Tag Archives: beer

KALS launches Foster’s nationally post Acquisition

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As a company KALS has been growing organically and inorganically acquiring breweries and distilleries along the way. With the acquisition of Foster’s in India, the company has added a new dimension to its growth plans. A report.

KALS is looking to brew a new vision in the Indian beer industry with its acquisition of Foster’s Beer and three breweries from ABI, which include the East Coast Brewery in Odisha, SICA in Pondicherry and Malabar in Kerala, all formerly SAB breweries. The company has acquired a package deal from ABI which includes three breweries, Kerala, Pondicherry and Odisha along with the Foster’s brand.

The brand has been purchased on an outright ownership basis for India, in other words, KALS now owns Foster’s, it’s variants and all IP related properties for the territory of India. The acquisition fits very well into KALS premium growth vision and they believe that the brand is vibrant with high consumer brand recall.

Not long ago Foster’s was a Pan India brand that was well accepted and this belief has been reaffirmed by the consumers and market since its relaunch few weeks ago. KALS has also acquired a brewery in Rajasthan, formerly Mount Shivalik, with brand rights of Thunderbolt, Golden Peacock amongst others for the state of Rajasthan.

All these acquisitions have given KALS a combined brewing capacity of 3 Million HL, putting KALS as the largest standalone Indian brewer in the market.

Foster’s, the famous Australian beer, is an internationally-distributed brand of lager. It is owned by the international brewing group Asahi Group Holdings, and is brewed under licence in a number of countries, including its biggest market, the UK, where the European rights to the brand are owned by Heineken International.

KALS is in the process of rolling out Foster’s Nationally and as part of the process, the brand has been launched in Pondicherry, Odisha, Uttar Pradesh and Karnataka with plans to roll out in the other markets in the next few weeks.

In last 24 months KALS has created a solid foundation, especially in creating brewing capabilities across the country with five breweries located strategically making them the largest, stand-alone Indian brewing company.

According to spokesperson of the KALS group, the promotional strategy is currently a work in progress, and we are getting ready for the oncoming season. Plans are also afoot to launch a vodka brand which is a new segment for KALS.

KALS Distilleries and KALS Breweries was launched in one of the most backward districts of Tamil Nadu in the year 2010 and 2013 successively. Both these manufacturing units have become one of the largest players of alcoholic beverages to TASMAC, a Government run wholesale-cum-retail undertaking in Tamil Nadu. The products of KALS Distilleries and KALS Breweries have already made their imprints in the

States of Kerala and Puducherry and Karnataka.

KALS Breweries, a state-of-the-art and automated plant with its own dedicated system software, was set up with German know-how. It has also entered into a tie-up with VLB, Berlin for talent infusion and development of brewing. KALS also has exclusive manufacturing facility to produce canned beer is already installed and the products are being sent to Kerala, Puducherry and other states.

The Management of the KALS Group of Companies are particular about ensuring compliance with high standards of quality keeping the consumer preference in focus. Legal compliances are given top priority. KALS Distilleries and KALS Breweries are the first alcoholic beverage manufactories in Tamil Nadu to obtain clearance from the statutory Site Approval Committee.

This drive towards ensuring quality and satisfaction of consumer preference enabled IMFS and beer products of KALS to record the second largest sales in Tamil Nadu. KALS Group of Companies occupy the top few sales in terms of performance of alcoholic beverage products in Tamil Nadu all through the year. La Martine VSOP Premium Brandy and 1848 Premium XO Brandy are the premium segment products highly cherished and sought-after by consumers in Tamil Nadu. Kolt Extra Strong Beer, Black Pearl Triple Super Strong Beer and Sterren 7 Premium Quality Lager Beer are among the most popular beer products in Tamil Nadu. Both KALS Distilleries and KALS Breweries have a wide range of products serving all sections of society.

United Breweries launches new Heineken Silver in India

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United Breweries, the country’s largest beer manufacturer and part of the Amsterdam-based Heineken group recently announced the launch of Heineken Silver, a smooth and refreshing beer that provides Indian consumers with a premium beverage that is truly designed for everyday social occasions.  

Heineken Silver is brewed by seasoned master brewers using natural ingredients, including Heineken’s famous A-yeast and quality pure malt.  

Rishi Pardal, Managing Director, United Breweries Limited, said, “Guided by our purpose of brewing the joy of true togetherness to inspire a better world, we are always looking to bring products to the market that match the needs of our consumers and keep up with ever-changing taste preferences across generations. We see modern consumers seeking beverages that are light, easy-to-drink and fit in well with their social occasions and Heineken Silver is perfectly designed for these moments. We are confident that the smooth and refreshing Heineken Silver will herald a new era of premiumisation in the Indian beer market.”  

Rajeev Sathyesh, Asia-Pacific Director, Brand – Heineken, said, “We are excited to launch this new member of the Heineken family, Heineken Silver, in India. This delightfully refreshing, smooth and easy-to-drink lager has received a lot of love in our other markets globally. We are confident that it will also appeal to the new generation of beer drinkers in India. Heineken Silver is brewed as an all-round crowd pleaser and the perfect partner to celebrate authentic moments of joy.” 

Heineken Silver is available in both on- and off-trade retail channels in Bengaluru. Heineken Silver’s 330-ml pint is priced at `120, the 500-ml can at `160 and the 650-ml bottle at `200 across off-trade retail outlets in Bengaluru. The beer comes in a sleek silver can and the iconic green bottle. Heineken Silver will also be launched in other markets very soon.  

Heineken Silver has a smooth and refreshing taste, retaining the signature fruity aroma of Heineken Original with a balanced, though slightly lower bitterness.

Indian liquor trends pre and post COVID

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The Covid-19 pandemic has continued to impact India since its arrival in spring last year. The government initially reacted by imposing a national lockdown from 23rd March to 4th May last year. The on-trade was completely closed, as were most liquor shops in every state. Places of work shut down, so many young office workers left the urban centres. With the on-trade stifled, retail purchases and consumption of beverage alcohol at home became the norm in most mainstream categories. In India, however, women and younger consumers still feel uncomfortable drinking in front of more conservative parents and family members at home. Limitations on space and refrigeration favoured spirits over beer, RTDs and – especially for young urban women – wine, all of which are usually consumed cold.

The implications of the pandemic response for India’s status as a federal republic soon became clear. The importance of excise duty income from alcohol, tobacco and fuel was brought into sharp relief as revenue streams dried up and the diminishing income from national taxes, such as GST, were used to offset fiscal shortfalls at state level. Most states responded by increasing excise duties – often suddenly and steeply – as well as charging taxpayers one-off cess payments, commonly levied by central governments for a specific purpose. Unusually, this cess (tax on tax), commonly levied by central government for a specific and clearly defined purpose (and not shared with state governments), has been applied in a number of instances at state level as a Corona-cess. Some states have been more reluctant than others to review, reduce or cancel such supposedly temporary measures. For instance, Andhra Pradesh – where the government had tried to enforce prohibition before the pandemic – imposed a 75% excise duty incre for two days just as the national lockdown ended last May; and on the same day, Delhi imposed a 70% cess on the maximum retail price (MRP) of all liquor, which remained until 7th June.

The timing of the lockdown could not have been worse, especially for beer. The category relies on young urban drinkers and after-work occasions and its peak season for consumption was about to start. When lockdown ended, bars and restaurants re-opened in most states, but were limited to 50% occupancy, and workers were slower to return to offices. Many are still working from home or – during Q1 2021 – have returned to it.

Compared to some countries, where citizens often remained risk-averse and pessimistic after the first lockdown, Indian consumer confidence seemed to bounce back quickly. Many Indians assumed – wrongly – that their everyday hygiene challenges afforded them a high degree of natural immunity to the coronavirus.

The past year has confirmed that India is squarely a brown spirits market. Whisky absorbs two-thirds of consumption in this market; brandy – with a strong presence in the south – takes 20%; and rum takes around half of that. In a total market that has shrunk by around one-fifth, whisky declined only slightly less than brandy and rum, which fell around one-quarter. Beer and RTDs suffered precipitous falls, deprived of many of the venues and occasions that had driven consumption forward. All clear spirits witnessed steeper declines in consumption than dark spirits: in each category, sales of domestically produced brands bottled in India (BII) fell away faster. Even allowing for the experimentation evident in categories such as Irish whiskey, consumers sought out brands that they knew, had earned equity and had consistent quality. In short, they sought out certainties.

