands in the
UK.

In addition, UBL has also entered into mutli-faceted


strategic alliance with Scottish & NewCastle Plc (S&N), an
international brewery major, with $6 billion in revenue and a
market capitalization of $5.4 billion.

90
Fosters
Foster's Lager is an internationally distributed
Australian brand of filtered beer based in Melbourne,
Australia and listed on the Australian Stock Exchange, It is
also brewed under licence in many countries, including the
USA, Canada and the People's Republic of China. The
European rights to the beer are owned by Scottish &
Newcastle, who brew and distribute Foster's in most
European countries including; the UK, Greece, France,
Belgium, Portugal, Finland, Germany, Spain, Sweden,
Ukraine and the Republic of Ireland. In the U.S and India,
rights to the brand are owned by SABMiller. SABMiller
acquired Foster's India on 04 August 2006.

SABMiller
SABMiller plc is one of the world’s largest brewers with
brewing interests or distribution agreements in over 60
countries across five continents. The group’s brands include
premium international beers such as Miller Genuine Draft,
Peroni Nastro Azzurro and Pilsner Urquell, as well as an
exceptional range of market leading local brands. Outside
the USA, SABMiller plc is also one of the largest bottlers of
Coca-Cola products in the world.

In the year ended 31 March 2006, the group reported


US$2,626 million adjusted pre-tax profit and a turnover of
US$15,307 million. SABMiller plc is listed on the London
and Johannesburg stock exchanges.

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Health effects
The moderate consumption of alcohol, including
beer, is associated with a decreased risk of cardiac disease,
stroke and cognitive decline.

Brewer's yeast is known to be a rich source of


nutrients; therefore, as expected, beer can contain significant
amounts of nutrients, including magnesium, selenium,
potassium, phosphorus, biotin, and B vitamins. In fact, beer
is sometimes referred to as "liquid bread". Some sources
maintain that filtered beer loses much of its nutrition.

A 2005 Japanese study found that low alcohol beer


may possess strong anti-cancer properties. Another study
found nonalcoholic beer to mirror the cardiovascular
benefits associated with moderate consumption of alcoholic
beverages. However, much research suggests that the
primary health benefit from alcoholic beverages comes from
the alcohol they contain.

It is considered that overeating and lack of muscle


tone is the main cause of a beer belly, rather than beer
consumption. A recent study, however, found a link between
binge drinking and a beer belly. But with most
overconsumption it is more a problem of improper exercise
and overconsumption of carbohydrates than the product
itself.

There is conclusive evidence that heavy and


prolonged consumption of alcohol leads to liver disease
including cirrhosis and malignancy. Heavy alcohol
consumption has also been linked to pancreatitis and gout.

Several diet books quote beer as having the same


glycemic index as maltose, a very high (and therefore

92
undesirable) 110. Critics rejoin that beer consists mostly of
water, hop oils and only trace amounts of sugars, including
maltose.

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Community & Environment

A Responsible Beer Company


As a responsible beer company, APB believes in
contributing to the communities in which its breweries
operate. While the Asia Pacific Breweries Foundation has
been fulfilling APB's philanthropic commitment to society,
APB's breweries have also demonstrated their dedication to
the society in which they are based. The breweries have
each in their own ways, supported causes in education,
community welfare and the advocacy of Responsible
Alcohol Consumption.

The commitment of APB to environmental


protection and worker safety extends throughout the
organization. Apart from seeking to continually improve its
environmental performance by operating more efficiently
and reducing waste, APB also takes the responsibility of
providing a safe workplace very seriously. Our
Environment and Safety Report provides an overview of
our activities, including how our performances measure up
to the targets set.

Asia Pacific Breweries Foundation


Instituted in June 1994, the Asia Pacific Breweries
Foundation (APB Foundation) has been fulfilling APB's
philanthropic commitment to society. Its philanthropic intent
spans three areas namely Creativity Development, Human
Excellence and Humanitarian Causes.

94
Since its inception, the Foundation has provided
grants and other forms of support to over 150 initiatives,
benefiting disadvantaged homes and charitable
organizations, medical research bodies, theatre and music
groups and scholarships programs amongst others.

The APB Foundation Board of Trustees, assisted by


its Advisory Committee, envision the Foundation to play a
constructive and developmental role in the community, and
working with partners who share common altruistic goals to
better serve societal needs both in Singapore and the Asia
Pacific region.

Responsible Alcohol Consumption


As responsible corporate citizens, APB and its
breweries advocate responsible alcohol consumption and are
pro-active in company stance against alcohol abuse, in
particular underage drinking and drink driving.

Mindful of social responsibilities, APB has always


ensured responsible marketing and promotion of our beers
and support responsible and sensible drinking campaigns
which promote public awareness and educate consumers on
responsible and moderate drinking.

Amongst the many initiatives APB has participated


in are Get Your Sexy Back, a campaign that promoted
drinking in moderation amongst youths in Singapore; the
Know When campaign held in collaboration with the
National Traffic Safety Committee of Vietnam to educate
the public on drinking responsibly; the annual Responsible
Drinking campaign by the Singapore Traffic Police;
Responsible and Ethical Alcohol Consumption in Thailand;
and the Social Alcohol Model program in Papua New
Guinea.

