Brewers & Experts - Brewer World-Everything about beer is here https://www.brewer-world.com/tag/brewers-experts/ Everything about beer is here Wed, 15 Dec 2021 09:42:36 +0000 en-US hourly 1 https://www.brewer-world.com/wp-content/uploads/2019/12/cropped-BW-Circle-logo-32x32.png Brewers & Experts - Brewer World-Everything about beer is here https://www.brewer-world.com/tag/brewers-experts/ 32 32 BECK’s ICE paves their path into India https://www.brewer-world.com/becks-ice-paves-their-path-into-india/ https://www.brewer-world.com/becks-ice-paves-their-path-into-india/#respond Sat, 11 Jan 2020 08:26:17 +0000 https://www.brewer-world.com/?p=4332 Kartikeya Sharma Marketing Director, AB InBev India With the launch of Beck’s Ice in India, AB InBev will pioneer a new chapter in the Indian beer market. As the Indian beer market matures, the next wave of growth will be fuelled by the rapidly growing number of urban millennials. Millennials are set to embrace the […]

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Kartikeya SharmaKartikeya Sharma

Marketing Director, AB InBev India

With the launch of Beck’s Ice in India, AB InBev will pioneer a new chapter in the Indian beer market. As the Indian beer market matures, the next wave of growth will be fuelled by the rapidly growing number of urban millennials. Millennials are set to embrace the sociability of beer with more men and women enjoying the beverage together than ever before. Beck’s Ice is designed to appeal to these next generation consumers with contemporary packaging, unisex positioning and easy-drinking liquid, perfect for both men and women. Brewed with 100% pure malt for ultimate refreshment Beck’s Ice is the perfect beer for an escape with friends. What better way to escape the high-pressure world of India’s urban jungles than with a Beck’s Ice and a few good friends. How will Beck’s Ice be different from other premium brands addressing these millennials? Kartikeya Sharma, AB InBev’s marketing director for India, adds in an interview, “As premiumisation continues, the trading up will become harder and harder because the gulf between the premium and entry-level will start increasing. As a result, we thought it best to have a portfolio bet on that price point and decided to position Beck’s as the midpoint to trade up,”.

Beck’s Ice was launched in Maharashtra and Karnataka with a 360-launch campaign comprising of digital film, social media campaign, outdoor, consumer promotions, experiential formats etc. that dramatizes the tension of living in India’s mega-cities and contrasts it with the pure world of Beck’s Ice. Sneha Nair, BW correspondent in conversation with Kartikeya Sharma on AB InBev’s latest launch into the India Beer markets.

AB InBev has one the most diverse portfolio’s, extremely strong towards premium brands, like Budweiser, Stella Artois, Hoegaarden and most recently Beck’s Ice – What do you predict Beck’s contribution to be?

At AB InBev, we are committed to brewing the best beers using the finest natural ingredients and strive to offer the best brand experiences to our consumers in a responsible way. In the portfolio of AB InBev’s global businesses, India remains one of the largest growth opportunities given its current size and changing demographics. India is currently witnessing a strong trend towards premiumisation with a growth of 32%CAGR. As leaders in this segment with our brands – Budweiser, Hoegaarden and Corona, we are encouraged to offer our international brands to our consumers in India. The launch of Beck’s Ice will help us further leverage this positive trend to expand our reach to major markets across the country. Beck’s Ice, inspired by its German heritage from 1873 and made from 100% pure malt, delivers pure refreshment to our unisex consumers in a flint bottle that comes with a ring full feature.

The idea behind launching Beck’s Ice is to introduce a brand with strong international credentials that resonates well with our target audience – Millennials. (Especially when 19 million people of Legal Drinking Age coming to the hold every year in the country)

What was the reason behind tweaking the brand and the liquid for the Indian market?

As a responsible brewer, we are constantly evolving our beers to suit the palate of our consumers. We are continuously looking for new ways to refresh and create new products, build stronger brands and make more meaningful connections with our consumers and the communities where we live and work. European lagers tend to be a little too bitter for the quintessential Indian consumer. Hence, to cater to the Indian taste, we have worked together with our experts to alter the bitterness level while not compromising on the drink’s authentic taste and flavour.

Beck’s is to be priced almost 12-20% higher that entry-level brands, Why? How do you see to grow this brand with a higher pricing for the same premium segment?

Beck’s Ice is here to carve a niche for itself as it defies the usual norm of beer being a male centric commodity; it aims to transform the category audience to include women as well. As the Indian market continues to mature, the next wave of growth will be fuelled by rapidly growing urban millennials as they are set to embrace the sociability of beer with more women and men enjoying the beverage together than ever before. Beck’s Ice is available in Maharashtra at Rs.175 for 650 ml bottle and Karnataka at Rs. 140 for 650ml bottle respectively. It is currently priced at this rate with the aim of capitalising the pricing gap between those and the premium segment Budweiser operates in. That being said, Beck’s ice is a perfect blend of premium quality and reasonable price, this beer is available at a price cut well above the competition.

“In India today, only 1 in 8 women enjoy a beer compared to 1 in 2 in more mature markets”, What makes AB InBev classify Beck’s to appeal to women?

