GLOBAL MARKEING

MANAGEMENT PROJECT

Submitted by:
Rajvi Chatwani - 201900929
Sowmya Iyer – 201901329

Aarti Satish Shah - 201900633

Submitted to: Miss Maryam Fouladirad

APRIL 12, 2020

NORTHERN COLLEGE OF APPLIED ARTS & TECHNOLOGY
IBM Group 2
Contents
Canadian brewing industry ................................................................. Error! Bookmark not defined.
Canadian History of Brewing ............................................................. Error! Bookmark not defined.
Introduction ........................................................................................ Error! Bookmark not defined.
History of Bira 91 ............................................................................... Error! Bookmark not defined.
Target Country ................................................................................... Error! Bookmark not defined.
Products by Bira 91 ............................................................................ Error! Bookmark not defined.
SWOT Analysis ................................................................................. Error! Bookmark not defined.

Market Risks ................................................................................................................................... 10

Market Entry Barriers.................................................................................................................13
PEST Analysis............................................................................................................................13

Market Channel .................................................................................. Error! Bookmark not defined.

Distribution ........................................................................................ Error! Bookmark not defined.

Bibliography ...................................................................................... Error! Bookmark not defined.
 Market Research of Bira 91

1. Home country (the country of origin): India

2. Target country: Canada

3. The company industry: Brewing Industry

4. The product/service category: Craft Beer, Flavoured Beer

5. Products: Bira 91 White, Bira 91 Blonde, Bira 91 Light, Bira 91 Strong, Bira 91 Indian Pale
Ale

Canadian brewing industry

Brewing in Canada developed from a household need into a commercial industry that
expanded rapidly under British rule, although short lived in New France. The brewing
industry has developed and adapted to the tastes of Canadians from its regional origins to
national expansion, and the emergence of the craft beer movement. Apart from a brief
Prohibition era, it has also been a large, reliable source of tax revenue for governments. Beer
accounted for about $13.6 billion of Canada's gross domestic product, or 0.7 per cent of the
economy, in 2016. The sector hires about 149,000 people, or 0.8 per cent of Canadian
workers.
Canadian History of Brewing

Brewing in Canada began with the first settlers and merchants. Throughout New France,
where European varieties of grapes used for wine and brandy did not flourish, beer was
produced out of need and not for want. In colonial times, milk and even water were full of
dangerous microorganisms which sometimes caused serious illness to people. But, despite
those risks, beer was fairly safe. Almost every disease-causing agent died from the long boils
involved in the brewing process. Moreover, the unusual mixture of high acidity, hops and
alcohol from beer has been a brew in which dangerous bacteria never live.

The driving force behind the Canadian creation of commercial brewing was Jean Talon, New
France’s charismatic and strong intendant (i.e., administrator). Talon had grown up close to
northern France’s beer-producing Artois region. He had also worked in French Flanders and
Hainaut as an administrator, where people drank more beer than anywhere else in the world.
In addition to his cultural associations with beer, he had social and economic motives for
establishing the first commercial brewery in Canada.

Introduction

Bira 91 is a refreshingly modern beer brand conceived in India aiming to introduce flavored
beers into the new world. Bira 91 has built a large collection of essential beers as one of the
fastest growing beers in the world, and aims to drive the global change in beer towards more
colour and flavour.

Established by B9 Beverages in the summer of 2015 and headquartered in New Delhi, Bira 91
has quickly become the favourite among urban youngsters because of its delicious beers, bold
branding and strong network connect. Bira 91 jumped across to New York City in 2017 to
launch its campaign in the U.S. And in 2018, the company started focusing on the Asia-
Pacific market by entering Singapore.

Bira 91 then started producing the beer in Gondia with the same ingredients after initial
success. The beer is made of wheat, barley and hops and comes in draught bottles, 330ml
bottles, 650ml bottles and 500ml cans. Bira is raising $10 million in debt financing to improve
efficiency. The company is expected to use the profits to raise its manufacturing capacity to
around 1,7 million cases, up from its current 400,000 cases, with a large amount of branding
creation.

Within less than three years, by sales volume and the fastest growing beer brand in the world,
Bira 91 now ranks among the top 25 craft beer brands worldwide (rising 5x in 2017).
Operating four breweries in India, the company now has offices in nine cities including New
York City. Bira 91 is funded by Sequoia Capital and Sofina Capital of Belgium. And looking
at the wide brewing industry and increasing market demand, it will help the company to be
successful in the target market that is Canada.