Two other fundamental shifts have also occurred. Firstly, the premiumisation trend – evident before the pandemic – saw some importers shift their focus to retail, increasing its offering of high-end brands, which were previously targetted at Duty-Free and at the on-trade. Disposable income spent on going out to eat and drink before the pandemic was instead often redirected to premium-and-above products for at-home consumption. Secondly, as a corollary to this and confirming the pressure on the mainstream, was down-trading out of Indian-made foreign liquor (IMFL), either bottled in origin (BIO) or BII.

Budget-conscious consumers instead chose either country liquor or illicit alternatives, having long been deprived of licensed outlets in which to purchase their nips.

The on-trade closure has also impacted routes to market and the supply chain and it increasingly determines choice. When all outlets closed, some states permitted home delivery, which many thought heralded the long-expected rise of the e-commerce channel. In reality, this was an expedient option for retail outlets: e-commerce has not seen a consequent increase in regulation or investment since. On the contrary, drinks ordering apps, such as Hipbar, appear to have been actively discouraged.

The effects of a six-week shutdown of alcohol supply lasted long after it ended: restocking and logistics issues extended out-of-stock occurrences well into the summer months. Importers often found it difficult to source supplies as exporters were reluctant to ship to trading partners in an uncertain economy, not least because they wanted to avoid passing on rising logistics costs to consumers.

One of the responses, driven by leading country liquor suppliers, has been the emergence of intermediate or medium liquor produced locally: this refers to a price band of distilled liquor sold under licensed quota in certain states – presently Rajasthan and Uttar Pradesh only – competitively priced between country liquor/IMIL (Indian-made Indian liquor) and IMFL. Commonly the price, set by the state, is at a 25% premium to the country liquor price, a similar proportion lower than IMFL pricing.

This system has the additional benefits of almost guaranteeing state excise income and reducing the occurrence of country liquor-related health issues through better-quality product. In theory, this model should be attractive to many more states. In practice, its implementation may be limited by the relative scarcity of country liquor distillers able to produce medium liquor of the requisite quality. Nevertheless, with investment and a little covert encouragement from the states, that provision will doubtless evolve over time.

In a decentralised India, the domestic beverage alcohol industry relies on a relatively small number of states for its success. The top three states – Uttar Pradesh, Maharashtra and West Bengal – account for one-third of India’s population. The top six states account for half of the population. West Bengal is the only corporate state: the beverage alcohol industry is regulated directly through a state body. By contrast, the five largest states in the south are each home to beverage alcohol corporations.

This complexity and large size of India means that there are very few companies that are truly national. Even those that are considered national – thanks to a contract bottling network – still retain large regional brands in their portfolios. There is a small number of multinationals twinning domestic production with imports that are focussed on urban distribution shared among importers and wholesalers. India has a larger number of local distillers aspiring to convert their regional origins into a multi-region or national presence; and there are many smaller distillers, the majority of whom supply locally. Most distillers, therefore, will only be trading in one or two jurisdictions and navigating one or two bureaucracies. For the larger players, these challenges are manifold.

The second half of 2020 saw the Indian beverage alcohol market emerging quickly and largely unscathed from Covid-19 and lockdown. Leading spirits companies in particular were reporting quarterly revenues and volumes that had recovered to pre-pandemic levels. This was in spite of the on-trade remaining stifled, e-commerce failing to expand and the regulation and excise duty rises imposed by most states. However, by the second quarter of this year – the beginning of the new financial year for most corporations – this initial optimism about rapid recovery has somewhat evaporated.

The picture, though, is mixed. India’s federal state model shows up the inconsistencies between states: decisions can often be arbitrary, poorly thought through and political rather than practical, but a successful model in one state can be swiftly adopted in another. On the one hand, the Delhi state government’s legislation lowering the legal drinking age from 25 to 21 is positive for the industry. On the other, Andhra Pradesh will join Bihar, Gujarat and some other smaller states and territories to prohibit alcohol for around 250m people, which is nearly one-fifth of the population.

It cannot be overstated how the pandemic and its effects demonstrated the importance of beverage alcohol revenues to individual states’ budgets. Some state governments recognise this and are approaching their beverage alcohol policy with pragmatism by listening to the industry more attentively.

The key issues revolve around the temporary and permanent changes brought about by the pandemic. Office work may have changed permanently, calling into question whether or not urban on-trade lighthouse accounts will recover. It is uncertain when occupancy rates in on-trade venues rise above the current 50% constraint. The medium liquor system may see expansion into further states. It is also questionable whether premiumisation will persist or the second Covid-19 wave will dent consumer confidence fundamentally.

The wider economy, of course, is a determining factor. Declining disposable income has particular relevance for beverage alcohol spend. The industry is circumscribed by its investment in advertising and promotion. The pandemic has sharpened the senses of many executives and players, but left others close to collapse, unable to survive further uncertain events. States have pursued short-term solutions throughout the pandemic and it is unknown if this approach will persist. However, it is likely that the distilling capacity of the domestic industry will not grow. This has implications for all, given the contract-bottling model that has enabled the largest players to become truly national.

General Forecast Assumptions

On-Trade – In some states, the on-trade had re-opened up to 85% of its former capacity by Q1 2021. However, the occupancy restriction to 50% remains, so the real throughput is also likely to be at 50%. This will continue to affect beer and RTDs. Furthermore, on-trade sub-channels are re-opening at different rates.

Restaurants opened faster than bars; and bars faster than night venues. Whilst this appears to affect wine and premium spirits in higher-end outlets, the impact will be mitigated by the flexibility of suppliers, many of whom have switched attention to retail and targetting wealthier consumers.

Medium Liquor – Consumers in some states are now being offered a wider choice. Those who had traded down to country liquor may choose medium liquor instead of IMFL. Currently this is available in Rajasthan and Uttar Pradesh, but more states may institute this. A significant number of consumers may prefer the taste and the brands on offer in the category to IMFL.

E-commerce – When three of the larger eastern states – West Bengal, Chhattisgarh and Jharkand – permitted home delivery of alcohol, it was thought e-commerce would, at last, be stimulated by the lockdown conditions. They were soon joined by Orissa and Maharashtra. However, steep delivery charges, regulatory uncertainty, a reluctance to invest and a poor delivery-logistics framework continue to hamper growth, as well as the nature of Indian e-commerce defined on the invitation issued by the West Bengal authorities as “handling the electronic ordering, purchase, sale and home delivery of alcoholic liquors from licensed food [and liquor] outlets”. Retail competitors required to pay for annual licences have lobbied against the channel as well. Some significant platforms – Amazon, Flipkart (Walmart), Big Basket, Swiggy, Zomato and the mobile app Hipbar, reportedly backed by Diageo and, in Mumbai, Living Liquidz – responded to state-level invitations to get involved after the Supreme Court ruled in favour of home delivery from licensed retail. However, it has become clear that any bureaucratic encouragement of home delivery has primarily been one of a range of responses to the crowds that gathered outside liquor shops last year and, while recurring lockdowns may help to accelerate e-commerce, the channel will not significantly impact the industry for the foreseeable future. Informal delivery, where customers call up the liquor store and get an order dropped off by moped, already existed and will continue.

Regulation – Uttar Pradesh, India’s most populous state, had previously imposed a cess of 20 per bottle of beer. West Bengal, the fourth most populous state, increased consumer tax by 30%. Rajasthan, the sixth most populous, enacted both, adding20 per bottle and imposing a 10% increase in consumer tax. Their approach is unlikely to change. Additionally, the election in Bihar state did not return a government willing to reverse prohibition. Andhra Pradesh’s government was unable to enact prohibition but has discouraged some national players by making trading there problematic. However, it is assumed there is no foreseeable regulatory movement throughout the forecast period.

Consumer Base Expansion – India’s population is approaching 1.4bn, with less than half being of legal drinking age. The actual number of alcohol consumers is believed to be closer to 160m, only 7.5% of whom are women. Per capita rates for beer and RTDs remain low at around 1.2 litres for men and 150ml for women, re-calculated at 10 litres and 1.25 litres on estimated drinking population numbers. Wine has similar rates to RTDs, spirits are 1.8 litres per capita and nearly 15 litres on a re-calculated basis. There are more younger consumers joining the potential drinking population every year. Uptake by women reportedly increased during the pandemic.

At-Home Consumption – This trend is likely to persist beyond the pandemic. Wealthier consumers of premium spirits and imports spend for indulging at home and for gifts. The wedding industry will revive: most wine suppliers are focussing on higher-end offerings, educating consumers about its accessibility and suitability during meals, as well as drinking before and after. Beer and RTDs will find difficulty switching as their core message is based on going out and socialising rather than at-home consumption, and most consumers have insufficient refrigeration space at home.