The brand has been built on a very strong consumer insight – Young Urban Millennials who seek an escape from their everyday monotonous life to something pure. As the market grows, more women under this segment are embracing and enjoying the beverage together. The 100% malt produced Beck’s Ice, ensures its smooth and crisp taste makes it easy for urban millennials to enjoy this refreshing taste and develop a liking for.

Where do you see India’s beer market 5 years from now and AB InBev’ market share then?

India’s beer market has constantly been evolving over the years with the change in cultural attitudes and a younger more increasingly affluent population. India is one of the most important market for us especially with more than 19 million Indians each year become old enough to drink legally. We have made a significant business progress in the country over the last few years and have gained a leadership position. The right product mix is crucial for any business to be successful and we offer a large diverse portfolio of brands with a range of products to our consumers across markets and segments – Global Brands: Budweiser, Beck’s Ice, Corona, Stella Artois, Hoegaarden, Leffe and Local brands – Haywards5000, KnockOut, Fosters and Royal Challenge. We also have a local innovation as Budweiser variant – Budweiser Magnum.

Our goal is to be India’s leading responsible brewer with exponential growth led by acceleration of our global brands. We plan to leverage the positive trend towards premiumisation coupled with product and packaging innovations, that will help us further expand our reach in major markets across the country. We look forward to keeping up this momentum, anticipate better ease of doing business in India and our plans to launch new products/variants across categories.

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Trickle into India’s F&B industry https://www.brewer-world.com/trickle-into-indias-fb-industry/ https://www.brewer-world.com/trickle-into-indias-fb-industry/#respond Sun, 01 Sep 2019 04:30:29 +0000 https://www.brewer-world.com/?p=4321 Rahul Singh President, NRAI (National Restaurant Association of India) Headquartered in Delhi, NRAI represents Independent & Chain Restaurants /Bars/Café owners & operation. The India restaurant Industry is estimated at USD 4 billion. The NRAI corresponds to over 10,000+ restaurants over different chapters throughout the country. In this issue of Brewer World, Rahul Singh in conversation […]

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Rahul Singh
President, NRAI (National Restaurant Association of India)

Headquartered in Delhi, NRAI represents Independent & Chain Restaurants /Bars/Café owners & operation. The India restaurant Industry is estimated at USD 4 billion. The NRAI corresponds to over 10,000+ restaurants over different chapters throughout the country. In this issue of Brewer World, Rahul Singh in conversation with Sneha Nair, about the rising India craft beer markets and its impact on the food industry.

What is your take on the business side of the food industry and its growth in upcoming years?

India’s F&B industry has been seeing explosive growth in the last few years, and this growth shows no signs of abating anytime soon. There are three factors driving this growth – a largely youthful demographic, increasing disposable income, and changing consumer lifestyles. All of these factors have increased the demand for the food services industry in India. India’s F&B industry is, according to KPMG, one of the most vibrant industries to witness rapid and unprecedented growth in the recent past. This growth is a significant contributor to the country’s economy and has been a frontrunner in attracting investment.

According to the India Food Report 2016, the Indian food retail market – the sixth-largest globally – is expected to grow from a value of INR 25 trillion in 2014 to INR 61 trillion by 2020, at a CAGR of more than 15% for the 2014-2020 time-period. Food already constitutes the largest retail consumption category in this country, and the food consumption and demand at a household level is expected to be more than twice its current value by 2025. Looked at more closely, this growth has several key trends – a gradual transition from unorganized food stalls to established restaurant outlets and chains, as well as a growing preference for digital payments and takeout/delivery over dine-in.

Essentially, the industry is booming, as the traditional constraints are worn away by technology and a more demanding consumer driving greater growth in the healthier and more mature parts of the sector. The companies and entities that can track these changes and keep a finger on the pulse of today’s consumers are bound to flourish.

It is understood that at one point, the proposal for micro-breweries had been favorably considered only for 5-star hotels and airports. However, to cater to the demands of tourist traffic – both domestic and international, it was important for microbreweries to be permitted across restaurants since a large portion of these tourists are outside the 5-star category.

Could you talk to us about the trends witnessed in the food industry vis-a-via the youth in the country?

India has one of the world’s largest youth demographics, with the 350 million Indians in the 10-24 age group forming 28% of the country’s total population. This youth population is expected to reach a colossal 465 million by 2021 and looks at ‘eating out’ as a habit, not an occasion-driven infrequent expense. Younger Indians are happier to consume and pay for good food and experiences and are driving larger footfalls and revenue in the burgeoning food services industry in India, particularly in urban and semi-urban markets.

India’s youth is more aware, more health-conscious, and more demanding than the older consumer groups that are active in the market today. They are more open to new culinary experiences, creating an increased demand for global cuisines and foods. They have higher standards than the previous generation in terms of the quality of food, quality of service, and the kind of environment and ambiance that they expect when they choose to eat out. The emphasis is more on a holistic culinary and entertainment experience, and the outlets that create a welcoming environment and take care of their customers are shown greater preference. For many families with both parents acting as working professionals, getting food cooked at home every day can be a luxury. Alongside relying on food from the food services industry more often, they also expect it to be healthy, nutritious and fit in more seamlessly with their usual diet.