We have a dedicated team of over 600 beer enthusiasts with only one goal – to change the
beer and beer industry for the better. Crafted with the adventurous urban drinker in mind —
one who likes to have fun and doesn’t take life (or beer) too seriously, the brand aims to
disrupt the global beer industry with 21st century technology and its adorable monkey mascot.

History of Bira 91

B9 Beverages Pvt Ltd was founded in 1998 by Ankur Jain, an entrepreneur who had moved
from India to the USA. Jain graduated from Illinois Institute of Technology, Chicago, with a
degree in computer science. He worked briefly with Motorola before launching his first
Healthcare Revenue Management company in New York, which was later sold to an
unspecified network of healthcare providers in 2007.

Jain moved back to India in 2008 and began his first beer venture; which imported
conventional craft beers from Europe and the United States to India. In early 2015 B9
Beverages launched beer Bira 91.

Target Country

“To have a business that can scale beyond one geography, the culture needed to change,
the quality of talent needed to change. So came the very aggressive rework for a culture
correction”

- Ankur Jain, founder of B9 Beverages, the maker of Bira 91

Bira 91 aspires to drive the global shift in beer towards more flavour and with plans to enter
Canada Bira 91 expects to embark on this journey towards creating the first global brand of
craft beers. Despite their maturity, the beer industry in Canada is rapidly and consistently
growing. In 2020, sales are expected to grow to 2.5 billion litres. Growth levels of the industry
are due to favourable growth factors such as the recent weather, increasing average unit price
and increased marketing efforts by the country's major beer producers. The industry has
invested in providing new flavours with regard to product innovations and has concentrated on
diversification. This has contributed to a rapid expansion of the Canadian beer market's types
and flavour profiles, including the introduction of limited releases or vintage products, new
craft beers and new creative packaging.

Different categories of beer products, such as craft beers, flavoured beers and no / low alcohol
beers, benefit from increased demand from customers. Such sub-sectors have experienced
significant growth and have enjoyed growing popularity among consumers in Canada. In
Canada you can see a change from conventional market tastes from light beer to more
complex beer products. It is therefore predicted that the growth of new demand will be driven
by customers searching for rare, non-traditional and imported styles of beer. Thus, there is a
huge scope of launching Bira 91 in Canada.

Products by Bira 91

Bira 91 has five beers in its portfolio and they are mentioned below:

1. Bira 91 White which is a low bitterness wheat beer with a 4 percent alcohol content,
2. Bira 91 Blonde an extra hoppy craft lager,
3. Bira 91 Light which is a low-calorie lunchtime lager,
4. Bira 91 Strong is a high intensity beer with 7 percent alcohol content in it.
5. The Bira 91 Indian Pale Alewhich is the first IPA to be brewed and bottled in India.

In June 2017, Light and Strong were added, and IPA was launched in October 2017.
Bira 91 White is a cloudy wheat beer with low bitterness and powerful aromas like
citrus and coriander. Bira 91 Blonde is a original lager made of barley and saaz hops.
On the IBU scale Bira 91 White calculates 13 while Bira 91 Blonde comes 21. Both
varieties have an Alcohol by Volume power of 4.9 percent.

SWOT Analysis
Strength

• Growth: Although the market for alcoholic industry is quiet mature in Canada, it has
witnessed a steady growth over 1.5% YOY. The expected annual growth of the beer
market is 2 % (CAGR 2020-2023). The trend of beer consumption is shifting towards
premium beers.

• Consumption: Beer is the largest category of alcohol consumed in Canada. In 2020,

average per capita consumption of beer is 71.9 Liter whereas the average per captia
revenue stands at USD 345.44 which is an steady increase of 1.1% YOY.

• Bira 91 is categorized under craft beer. The quality is high and the taste is unique and
more flavorful due to the brewing style.  High profit margin

Weakness

• Large number of local beer producers and competition against several foreign brands and
licensed subsidiaries

• Trade Barriers: Canadian Beer market is regulated at a provincial level. There are
government entities in charge of the distribution of alcoholic beverages in all except one
province.

• Each of Canada’s 13 Provinces and Territories has its very own Liquor Board or
Commission that oversees the distribution and sale of alcoholic drinks in their respective
territories.

Opportunities

• Demand: There is an expected increase in the demand for specially crafted beers and
artisanal beers. This will be highly beneficial for Bira as flavored craft beers is the
specialty of the company.