Key Market Factors

Cultural – The legal drinking age varies from state to state. In most states it is 21, but 25 in the populous states of Haryana and the Punjab. In Maharashtra it is 21 for beer and wine, and 25 for liquor. Bigger states with a drinking age of 18 include Rajasthan in the north and Kerala in the south. Delhi is about to lower its LDA from 25 to 21.

Three states with larger populations prohibit alcohol. Gujarat has been dry for the longest, with Bihar and now Andhra Pradesh having imposed prohibition more recently. Outcomes are mixed, with Bihar and Andhra Pradesh reportedly having some of the highest per capita consumption rates for beverage alcohol nationally once illicit alcohol is factored in.

Demographic – A key driver of consumption has been urbanisation, particularly among younger LDA drinkers. The lockdown appears to have reversed this, with young office workers returning to their parents’ houses in smaller cities, towns and the countryside.

The overall population is nearly 1.4bn and grows by 15–20m or more every year. The drinking population is considerably smaller: at least half can only afford very cheap country liquor, which is largely unbranded alcohol with an estimated market of 250–285m cases.

The rapidly growing middle classes, who can afford premium-and-above, may number more than 150m. However, 98% of middle-class women and more than 20% of men are said not to drink for philosophical, religious or cultural reasons.

Some 49% of the population is aged under 19, and few drink, although younger consumers are generally more willing to consume alcohol than many of their parents. This leaves a market of between 25m and 30m people with the inclination and resources to drink IMFL.

Economic – There is little state support in India and wellbeing is the individual’s responsibility. With livelihoods uncertain but a young population inclined to optimism, the second Covid-19 wave may hit confidence hard and a volatile economy will see more cautious expenditure. Excise rates vary substantially from state to state even before the pandemic, which exacerbated the difference when states imposed cess payments to make up fiscal shortfalls.

A number of observers mention a shift to modern retail. This is consistent with state governments looking to secure the revenues they can expect from beverage alcohol and also with consumer expectations around improving retail venues.

Trade – Difficulties with the supply of stock have been widespread. It is reported that lack of supply inhibited sales, especially of premium products. The pandemic hindered logistics and rendered delivery more expensive. Brand-owner allocations have also reduced the agility to respond to demand.

A further element is that the phenomenon of medium liquor in Rajasthan and Uttar Pradesh offers more settled revenue for states and gives consumers an alternative to IMFL. One leading country liquor supplier reports now selling twice as much medium liquor as it does country liquor per month. India is unusual in that spirits demand is significantly more developed than demand for beer. While there is some interplay between the two with bang-for-buck consumers keen to maximise alcohol content per rupee delivery, there were some signs that demand for beer was beginning to develop separately.

However, strong beers of 8.5% ABV still represent more than 82% of demand. The first lockdown also affected trade, and was both severe and ill-timed – six weeks without sales, just before peak season for beer and RTDs. The on-trade revived in the second half of 2020 with near full re-opening in some states, but night and weekend curfews, combined with 50% capacity limits, continue to constrain this channel. The uncertainty of lockdown and the unavailability of liquor drove some consumers back down to country liquor, although not in the south where it is banned in five large states.

There was more limited up-trading by wealthier consumers. However, mainstream products, brands and players have been affected with some of the less financially secure domestic players closing for some months. In some of the larger states, competition in the beverage alcohol category is relatively open. In more there are state corporations set up as wholesalers and frequently as retailers too. In all states, beverage alcohol participants must navigate a web of licences, quotas and taxes, and sometimes incentives.

In certain key states, the regulatory authorities that control pricing have rationalised their price lists. In Delhi, Rajasthan, Madhya Pradesh and Haryana the correction has been downwards for higher-priced imports.

It is reported that there is shift to modern retail. This is consistent with state governments looking to secure revenues from beverage alcohol and also with consumer expectations around improving retail venues.

Political – Breweries have been investigated by the Competition Commission of India (CCI) which has now resulted in fines for collusion and operating a cartel. The reputational impact is more serious than the financial cost.

Bira 91 ‘Imagined in India’ limited-release beers pleasing the desi palate with innovative flavours

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The late English author Gilbert Chesterton once wrote: “Let a man walk 10 miles steadily on a hot summer’s day along a dusty English road, and he will soon discover why beer was invented.” He’s right, of course — there’s something about the combination of the warmest season and an ice cold brew that just works. Summer in Delhi is unbearable and we do not have an opposition for this. And, how most of us beat the heat is by gulping down frosty and flavourful beers. Delhiites can now rejoice as India’s popular beer brand Bira91 brings you a range of four new limited-release beers – Bollywood IPA, Kokum Sour, Brown Ale, and Mango Lassi – as part of their ‘Imagined in India’ initiative. Team Ambrosia was part of the preview tasting, hosted on April 07 2022 at the beautiful QLA, in Mehrauli, Delhi. The tasting was followed by dinner, curated by Chef Vicky Ratnani, and a live music set by DJ MoCity and DJ Nida. It was what we call a perfect dreamy evening filled with all the finer things in life.

A melange of flavours

The ‘Imagined in India’ beers are made with indigenous products and are inspired by the raw creativity of today’s India led by emerging artists, entrepreneurs, and startups combined with the cradle of flavours that find a home here.

The Bollywood IPA variant has a tropical twist, inspired by west coast India Pale Ales that were born in California, while Kokum Sour has traditional ingredients from the Konkan coast. We loved the Brown Ale – a blend of English Nut Brown Ale and the Antwerpian Amber with notes of coconut and vanilla. Fans of lassi would appreciate the taste of their Mango Lassi version that merges its Wheat Ale and a milkshake beer into one.

Ankur Jain, founder and CEO of the company, said, “For this generation of consumers, beer means flavour, and we deliver on that promise. ‘Imagined in India’ is an attempt to bring together the many flavours of India and its creative energy fuelled by emerging artists, entrepreneurs, and startups. Each beer is brewed with unusual ingredients – local and seasonal – which makes them unique.”

He further added, “Each of these flavours originated at the Bira 91 Limited-release Taproom at Koramangala, Bengaluru, where they received tremendous consumer love and affinity. The flavours were voted as the top-ranked choices by beer lovers, which inspired us to bring them to consumers across the country.”

Earlier, back in 2021, Bira 91, in collaboration with non-alcoholic drinks brand Svami, had rolled out Cucumber flavoured Kölsch. The Bira 91 x Svami Cucumber Kölsch is brewed with pure German Pilsner malt, a fresh cucumber flavour and the delicate caress of the finest German noble hops, with an IBU of 18 and an ABV of 6%. It is a crafted blend of bitter-sweet notes and cool cucumbers creating a crisp, balanced, and revitalising beer.

Staying true to the brand’s playful image, Bira 91 encourages consumers to be more experimental and creative, while exploring new flavours in everything, including the beers that they drink. The new ‘Imagined in India’ range is yet another exciting testament to delivering on that promise.

Collaborations for community growth

To bring alive the flavours, Bira 91 has collaborated with Kulture Co, a curated platform spearheading the new wave of Indian Graphic Art across borders. The brand on-boarded contemporary Indian artists from the Kulture Lab – artists who are breaking the mould and taking modern India to new frontiers – to conceptualise and design the packaging of the four new flavours.

Channelising their art and creativity on a new canvas, artists Ranganath Krishnamani, Osheen Siva, M. Sajid and Prince Lunawara showcase a vibrant palette of local stories around shared identities painted onto these beer cans, paying homage, and narrating the story of our home country.

Commenting on the idea behind designing the packaging of Bollywood IPA, artist Ranganath Krishnamani said, “Conceptualising the packaging of a flavour so bold and dynamic, that it takes you to the heart of Mumbai, where all things Bollywood originated, was truly exhilarating. Incorporating the charming art deco cinemas in Colaba, the iconic ‘kaali-peeli’ cabs, and the vintage colour scheme was the perfect way to capture Bollywood on a can.”

Designer of the Kokum Sour packaging, Osheen Siva, too expressed his thoughts behind the masterpiece and said, “Kokum is a tangy flavour, as Indians have developed a taste for since childhood. To depict a taste so loved yet so new to the beer industry was exciting. I conceptualised it to be something offbeat and loud. For me, the can had to give consumers an idea of what they were picking up from the rack when indulging in a Bira 91 Kokum Sour Beer.”