How much of the food industry is supported by the beverage industry? And What are the demographics of beer drinkers in India

(From NRAI IFSR 2016)
Over last few years the beverage consumption in India has been on the rise and the same can be witnessed with the increase in number of formats like Chai Point, Café Coffee Day, entry of international café chains like Starbucks and DiBella Coffee, expansion by players in Pubs, Bars, Café and Lounge (PBCL) category like Beer Café, Hoppipolla, Social etc. and juice lounges like Joost Juice, HAS Juice. Alike food, consumers now prefer to experiment more with beverages.

The overall beverage market share in the organized food service market is estimated to be ~32% and amountsto INR 30,000 Cr. of which about INR 21,000 Cr. is contributed by non-alcoholic beverages. In the Pubs, Bars, Café and Lounge (PBCL) segment, beverages represent the highest value in terms of Sales and SKU mix at 61% and 55% respectively.

The consumption of beer has been on the rise in the country and riding on this trend a lot of new outlets focusing on beer are coming up which includes microbreweries and pubs alike. Indian consumers are now becoming more discerning and are asking for more flavors and different kinds of beer. To meet this demand the microbreweries are now experimenting with different ingredients e.g. spices like cardamom and cloves, fruits like mango, litchi etc., and other ingredients like ragi, honey etc. to add excitement to the consumer experience. This phenomenon of serving different beer is not only limited to microbreweries but the pubs and bar cafés are also keeping different kinds of bottled beer to create differentiation e.g. Hoegaarden, Asahi, Schneider Weisse, Mahou Classica, Kotsberg, etc.

A quarter of consumers order alcohol during eating out, with varying frequency. The trend is expected to grow, especially in the Metro and Mini Metros. 15% of the consumers consider the availability of alcohol as a key criterion for selecting a restaurant, with PBCLs being the most popular format. Men focus largely on Beer and Spirits. Wine and Cocktails are the key beverages for women.

It is impossible to determine how much of the food industry is supported by beverages, as what drives consumers into outlets is based more on the individual restaurants and their own offerings. Many food outlets in India don’t provide alcoholic beverages, and still, attract a large number of consumers. On the other hand, there are certain establishments and chains in this country that rely on their drinks menu to fill up the tables and get their cash registers ringing. At present, the alcoholic beverages industry is projected to bring in USD 6.7 billion in revenue in 2018.

In terms of beer, India is a growing market with a positive outlook, but it is transitioning from a spirit-loving to a beer-loving demographic. The consumption of beer in India per capita is at 5.1 litres, compared to the Asian average of 20.9 litres. However, we are definitely seeing strong demand among younger Indians in the 20-40 age group that are taking to a wider variety of domestic and international beers that have become available to them. Over and above bottled brands, imported or manufactured locally, there is a large amount of interest in craft beers and microbreweries as well.

What are your thoughts on the emerging craft beer markets across India? And how much of beer (commercial or craft) is taking away from the alcohol industries?

It is always a sign of increased maturity in a market when there are more products being offered that cater to different tastes and occasions. Craft beer has emerged as a strong product category, especially among the high-spending urban youth that is looking for something different when it comes to their beer drinking experience. Overall, an expanded bouquet of offerings that are more stratified is driving greater consumption of beer as a proportion of alcohol consumption in India. Market research reports forecast a growth in beer sales in volume terms of 6.9% annually between 2018 and 2022, reaching 6.5 billion litres annually in 2022. While the craft beer segment is still very nascent, it is projected to grow at a 20% year-on-year rate.

It’s important to note however that the consumption of spirits in India is also projected to increase during this period of time, indicating a greater demand for alcoholic beverages driving growth across different categories as opposed to a substitution of one for the other.

As the president of NRAI, how do you foresee foreign beer brands market share in the future?

Foreign beer brands have two sub-categories – foreign brands manufactured and bottled in India and imported beer. India’s beer market is dominated by United Breweries, of which Heineken owns 44%. UB’s Kingfisher brand controls over half of India’s beer market, but it is feeling the pressure from Carlsberg and AB InBev. AB InBev supplies Budweiser and Haywards beer across the country. InBev’s beer portfolio also contains premium global brands like Foster’s, Stella Artois, Hoegaarden, and Corona, while Carlsberg operates in India through its Tuborg and flagship Carlsberg brand. These global brewers have developed manufacturing and production plants in the country.

The volume of beer imports to India have also shown considerable growth. In 2015 and 2016 – the latest years for which the data is available – global imports of beer grew 21% year-on-year, and the volume of beer imported doubled in between 2015 and 2016. This growth has largely been driven by European beers, with premium Belgian beers being the most popular brands imported.

Established restaurants, who don’t have the space to open a microbrewery but have the license, are now serving craft beer via kegging & distribution. What are your thoughts on kegging & distribution of beer?

Restaurants are looking to keep up with trends and supply what their customers want and are thus taking to kegging and distribution of craft beer. The thing is that when it comes to beer, taste is everything. If they can manage to provide the kind of refreshing taste that draws people to craft beer in the first place, this is a good initiative. However, quality control and customer satisfaction must be carefully accounted for.