• Price Competitiveness: CETA has lowered costs for bulk shipping and bottling and has
also eased the non-tariff barriers leading to improved labor mobility. This has overall
lead to greater price competitiveness
• Ease in distribution rules over COVID 19 pandemic: Provincial Liquor board has
eased rules related to delivery and take out of beers owing to the growing pandemic
and quarantine requirements. Some provincial boards have authorized sale of alcoholic
 beverages from as early as 7 am in the morning so that elder citizens can benefit form
the same.

• Recession: Along with the bankruptcy, reduction in wages and higher unemployment
rate, recession brings in factors like increased consumption of alcohol. This can be an
excellent opportunity for Bira 91 to increase its sales of more economical beers.

• Facilitation of inter-provincial trade restrictions – The Budget Bill, updated in 2019,

amends the Import of Intoxicating Liquor Act ("IILA") to eliminate all existing federal
barriers to inter-provincial alcohol trade and permit the direct-to-consumer shipment of
alcohol across provincial boundaries to the degree that the province of receipt already
permits such transactions.

Threats

• Increase in consumption of other alcoholic segments such as cider and wine. These 2
segments have become increasingly popular amongst regular consumers of alcoholic
beverage.

• Local craft breweries are becoming increasingly popular and this act as a strong
competition for Bira 91.

• In multiple sectors, including alcoholic drinks, 2018 and 2019 have been marked as
volatile years, as shifts in legislation and trade tension are growing confusion in
market participants. Big reforms in cannabis laws officially came into effect in
October 2018 and more are planned in the years to come, possibly having a
detrimental impact on sales of alcoholic drinks.

• There are a host of smaller players trailing Labatt Brewing and Molson Canada,
including Sleeman Breweries, regional players and an increasing number of craft
breweries therefore, there is a lot of competition in the market. Entry barriers in beer
are relatively small and there was a 30 percent rise in the number of breweries in
Canada between 2016 to 2018, and the bulk of the growth came from craft brewers.

Consumption of Beer in Canada:

Since its arrival by European settlers in the seventeenth century, beer has been a vital part of
human history and of Canada's culture. Canada is pretty much a beer drinker country. Beer is
still the most popular alcoholic beverage among Canadian consumers, despite a general decline
in sales over the last few years. But beer drinkers are turning ever more towards imported
brands to quench their thirst. Imported beer sales in Canada stood at around 3.49 million
hectoliters in 2018. According to IBIS World, consumers aged between 18 and 34 produced
approximately 39.1 per cent of domestic beer consumption. Anheuser-Busch InBev is
Canada's biggest beer producer with over 38 per cent market share. The company was reported
to have created sales in Canada of about 2.45 billion dollars in 2018.

Vendors not only market beer on the retail end but also treat returns on bottles. A bottle can be
reused 15 to 20 times, thereby preventing major wastage. When a bottle is spent, it is crushed
and sent for the creation of new bottles to glass-makers. Unlike the beer cartons, plastic beer
cans are smashed and recycled too. Draught beer is sold in reusable kegs that can last 15 to 20
years before they too are also crushed and recycled. Even the husks of the spent grain used in
the brewing process are recycled. After use in the brewing process, they are collected and sold
as animal feed.

Age-wise consumption:

There's also an age aspect of beer consumption in Canada. Market statistics show the age-group
of 19 to 34 is the largest category of beer drinkers. In the age group of 35-44, the numbers are
slightly lower and increase again for the 45-65 year olds.

Given the changing demographics in Canada this market trend may be a concern for the
industry.

Gender-wise consumption:

Because the major beer manufacturers in Canada have mainly targeted young people, it is
possible to identify a big difference in beer consumption by gender. The largest group of
customers are people aged between 19 and 34. Men account for more than 71 per cent of the
country's overall beer intake. Despite being slightly smaller, women's beer intake has increased
in the country over the past 5 years. The female customer group tends to favour new products,
such as sweetened drinks, low-calorie beverages and different forms of local and craft beer.
Overall, Canada's industrial development has been slowed by shifting customer preferences.
Given the decline in alcohol intake per capita among Canadians, the industry has benefited
from a change in consumer preferences towards craft beer. A growing number of small-scale
breweries making craft beers have opened and are benefiting from the success of the products.
The rising success of new craft beers alongside the dramatic rise in licensed breweries in
Canada has spurred market growth and is a step towards fragmentation in the consumption of
Canadian beer. Over the next five years, analysts expect that the major beer companies in
Canada are likely to face significant challenges as customer tastes are changing from
conventional light beers to more sophisticated categories. The rising popularity of imported
beer among Canadians is another factor leading to the decline in domestic beer consumption.