“Imagined in India to me is being authentic, raw and connected to our roots. Capturing the taste of Brown Ale that recognises uplifts and celebrates diverse communities of India and having the essence reflect in the artwork on the packaging was a great experience,” M. Sajid, who designed the Brown Ale packaging, enthused.

Prince Lunawara, who creatively illustrated the Mango Lassi can said, “India loves mangoes and merging the flavour with beer is as creative as it can get. Through the can, my idea was to celebrate this creativity and the beauty of India’s flavours.”

The limited release beers will retail in metros like Delhi, Mumbai, Bengaluru, and Pune.

According to Expert Market Research, the India beer market stood at a value of nearly 371 billion in 2020. The industry is expected to reach approximately 662 billion by 2026, rising at an estimated CAGR of 9.2% during 2022-27.

Oh Summer Beer

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A summer beer can be just about any style, as long as it’s crisp and refreshing and makes you never want to go back inside again. They range from light and fruity to hoppy and complex, but the best summer beer is the one you come back to again and again as soon as the temperature crawls above 60 degrees.

The global beer market size reached US$ 640.2 billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 750.3 billion by 2027, exhibiting at a CAGR of 2.7% during 2022-2027, according to a new report by IMARC Group.

Beer is a fermented alcoholic beverage that is made by brewing and fermenting starches derived from cereal grains. It is flavoured using hops that not only add a buttery flavour to the beverage, but also act as a natural preservative. Apart from this, other flavourings, such as herbs and fruits, are also added to attribute a specific flavour and fragrance to the drink. It is a rich source of niacin, folate, riboflavin, pyridoxine, potassium and magnesium.

Moderate consumption of beer is widely associated with numerous health benefits and aids in maintaining blood pressure levels, preventing kidney stone formations, and minimising the chances of developing cardiovascular disorders, including angina, stroke and heart attack. Owing to this, it is gaining widespread popularity across the globe.

Global Beer Market Trends:

One of the major factors influencing the global beer market is the rapid spread of the Coronavirus disease (Covid-19) and the consequent social distancing norms and lockdowns imposed in several countries as a control measure. The decrease in the number of social gatherings is projected to lead to a decline in the on-premise consumption and sales of beer in bars, restaurants, pubs and public events. However, this trend will to be offset by the demand for to-go packs as well as home delivery services, mainly through online platforms. Another factor driving the market is the widespread preference for specialty beer among individuals. These beers are brewed to a classic style by incorporating different flavours, such as honey, chocolate, ginger and sweet potatoes. This adds a distinct flavour and aroma, which further adds innovative and eccentric flavours to the drinks. The growing inclination toward craft beer is also accelerating the market growth. Since microbreweries produce portioned amounts of beer, they lay enhanced emphasis on the flavour, quality and brewing techniques as compared to large-scale commercialised breweries.

The potential for beer growth in India is strong as well. AB InBev, for example, began brewing Budweiser in the market back in 2010. In January 2021, Kirin Holdings announced an investment of $30 million in New Delhi-based B9 Beverages, the maker of the Indian craft beer Bira. IWSR anticipates beer consumption in India to return to pre-Covid-19 levels by the end of 2023, continuing on its growth path from there.

Expanding beyond beer

As consumers moved to the at-home occasion, the trend for convenience has helped to shape purchasing behaviours. In markets such as the US, the ready-to-drink (RTD) category, which includes hard seltzers, has been taking share from beer.
RTDs provide a growing opportunity for brewers to diversify their product portfolios. Indeed, Heineken entered the hard seltzer category in September 2020, with the launch of Pure Piraña in Mexico and New Zealand. In the US, Heineken partnered with AriZona to launch the AriZona SunRise Hard Seltzer in October 2020. AB InBev states that Bud Light Seltzer is their leading innovation in the US market, with over 75% of volume being incremental to their portfolio. In fact, 2021 was the first year in which a hard seltzer commercial (Bud Light Seltzer) aired during the Super Bowl.

Malt-based RTDs are currently dominant in the US owing to their taxation base, and brewers they are in prime position to take advantage. Elsewhere, the alcohol base of choice varies by country, driven by consumer preference and local alcohol tax structures.

Changes in purchasing behaviour propel e-commerce

As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel. Heineken, for example, reported that Beerwulf, its direct-to-consumer platform in Europe, nearly doubled its revenues in 2020, while in the UK, its revenues tripled. Online sales of its home-draught systems grew as well.

Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However, this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel.
Online beer sales hold the greatest market share in countries including Japan, the UK and the US. From a lower base, online beer sales will also grow rapidly over the next five years in markets such as Israel and Nigeria.

The entrepreneurial spirit of small-batch players

Craft breweries, which tend to be more dependent on the on-premise, have propelled interest in the global beer category and revitalised its fortunes in many markets. IWSR believes that the entrepreneurial spirit of the sector will mean that craft brewery regeneration will be quick. In the US, for example, IWSR has seen the pandemic lead to a “buy local” approach amongst some consumers, which will benefit small-batch players.

Innovation in the no/low space reignites the category

No- and low-alcohol beer is a bright spot for the category, as moderation and wellness trends continue to resonate with consumers. IWSR data shows that, to date, most volume has come from no-alcohol rather than low-alcohol beer across 10 key markets.

Broadly, low-alcohol beer is giving way to no-alcohol offerings particularly in markets such as Australia, France and the UK. Spain, for example, is seeing a shift from low- to no-alcohol beers, as consumers seek healthier choices and view the newer 0.0% brands as more modern. In South Africa, investment from Heineken and the emergence of a craft segment has helped to generate interest in the no-alcohol category.

While no-alcohol beer has existed for decades, in markets like the US, no-alcohol beer has premiumised through the release of no-alcohol versions of non-lager styles, long the domain of no-alcohol beer. More recent no-alcohol styles, such as IPAs, stouts or porters, are starting to make a real impression, driven particularly by new challenger brands, many of which are not linked to traditional brewing. The recent no-alcohol extension of Guinness – despite some teething issues – will help to underline that no-alcohol beers are no longer the sole domain of lagers.

While several key beer players continue to steer the no/low beer category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space. The segment is likely to become even more of a focus for smaller craft producers who are able to bring a diverse range of products to the market in future.

The war in Ukraine could impact how much your favourite beer costs

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Some beer prices are climbing as most parts of the process cost more – from aluminum cans to transportation.

The Ukraine accounts for about 20% of beer’s usage of barley. It’s one of the top five global producers of barley. So brewers, particularly at a global level, will be watching the supply and price of barley.

Molson Coors, which brews Milwaukee’s Miller Beer, and other major brewers have so far been able to absorb the higher costs.

For Craft Beers it’s really hard to absorb price increases in raw materials without passing that along to the customer.

According to a new RaboResearch report (Rabobank), malting barley prices in western Europe are currently 50% above levels seen a year ago. This is anticipated to have a major impact on maltsters, for whom barley inputs make up 65% of costs.

For brewers, the impact is less severe as barley accounts for only 5% of costs. But RaboResearch indicates there is a risk that protectionism could derail the entire value chain, such as in the case that western Europe were to stop exporting malting barley or other grains to countries outside the EU and brewers might not get the right quantity or quality of malt.

21 Mar 2022 – Russia’s invasion of Ukraine has triggered a prominent domino effect on the prices of agricultural commodities, with analysts forecasting critical impacts on both supply and demand of food products. While energy prices are rising as a result of international sanctions on Russia, costs for grains, packaging and logistics are anticipated to surge on.

RaboResearch indicates there is a risk that protectionism could derail the entire value chain, such as in the case that western Europe were to stop exporting malting barley outside the EU. Russia produces around 13% of global barley, while Ukraine accounts for 5% (2020/21 crop). Together, these countries account for 30% of global barley exports, a significant amount.

Although the Black Sea region is a major producer of barley, very few maltsters in the rest of the world depend on its crop, as the barley produced and exported from the region is mainly feed barley.

Although some maltsters in China might use Ukrainian barley, malt plants in the rest of the world are mostly sourcing from other regions. Ukraine and Russia are major barley export nations, accounting for 28% of global barley exports in 2020.

Most Black Sea region barley flows find their way to countries without a strong beer culture. In 2019/20, 64% of Russian barley was exported to the Middle East and 9% to North Africa.

Energy costs have also risen because of the conflict. While prices of oil and natural gas have almost doubled over the past 12 months, there are many points in the value chain where higher energy costs will impact the cost of beer.