What are the new initiatives taken by NRAI with respect to the microbreweries?

In 2015, NRAI’s year-long push got the government moving, clearing the road for Micro-breweries in Delhi. However, the proposal got stuck in red tape between multiple agencies in Delhi. It is hoped that the policy gets cleared and implemented in the coming year. This concept has been successfully implemented in states like Karnataka, Maharashtra, Punjab and neighbouring Haryana. NRAI has been taking up issues with the authorities for easing regulations for setting up Micro-Breweries for the past three years.

Does NRAI play an active role in promoting / providing support to the microbreweries?

NRAI has been working towards easing regulations for bringing the much-needed boost to the segment. It is understood that at one point, the proposal for micro-breweries had been favorably considered only for 5-star hotels and airports. However, to cater to the demands of tourist traffic – both domestic and international, it was important for microbreweries to be permitted across restaurants since a large portion of these tourists are outside the 5-star category.

With the changing lifestyle and social norms in society, the Restaurant Industry has also changed to keep up with the current consumer needs. One of them being – setting up of Micro Breweries in restaurants/bars. We hope that our efforts bring positive results as early as possible.

Any last words of advice you would like to share about the industry?

This is both a very promising and confusing time for the industry. Indian governments at various levels are simultaneously trying to make it easier and more difficult for the industry to operate. The confusion over whether microbreweries should be allowed in New Delhi was a great illustration of this problem. On the one hand, the Delhi Excise Policy permitted it; on the other, it was prohibited by the DDA masterplan for the city. These policy instruments and their discrepancies create a challenging environment for restauranteurs, who now have to find a way to predict the policy outcome before investing or giving up on a lucrative opportunity.

This industry is an important one and should be promoted with greater vigor and with more consistent regulations to enable it to unlock its full potential.

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Fun with Microbes https://www.brewer-world.com/fun-with-microbes/ https://www.brewer-world.com/fun-with-microbes/#respond Tue, 27 Aug 2019 06:21:48 +0000 https://www.brewer-world.com/?p=4223 Dr Nirupa Bareja PhD Biological Science, Chief Adviser at the Mazumdar Shaw Medical Foundation, She’s also on the scientific & technical advisory board of three innovative start-up companies-SigTuple, Aten Porous & 1Crowd.Director-India operations-Vicus. Therapeutics USA. In an interactive session with Brewer World, Dr Nirupa Bareja, went about explaining a few basics of beer. Everything one […]

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Dr Nirupa Bareja

PhD Biological Science, Chief Adviser at the Mazumdar Shaw Medical Foundation, She’s also on the scientific & technical advisory board of three innovative start-up companies-SigTuple, Aten Porous & 1Crowd.Director-India operations-Vicus. Therapeutics USA. In an interactive session with Brewer World, Dr Nirupa Bareja, went about explaining a few basics of beer. Everything one needs  to know.

WHAT ARE MICROBES?

As the name implies microbes are living organisms too small to be perceived by the naked eye. They need to be seen under a microscope. The term microbe is generic encompassing a group of micro-organisms of various sizes, that is: bacteria, fungi, viruses, archaea, protists, so on.

Our focus in this article is mainly microbial bacteria and fungi Microbes are responsible for creating a variety of foods such as wine, cheese, vinegar, yogurt and sauerkraut, baking products, used widely in the fruit juice industry.

A large use of bacteria and fungi is in the fermentation process, be it the food or fruit juice. brewing industry or the more sophisticated, complex and specialised sector of pharmaceutical industry particularly, in the manufacture of drugs.

Whilst in the food industry the use of microbial fermentation is simpler it gets hugely complex when the same micro-organisms are used in the drug industry.

Survival of the fittest is the way of life in the animal kingdom including humans. Very similar is the case with microbes.

For example, the drug industry uses bacteria and fungi from specialised strains to produce specific drug metabolites. These strains typically tend to be very sensitive and delicate and can easily be over powered and contaminated by the wilder and hardier strains of micro-organisms making their growth and survival extremely challenging.

The fun element and more importantly skill here is that of the scientists-be it microbiologists, drug developers, chemical engineers, molecular biologists to diligently and painstakingly work on various permutations and combinations of different aspects of temperature, pressure, humidity, airflow, light intensity to ensure that the particular strain which is required to grow, thrives in these controlled conditions to produce the required active pharmaceutical ingredient (API) which describes that drug metabolite.

The triumph is to arrive at such a complex but perfect scenario for the microbe to achieve it’s optimal growth and activity.

A famous bio scientist once said “Microbes are like humans-if you want to get the best out of them then treat them with TLC (tender loving care) – A truly balancing act.”

So true is the statement-my personal experience with heading manufacturing at pharma companies like Biocon has been exactly the same. Once the physico chemical parameters are strictly complied with, the way in which one communicates with the microbe-be it in a lab petri dish or in a huge fermentation room determines the growth and robustness of the bug.!

Being such tiny creatures but having such an impact on our lives is amazing.

The fun aspect is endless!

