In a move that might not be surprising to many, India’s leading beer manufacturers United Breweries – controlled by Dutch manufacturer Heineken, AB InBev, and Carlsberg have come together to jointly forming a new industry body Brewers’ Association of India (BAI). The three companies own the 85% of the beer market in India via their brands Budweiser, Hoegaarden, Corona, Carlsberg, Tuborg among others.
While UBL leads the Indian beer market with its brands Kingfisher, Kalyani Black, Heineken, Amstel Bier. BAI, which is formed in partnership with the World Brewing Alliance (WBA), and is expected to focus on growing the beer category in India, drive innovation, moderation, and sustainability in the Indian beer market.
WBA is the global industry body consisting of brewers and brewing trade associations from leading markets, including Australia, Canada, the US, Europe, Japan, Korea, Latin America, Brazil, and New Zealand.
BAI is headquartered in Delhi and is going to be headed by Vinod Giri, who will assume office on June 1, 2024. Giri until now was heading the Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of the Indian alcoholic beverage industry.
“The time is right for brewers to raise their voice on these issues. The Brewers of India will be a vital part of promoting moderate drinking, promoting our industry,” said Justin Kissinger, President and CEO, WBA.
The new association will also be open to other brewers, Indian and international both, who share the belief in growing the Indian beer industry responsibly.
AB InBev India President Kartikeya Sharma said, “There are many barriers to the growth of India’s beer category, including inequitable taxation, accessibility, and the ease of doing business. We will continue to advocate to unlock a new era for the beer category.”
Carlsberg India MD Nilesh Patel said, “The beer industry is an important sector for the states as it provides significant direct and indirect employment and generates significant revenues for the state to invest for its citizens.
“Through the Brewers’ Association of India, the industry expects to bring best global practices and further strengthen the sector.”
UBL MD & CEO Vivek Gupta said, “Together, the industry can help shape policies promoting responsible choices for consumers around moderate alcohol beverages, a robust taxation and regulatory framework and promoting investments for socio-economic benefits. We look forward to collaborate with governments and other stakeholders.”
The three companies have significantly invested in India. While Carlsberg operates seven breweries, UBL has 19 and AB InBev India has 10 of them across the country.