Energy is used to turn barley into malt, but RaboResearch estimates that this accounts for just 1% of the cost price of beer. The energy used in the brewing process represents 3% of overall costs. Malting barley prices in western Europe are currently 50% above levels seen a year ago.

But the largest impact is seen in the cost of packaging materials (~25%), which have a major energy component. RaboResearch estimates that the total cost price of beer has risen by 15% as a result of rising energy costs.

“The discussion about the possibility of beverage companies introducing returnable packaging has resurfaced in recent years as part of broader discussions about sustainability. We wonder if, in light of rising fuel prices, the idea might be starting to gain momentum,” states RaboResearch.

Although sea freight is much more energy efficient than road transport, some brewers might be tempted to follow AB InBev’s example to brew Stella Artois near its US consumers. While localising production can save on fuel costs, the diseconomies of scale of a smaller location could offset these benefits.

Although many brewers have focussed on international brands and the premium end of their product offering in recent years, a broad portfolio of products and channels is desirable to offset current risks, concludes RaboResearch.

Russia, the world’s fifth largest country in terms of overall beer drinking, was one of the few major markets around the world where beer consumption actually rose during the pandemic-hit year of 2020. It also grew by a further 3.3% during 2021.

That is why the decisions from Carlsberg and Heineken to pull out completely from Russia will have been difficult.

For Carlsberg, in particular, this is a big deal. The Danish group owns Baltika, Russia’s biggest brewer, which has a market share of just shy of 30%. Carlsberg, which last year made 10% of its total sales and 6% of its operating profits in Russia, had already said that it will stop selling its flagship brand there and will not make any new investments in the country.

‘Nolo’ is soon going to froth in Asia

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Specific to Asia, Carlsberg has five brands brewed in China and one in Malaysia, while it has made its presence felt in Hong Kong and Singapore markets, it is now keen on expanding to other markets in the region. Alcohol free segment accounted for the largest revenue size of USD 2 billion in 2017 owing to the increasing adoption of healthier lifestyles coupled with the benefits of non-alcoholic beer in China, India, and Japan.

Growing at over 7.5% CAGR

According to a Graphical Research report, the Asia Pacific non-alcoholic beer market size was valued at USD 4.3 billion in 2017 and is expected to grow at over 7.5% CAGR from 2018 to 2024. As of now, China is leading in this segment in Asia and the drivers are the adoption of a healthy lifestyle along with shifting consumer preferences towards ‘Nolo’. The report said that increasing awareness for negative health effects of alcohol consumption is among major factors boosting market penetration.

China holds nearly 30% market share in ‘Nolo’

China holds nearly 30% share in launching new non-alcoholic beer products. As mentioned earlier, Carlsberg has four brands – WuSu Fresh Orange & C; WuSu Pineapple & C; Xixia Fresh Orange & C; Xixia Pineapple & C, and Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong while in Malaysia it vends Nutrimalt which is said to be nonalcoholic malt beverage that is nourishing and packed with vitamins and nutrients such as Vitamin C & B complex. It is said to be a great energy booster after a workout.

Manufacturers are launching new beverage brands with different flavours to expand consumer base as it is estimated that there is a sizable market which is looking at healthy brews. An increased attention on both physical and mental health has been cited as a cause of the growth of nolo products, which are increasingly popular among younger consumers.

However, in India the trend is not that perceptible, though non alcoholic brews are making the rounds, mostly propped by young beer drinkers who are either switching from standard beers to non-alcoholic variants or they are willing to taste new beers, both with alcohol or no or low alcohol content ones.

India sees slow but steady growth

Some of the ‘Nolo’ in India include Budweiser 0.0%; Heineken 0.0% non alcoholic lager beer; Kingfisher Ultra non-alcoholic beer; Hoegaarden 0.0% non-alcoholic beer; Kingfisher Radler – non-alcoholic malt drink; Coolberg Cranberry non-alcoholic beer; Crofters non-alcoholic beer; and Barbican. Carlsberg is said to be exploring the market opportunity in India with regard to ‘Nolo’. But it has been steadfast in its commitment to creating a culture of responsible drinking by promoting moderate consumption of products and addressing alcohol-related harm in society. “We therefore aim to celebrate the positive aspects of moderate beer consumption and to position beer as a relevant and responsible choice with a role to play in the ‘good life’ to which modern consumers aspire.”

Young beer drinkers call the shots

As per a survey by Mintel about 40% of young beer drinkers in India are interested in switching from standard-strength beer to low calorie or non alcoholic variants of the brew. The survey pointed out that internet users who were contacted and who had consumed beer in the past six months were interested in exploring alternatives to beer.

Carlsberg’s ‘Sail’ strategy

Carlsberg has set sail for the next five-year journey with its 2016 ‘Sail’ strategy. Since its launch, ‘Sail’ 27 has been providing a clear overall direction for Carlsberg resulting in a healthy and strong company. The company said that “In developing Sail 27, we have aimed at keeping and sharpening our strong strategic, organisational and financial dynamics while ensuring that our direction-setting was refreshed and that our new strategy reflects expected consumer, customer, societal, regulatory, economic and geopolitical trends.”


The Chief Executive Officer Cees ‘t Hart said, “SAIL’27 is the exciting next step in the evolution of Carlsberg. Co-created by a large group of employees and leaders, and built around our purpose, SAIL’27 has clear choices for brands, categories, markets and capabilities, and steps up our ambitions for top- and bottom-line growth.” In essence, SAIL’27 focusses on five strategic levers – portfolio, geographies, execution, culture and funding the journey – for which the company has made distinct strategic choices, defining the focus of our efforts and resource allocation.


Our strategic levers and choices should be viewed as an integrated set of activities that together will drive value for all stakeholders. “SAIL’27 is built around our purpose of brewing for a better today and tomorrow, and our ambition of being the most successful, professional, and attractive brewer in our markets,” Cees ‘t Hart adds.

Collaborative effort 


SAIL’27 is a collaborative, company-wide effort, co-created by over 200 Carlsberg employees from more than 30 different markets. “Talents, experts and leaders from all over Carlsberg Group have brought their day-to-day knowledge and fresh ideas into this new strategy. They have assessed the impact of the current strategy on their local business or function, shared learnings and trends they see impacting the business and challenged our thinking on the future strategy. By bringing such a diverse set of voices the process we have created an even stronger strategic path for Carlsberg,” says Marcela Linke, Director, Group Strategy. 

Carlsberg said that the beer category continues to offer attractive long-term volume and value growth opportunities, though with different growth dynamics between categories and markets. Our portfolio choices target these growth opportunities. In addition, the company sees further attractive growth opportunities for selected categories beyond beer. Today, the Group has attractive widespread geographical presence and no. 1 or 2 positions in 22 markets across Western Europe, Asia and Central & Eastern Europe. While market dynamics are different in the three regions, they all offer appealing long-term revenue and earnings growth opportunities.

Carlsberg ‘Nolo’ brands grow by 11%


Carlsberg’s recent financial statement revealed its ‘Nolo’ brands grew by 11%, making it one of the most successful areas of the business for the brewing giant. While sales of other household names owned by Carlsberg shrunk (namely Tuborg and the Carlsberg brand itself), the ‘nolo’ range demonstrated quite a sizeable growth, which is perhaps indicative of a shift in consumer habits towards alcohol-free beverages.


Carlsberg said it saw good results for its recent launches in the category, including Baltika Zero Grapefruit and Raspberry, Brooklyn Special Effects and Somersby 0.0. In addition, the brewing group entered the Asian market with similar ‘nolo’ products in 2020 too, with the launch of Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong.

What’s driving ‘nolo’ growth?


“Brewers have had to adapt to unprecedented market conditions and one area of success is Carlsberg’s low-ABV or alcohol-free ‘nolo’ brands, which are notable for 11% growth as consumers continue to moderate their alcohol intake,” said Ryan Whittaker, Consumer Analyst at GlobalData.

“Increased health consciousness, which includes both physical and mental health concerns, is causing many to reduce their alcohol intake, and the pandemic has brought all of this to the fore.”


According to GlobalData, 28% of global consumers claim to be buying less beer during the pandemic and approximately 27% of consumers say that they are extremely concerned about their physical health. What’s interesting is that these trends correlate with age, with millennials being both the most extremely concerned about their health and most likely to be buying less beer than before the pandemic. Even otherwise, the millennials are known to experiment, try out new products and that is driving manufacturers to innovate.