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Brewed with Passion & Love: The Kati Patang Journey https://www.brewer-world.com/the-kati-patang-journey/ https://www.brewer-world.com/the-kati-patang-journey/#respond Mon, 06 May 2019 07:03:34 +0000 https://www.brewer-world.com/?p=9946 Shantanu & Lata Upadhyay, Owners, Kati Patang Launched in October 2018, KATI PATANG’s Zesty Amber ale, is the latest addition to India’s booming craft beer market. This amber-gold beauty is brewed with the purest Himalayan spring water and loaded with all-natural malts and aromatic hops. The result is a perfect balance of intensely complex flavours […]

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Shantanu & Lata Upadhyay, Owners, Kati Patang

Launched in October 2018, KATI PATANG’s Zesty Amber ale, is the latest addition to India’s booming craft beer market. This amber-gold beauty is brewed with the purest Himalayan spring water and loaded with all-natural malts and aromatic hops. The result is a perfect balance of intensely complex flavours with a wonderfully smooth caramel finish. The bottles are currently available only in Delhi but expect to find them in Bengaluru by the summer of 2019, and in Mumbai by the end of the year.

Shantanu & Lata Upadhyay’s passion for craft beer inspired them to start Kati Patang, which signifies the uninhibited, free spirit that lies within us all. Mentored by Jim Koch, ex-BCG turned brewer, founder of Samuel Adams beer and father of the US craft beer revolution, the duo set their plan into action. Contract brewing with Ser Bhum Brewery in Bhutan, their devotion toward brewing with the purest source of waters from the Himalayas is savoured in every sip of Kati Patang’s Zesty Amber.

Sneha Nair, BW correspondent, in conversation with Shantanu & Lata Upadhyay on the Kati Patang journey & their views on the Indian craft beer market.

Kati Patang Beer
Kati Patang Beer

You chose craft beer as your business proposition. What was the inspiration or business motive to get into craft beer? What was your understanding of the beer markets at that point?

Kati Patang Beer Price“Neither Lata nor I come from the F&B world. We were gradually baptized into craft beers over our decade long stint in Boston and New York. I have been in management consulting all my life. So when I decided to call it quits at BCG simply for the love of beer, not many could make sense of it. Now that I look back, the decision didn’t come easy. Once we moved back to India, both Lata and I were missing our amber ales and IPAs. But Lata thought that it will be way too extreme to blow up our careers to launch a beer especially in a market where the optics of this business are not that great. I guess the turning point was our meeting with Jim Koch in Boston. Jim is an ex-BCG consultant who founded Boston Beer Company and created Sam Adams. He is also a key catalyst of the American craft beer revolution. The few hours that we spent with him gave us both the conviction to finally take a plunge into beerpreneurship. Also, Jim’s advice has come in mighty handy a zillion times through the various pitfalls in the journey so far”, replies Shantanu.

Lata goes on to add, “Yes, that meeting was a page turner. Beer market in India is still evolving. There is limited awareness of different styles and possibilities with beer. The standard lager and wheat are what are understood by most as beer, and what is sad is that there hasn’t much been done to bring out anything different. Something different is always a risk but then that’s what true craftsmanship is about – innovation and authenticity. Craft beer is much than just a business proposition for me. There is something energising and celebratory when I see a pint of an authentic craft beer. To me, craft beer is about opening new doors. Its about bringing alive richer experiences. Its about belonging. Its far more than the beer. And that is what excited me to so plunge into it”.

Is there a story behind the brand name and logo, that you could share with us? How did you settle on the name ‘Kati Patang’?

Kati Patang BeerCraft beer movement stands for freedom from mass, industrial beers. Kati Patang, for us, symbolises that spirit of absolute freedom. The name alludes to a flying kite that starts to soar and float as soon as the last bondage of the thread goes away. True to the real craft movement, our brand stands for unfettered freedom and creativity unbound.

Kati Patang, in some ways, was born out of our strong urge to break the shackles and create an honest expression for ourselves. We believe this emotion is at the heart of our New India. Our brand Kati Patang is a celebration of the creative alt ego. It is an invitation for an opportunity to tune in, give in to your uninhibited self and be who you really are.

Currently available in Delhi, how far have you succeeded in attracting the urban social population with Kati Patang’s Zesty Amber? When can we expect distribution in Bangalore & Maharashtra?

It has been just four months since we started pouring in Delhi and we have gotten very positive response and appreciation from beer aficionados, chef community and consumers at large. People are liking Kati Patang for its distinctive notes and aroma. Also, they find our brand story quite unique and intriguing. We have managed to get inroads with a fair mix of millennial hotspots, fine dining restaurants and luxury hotels and the response has been fantastic. A strong repeat purchase is already evidenced both on- and off-premise. We are looking to expand our footprint to include Karnataka (Bangalore) by May/June and Maharashtra (Mumbai and Pune) later this year.

What are your plans to launch new craft beer variants and expand your marketing footprint?

kati patang beer bangalore“We are already present in Delhi and Chandigarh, and soon in UP too. We will be launching in Karnataka this summer. Mumbai, Pune, Goa will soon follow. Currently, we have one variant: Zesty Amber. That’s a unique twist to the Amber Ale style. Rich, golden colour beer with medium caramel flavour punctuated by light citrus notes, we believe its the right starting point to get the Indian taste buds engaged with flavour in beer”, adds Lata.

