New Delhi, July 21: It's brewing a comeback strategy. Inertia Industries Ltd, the makers of Sandpiper and Turbo beer brands, has relaunched its premium brand Sandpiper Extra Gold Lager Beer in Delhi on Wednesday -- after the closure of its Haryana bottling unit due to prohibition. The mild beer in being introduced in a 650 ml champagne-packaged green bottle, at a price of Rs 25. Inertia would soon launch a strong beer variant and Sandpiper draught beer in Delhi too. The national rollout is expected to begin by October 1999.Inertia has earmarked Rs 3 crore ``to maintain brand visibility.'' The company does not intend to undertake advertising activities and commercials as that would bar it from selling in the Delhi market, where it hopes to sell around 7 lakh cases during 1999-2000. However, for brand-building it is keenly targeting institutions with its promotional initiative `Welcome Back Baby'. Says Prathmesh Mishra, vice-president, sale and marketing: ``Soon you would find Sandpiper pouring in Delhi'sfive-star hotels like Hyatt and Radisson and a host of hotels and clubs.''
The pre-prohibition positioning of Sandpiper as a `Champagne of Beers' is to be re-inforced, even as the company builds a portfolio of brands under the umbrella brand Sandpiper. The new positioning exercise for Sandpiper brand beer, which is packaged like a champagne bottle, will highlight its ``attributes of enthusiasm, fun and premium-ness''.
Inertia's current portfolio consists of: the Sandpiper Extra Gold Lager Beer in 650 ml and 325 ml glass bottles in the mild beer segment; Sandpiper Premium Strong Beer; and Turbo Super Strong beer in the strong beer segment.Determined to stage a visible comeback, Inertia is also activating its distribution network involving over 100 distributors across the country.
``We are targeting 178 outlets in Delhi, 2,500 outlets in Mumbai, and 550 in West Bengal,'' says Mishra. Interestingly, some distributors have invested around Rs 5-6 crore in Inertia's Rs 45-crore Aurangabad plant in Maharastra.Inertia already commands a nationwide presence through the Indian Armed Forces' Canteen Stores and Department.
Production at the Dharuhera plant in Harayana will cater to Harayana, Delhi, Punjab, Rajasthan, Bihar, West Bengal, Chandigarh and North East markets, while the Auranganbad brewery would cover Maharashtra, Andhra Pradesh and Karnataka. ``We hope to have a market penetration of 70-80 per cent in all the markets we are entering,'' says Mishra.
Intertia was battered by a September 1996 prohibition ruling in Harayana, which brought its three lakh hecto-litre-a-year brewery in Dharuhera (turnover at the time: Rs 35 crore) to a grinding halt. Further, it was hit by acccumulated losses of Rs 10 crore since it re-commenced partial operations after the lifting of prohibition in May 1998.
Inertia now hopes to regain the lost ground. ``We are targeting sales of Rs 60-75 crore,'' says Sunil K Tandon, managing Director, Inertia. ``We should make a net profit of 10 to 12 per cent, this year.'' In the firstten months of operations post peak season, Inertia clocked sales of 11 lakh cases (seven lakh strong beer and four lakh mild) in the 750 lakh cases beer industry.
However, showing signs of recovery, between April 1 and July 15, 1999 it posted sales of over 10 lakh cases. During June 1998-1999, SandpiperPremium Strong Beer sold one lakh cases while Turbo Super Strong Beer sixlakh cases.
Inertia's future growth strategy to capture a marketshare of 10-12 per cent by the year 2001 involves: making Sandpiper the flagship brand; launching Sandpiper Extra Gold Lager Beer and Sandpiper Premium Strong Beer in cans through its Rs 5-crore canning facilities at the Aurangabad plant; introducing the brand in the southern markets from the Aurangabad plant; and investing in outdoor and retail level advertising.
The domestic beer industry, dominated by UB and Shaw Wallace, is growing at the rate of 11 per cent per annum and the market potential is estimated at 100 million cases per annum by 2002.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.