India’s largest beer makers- United Breweries AB-InBev, and Carlsberg have launched the Brewers Association of India (BAI), backed by the World Brewing Alliance to promote moderation and sustainability.
The new body will also work towards increasing the size of the market and innovation.
The global beer industry was 2,850 million hectolitres in 2022 with India’s share being just one per cent.
Justin Kissinger, President and CEO of the World Brewing Alliance (WBA) said that brewers had an important role to play in strengthening local economies and in contributing to thriving communities. “The Brewers Association of India will be a vital part of promoting moderate drinking, promoting our industry, and promoting a product that is enjoyed by all across the country”.
The three partners of the BAI account for around 85% of the beer sales in India. Carlsberg operates seven breweries, United Breweries (a Heineken company) operates 19 breweries while AB-InBev India has 10. Together, they employ over 7,000 people directly and indirectly in the country.
The Association will be open to other brewers, both Indian and international.
The body, headquartered in Delhi will be headed by Vinod Giri, who was until now heading the Confederation of Indian Alcoholic Beverage Companies (CIABC)- the apex body of the industry. Giri said, “Governments all over the world actively shape regulatory policies to guide consumers toward low-alcohol beverages such as beer. BAI is a great platform to align India with the international consensus of moderate and responsible drinking…”
The international drive for low-alcohol beverages is aimed at advocating moderate drinking habits.
As an agricultural product, brewed from barley and other locally sourced ingredients, beer supports local supply chains. It sustains lakhs of farmers of millets and other cereals- many grown in areas with dry, arid conditions. Such coarse grains have been a focus area of the government.
Inequitable taxation, accessibility, and the lack of ease of doing business are some of the problems that the industry faces in India.
