United Breweries Limited (UBL), a leading player in the Indian beer market, has reported a significant decline in its financial performance for the second quarter. The company faced headwinds due to adverse weather conditions and market dynamics, resulting in lower sales volumes and profitability.

Financial Highlights

UBL's quarterly results paint a picture of the challenges faced by the beer industry:

The company's net profit fell short of analyst estimates, which had projected a figure of ₹1.10 billion. However, despite the overall decline, UBL's revenue surpassed market expectations of ₹21.56 billion.

Market Performance and Strategy

According to the company's LODR filing, UBL experienced a 3.4% decline in total volume during Q2. This decrease was attributed to:

• Stronger-than-usual monsoon affecting overall beer market
• Adverse weather conditions across UBL's footprint
• Stock-building effects from the previous year's Q2, which followed a peak season impacted by national elections

Despite these challenges, UBL reported market share gains in terms of sell-out volumes. The company's premium segment showed resilience, growing by 17% in the quarter and contributing to a 33% growth rate for the first half of the fiscal year.

Product and Market Initiatives

UBL continues to focus on portfolio expansion and market penetration:

• Launched London Pilsner in Orissa
• Introduced Kalyani Black Label in West Bengal
• Strong growth observed in premium brands including Kingfisher Ultra, Kingfisher Ultra Max, and Heineken® Silver

Operational and Financial Strategies

The company is implementing several measures to navigate the challenging environment:

• Accelerating productivity agenda to drive sustainable and profitable growth
• Invested ₹293 crore in capex during Q2, primarily for a new greenfield project in Uttar Pradesh and commercial initiatives
• Continuing network optimization, including the closure of the Mangalore unit earlier in the year
• Implementing initiatives to enhance operational excellence and cost efficiency across the organization

Outlook

Despite the current headwinds, UBL remains optimistic about the long-term growth potential of the beer industry in India. The company cites increasing disposable income, favorable demographics, and ongoing premiumization trends as key drivers for future growth.

As UBL navigates through these challenging times, its focus on premium segments, market expansion, and operational efficiency will be crucial in maintaining its market position and preparing for future opportunities in the Indian beer market.

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.