Shantanu continues, “We hope and are aiming to capture the same spirit of giving a unique twist in our other styles as well. The next one is expected to come out by May this year, we will roll it out in Delhi and other markets thereafter”.

Since the launch, could you talk to us about Kati Patang’s CSR Initiative – ‘H2O Matters’? (give us a bit of insight into the initiative, & how you are promoting the same)

Beer is more than 90% water, so the importance of water in beer cannot be overstated. In fact brewers throughout the world attribute much of a brew’s flavour to the water that is used for brewing. We were chasing the best water for our beer when we chanced upon Serbhum brewery, nestled amidst pristine mountains towering over 10,334 ft. The natural spring water used at the brewery is collected from the upper Himalayas. There was no doubt in our minds that Serbhum would be the birthplace of Kati Patang. Right now our focus is to bring consciousness towards the importance of water, subsequently we will be working on some initiatives geared towards this.

How do you view the setting up of numerous microbreweries in the craft beer market?

There has been a lot of activity in the craft beer space. But it is still quite nascent and needs quality consciousness and innovation to live up to the expectations of craft. Overall, we are quite bullish about the craft beer market in India whether its bottled beer or brew pubs. Indian weather is well suited for beer. Per capita consumption of beer in India is less than 5 litres, a mere drop compared with the Asia average of over 50 litres. There is growing class of young, urban millennials and well-travelled Indians who love beer and conscious of what they consume. They are quite willing to trade up for better quality and passionately brewed craft beers.

What do you see as the biggest challenge to growth of the beer industry in India?

The biggest challenge is that mild alco-beverages such as beer, wines etc. are still more or less clubbed with high spirits as far the Indian regulatory regime is concerned. For newbies with a simple dream of selling a beer they like to drink, we and our partners in Bhutan found it intimidating and exhausting to navigate through a highly complex matrix of registrations, clearances and cost cards. Although in hindsight, it seems those challenges really helped us bond at a different level altogether. Tenzin, Karma, Sonam, and we are more of a family than business partners. I often fondly recall Tenzin and I helplessly driving around the Indo-Bhutan border town carrying a 30L keg trying to figure out how to ship it to Delhi for label registration.

kati patang beer origin

What advice would you give to a greenhorn beer-preneur intending to take your path so that he/she could easily overcome the hurdles which you might have found difficult to cross?

“I would say come prepared for a big fight, you fight the system, you fight perceptions, you fight the set ways of doing things, so yes you have a big fight on your hands. Once you are prepared to fight your mindset changes. You stick to your guns and people and environment has no option but to bend for you. Stay true, stay focused and things will happen,” answers Lata.
Shantanu responds, “I have three things to say to anyone who is keen to be an entrepreneur not just for beer but for anything. First, analysis will always be able to prove that odds are heavily against your succeeding in entrepreneurship. So, don’t just rely on your logical brain for the decision but take a leap of faith. Second, be ready to unlearn. My years in consulting were not enough to prepare me for what lay ahead. We realized the hard way that we don’t define the rhythm, but our environment does. It’s important to stay very nimble and humble along the way and relentlessly seek creative ways to translate every problem, whether big or small, into an opportunity. Third, wisely choose your partner. You need someone who shares your passion and complements your skills to help go through the highs and lows of an arduous entrepreneurial journey. I chose Lata. She loves beer. I get carried away with the possibilities while she keeps us all grounded”.

kati patang beer mumbai

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An Immortal Style of Beer https://www.brewer-world.com/an-immortal-style-of-beer/ https://www.brewer-world.com/an-immortal-style-of-beer/#respond Tue, 30 Apr 2019 10:35:19 +0000 https://www.brewer-world.com/?p=6401 Amar Srivastava Brewmaster When you hear “Sour” the things that pop up in the mind are lemon or sour cream or fermented products like vinegar etc. but never really sour beer! Something must have gone wrong with it, that’s the thought that might come when someone tells you about it. Believe it or not those […]

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Amar Srivastava

Brewmaster

When you hear “Sour” the things that pop up in the mind are lemon or sour cream or fermented products like vinegar etc. but never really sour beer! Something must have gone wrong with it, that’s the thought that might come when someone tells you about it. Believe it or not those who try it first time might have the same perception, but curiosity calls them back in no time.

A good sour beer is one of the most difficult beers to make. Getting the acidity right along with combined malty, nutty, salty, spicy or fruity profile of these beers is not an easy feat. But once done right, it is one of the most exciting and law-breaking styles of beer. Although these beers have been available since ages, probably all beers brewed before early 19th century were sour to some extent, but they do not qualify as sour beer. Probably due to the lack of microbial understandability, & brewing and fermentation techniques used at those times may be a cause for this. So, it is not new to have it in your beer collection or on tap in your favorite pub.

Understanding general criteria, and the techniques of brewing and fermentation have made this category of beer a new favourite style nowadays. Before we understand modern era sour beer, which is more controlled in terms of process, we need to understand history of this category, and techniques used at those times to make these beers.