Heineken excited about ‘long-term growth opportunity’ UBL provides

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The Chief Executive Officer of Heineken NV, Dolf van den Brink said that, in India, beer volume grew in the thirties, outperforming the market, following a progressive recovery and returning back to pre-pandemic levels in the fourth quarter. Premium volume grew ahead of the total portfolio, led by Kingfisher Ultra, Heineken and Amstel.

Overall, he said the company “delivered a strong set of results in 2021 in a challenging and fast-changing environment. I am proud of how our colleagues, customers, and suppliers continued to adapt, support one another, and deliver these results.

We made a big step towards recovering to pre-pandemic levels, and in parts going beyond. I am pleased with the great momentum of the Heineken brand, the renewal of our brand and product portfolio, the acceleration of our digital transformation and how we are strengthening our footprint with the acquisition of UBL in India and our announced intentions for Southern Africa. We raised the bar on sustainability and responsibility and are making big strides in right-sizing our cost base.”

He said that operating profit grew by 476.2% mainly due to the exceptional gain this year from the remeasurement to fair value of the previously held equity interest in UBL in India, and the exceptional losses from last year’s impairments and restructuring provisions.

Looking ahead

“Although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business and how EverGreen is taking shape. This gives me confidence we are on course to deliver superior and balanced growth to drive sustainable long-term value creation,” he said.

Net revenues up by 12%

Net revenue (beia) for the full year 2021 increased by 12.2% organically, with total consolidated volume growing by 3.6% and net revenue (beia) per hectolitre up 8.3%. The underlying price-mix on a constant geographic basis was up 7.1%, driven by assertive pricing and premiumisation, with the regions Americas and Africa, Middle East and Eastern Europe (AMEE) growing double-digits. Currency translation negatively impacted net revenue (beia) by €515 million or 2.6%, mainly driven by the Brazilian Real and the Nigerian Naira. The consolidation of United Breweries Limited (UBL) in India positively impacted net revenue (beia) by €280 million or 1.4%.

In the second half of the year, net revenue (beia) grew 10.6% organically. We took further pricing actions and accelerated net revenue (beia) per hectolitre growth to 11.0%. Underlying price-mix in the second half was up 8.8% primarily driven by Nigeria, Brazil, Mexico and Europe, the latter benefiting from an improved channel mix. Total consolidated volume declined slightly by 0.3%, mainly impacted by the restrictions in the Asia Pacific region.

Beer volumes grow nearly 5%

Beer volume grew 4.6% organically for the full year. In the fourth quarter, beer volume grew 6.2%, benefitting from fewer restrictions in Europe relative to last year, continued momentum in the Americas and AMEE, and a sequential recovery in Asia Pacific (APAC) relative to the third quarter.

Operating profit (beia) grew 43.8% organically with a strong recovery in Europe, AMEE and the Americas, partially offset by the impact of the pandemic in APAC. Currency translation negatively impacted operating profit (beia) by €98 million, or 4.0%, mainly driven by the Brazilian Real, the Surinamese Dollar, the Vietnamese Dong and the Ethiopian Birr.

Outlook

“We launched our EverGreen strategy in February 2021 to future-proof our business and deliver superior, balanced growth for sustainable, long-term value creation. It requires us to constantly navigate the long-term transformation with the short-term financial delivery under fast-changing external circumstances. We are encouraged by the progress made, witnessed by the strong performance of our business in 2021 and how EverGreen is taking shape.

In 2022, we will continue to navigate an uncertain environment and expect Covid-19 to still have an impact on revenues. Our plans assume markets in APAC to progressively bounce back during the year, yet full recovery of the on-trade in Europe may take longer.

We also expect to be significantly impacted by inflation and supply chain resilience pressures. More specifically, we expect our input cost per hectolitre (beia) to increase in the mid-teens given our hedged positions and the sharp increase in the prices of commodities, energy, and freight. We will offset these input cost increases through pricing in absolute terms, which may lead to softer beer consumption.

Reflecting our confidence in the long-term, we intend to reverse the cost mitigation actions undertaken in 2021 and to further step up our investments in brand support and our digital and sustainability initiatives. This investment will be partially offset by further delivery of gross savings from our productivity programme. These changes are expected to have a greater impact in the first half of the year.

Overall, we expect a stable to modest sequential improvement in operating profit margin (beia) in 2022. Whilst continuing to target 17% operating margin (beia) in 2023 and operating leverage beyond, there is increased uncertainty given current and evolving economic and input cost circumstances. Therefore, we will update the 2023 guidance later in the year.”

It may be mentioned here that UBL was started nearly 73 years by the late Vittal Mallya, father of Vijay Mallya. Heineken took control of United Breweries, the erstwhile flagship brand of the UB Group. This follows Heineken’s acquisition of additional ordinary shares in UBL on June 23, 2021, taking its shareholding in UBL from 46.5 % to 61.5%.

UBL has a proud history

Dolf van den Brink had then said, “UBL has a proud history dating back more than a century as an influential shaper of the beer industry in India. It built its position as the undisputed market leader in India with a strong network of breweries across the country and a fantastic portfolio led by its iconic Kingfisher brand family, complemented more recently by a strong Heineken international brand portfolio. We are honoured to build on this legacy and look forward to working with our colleagues at UBL to continue to win in the market, delight consumers and customers and unlock future growth.”

India offers an exciting long-term growth opportunity as per capita beer consumption is low at 2 litres per annum. Its growing population of nearly 1.4 billion people includes a strong emerging middle class, enabling further premiumisation, Heineken said.

Bira 91 partners with boAt to launch an exclusive ‘BOOM’ Audio Collection

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Bira 91, one of India’s fastest-growing brands in its category, and boAt, India’s #1 Earwear brand (as per IDC India Monthly Wearables Tracker, November 2021 release) have come together to launch an exclusive ‘BOOM’ audio collection that is high on both functionality and aesthetics. The ‘BOOM’ collection will include the brand’s quirky yet powerful Stone SpinX 2.0 and Stone 190 making them the perfect party companions. For those who enjoy music in their own space, this collection will also come with boAt Rockerz 450 Headphones.

The ‘BOOM’ collection has been intricately curated for consumers who are bold and expressive, and don their wearable accessories as an extension to their personality. It seamlessly integrates the daring colour palette and the striking design of Bira 91’s ‘BOOM’ variant with the fashion-forward aesthetically designed boAt portfolio. The limited-edition collection is expected to be nothing less than the go-to style statement accessory of the season.

To bring alive the central theme of music that resonates with both brands, Bira 91 crafted a special music track for this collaboration called ‘Get Set BOOM’. The high-energy video paints a picture of the perfect weekend, with music bringing friends together in an ultimate house-party setting. The playful and upbeat lyrics and strong visuals are complemented with subtle integrations of the audio collection and other brand merchandise to create the ‘party vibe’ like never before.

Commenting on this epic partnership, Ankur Jain, CEO and Founder, Bira 91 said, “Beer and Music are a match made in heaven, which is why we are thrilled to announce our partnership with boAt. At Bira 91, we have been partnering with several like-minded homegrown brands, to provide unique experiences to our consumers. And this association with India’s largest earwear brand is another step in that direction. The launch of the limited-edition collection of ultra-stylish audio devices helps both brands deliver on their consumer promise of quality and innovation. Our endeavour at Bira 91 is to become a lifestyle brand and we have been building a dynamic portfolio of products at the Bira 91 Merch Store. This partnership with boAt takes us a step closer towards that goal.”

Commenting on this association, Aman Gupta, Co-Founder and CMO, Imagine Marketing Pvt. Ltd. said, “We are elated to partner with Bira 91, a brand that is playful, creative and resonates well with our brand ethos. We aspire to launch the most unique, vivid and quirky products in the Indian market and the BOOM collection showcases our ideology really well. We hope our boAtheads enjoy using these products as much as we did designing them.”

The BOOM collection will be available exclusively on Bira 91’s Merch store and the boAt website starting 20th January.

Best places for Drinking Around the World

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While drinking at night is very popular, day drinking during Covid times has also gained traction. There are a huge variety of day drinking destinations and beverage options around the world, from public parks in South Korea to cozy bars in Belgium to the beaches of Brazil. We look at some of the best drinking destinations in alphabetical order, first by country and then by city.

Mendoza, Argentina is ideal for day drinking

The entire Mendoza wine region is designed for day drinking, with its affordable wine tastings, winery lunches with wine pairings and beautiful weather year-round. But the creme de la creme of Mendoza winery lunches is the five-course lunch with (bottomless!) wine pairings at Bodega la Azul in the Uco Valley.