95
Every bottle label of Tiger bottle quotes “Enjoy
Tiger Responsibly” this shows commitment of company
towards responsible alcohol consumption.

96
SWOT Analysis of APBI
Strength
• Production capacity
• Premium Quality Product
• Experience Management team

Weakness
• Low Advertising & Promotion Spends
• Less Manpower
• Products not available in Cans
• Low Market Share
• Inefficient Distributors
• Less Market Visibility

Opportunities
• Regional Expansions
• Production Volumes
• Higher Profits
• Increased Market share

Threats
• Competitors High Spends
• International Players
• Government Laws
• Taxes & Tariffs

97
98
Why Beer better than Milk
There is more protein in beer than in milk. What's
more, beer has fewer calories than apple juice, milk or cola
and contains neither fat nor cholesterol. These claims have
been made by the All India Brewer's Association.

The apex body representing 42 beer manufacturers,


has urged the food processing ministry to delink beer from
the status of liquor and whisky, so that it can be advertised
and marketed like any other product. They have argued that
liquor has an alcoholic content of 42.8% while beer has only
up to 7%.

Beer is battling to get the status of milk. The all


India Brewer's Association (AIBA) have argued in a
memorandum to the government that a glass of beer
contains more protein than does the same quantity of milk.
Not just that. They have said that the calorie content in beer
is lesser than that of a bottle of apple juice, milk or any cola.
So do not club beer with hard liquor in computing tax,
argues the industry.

"It has been given the status of a fast moving


consumer good (FMCG) that can be traded over the counter
at any departmental store", says the Vice-President and
President of Shaw Wallace. "Beer distribution has to be
made open as in Singapore."

The industry's representation for removing beer


restrictions are straight and simple: Beer is only an agri-
food. Arguing that it has neither fat nor cholesterol, the beer
manufacturers' body has told the government that an average
bottle of beer gives four vital minerals and five important
constituents of vitamin B and proteins. Raw material for

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beer is malt, the same as for health drinks Maltova and
Horlicks.

In their representation titled 'Indian Beer Industry -


Needs Policy Support'. AIBA has pitched beer as a "mild
and healthy beverage", conforming to the tenets of
"responsible" drinking.

"Beer has to be taxed on the basis of alcoholic


strength keeping levels on alcohol content as bench mark",
say many of the top manufacturer's. Duties and tax account
for 40% of the beer cost in India while it is of the order of
20% in US, France and Germany. They have said that the
cost of one litre of beer taken as percentage of daily income
in the high selling states of Andhra, Karnataka and
Maharashtra is close to 28%.

The comparable figures for US, France and Germany


are less than 3%. And if India attains this level of even 15%
then the beer should cost around Rs. 30 per litre
(Rs. 20 per bottle).

"It is a highly capital intensive business. It is not


feasible for the brewers to sustain the current market
pressure", says the top shots. "Brewing companies are
increasingly being declared sick", they add.

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Top 10 Reasons Beer is Good for your

Health

Everyone is looking for a reason to drink beer.


Right? It turns out that a lot of people are. So here are 10
great reasons to drink more beer. Not only that, but they're
all true. Beer really is good for your health, so drink up!

Beer Reduces Stress


Alcohol in general has been shown to reduce stress.
This one is obvious, and may be the best reason beer is good
for your health.

Beer is Good for the Heart


A study was conducted from 1982 - 1996 on the
elderly. It was found that those who drank at least 1.5 per
day had a 20-50 percent less chance of having heart failure.

Beer Improves Blood Circulation


Beer increases your "good" cholesterol, or HDL (high-
density lipoprotein) cholesterol. Its basically a kind of blood
fat, so it reduces blood's tendency to clot.

Beer is Chock Full o' Fiber


The fiber comes from the cell walls of the malted
barley. A liter of beer can have as much as 60% of your
daily recommended fiber. The extra fiber will keep you
regular and can also lower the risk of heart disease.

Beer as a Multi-vitamin

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Beer is a significant source of magnesium, selenium,
potassium, phosphorus, biotin, folate, vitamin B6 and
vitamin B12

Beer can Prevent Strokes


A study published in Stroke magazine in 2001 showed
that alcohol drinkers have fewer strokes. Because it thins the
blood, it increases the circulation in the brain, thereby
protecting from silent strokes which are cause by tiny blood
clots.

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Beer keeps your Brain Young
A large study, published in the December 2001 issue of
Alcoholism: Clinical & Experimental Research, was
conducted on elderly italian men and women. It showed that
moderate drinkers had a 40% lower risk of mental
impairment.

Beer is Good for your Liver


Alcohol expands the small blood vessels in the liver.
This speeds up metabolism so it can help clean all the toxins
out of the liver. This is from Beer Net Publication, April
2001 Biological Institute.

Beer Cures Insomnia


Lactoflavin and nicotinic acid, both present in beer, can
promote sleep. Also hops are a natural sedative.

Beer Fends off Gallstones


According to Professor Oliver James at the University
of Newcastle, beer protects against gallstones and kidney
stones.

