United Breweries Group

History The UB Group was founded by a Scotsman, Thomas Leishman in 1857.

Vittal Mallya was elected as the company's first Indian director in 1947.

Kingfisher, the Group's most visible and profitable brand, made a modest entry in the 60’s.

After Vittal Mallya's death in 1983, his son Vijay Mallya took up the mantle of the group.

A brief look on the progress timelines of the UB Group:-

1948 - Mr. Vittal Mallya became the first Chairman.

1950 - Registered office moved to Bangalore.

1960 - Kalyani Breweries was set up.

1972 - High Range Breweries set up in Chertalla in Kerala.

Continued…

1974 - UB Beer exported to Aden and Middle East.

1981 - Canned Beer was introduced.

1982 - UB's Kingfisher Lager hit parlours in England and USA.

2000 - Associated Breweries & Distilleries Ltd. and Mangalore Breweries & Distilleries Ltd. were acquired.

2001-02 - Acquired GMR Vasavi, MP Breweries and 41% share of Inertia Industries Ltd. 65% share of Associated Breweries & Distilleries Ltd. 97% share of Mangalore Breweries & Distilleries Ltd.

Company portfolio

The UB Group is a multi-faceted conglomerate with business interests such as the following:-

Beverage Alcohol

Pharmaceuticals

Media

International Trading

Aviation

Fertilizer

Research & Development

Infrastructure Development

Product – “Kingfisher Beer”

Market Size for Beer in India

Indians drink little more than 1 litre per capita annually.

Relatively very less when compared to a global average of 22 litres.

And even lesser when compared to the highest per capita consumer of 156.9 litres per annum by Czech Republic.

Key PlayersCarling Black Label Dansberg

Carlsberg Kirin

Golden Eagle Guru Knock Out

Maharaja Premium Lager Legend

Haake Beck London Diet

Haywards 2000 Beer London Draft

Haywards 5000 London Pilsner

Haywards skol Royal Challenge

Flying Horse Royal Lager San Miguel Lager

Taj Mahal Sand Piper

Heinekin Strohs

Hi-Five Ice Zingaro

Classification of Beer

Lager: It is stored for a specified period before being bottled or canned.

Pilsner: A type of lager beer, it is light with 3.0 - 3.8% alcohol and has a medium hop flavor.

Ale: Top fermented, this kind of beer has distinct hop aroma. The alcohol content is around 4 - 5%.

Stout: Dark with burnt flavor and strong malt aroma; it is heavily hopped and contains 5 - 6.5% alcohol.

Porter: This is less dark than stout, even less hopped and is somewhat sweet. Alcohol content is around 5%.

Continued…

Creamy Ale: A highly carbonated beer that is produced by a combination of Ale and Lager. Malt: A strong flavored, high alcohol content beer that ranges in flavor and colors.

Market captures

Market share of SABmiller – 37%

Market share of Fosters – 6%

Market share of Kingfisher – 52%

Market share of Mohan Meakins – 5%

Kingfisher’s 4P’s

Product

No. 1 selling product in its segment.

Consistency of product quality is high.

Always tastes fresh due to good quality and well developed distribution network.

Hangover due to heavy consumption is very mild.

It is available throughout India, and dominant in South and West India.

UB has 16 company-owned breweries apart from nine contract breweries in 20 different locations across the country.

Kingfisher also has an online marketing system. Any consumer can go to “www.Kingfishernetshop.com” and get their beer- a minimum of six bottles home delivered.

It also has some 1600 shops apart from pubs and bars.

Place

Price

Bottles

Canned

Mild - Rs. 70 Strong - Rs. 72

Mild - Rs. 38 Strong - Rs. 40

Promotion

Kingfisher tagline ‘King of good times’ is one of the most popular and successful tagline in India. Recently it also started merchandizing sports goods and trendy clothing and accessories under Kingfisher brand name. Each year Kingfisher brings out new calendars featuring top models in swimwear. Kingfisher also promotes itself by sponsoring events like fashion shows, sportspersons like Narain Karthikeyan, East Bengal soccer team. UB promoter also acquired a Formula - One team (Force India).

Target

Kingfisher Mild (Alcohol<4%)

Kingfisher Strong (Alcohol>4%)

Youth who drink for fun. Those who want to shift from light beer to strong beer.

First time drinkers who drink for experience.

Regular drinkers who prefers strong flavoured.

Urban women who prefer to drink light.  

Re-positioning

Previous logo Current logo

Reason for changing the previous logo was to create the strong emotional bond of the brand which always wants to go high.

Future Growth Plans

Line extension:

- Ultra premium beer

Category extension:

- Energy drinks

- Film production and Distribution

- Apparels and Accessories retailing

Conclusion

India is a growing economy and its market is opening up. The per capita income of the people of the country is rising daily and so is the beer consumption rate. The stigma associated with the consumption of alcoholic drinks has also gone down; as a result the beer companies are trying to get more associated with everyone’s life.

Thank You!!