Yerevan, Armenia

The best things to do in Yerevan, Armenia, is drink wine. Saryan Street is the city’s “wine street”, famous for its Karas Wine. A great atmosphere for getting work done while enjoying a glass of wine or two.

Maffra, Australia

On a sunny day, both locals and visitors love to do some weekend day drinking by meeting up with friends, sitting around and trying some of Blue Gables’ amazing wines. There is nothing better than sipping from a chilled bottle of Moscato wine, sharing a wood-fired pizza and relaxing in this chilled-out environment.

Melbourne, Australia

There is no better way to spend a sunny day drinking in Melbourne, Australia than sipping prosecco outside at one of Melbourne’s many famous bars.Light, bubbly and refreshing, prosecco is the perfect drink to linger over as you relax in the sun.In recent years, Australian producers have mastered the art of Italian prosecco and you can find their drops all over town. The Australian proseccos come from the King Valley region, produced by Italian migrant families Dal Zotto and Pizzini. A seat at Arbory Bar on the Yarra River, next to Flinders Street station, offers a change of scenery and a unique venue in the middle of the river. Ponyfish Island is where your prosecco adventures in Melbourne continue in the shade of the Southbank bridge. It’s the kind of quintessential hidden bar that Melbourne is known for.

Sydney, Australia

The Bondi area in Sydney, Australia is the perfect place to day drink among other cheerful day drinkers. This is mainly due to the Bondi beach and Bondi Junction areas being popular with backpackers who don’t need much of an occasion to get their party on. It’s a popular pastime for the working holiday-makers in Sydney, who often start day drinking after an early finish on a Friday. This can continue throughout the weekend and culminates in the Sunday session which starts sometime on Sunday morning and ends when the pub closes.Most pubs in the area open early and have a very casual feel so you needn’t get dolled up for day drinking session.The ideal day drink in Bondi is beer and wine is also perfectly acceptable for those of us who can go the day-drinking distance on the vino.

Brussels, Belgium

A mere 20 minutes from the bustle of Brussels’ Grand Place, you’ll find the commune of Saint Gilles. Described by its mayor as the place where the world comes to meet, it’s an opportunity to see the real Brussels, Belgium. Here, alongside fabulous Art Nouveau buildings by the architect Victor Horta, you’ll find life lived among friends and family. You’ll find that life plays out both around you and with you in the bars of Saint Gilles.If you’re a fan of Belgian beer, then there are plenty of choices to sit back and enjoy day drinking in Brussels with a favourite brew. One popular venue is Union and Egalite which keeps more than 90 beers in a long bar studded with chandeliers. Make a day drinking date with a glass of the splendid Orval, and feel the sheer pleasure of being in Brussels.

Rio de Janeiro, Brazil

Without a doubt, the favourite location for a spot of day drinking is Copacabana Beach in Rio de Janeiro.Either way, Copacabana Beach is awesome at all times of the year. And the drink of choice is Caipirinha. This is the most famous cocktail anywhere in Brazil. It is made from a spirit called cachaça, which comes from sugar cane. The cocktail is very simple to make: simply crush ice, lime juice and brown sugar, and then mix in some of the cachaça.Capirinhas are incredibly refreshing and very, very cheap to get anywhere in Brazil, making them perfect for day drinking in the hot sun.

Calgary, Canada

Although it’s not your typical cocktail, any good Canadian will tell you there is nothing like a Caesar to kickstart your day drinking session. Caesar is its birthplace, Calgary, Alberta.Think of a Caesar as the spicy, wilder cousin of a Bloody Mary – vodka, hot sauce, Worcestershire sauce, and Clamato juice (yes, that’s clam and tomato juice!), served with a celery salted rim and typically topped with delicious garnishes such as pickled beans, asparagus or olives. But don’t let the clam juice throw you off! This cocktail is super popular across Canada.

Ontario, Canada

For a day of activity visit Prince Edward County, Ontario, for a craft brewery tour by bicycle. The County lies a few hours outside of Toronto, and is an increasingly popular craft beer hub for locals and tourists alike.Prince Edward County (PEC) is farmland-turned-wine and beer region with a vibrant art scene and food that compliments it. As the day wears on, try Grandpa’s Coffee Stout at Parson’s as you relax in oversized Muskoka chairs. If you like sour beers, 555 Brewery is for you with its Jail Cell Sour Series. Their pizzas are delicious.Finally, end your day of beer and biking at Sandbanks Provincial Park in PEC. Here you’ll find Ontario’s white sand beaches lining some of the clearest freshwater in the world. It’s the perfect place to have a campfire and toast some marshmallows, and maybe enjoy a couple more evening brews as you relax beneath the stars.

Havana, Cuba

Havana, Cuba is known for its nightlife, but the truth is Cubans also love to drink rum during the day. Most tourists spend their time in Old Havana, which is a gorgeous and home to several bars claiming that Hemingway once drank there, but the more modern side of Havana, is where the locals go drinking.A good spot for day drinking in Havana is Playa del Estes, just outside of the city center. This beach is where locals visit on weekends. For a cocktail in Havana try 403 O’Reilly in Old Havana, a popular gin bar that also has other mixed drinks.

Český Krumlov, Czech Republic

Czech Republic is known for its beers. Český Krumlov is also filled with wonderful locations for an afternoon glass of local wine. The veranda at Papa’s Restaurant is ideal for a little picnic beside the Vltava River in the shadow of Krumlov Castle and indulge in some day drinking as you watch the kayakers pass by.

Épernay, France

Épernay is a great destination for champagne lovers. In fact, Épernay is the capital of the Champagne area! It is in Épernay where the most famous champagne brands like Moët Chandon and Mercier have their headquarters and vineyards, but there are also other independent champagne makers with interesting proposals.The champagne is produced in a very limited area, with very specific kind of grapes and a very specific process. Any drink produced out of this area or without following these rules cannot be called champagne; that’s why the champagne is so exclusive!Épernay is well connected by train, which makes of Épernay an excellent day drinking day trip from Paris or Reims.

Berlin, Germany

Beer is German’s drink of choice. Berlin, Germany is to join the locals for a frosty glass of cold beer, preferably at a sidewalk picnic table or another busy location that lends itself to people watching and meeting new travel friends.

Munich, Germany

Munich’s annual Oktoberfest festival is one of the best places in the world for some serious day drinking and a great party atmosphere.

Dublin, Ireland

O’Donoghue’s Bar is a historically significant drinking place located 15 Merrion Row in Dublin, Ireland. It is a popular pub that has attracted tourists from all over the world for over 50 years. O’Donoghue’s is known for its amazing, live, traditional Irish music, and it’s the place that introduced the popular band The Dubliners in 1960s. The bar is also frequented by other world renowned Irish traditional music bands and artists, whose pictures are displayed inside the pub.Considered to be one of the most authentic Irish pubs in the country, this bar does not only offer good entertainment, but also good drinks. A popular day drinking pub as well, O’Donoghue’s Bar is open from 10 am to midnight daily. There’s no better place to experience Ireland in an authentic way other than to gobble down a pint or two of Guinness while listening to traditional Irish songs.

Verona, Italy

Dining al fresco in the town square, dressed to the nines, wearing designer shades and sipping a great cocktail might seem like the ways of the rich and famous, but any Italian tourist can enjoy this day drinking tradition!Walk along the rim of Piazza Bra in the heart of Verona, Italy to see cafes filled with locals and visitor alike. Mid-day they might be enjoying antipasti, formaggio, or a late lunch, but in their glasses, many will sport the blood orange aperitif very popular in this region, an Aperol.Nicknamed “Ape” by the locals, this liquor can be served on the rocks, or more commonly in an Aperol Spritz – a combo of Aperol, Prosecco, soda and an orange slice. However you serve it, this drink is meant to be enjoyed during happy hour, to open your palate for the evening meal to come!

Negril, Jamaica

When you are in Jamaica you will always hear people say “give me a Red Stripe” when they are at the beach bar. They are referring to Red Stripe beer, the most popular beer brand in Jamaica.Negril Beach is a few miles of white sand beach dotted by hotels and the quintessential beach bars. You can basically work your way down the beach, stopping at the various beach bars to enjoy a Red Stripe beer or a rum. The beach bars are also a great place to people watch, enjoy the vibes and make new friends. At the end of your day drinking, you’ll get to watch the famous Negril sunset.