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The Future

Recently, concern among citizens' groups over the


excessive consumption of alcoholic beverages by some
individuals has initiated additional government regulation of
beer. New warnings have been added to labels, warning of
impaired driving, hazards to pregnant women, and other
health ailments associated with alcohol consumption.
Reduced tolerance for drunk driving, for example,
encouraged many brewing companies to advocate
responsible consumption. As a result, certain states have
established laws to control the alcoholic content of beer for
sale within their jurisdiction. The beer industry will continue
to contend with these large social issues.

Much research is currently conducted in the area of


plant engineering. Brewery researchers are manipulating the
genes of barley and other common grains to increase their
resistance to disease and to encourage helpful mutations.
This genetic research also extends to improving the yeast.
Current research is aimed at producing yeast strains that
resist contamination and to making new varieties of yeast
that can ferment carbohydrates, which common yeasts
cannot process.

The brewing industry is also making advances in the


area of rapid testing for contaminants. New technology such
as DNA probes and protein and chromosome finger-printing
is being developed by brewers to detect microorganisms that
can adversely affect the brewing process. Some of this

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technology is already in use in medical science for drug
screening, AIDS testing, and pregnancy testing. Brewers are
eager to adapt this cutting edge research to the beer industry.

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Conclusion

• In a massive (over 100 million cases), fast-growing


and difficult beer market like India where beer
drinkers have strong brand affinities and where
brands like Kingfisher are almost ubiquitous, Tiger
beer needs to establish its unique identity and
consumer base by focusing on a niche market (as it
cannot spend / act like big beer brands with deep
marketing pockets)

• Tiger beer is a world beating, award winning, great


tasting beer of very high quality. Tiger beer has
effectively been using the platforms of electronic
music and contemporary art to connect with its target
consumers in the Indian market.

• Marketing spends are limited so we need a guerilla


marketing strategy to win.

• Although beer consumers have strong loyalties, there


are still needs which are not being met by their
current beer brands.

• Beer is largely perceived as a mass market product


with no clearly defined target consumer. Tiger beer
needs to focus on a targeted niche market to
differentiate itself and position itself uniquely in the
consumer’s mindscape.

• Focus should be on the upwardly mobile beer


drinker who enjoys drinking beer but still has status

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& discernment needs which he would like to
communicate through his brand choices

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Questionnaire

1. List the company's product line(s) and the amount


and percentage of total sales represented by each.

2. What is Company’s USP?

3. How is the company's product or service distributed


to its primary market?

4. List the company's major competitors.

5. What is the company's market share? Attach market


study or survey, if available.

6. Describe the nature of the regulatory environment in


which the company operates.

7. List the company's distributors for Mumbai location.

8. What are the factors which should be kept in mind


while marketing beer in India?

Offering

9. What need is your offering designed to fill?

10. What improvements can we make to our offering to


better meet customer needs?

Messages

11. What does each of our identified target audiences


know and believe about us today?

12. What is the single most important message that we


must communicate to ALL of our target audiences?

13. What kind of personality do we want to portray in


our communications? What tone? What flavor?

Target Audience

14. How can the market be segmented into logical


customer groupings?

15. What market segments are we targeting (list segment


name and characteristics)?

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16. What segments are we not targeting?

17. What is our customer’s primary reason for buying or


wanting to use our product or service?

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Marketing Strategy - Sales & Pricing
18. What are our business objectives over the next two
years? Be as specific as possible, and make sure to
address the following goals:
• Number of customers
• Revenue
• Profit
• Market share

19. What is the process for selling our services or


products (list the key milestones in the process)? Do
we use any of the following processes?
• Direct personal sale
• Direct online sale
• Indirect through channels

20. How important is price in the purchase decision


process?

21. What is our current pricing structure, including


discounts, product options, rebates, and so on?

22. Which of our competitors is considered the price


leader? What does the price leader charge for its
offering?

23. What are our other competitors charging for their


offerings?

24. What is the perceived value of our offering as


compared to its price?

Competition

25. Which companies pose the greatest threat, and how


do they differentiate themselves?

26. List the strengths and weaknesses of each of your


competitors.

27. Which competitors have the largest market share


within our target market segments?

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28. Which competitors have the greatest visibility with
our target audience?

29. How will we differentiate ourselves to best combat


competition?

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Bibliography & Webliography

• Datamonitor, Beer in India, Industry profile,


Publication December 2006

• The Business Line (Internet Edition)

• Maharashtra state excise basic statistics 2005


Compiled by commissionerate of state excise.

• International Dictionary of Marketing - Daniel Yadin

• Marketing Management Millennium Edition by


Philip Kotler

1. http://en.wikipedia.org/wiki/Portal:Beer

2. http://www.indiadiets.com/Health_flash/News/Beer_
better_than_milk.htm

3. www.tigerbeer.com

4. www.apb.com.sg

5. http://www.drinks-business-review.com/

6. www.ratebeer.com

7. www.drinkingbeer.net

8. http://www.indianmba.com/Faculty_Column/

9. http://indiabrew.blogspot.com/

10. http://www.thehindubusinessline.com

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