Drivers of the Rise in Canadian Craft Brewing:

Recently, the regulatory framework which led to the consolidation of the brewing sector and
production standardization has changed to provide some incentives for the development of
microbreweries. Development is fostered predominantly by demographics which also correlate
with the increasing demand for culinary tourism and local food which can be an integral
component of craft beer.

Regulations on Production: The consequence of the lack of production regulations is that the
creation of a highly differentiated beer product is easy for a brewery.

Incentives: Provincial governments provide extra financial resources to craft the breweries.
Government also provides various subsidies. Such incentives along with preferential tax rates
provide an advantage over larger operations in crafting breweries.

Demographics: The demographic variable with the most effect on the changing trends of beer
consumption in Canada is age distribution, and in particular the position of the baby boomers.
Quality preference increases with age. Therefore, though overall beer consumption continues to
decline, the growth of specialty beer has increased dramatically, and its rise coincides with the
generation of baby boom 12 entering its 50s. Thus, a cause for growth in Canada's craft
brewing sector is the unique impact of the generation of baby boom that is now ageing to
demand such a product.
CETA Entry Requirements:

Alcoholic drinks in Canada are goods from the food industry that are not licensed by the federal
government. Canada's manufacture and sale of alcohol is heavily regulated, and all but one
province requires the delivery of alcoholic drinks by government agencies. Import regulations
are carried out by provincial and federal boards of regulation of the liquor. Each of the 13
provinces and territories in Canada has its own Liquor Board or Commission regulating the
distribution and selling of alcoholic drinks in their territories. There could be major variations
in licensing standards, and these should be checked in the province or territory with the
appropriate authority.

Under CETA, these liquor control boards retain their alcoholic beverage import monopoly,
while reservations generally require provincial governments to regulate and issue alcoholic
beverage authorizations. As such provinces are authorized to control the purchase, distribution
and sale of alcoholic beverages on different matters. Distribution and import vary among the
differing territories and provinces.

Any drink containing more than 1.1 per cent alcohol by volume is deemed to be an alcoholic
drink and must meet Canadian labelling and compositional specifications as set out in Division
2 of the Food and Drug Regulations. These are federal standards and it must be remembered
that regulations will vary at the provincial level and therefore should be carefully checked.
Market Risks

For Setting up operations in Canada, Bira 91 will face the below mentioned risks.

Sr. no Type of Risk Factors

1 Natural Natural risks can be caused by the changes in weather
or climate thereby leading to shortage or spoilage of
supply.

Bira 91 needs to be prepared in the case of loss due to

natural reasons like storms, disruption due to quake etc.

2 Operational Hazards or shortcomings in production and logistics fall

under this category. Production mistakes leading to
wastage and spoilage of supply, fire or blast in factory,
storage inefficiency, logistics related issues like
accidents leading to loss of products etc. needs to be

Also when business grows in size the operational risks

increases as the size of brewery increases and safety and
vigilance must be on high level

3 Demographic Nowadays people are trying to live a healthier lifestyle

and this is directly proportional to smoking or drinking
as drinking beer is not considered a healthy option

Preference for other varities of alcohol due to social

trend like wine and cider

4 Political Government policy regarding tariffs and non-tariff

barriers may effect business in a drastic manner

Political instability or turmoil at any given point of may

effect business
Market Entry Barriers

Provincial
Trade
Barriers

Non Trade
Policies
Barriers
Market
Entry
Barriers

Social
Input
Lifestyle
Costs
changes

PEST Analysis

Factor Brief Aspects Other details

Political Market Liberalization Change in demand & supply across multiple

nations which may open several opportunities for
Legal Policies market entry for Bira 91

Economic Change in Exchange Rate Breweries may face higher procurement cost of
raw material like wheat or barley
Slowdown of
developed
economies
Social Change in consumption pattern Consumption may increase or decrease or certain
products of Bira 91 may be more popular than
Unforeseen circumstances like the others
social distancing, quarantine

Technological Development of newer Achieving economies of scale through continual

alcoholic drinks innovation using latest Technology

State of the art

brewery
 technique

Market Channel

Alcoholic drinks in Canada are goods not licenced with the Federal Government. Canada's
alcohol production and distribution is heavily regulated, and all but one province mandates
that alcoholic drinks be sold by government agencies. Import controls are carried out by
boards of provincial and territorial authorities. Every of the 13 provinces and territories of
Canada has its own Liquor Board or Commission regulating the distribution and selling of
alcoholic drinks of their territories. Remember that there could be major variations in
regulatory standards, and these should be checked in the province or jurisdiction with the
appropriate authority. Under CETA these liquor control boards retain their alcoholic beverage
import monopoly as reservations generally require provincial governments to regulate and
issue alcoholic beverage authorisations. As such provinces are authorised to control the
purchase, distribution and sale of alcoholic beverages on different matters.

