Product details

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Authors: Rika Misra
Published by: Amity Research Centers
Published in: 2019

Abstract

In 2019, United Breweries Limited (UBL), controlled by Heineken, had launched Heineken 0.0, a zero-alcohol version of the beer brand, in India. In the same year, Anheuser-Busch InBev (AB InBev) had also introduced Budweiser 0.0, its first non-alcoholic beer, in the country. One of the major reasons behind the emergence of non-alcoholic beer or non-alcoholic malt beverages was the millennial. They were looking for a drink with low calorie, sugar and carbs. The benefit of non-alcoholic beer was that it would not only help to reduce weight since it would lower calorie intake, it would also help to reduce dependence on alcohol and help those who were trying to reduce/quit alcohol consumption. However, the market for non-alcoholic beer was not devoid of challenges. The first and foremost problem was distribution and marketing of these products. This was because marketing these products would require a different type of communication with the target customers. Also, Heineken 0.0 and Budweiser 0.0 would confront intense competition from leading beverage giants like PepsiCo and Coca-Cola. However, amidst challenges, Gujarat could prove to be a prospective market for non-alcoholic beers since production, sales and drinking of alcohol in Gujarat was banned since 1960. Moreover, zero alcohol beers were comparatively more profitable in India because beer was subject to higher tax rate and it made up for more than half the retail price. Against this background, would it be possible for non-alcoholic beer manufacturers to tap the country's growing young population? What could be the underlying issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

United Breweries Limited
Employees:
1001-5000
Type:
Public company
Industry:
Conglomerate

About

Abstract

In 2019, United Breweries Limited (UBL), controlled by Heineken, had launched Heineken 0.0, a zero-alcohol version of the beer brand, in India. In the same year, Anheuser-Busch InBev (AB InBev) had also introduced Budweiser 0.0, its first non-alcoholic beer, in the country. One of the major reasons behind the emergence of non-alcoholic beer or non-alcoholic malt beverages was the millennial. They were looking for a drink with low calorie, sugar and carbs. The benefit of non-alcoholic beer was that it would not only help to reduce weight since it would lower calorie intake, it would also help to reduce dependence on alcohol and help those who were trying to reduce/quit alcohol consumption. However, the market for non-alcoholic beer was not devoid of challenges. The first and foremost problem was distribution and marketing of these products. This was because marketing these products would require a different type of communication with the target customers. Also, Heineken 0.0 and Budweiser 0.0 would confront intense competition from leading beverage giants like PepsiCo and Coca-Cola. However, amidst challenges, Gujarat could prove to be a prospective market for non-alcoholic beers since production, sales and drinking of alcohol in Gujarat was banned since 1960. Moreover, zero alcohol beers were comparatively more profitable in India because beer was subject to higher tax rate and it made up for more than half the retail price. Against this background, would it be possible for non-alcoholic beer manufacturers to tap the country's growing young population? What could be the underlying issues and challenges?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

United Breweries Limited
Employees:
1001-5000
Type:
Public company
Industry:
Conglomerate

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