Brewer AB-In-Busch looks beyond beer, plans to enter new alcobev segments

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AB-InBev, popularly known for beers such as Corona and Budweiser, is looking to enter the whiskey and gin market, The Economic Times reported on September 26. The move is part of its wider strategy to enter premium categories beyond beer, it said.

Explaining the rationale behind the move, Kartikeya Sharma, India and South East Asia president at AB InBev told ET that, "For Indian consumers, the attitude towards premiumisation is category agnostic and the openness to become repertoire users and not be married to one category has never been higher. We have looked at the consumers and we saw they really want to indulge, as opposed to abusing alcohol and we now have propositions—ready to drink, whiskey and gin—that are ready to be launched.”

India is the second largest export market by volume with over 131 million bottles of Scotch whiskey exported in 2019, according to a report by Ambrosia Magazine. Scotch whiskey exports to India have grown by over 200 percent in the last decade alone, and whiskey is very popular in India. While India is the world's largest whiskey market, Scotch whiskey only makes up 2 percent of it, the report said. The growth potential is huge.

Traditionally brewers have stayed away from the 'spirits' market with big brands such as Heineken and Carlsberg only adding ready to drink products in their portfolio. Thus, AB-InBev's  decision to enter the spirits market is among the first by any major brewer. The company is piloting Mike's seltzer and will launch blended scotch and premium gin in the fourth quarter of the calendar year according to ET's report.

The American-Belgian brewer stated that beer remains a core focus and cited the growth of its brands in India, stating that India is the fifth largest market for Budweiser by volume.