Maldives

Day drinking cannot get any better than on an exotic island resort in the Maldives. The Paradise Island Resort, otherwise known as Lankanfilnolhu in the north atoll in the Maldives, is a pristine white sand luxury resort island best for strolling around… with vodka, of course!The Maldives is a tropical country and it gets pretty humid during the daytime, so the best way to beat the heat is by sipping a coconut vodka cocktail. The extremely refreshing coconut vodka is served at the Hulhangu bar, a sea-facing bar at the Paradise Island Resort. To give it a more exotic touch, the drink is served in a traditional Maldivian coconut. The refreshing flavour of the coconut, mixed with vodka and topped with lemon and mint leaves, is the ideal beverage to drink on a sunny afternoon at the beach.Hydrating and refreshing, sipping a coconut vodka cocktail at the Hulhangu bar’s seafront porch is something that everyone should have the good fortune to experience.

Mexico City, Mexico

Xochimilco in Mexico City is a series of canals that wind around chinampas, or artificially created islands with small farms, sometimes referred to as ‘floating gardens’. Bright, gondola-like boats crowd the canals, manoeuvred by a driver with a long pole. A boat can fit up to 20 people, and you can rent one by the hour. Smaller boats weave around the bigger ones, selling all kinds of snacks and beverages.Michelada is a Mexican beer cocktail. A litre-sized soda cup is filled with lime juice and Dos Equis beer, then the rim is smeared with spicy Mexican tamarindo candy and chili powder.Mexican Tequilas too are world famous. Mezcal is a Mexican spirit made from agave. Tequila is technically a type of mezcal, but while tequila is only made from one type of agave plant (blue agave), mezcal can be made from 28 types of agave, including blue agave.

Amsterdam, Netherlands

One of the best places to enjoy a day of relaxing day drinking is in Amsterdam. It’s actually acceptable in the Netherlands to sit on a lovely cafe balcony and sip on a beer in the afternoon while you people watch and chat with friends. Luckily, you don’t need to only drink Heineken. There are lots of great cafes and beers to choose from. A favourite spot in Amsterdam is Brouwerij ’t IJ. This craft brewery in Amsterdam (next to a windmill!) is open all afternoon and closes early in the evening, so you actually need to get started early if you intend to sample their fantastic beers. Otherwise, you can head up to Amsterdam Noord to sample beers from the Oedipus, another great craft brewery.

Marlborough, New Zealand

The New Zealand wine region of Marlborough is superb area in which to day drink your way through a series of amazing wineries. You can easily rent a bicycle and cycle through ten wineries in a small area… or you can hire a driver and make it a heck of a lot easier. Whichever way you decide to go, Marlborough is a great wine region where Sauvignon Blanc dominates, but smaller grapes will win your taste buds.Here in Marlborough you’ll find small boutique wineries like Gibson Bridge Winery and the up-and-coming Wairau Cove, alongside internationally known Cloudy Bay, and if you want a beer at the end of the day, there’s always the craft brewery, MOA!

El Nido, Philippines

When considering the best places in the world for day drinking you’d be amiss to exclude El Nido in the Philippines from your list. El Nido is an eco-tourism hotspot with beaches are to die for and (very importantly!) the booze is cheap!When you’re sitting on the beach, being served chilled, fresh coconuts filled with generous amounts of Filipino Don Papa rum is the best experience.

Krakow, Poland

Hot mulled wine is quite popular in many places, but have you heard of hot beer? “Hot” and “beer” are two words that one wouldn’t normally associate together, but hot beer is actually is an interesting beverage and if you are visiting Poland, you must try it.Hot beer is served in most bars all over Poland. However, the bars in Krakow are especially popular.Wrega Pub is located in the Kazimierz area of Krakow, making it an ideal place to enjoy some day drinking after a spot of sightseeing.

Lisbon, Portugal

Ginjinha is a liqueur synonymous with Lisbon, Portugal. Made from Ginja or Morello cherries, sugar and fortified wine, it is the go-to drink for locals and visitors alike, and any visit to Lisbon would be complete without sampling at least one Ginjinha in Lisbon.The famous cherry liqueur was drunk by the late Anthony Bourdain when he filmed his television show, No Reservations, in Lisbon. Apparently, he enjoyed a number of glasses of Ginjinha with the locals.Porto’s most famous tipple is undoubtedly port wine. This sweet, fortified wine originates a few hundred kilometres upstream in the Portugal’s Douro Valley, but thankfully you don’t need to go far to start enjoying it. The cellars in Vila Nova de Gaia, just across the river from Porto, have been storing oak barrels of port wine for centuries.

South Africa

Wine tasting is a great excuse for day drinking, and it allows you to sample delicious wines in beautiful settings.Visiting South Africa’s Cape Winelands is the perfect excuse to start day drinking delicious wines early in the morning.

Soju in South Korea

South Korea is by far one of the best day drinking destinations in the world. South Korea is actually the country that consumes the most alcohol in the entire world, because of their great love for soju, a traditional Korean spirit. You will find day drinking to be a common activity among the locals. Most convenience stores have tables and chairs set up outside for people to enjoy their snacks, beer and soju any time of the day or night.

Girona, Spain

There is one form of day drinking that is perfectly acceptable throughout the Catalan province of Spain – taking a vermouth.Vermouth is a big deal in Catalonia, with Vermouth bars opening around 11:00 am, and closing around 3:00 or 4:00 pm. Vermouth is a fortified wine, served over ice, with a lemon slice and often an olive stuffed with anchovies on the rim. It is best enjoyed with a few little tapas, including a tortilla espanola, olives or anchovies.The best place for vermouth in Catalonia is in Girona, in the Costa Brava.

Malmo, Sweden

Winters in Sweden are a challenge. Enter Akvavit, or Aquavit, to the rescue. Aquavit is an alcohol that has been used to warm the Scandinavian body, mind, and spirit since the 15th century.Akvavit is distilled from grain and potatoes, and is flavoured with herbs and spices. It has a distinct flavour that admittedly has to grow on you. But once it does, yippee, as it provides a nice warm feeling to ward off the early darkness and short winter days.Not for the faint of heart, Aquavit is 40% alcohol by volume, or 80 proof by US standards. It will kick your butt and take you prisoner if you have too much.Still, Aquavit is such an important part of Scandinavian culture that it is used to toast weddings, graduations and Christmas dinners. Typically served as shot, it is consumed after singing a song, called a snapsvisa or a “schnapps song”.

Bangkok, Thailand

Bangkok, Thailand is good for many things – seeing all the temples, eating your body weight in pad Thai and spending the day in the sun with a Chang beer. And if you’re going to do this, there’s only one place to do it right: Khao San Road.

New Orleans, USA

While you can find daiquiris and Irish coffees anywhere, only the Tropical Isle Bar in the French Quarter sells Hand Grenades. The recipe for the Hand Grenade originated here in the late 1980s and is patented by its owners. The drink is frozen and sugary sweet, with a melon flavour, and it is served in a tall green container shaped like a hand grenade. This is all perfect to mask what it actually contains – vodka, rum, gin, grain alcohol, and melon liqueur!The Tropical Isle Bar even has its own mascot for the Hand Grenade and over a million drinks are sold every year!

San Juan, Puerto Rico, USA

When it comes to day drinking piña coladas, there is no better place to enjoy the pineapple, coconut and rum concoction than Barrachina in San Juan, Puerto Rico. Barrachina, a restaurant nestled in the heart of Old San Juan, claims to have been the birthplace of the piña colada in 1963. Be advised though, there is disagreement that the piña colada originated a few years prior at the Caribe Hilton.

Santa Ynez, California, USA

The Santa Ynez Valley in southern California, USA, is a fantastic place for drinking! The Santa Ynez Valley is a wonderful part of the world where the sun shines warmly for much of the year and winters are mild. The rolling hills are covered in vineyards and horse ranches. The quiet roads curl around between fields and buildings.This region is also renowned for its chardonnay and pinot noir grapes, and is home to around 120 wineries. Many of these California wineries open their doors to people who want to come and indulge in some wine tasting.

Sonoma County, USA

Wine is life in Northern California. The north part of the state is known for its vast range of wineries, wine makers and wine culture.Sonoma County is one of the spots that you can’t miss. If you are looking for a day of great wine, day drinking and some beautiful scenery, Sonoma County is the place to go. It is a short twenty-minute drive from the Santa Rosa Airport or roughly two hours from San Francisco International Airport. Bourbons, Tennessee whiskies are also popular in US bars.In India, Goa and Pondicherry are also ideal locales for drinking. Feni is a popular tipple of Goa. Mumbai, Delhi, Bangalore are big markets. Hyderabad, Chandigarh, Jaipur, Kolkata and Nashik are other popular cities for drinking.