UB betting big on beer brand Heineken to take on Danish brewer Carlsberg

KOLKATA: United Breweries (UB) is betting big on beer brand Heineken to take on Danish brewer Carlsberg, which has a 70% share in the super-premium beer segment in India. The country's largest brewer has brought down the prices of Heineken by 40% through local brewing and plans to roll it out in Kolkata, Goa and Uttar Pradesh next month to capture 40% share in two years, said UB senior vice-president Samar Singh Sheikhawat.

"Heineken and the Indian market are ready for each other as a growing number of consumers are now spending on premium drinks," adds Sheikhawat. Heineken is already available in Mumbai, Pune, New Delhi and Bangalore.

"Heineken and Kingfisher Ultra are going to be a potent combination for us and will drive market leadership in the category," he added. UB has invested around 40 crore to set up a new line at its Mumbai plant to brew the iconic Dutch brand.

Heineken will retail at a 30% premium over Kingfisher Ultra and Carlsberg, at Rs 170-180 for a 650 ml bottle. The 330-ml pints will retail at Rs 100, on an average.

UB will spend 5% of its marketing budget on Heineken by promoting the brand through music shows, TV campaigns for Champions League football and product placement in the forthcoming James Bond movie. UB also plans to double the reach of Kingfisher Ultra in two years.