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Boby Kurian

BANGALORE, March 22

BEER will cost more in Uttar Pradesh from April 1. This follows excise duty hike announced for the 2002-03 fiscal. It is learnt that mild beer may turn expensive by Rs 4, while the price of high alcohol content strong beer is likely to move up about Rs 6.

In the new excise regime, mild beer having alcohol strength up to five per cent will attract Rs 15, up from Rs 12 earlier.

The excise hike is more stiff in the case of strong beer with alcohol strength between five and eight per cent. It will be chargeable at the rate of Rs 27 instead of Rs 22 earlier.

Mr Shekhar Ramamurthy, Vice-President (Marketing), United Breweries (UB), said, "The excise increase coupled with wholesale and retail margins will push up the end consumer price substantially."

The new excise policy has also asked the beer companies to apply for MRP on their products.

It means that majors like UB, Shaw Wallace and multinational South African Breweries (SAB) are allowed to have separate MRPs for their respective brands.

SAB officials declined to comment on the anticipated price hike.

Uttar Pradesh is among the bigger beer markets in north India, with annual sales pegged at around 3.5 million cases.

Two years ago, the State became the first market in the country to delink beer from the IMFL trade.

Available figures suggest that beer consumption in the State has almost doubled since then.

The State, which is Mohan Meakins's home turf, has three breweries.

The Meakins family owns two and the third, Narang Breweries, located in Lucknow, belongs to SAB.

This is one State where domestic majors UB and Shaw Wallace have no wholly-owned brewing facilities.

Industry information suggests that Shaw Wallace leads in the market with 27 per cent share, followed by UB with 23 per cent.

Mohan Meakins is the third largest player in this market.

Shaw Wallace's Haywards 5000 strong beer is reportedly the leading brand in the State.

SAB bought Narang Breweries two years ago and commenced commercial operations in the current fiscal.

It launched the India-specific original label, Three Lions - a mild beer with five per cent alcohol - in Lucknow and is currently in the midst of taking the brand to upcountry markets in the State.

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