History of Sour beer

Sour beers are considered as the forefathers of many modern beers. In early days when refrigeration was not invented, beers used to be cooled overnight in big copper vats also known as cool ships. When brewer use to open the vent for cooling the wort, most of the wild microorganisms, which add those funky flavours to the beer, were also introduced to it. Assuming the wort used to be kept in these ships overnight and then sent for fermentation in fermenters where they matured for more than a year.

As refrigeration and pasteurization technologies evolved and became more prevalent in the mid-19th century, sour beers virtually disappeared as lagers and ales came into prominence. Since the 1970s, however, sours have become increasingly popular among beer drinkers around the world.

Traditional Sour Beers

There are six primary forms of sour beers.

1. Wild Ale

As name suggests, it is “wild ale” with no categorization or definition. Wild bacteria and yeast do the job of souring this beer, so same beer usually tastes completely different from previous batch. This inconsistent beer may taste exciting like there is no tomorrow or it could be disappointment too by treating both the batches with same brewing, fermentation, or maturation parameters. It may taste like mild fruits (e.g., apricot) or it may taste a little like wine.

ABV: Depends on imagination of brewer.
IBU: No specific IBUs
Colour: Not specified

Commercial examples:
Beatification by Russian River Brewing Company.
Juliet by Goose Island Brewing Company.
Atrial Rubicite by Jester king Brewery.
Cable Car by The Lost Abbey.

2. Berliner Weisse

This beer is among the better-known versions of sours. It is made with Lactobacillus, which turns sugars into lactic acid, providing the sour flavour. These are often low in alcohol and are sometimes served with flavoured syrups to offset the sour.

ABV: 2.8-4%.
IBU: 4-11.

Colour: Pale straw (if not infused with fruit spices etc. or not barrel aged).

Commercial examples:
Berliner Rot by Ministry of Beer.
Berliner Weisse by Village Idiot Brewing Company.
Rhubarb Berliner Weisse by Saltbox Brewing.

3. Flanders Red Ale

A descendant of English porter, this beer is fermented with typical brewer’s yeast then aged in oak barrels with souring culture, and then blended with younger beer. This beer relies heavily on Acetobacter, which produces acetic acid and a piercing acidity in the presence of oxygen.

ABV: 5-5.5%.
IBU: 10-25.
Colour (SRM): 10-16.

Commercial examples:
Monk’s Café Flemish Sour Ale by Brouwerij Van Steenberge N.V.
Duchesse De Bourgogne by Brouwerij Verhaeghe.

Gose

A very highly carbonated, refreshing beer that has a lot of bright flavours. The name comes from its place of origin (Goslar, Germany). Brewers use the addition of coriander and salt for its unique flavor.

ABV: 4-4.8%.
IBU: 5-11.
Colour (SRM): 3-5.

Commercial examples:
Karwanda Gose by Doolally.
Anderson Valley Gose, (Company name?)

Bayerisch Bahnhof Leipziger Gose, (Company name?)

Lambic

True lambic beer is the beer referred to earlier, hoisted to the ceilings of Belgian monasteries. It is usually blended from various batches and infused with fruit.

ABV: 5-7%.

IBU:0-10.

Colour (SRM): 3-7, depends on type of fruit infused.

Commercial examples:
Boon Framboise Mariage Parfait,
Boon Kriek Mariage Parfait,
Boon Oude Kriek,

Oud Bruin

Also known as Flanders Brown Ale. Similar to the Flanders Red Ale but has more lactic characters than Red, though it is darker it has smooth sourness and also has more malt characters than Red. This barrel aged beer is one of my favourite sour ales.

ABV:5-8%.
IBU: 20-25.
Colour (SRM): 14-25.

Commercial examples:
Ouid Bruin by Doolally.
Liefmans’ Oud Bruin.
Ichtegem Old Brown.

Modern Methods Mostly Used for Making Sour Beers

Primary Souring

There are two general methods by which sour beers are produced. These are:

  • Kettle souring
  • Mixed culture fermentation

Kettle Souring
In kettle souring, unhopped (I prefer) or lightly hopped wort is infused with pure souring cultures of lactic acid bacteria (LAB) at 40-48°C. These temperatures are best for LAB growth as they remain heathy in this temperature range. These LAB will do their job and start souring the wort to required pH. Usually it takes approximately 24 hours but may go up to 48 hours depending on type of strain, temperature fluctuation, agitation, number of cells in culture nutrients; also hopped wort will take a bit more time because of antibacterial and bacteriostatic property of hops which has inhibition mechanism for bacterial growth (reminds me creation of IPA!!). Few other parameters may also influence activity of LAB. Once desired pH is achieved, sour wort is ultimately boiled second time to kill all LAB and at this boil, hops can be introduced for bittering purpose. This keeps a tight control over the process and also souring can be stopped as per required pH by simply boiling. After soured wort is transferred in fermentation vessel, brewing yeast is introduced for doing rest of the job. This technique is more rapid, less time consuming and works as per requirement. Although kettle souring is most modern and convenient way of souring wort but this method has some disadvantages also. For example, with beer approximately 24-48 hours in kettle, it takes a bit of production capacity of brewery, so usually this beer mostly becomes weekend brew. After second boil of sour wort, all volatile flavors that add to the depth and character of beer are driven off. To come over this issue, a lot of brewers do barrel aging or infusion with fruits, spices, and other ingredients to add some additional characters and depth to the beer.