Province Board Website

British
Liquor Distribution Branch (LBD) http://www.bcldb.com/
Columbia

Alberta Gaming, Liquor & Cannabis

Alberta http://www.aglc.ca
Commission (AGLC)

Saskatchewan Liquor and Gaming

Saskatchewan https://www.slga.com/
Authority (SLGA)

Quebec Société des alcools du Québec (SAQ) http://www.saq.com/

Manitoba Liquor & Lotteries

(distribution), Liquor and Gaming
Manitoba Authority of http://www.mbll.ca/
Manitoba (LGA)
Newfoundland and Labrador Liquor
Newfoundland http://www.nlliquor.com/
Corporation (NLC)

New New Brunswick Liquor Corporation,

http://www.anbl.com/
Brunswick Alcool NB Liquor (ANBL)
 http://www.finance.gov.nu
Nunavut Nunavut Liquor Commission
.ca/

Northwest Northwest Territories Liquor Commission http://www.fin.gov.nt.ca/li

Territories (NWTLC) quorfund/index.htm

Nova Scotia Nova Scotia Liquor Corporation(NSLC) https://www.mynslc.com//

Ontario Liquor Control Board of Ontario http://www.lcbo.com/

Prince
Prince Edward Island Liquor Control
Edwards http://www.peilcc.ca/
Commission
Islands

Yukon Yukon Liquor Corporation http://www.ylc.yk.ca/

Distribution

Through province has its own liquor control board / commission which leads to multiple
licencing and distribution regulations across all provinces. In Canada the alcoholic beverage
distribution and sale is regulated by provincial liquor & licencing boards rather than private
parties. Such companies are also responsible for selling beer. Alberta is still the only state to
have privatised the liquor retailing business. Many jurisdictions tend to have control over the
selling of alcoholic drinks, with some restriction on the selling of beer and wine originating in
the region. Because alcoholic liquor distribution is highly regulated, there are limited chances
of distribution.

The establishment of alcoholic drink distribution channels in Canada consists primarily of

sales channels such as super / hypermarkets, supermarkets, and on-commerce stations such as
bars and restaurants. Because of strict distribution regulations, shelf space at retail outlets is
restricted for alcoholic beverages. Following a rise in on-trade revenues in Canada, off-trade
remains account for 79.46 per cent of revenues.

The distribution data can be referred from the chart mentioned below:
 Market Takeaway:

Consumption: The quantity consumption of beer is declining as tastes move

towards alternative drinks and beer choices of higher value, such as specialty
brews and imports.

Distribution: In most cases, highly controlled sector with regional import and
distribution monopolies-consult with the province that suits your target market.

Competition: Canada's largest producer group is the small, craft and craft
brewer community, with the highest single-output shares owned by major
multinational brewers: Molson Coors and AB InBev.

Challenges: Price aversion to imported EU beers relative to local rivals,

compounded by trade and non-tariff barriers between provinces. In some
markets EU beers will clash with local or regional loyalties.

CETA incentives: full tariff liberalization (HS 2203: malt beer) and simplified
producers' resources and procedures already on the market

Bibliography
“The great Canadian beer guide” by Stephen Beaumont, McArthur, 2001

“Global alcohol report”2014 available at: https://tinyurl.com/3pbtugj

“Industry Trends” available at: https://tinyurl.com/oq59erl

“Beer in Canada” June 2016 available at: https://tinyurl.com/rbthoa8

Agriculture and Agri-Food Canada. (2016) Canada’s Beer Industry at

http://www.agr.gc.ca/eng/food-products/processed-food-and-beverages/profiles-

ofprocessed-food-and-beverages-industries/canada-s-beer-industry/?id=1171560813521

https://www.livemint.com/Companies/4ZqDh8AG1DuL7IRt09SF2N/Inside-Bira-91s-

planto-become-a-global-craft-beer-brand.html https://bira91.com/home/age.html

https://en.wikipedia.org/wiki/Bira_91

https://www.thecanadianencyclopedia.ca/en/article/brewing-industry

http://www.euromonitor.com/beer-in-canada/report

https://www.statista.com/topics/2292/beer-market-of-canada/