UBL leads beer market with 52.5% share in FY15

The company’s sales accounted for 147 million cases during the period while total sales of the beer industry stood at 280 million cases. In 2013-14, its market share stood at 51.3%

United Breweries (UBL) has tightened its grip over the domestic beer market by increasing market share to 52.5% during 2014-15 fiscal, according to the company’s annual report released on Monday.

The company’s sales accounted for 147 million cases during the period while total sales of the beer industry stood at 280 million cases. In 2013-14, its market share stood at 51.3%.

Performing better than the industry, the company registered a volume growth of 6%, while the beer industry as a whole grew at a rate of 3.7% in FY15.

In 2013-14, UBL had sold 138.7 million cases while the industry sales stood at 270 million cases. The strong beer segment continues to lead the growth and is now estimated to account for 85% of the beer market. Apart from this, the premium beer segment continues to grow at about 30%, the company said in its report.

United Breweries’ net sales for the year ended March 2015 stood at Rs 4,692 crore as against Rs 4,235 crore in the previous year, showing a growth of 11% year-on-year.

Its strong beer portfolio achieved 112.7 million cases in sales setting a new benchmark. Of this, Kingfisher Strong achieved 94.5 million cases in sales.

Kingfisher Strong continues to lead the Indian beer market with a market share of 39.4% in strong beer category.

Kingfisher Premium continues to grow its market share and is the first choice for mild beer consumers across the country. Kingfisher Ultra crossed 1.42 million cases sales in FY15 and commands a market share of 3.1% in super premium category.

“Heineken is the fastest growing brand in our portfolio, and is now available in over 15 states in the country. The brand has established itself in the super premium beer, with a focus on international marketing platforms like the UEFA Champions League football, James Bond and Music,” UBL said.

During FY15, UBL spent 17% of net sales on selling and brand promotions, which is same as last year. UBL’s sales and promotion expenses went up 14.3% to Rs 775 crore during FY15 as against Rs 678 crore in the previous year.

On the basis of alcohol content, beer in India can be categorised into strong and mild. Strong beer, which has alcohol content between 6% and 8%, dominates the beer market.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.