Professional Documents
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#1
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Create a brand—centric sustainability strategy for AB lnBev India
Brewing quality beer starts with the best ingredients.This requires a healthy, natural environment, as
well as thriving communities. We are building a company to last, bringing people together for a
BetterWorld, now and for the next 100+ years.That's why sustainability isn'tjust part ofour business,
it is our business.
SUSTAINABILITY GOALS
We've been dedicated to sustainability for years, but now we are going further - with goals that will
have a measurable & positive impact on our communities.Through our 2025 Sustainability Goals, we
are connecting thousands of farmers to technologies and skills, ensuring quality water access in
high-stress communities, partnering with our suppliers to increase recycling content, and adding
renewable electricity capacity to regional grids.
ABlnBevmo+
Smart Climate Circular
Agriculture Action Packaging
AB lnBev India has many global and local brands in its portfolio.What these brands stand for and who
they cater to can be found out with some primary and secondary research. While all our brands have
unique propositions, there is tremendous potential & opportunity to leverage sustainaibilty through
our brand strategies in India.
WATER STEWARDSHIP
Our water stewardship goal states that "100% of our communities in high stress areas should have
measurably improved water availability and quality by 2025”.
Water has been a key focus in India as 5 of our breweries (7 in Rajasthan, i in Haryana, i in
Maharasthra, 2 in Telangana) are located in high water stress areas. The sustainability team has been
active in this space with some of the key initiatives being —
Water ATMs — Clean drinking water access for communities near our breweries by
installing water ATMs that purify groundwater through an extensive process and provide
drinking water to nearby communities at the rate of Rs. 3 for 20 liters
Farm Ponds — Making farm ponds for farmers so they can harvest rainwater and use it for
irrigation instead of relying solely on groundwater
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GLOBAL WATER STEWARDSHIP INITIATIVE
We are inspired by the way Stella Artois has championed sustainability globally.
Water has been integral to Stella Artois’600—year brewing heritage.The Stella Artois ”Buy A Lady A
Drink" initiative was launched in 2015 in partnership with Water.org, a leading international
nonprofit, to help mitigate the global water crisis. The campaign is now active in ten countries:
Argentina, Australia, Brazil, Canada, Chile, Mexico, South Africa, U.K., Uruguay & US.
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In 2017, Stella Artois and Water.org announced a new four—year commitment to help provide 3.5
million people in the developing world with long—term, sustainable access to clean water by 2020.
Stella Artois doesn't have a big presence in India and neither is the campaign active here.
We want to create a similar success story with another initiative and a different brand.
A few (directional not exhaustive) questions need to be answered before kicking-offthis exercise:
#2
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Create a porfolio strategy to launch non—alcoholic beverage in AB InBev India
NON ALCOHOLIC BEVERAGES - GOAL 2025
An important aspect of AB lnBev's Global Smart Drinking Goals is to ensure that low and
no-alcohol beer contributes to at least 20% of our global beer volume by 2025 which will enable
us to empower consumers through choice to enjoy beer responsibly.
The world‘s leading brewer, Anheuser—Busch lnBev (AB lnBev) forayed into the Indian market more
than a decade ago with the flagship brand Budweiser.Today Budweiser, the leading beer brand in
the premium segment, is the fastest growing brand in the category and has an awareness level of
more than 90% among beer drinkers.
While the beer market is set to continue its upward growth trajectory, 70% of the lndian
population still abstains from alcohol. Non-Alcoholic Beverages (NAB) will help us foster inclusivity
by catering to this section of the audience, opening up opportunities for them to discover the
refreshing and crisp taste of our iconic beers sans the alcohol. NAB will also cater to beer
connoisseurs who want more choices to enjoy the taste of beer freely and responsibly on
occasions where they want to abstain from alcohol.
The No-alcohol Beer market is currently in a nascent stage with very few brands present here. With
the introduction of Budweiser 0.0 and Hoegaarden 0.0 in retail channels, this category is poised to
grow in the coming few years.
Our No-alcohol Beers are crafted using the same process as that of our iconic beers. That’s because
our commitment to brewing great beer never changes, even if we do decide to go alcohol—free. As
our Brewmasters say "Taste is the only thing that matters." We’re still brewing with our same
signature ingredients, and the same deep commitment to getting itjust right.
