United Breweries Limited (UBL), a part of the HEINEKEN group and India's largest beer manufacturer, has announced the relaunch of its iconic Kalyani Black Label Strong beer in West Bengal. The relaunch marks a significant move for the company in the strong beer segment of the Indian market.

Product Details and Pricing Strategy

Kalyani Black Label Strong, categorized as a Strong Mainstream beer, will be available across leading outlets in West Bengal at a competitive price point of INR 140.00 for a 650ml bottle. This pricing strategy aims to make the product accessible to a wider consumer base and drive growth in the strong beer category within the state.

Historical Significance and Brand Heritage

The Kalyani Black Label Strong beer holds a special place in Bengal's beer culture. Named after UBL's first brewery in India, located on the banks of the Kalyani river, the brand has been a favorite among beer enthusiasts in Eastern India for generations. Its relaunch is not just a business move but also a nod to the brand's deep-rooted heritage in the region.

Market Strategy and Target Audience

Vikram Bahl, Chief Marketing Officer of United Breweries Limited, emphasized the brand's significance, stating, "Kalyani Black Label Strong is a brand deeply rooted in Bengal's beer culture. With its return, we want to celebrate this legacy while also welcoming a new generation of beer drinkers to experience it."

The relaunch strategy appears to be twofold:

1. Reconnect with long-time fans of the brand
2. Attract new consumers to the strong beer category

Availability and Distribution

The relaunched Kalyani Black Label Strong will be available in 650ml bottles across leading outlets in West Bengal. This wide distribution aims to ensure easy accessibility for consumers throughout the state.

United Breweries Limited: Company Overview

United Breweries Limited, headquartered in Bengaluru, boasts a diverse portfolio of alcoholic and non-alcoholic beverages. As India's largest beer manufacturer, UBL's product range includes popular brands such as:

• Kingfisher (Strong, Premium, Ultra, Ultra Max, Ultra Witbier, Storm)
• Heineken® (including Heineken® Silver and Heineken® 0.0)
• Amstel Grande
• Kingfisher Premium Water
• Kingfisher Soda

The relaunch of Kalyani Black Label Strong beer adds another dimension to UBL's already robust product lineup, reinforcing its position in the Indian beer market.

This strategic move by United Breweries Limited not only revives a beloved local brand but also demonstrates the company's commitment to catering to regional preferences while expanding its market presence in the competitive Indian beer industry.

United Breweries Ltd. (UBL) CEO Vivek Gupta has outlined a positive growth trajectory for the company, despite facing challenges from adverse weather conditions in key markets. The beer giant anticipates a 6-7% volume growth for the current fiscal year, showcasing resilience in the face of heavy rainfall that has impacted several states during the second quarter.

Strong Q1 Performance and Premium Portfolio Growth

UBL reported an impressive 11% volume growth in the June quarter, with its premium portfolio showing exceptional performance, growing by 46%. This robust start to the fiscal year has set a solid foundation for the company's annual projections.

Premiumisation Strategy and Market Outlook

Gupta expressed optimism about the company's premiumisation strategy, forecasting a 25% growth in this segment. This focus on higher-end products could potentially drive revenue growth and improve profit margins for UBL.

GST Reforms and Potential Industry Impact

The CEO highlighted recent GST reforms as a potential catalyst for increased alcoholic beverage consumption. However, he cautioned that this positive impact could be nullified if state governments decide to raise excise taxes to offset any revenue shortfalls.

Advocacy for Differential Taxation

Gupta made a strong case for separate taxation of beer from spirits, emphasizing the significant difference in alcohol content. He pointed out that beer typically contains less than 6% alcohol, compared to 40-45% in whisky and other spirits. This differentiation, if implemented, could lead to more favorable tax treatment for beer products.

Challenges and Headwinds

Despite the optimistic outlook, UBL faces several challenges:

1. Commodity price volatility
2. Aluminum can shortages
3. State-wise taxation policies affecting expansion plans
4. Significant rainfall across northern India impacting current quarter performance

The beer category has seen a double-digit decline in July and August, primarily due to the heavy monsoon in northern India.

Conclusion

While United Breweries Ltd. faces short-term headwinds due to weather conditions and supply chain challenges, the company maintains a positive outlook for the fiscal year. With a strong focus on premiumisation and potential regulatory reforms, UBL aims to navigate through these challenges and achieve its projected growth targets.