Cobra Beer, the largest selling beer brand in the UK, is on an expansion spree in India. The company, which has acquired Bihar-based brewery Iceberg Industries, is planning to invest $50 million along with launching all brands in its product portfolio in India within the next two years. Its portfolio includes Cobra Alcohol Free Beer, Cobra Lower Calorie Lower Carb, and Cobra Bite, apart from the currently marketed brands in India like Cobra Premium Lager and King Cobra.
In the 130 million cases beer market in India, Lord Karan Billimoria-promoted company sells about 3 million cases, out of which 2.5 million cases are the strong beer, King Cobra. The Cobra Bite range features flavours like sweet lime, blood orange, apple and lemongrass, all of which contain 100% natural fruit extracts.
Karan Billimoria, chairman, Cobra Beer Ltd, told FE, ?The Indian beer market is at a higher growth rate and people are becoming aware of the beer varieties and thus we want to establish ourselves in the market with our own varieties like flavoured beer. Though we are not aiming at higher sales from those flavoured brands, we hope those who prefer flavoured vodkas from Smirnoff and rum from Bacardi can be targeted with these brands.? Cobra Beer, which has been exported to over 45 countries worldwide, has a current turnover ?126 million at retail value. On Friday, the UK-based company has announced its acquisition of 76% stake in Bihar-based brewery. With this buyout, Cobra Beer will increase its capacity to seven million cases per annum by adding Iceberg?s manufacturing capacity of three million cases per annum. The new brewery comes in addition to existing manufacturing facilities in Poland, Belgium, Netherlands, UK and five other locations in India.
Though the beer market in India has grown at the rate of 27% in the last year, it holds only 4% of the total alcohol beverages market in the country. In India, per capita consumption of beer is only 0.6 litres, while in the US, it is 70 litres and 23 litres in China.