During the final stages, the alcohol is removed through a special process to retain the taste that's
true to the standards of our beers. The brewing method has been altered slightly to avoid the
acidity that would otherwise be induced by the de—alcoholisation process.
INTRODUCING INTRODUCING
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The Indian NAB market can be broadly divided into Carbonated and Non-Carbonated soft drinks. The
former is primarily dominated by carbonated soft drinks while MBD (Mango Based Drinks) and Juices
have a huge share of pie in the Non-Carbonated Soft Drink market.
SPIRITS
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CARBONATED NONA CARBONATED PACKAGED DRINKING
SOFT DRINKS (CSD) SOFT DRINKS (NCSD) WATER {PD WATER}
The NAB industry has been growing at around 10% CAGR for the last 4 years in India. The reach of the
total Non—Alcoholic Beverages industry is around 3.8 Mn stores in India.
Carbonated Soft Drinks (CSD) still dominates the Non—Alcoholic Beverage market with a value share of
57% in a $6.4 billion Industry. Although their contribution is steadily declining for the last 5 years. In the
year 201 3, the CSD contribution was roughly around 65% which is now down to 57%. In the last 2 years
the decrease in contribution has been around 3%.
The 3 categories that have gained shares are Dairy / Soy Beverages, Juices and Ready To Drink / Energy
Drinks. The 3 categories overall now contribute to 15% to the overall NAB market.
The MBD (Mango Based Drinks) and Packaged Water have been stable in their contribution to the overall
NAB category. MBDs contribute around 12% to the overall beverage market whereas Packaged Water
contributes to around 15% of the category.
Urban India contributes to around 66% ofthe total consumption whereas rural contributes around 34%.
We CHALLENGE you to develop a portfolio strategy for growing NAB contribution for
AB lnBev India & evolution plan over next 5 years.
A few (directional not exhaustive) questions need to be answered before kicking-off this exercise:
#3
GRAFTING A NEW BREW
Create a portfolio roadmap for craft beer in AB InBev India
The world over, Craft Beers are loved and admired for their experimental take on the world's oldest
drink! Beer, produced using four main ingredients — Water, Malt, Hops and Yeast, can be transformed
into thousands of unique styles and adapted in myriad of ways.
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Over the last few years, Packaged Craft has also seen a rapid rise, with brands like
Bira 97, Simba and White Owl making popular craft beer styles more accessible. While some
question whether these mass-produced brands are truly craft in nature, they have undeniably
opened up opportunities for the discerning beer drinker to discover new flavours and possibilities
which never existed before.
Biro 9i started out as a craft brand which imported its beers from Belgium. To meet the growing
demand, it soon partnered with local breweries to produce beers locally & now manufactures
mass—market lagers.
Simba, a family-owned business which used to produce mass—market lagers in the state of
Chhattisgarh, is now available in over seven cities in three variants.
White Owl, which pioneered the trend of brewpubs selling packaged beer, has quickly scaled up to
over five cities in just under two years. White Owl’s success story has set the stage for more small
entrepreneurs to launch their own packaged craft beers in the next few years.
PACKAGED CRAFT MARKET OVERVIEW
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This segment, now growing at more than 40%, is set to gain a significant volume share in the
overall industry. Globally, the share ofthe craft beer segment is as high as 12% in US, 8% in Europe
and 8-1 0% in markets like Australia.
Despite challenges in the form of state level regulations, high taxation on beer, stipulations on
alcohol advertisements, differential pricing and lack of access to great shopping experience, as
compared to the western countries, the craft beer industry in India is still expected to outpace the
commercial lagers in the next decade.
Globally AB lnBev through its Investment and Innovation arm, ZX Ventures, is involved in multiple
partnerships in the Craft Category and is a collective of iconic brands like Goose Island, Camden
Town, Birra Del Borgo and Patagonia. ZX Ventures' unparalleled access to AB lnBev’s technology,
breweries 8: distribution networks allows them to make these great beers easily available to
consumers across the world.The goal is to keep creating and adding new brands to the portfolio
that boasts of a great selection of brands, styles and experiences.
So far, AB lnBev has focused on premium brands like Budweiser, Corona, Hoegaarden and Stella
Artois to drive its growth in India. The company is now planning to foray into the craft beer
segment and enhance its product portfolio in the country.
A few (directional not exhaustive) questions need to be answered before kicking—off this exercise: