Marketing strategy for launching non-alcoholic beer in India

Abstract

Anheuser Busch InBev is the world’s largest producer of beer (28.4% global market share in the beer market) and over the years has moved ahead of PepsiCo and The Coca-Cola Company in operating income. The company’s vehicle for growth over the years has largely been mergers and acquisitions; the latest being the merger with SAB Miller another giant in the beer industry. The acquisition allows Ab InBev to increase its market share in South East Asia and India drastically. While the company has traditionally only manufactured beer, during a phase of prohibition in the US – AB InBev launched a low alcohol product (0.5% V/V) – Budweiser Prohibition Brew to deal with the legal regulations. With new technological developments, AB InBev is able to use vacuum distillation in the brewing process of beer to manufacture 0% beer (available in Budweiser, Hoegaarden currently) with the same taste as the flagship brand. Following the acquisition of SAB Miller, AB InBev as acquired a 15% market share in South East Asia, however further growth in sales would depend on the regulations on alcohol consumption, the societal norms in SE Asian countries and the consumption patterns in beverages. The current focus is to find a sustainable marketing strategy for non-alcoholic (NA) beer in India.