United Breweries (UBL), best-known for its Kingfisher beer brand, has raised the innovation quotient in the mainstream strong beer category, launching Kingfisher Smooth, in Rajasthan, aimed at providing a less bitter experience to consumers. While strong beers typically constitute around 80-85% of India’s beer market, UBL’s move is the first by an industry player, aimed at providing a better drinking experience without an after-taste or smell. The product has been priced at 6% more (at Rs 185 for a 650-ml-bottle) to its regular Kingfisher Strong, which is available for Rs 175 for the same size.
Capturing the “Next Beer Opportunity”
The launch, which will be extended to markets such as Karnataka as well as other parts of the country in a year, comes a month since the company, which is owned by Dutch major Heineken, rolled out a premium mild beer called Heineken Silver in Delhi.
At a broader level, parent Heineken, which owns over 61% of UBL, is looking at India as the “next beer opportunity” where it is doubling down on the market with innovative products, aggressive distribution and marketing. About 23 million people reach legal drinking age each year, according to experts. Of these, 60–70%, are open to trying alcohol, and for nearly 75%, beer is their first drink.
UBL’s CEO Vivek Gupta said the company would continue to tap emerging trends, looking at region-specific innovations to grow beer consumption after a challenging few quarters. The June and September quarters of FY26, for instance, was marked by unseasonal rains that hurt beer consumption in general. UBL controls over half of India’s beer market, with volume sales in excess of 200 million cases. The overall beer market is around 400-420 million cases in size.
“Beer consumption in India remains very low—if consumers drink alcohol 10 times a year, beer accounts for only about two of those occasions,” Gupta said.
He said that consumer feedback had pointed to a beer that was strong yet less bitter and without an after-taste or smell. Kingfisher, he said, was best placed to drive the innovation among its portfolio of brands which are about 20 in number.
“Our premium portfolio is growing at over 20% (per annum), and innovations like Heineken Silver, Amstel Grande, and Ultra Max are growing in high double digits. We felt that the Kingfisher brand needed a strong innovation push to remain fresh and relevant for both existing and younger consumers,” Gupta added. The company has also expanded the London Pilsner brand, popular in Maharashtra, to states such as Karnataka, Madhya Pradesh and Odisha in recent months.
Navigating Growth and Environmental Challenges
Gupta also said that he saw the beer category growing at around 5–6% in (calendar) 2026, an improvement over last year’s slower growth. The company said the pace of recovery would depend on policies adopted by state governments. Weather uncertainty, he noted, was something the company would have to live through. Gupta also said that the company was in discussion with states through industry associations to highlight the role and impact of beer within the alcoholic-beverage market