An introduction to the drinks industry in India - Bharatbook

An introduction to the drinks industry in India - Management briefing

This month’s briefing provides a sector-by-sector overview of the beverage market in India. We look at the growing importance of the wine industry and how high taxation is a big hurdle to its promising growth. The major players in the spirits industry are profiled, including United Breweries and Seagram, and the Indian regulation of liquor production and imports is reviewed. The entry of new international players in the Beer market, such as Heineken, Cobra, Anheuser-Busch and Carlsberg, is discussed, along with the proposed de-linking of beer from spirits. We also look at the latest happenings in the soft drink sectors, namely carbonated soft drinks, fruit juice, packaged water, energy drinks, hot drinks and milk.

Table of Contents :

Wine
The growing importance of the wine industry
High taxation a big hurdle to growth and India’s issues with the World Trade Organization, the European Union and the US
Proposed de-linking of wine from spirits for regulatory purposes

Spirits
Major players – consolidation in the spirits industry
United Breweries
Mohan Meakins
Radico Khaitan
Seagram
Indian regulation regarding liquor production and imports

Beer
Consolidation in the industry and emergence of a new bipolar market dynamic
Entry of new international players like Heineken, Cobra, Anheuser-Busch and Carlsberg
Asia Pacific Breweries
Cobra
Anheuser-Busch
Carlsberg
Changes in regulations in recent times: The proposed de-linking of beer from spirits

Carbonated soft drinks
The pesticide controversy

Fruit juice
Other fruit-flavoured drinks
The prepare-at-home soft drinks segment – squashes and concentrates

Packaged water
The main players
Packaged water finding acceptance in public places, offices and shopping areas

Energy drinks
Dominance of Red Bull in a very small market with many brands

Hot drinks – tea and coffee
Coffee shop culture growing

Milk
Success of the co-operative dairy businesses in the country
Tussle between Mother Dairy and Amul
Packaging of milk and the unorganised sector
Flavoured milk and other dairy based drinks (curd based)

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Don't forget to mention Teachers which is actually the number 1 selling spirit in that region of the world.....Also, wine is always tuff with taxation since it has the lowest profit margin of all the liquors