AB InBev enters energy drink segment in India and targets 10% market share in 2 years
Belgian beverage and brewing company Anheuser Busch InBev (AB InBev) entered the non-alcoholic energy drink market in India by expanding its Budweiser portfolio.
The company, in line with its strategy, will now also focus on the fast growing energy drink market by expanding its Budweiser brand into the segment and aims to capture a 10% market share over the next two years, said a responsible for the company.
Anheuser Busch InBev will compete with the segment-leading Austrian brand Red Bull with its brand new “Budweiser Beats”.
” Our ambition is to get 10% (of the market share) in the next 24 months, ” Kartikeya Sharma, AB InBev president for India and Southeast Asia, told PTI. East.
The company would invest “reasonably reasonably” in brand development and marketing for Budweiser Beats.
” We plan to enter the category, improve category penetration to 8-9 percent of the larger beverage segment. As part of greater penetration of this category, we are aiming to achieve double-digit share within the next two years, ” he said.
The company takes a two-pronged approach by bringing its Budweiser brand into the segment, having good consumer contact with premium offerings, and leveraging its strength on the fast-growing e-commerce platform complemented by a offline distribution to mom & pop stores and modern shops, etc., as it has done previously for its Budweiser Zero non-alcoholic beer.
The company would have a multi-channel approach, with a greater focus on e-commerce, he said.
“Budweiser’s branding will play an important role in giving the consumer a reason to come and try the product,” added Sharma.
The company studies markets where Budweiser is in a ‘strong position’, such as Delhi, Punjab, Haryana and UP to the north, while Goa and Maharashtra to the west and Karnataka, Puducherry and Telangana to the south and Meghalaya, Assam and West Bengal to the east.
“We would harness the power of Budweiser … in these states,” he added.
The energy drink market is growing with a CAGR of almost 20% over the past 5 years, including the two years of Covid impact, and is estimated at nearly $ 250 million (around 1,872 crore of Rs) ” That’s almost three to four times the category growth in many other developed markets like the United States, Brazil and China. The category is ripe for growth, ” said Sharma.
Budweiser Beats would be made in India through its franchise partners.
In other parts of the globe, AB InBev has energy drinks in its portfolio globally, such as Mawe in Brazil, Ghost in the US, and Fusion in China and Brazil. However, he first launched an energy drink under his Budweiser brand via Beats.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)