Mix Culture Fermentation

Another way of souring is by mix culture fermentation. This method is more traditional, and it also gives a lot more complexity and nuanced character to the beer which is not possible from kettle sour technique. Here wort is produced in a traditional way and lightly hoped wort is inoculated with brewing yeast to finish primary fermentation. After fermentation is finished, barrel aging is introduced and at this point LAB and Brettanomyces spp. can be added to induce souring. If the LAB is added during primary stage, souring begins during fermentation. Once the fermentation is completed, these beers are mostly kept for barrel aging for months or for years until the beer gets desired complex flavor of sour beer. This traditional souring technique produces more flavorful beer, but it does have few disadvantages too. Time taken from wort production till final beer may be from 2 months to a year or two and it requires huge space for stacking the barrels for aging.

One of the most recent way that is still under trial and test phase is fermentation with heterofermentative yeast. As typical yeast these yeast species are hop tolerant. In comparison to other LAB and Brettanomyces spp., they are more flocculent, produce more fruity flavors, lactic tartness and produce more aromatic substances which is almost impossible to achieve in kettle souring. Typical fermentation cycle is from 2 to 4 weeks so less utility will be involved which means more beer can be produced with a lot less time (as suggested in some lab-grade test studies). These beers can still be barrel aged and infused with spices, fruits and herbs etc.

So conquer your fears of a Sour Beer, and let’s get brewing!

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A day spent at Brewery Bhavana https://www.brewer-world.com/a-day-spent-at-brewery-bhavana/ https://www.brewer-world.com/a-day-spent-at-brewery-bhavana/#respond Mon, 29 Apr 2019 09:49:04 +0000 https://www.brewer-world.com/?p=6385 Dr. Nirupa Bareja A PhD in Biological science she is Director, India operations of VICUS Therapeutics, USA. She is chief advisor of Mazumdar Shaw Medical foundation. Investor in top notch companies like Sigtuple & Silvan innovation technologies. An advisor for innovative start-up companies like 1 Crowd & Plantbyte Jan 11, 2019 – A unique day […]

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Dr. Nirupa Bareja

A PhD in Biological science she is Director, India operations of VICUS Therapeutics, USA. She is chief advisor of Mazumdar Shaw Medical foundation. Investor in top notch companies like Sigtuple & Silvan innovation technologies. An advisor for innovative start-up companies like 1 Crowd & Plantbyte

Jan 11, 2019 – A unique day

Began bright and early as we (my son Dr Akshay Bareja, my husband Ashok and I) decided to take the train from Durham to Raleigh, North Carolina, USA. The train ride took an enjoyable forty minutes to reach Raleigh. Akshay had meticulously planned our itinerary for the day the highlight of which was brunch at Brewery Bhavana-something I was very curious and excited about-knowing it to be an integrated brewery and restaurant.

Right from the moment we entered the reception of Brewery Bhavana- an eclectic space which seamlessly combined a (close to Michelin star restaurant), a book nook and a micro-brewery! A rare combination indeed. The brunch session commenced around 11.30 and leisurely spread over the next couple of hours.

For me it was an experience that I will always remember!

The ambience and service felt like an Asian & Far East one with food and drink to compliment it.

The endless flavours of beer, spouting from aesthetic sliver taps tucked elegantly in the long wall behind the bar-forty unique flavours of beer brewed in their exclusive brewery located very close to the restaurant. We sampled a few of their beers along with some very interesting fruit & alcohol fusions – truly heavenly. The food which included dim sums, very flavoursome Asian soups, rice, noodles, salads was very delicious and prepared for a refined palate.

The art and layout of the place was very Zen and soothing-bringing a lot of greenery into the space.

The Exclusive Story And Motivation Behind Brewery Bhavana Follow:

The idea to combine a Raleigh-brewed Belgian style beer with a dim sum restaurant requires thought, precision & the ability to take a chance. Brewery Bhavana, is a 9,000-square-foot restaurant, flower shop, taproom, and bookstore, and this is how it all started-

Patrick & his wife, Aubrey, had recently finished their time in the Peace Corps by traveling through Laos and much of Southeast Asia. On a short visit with his parents in Raleigh, Patrick came to dinner at Bida Manda, a restaurant owned by brother-sister duo Vansana & Vanvisa Nolintha. The Nolintha siblings were sent to the USA at the age of 12 from Laos, 18-years later they opened Bida Manda, a Laotian restaurant. Patrick Woodsan was surprised to find a Laotian restaurant in Raleigh, so he booked a table, pulled the Nolintha’s aside, and excitedly shared a few pictures from Luang Prabang, where they grew up. Delighted with the serendipity of that night, the pair exchanged phone numbers and kept in touch. This brief encounter marks the beginning of the remarkable journey toward Bhavana.

As told by Van, “Patrick was an insatiable homebrewer. We started dreaming together about a small craft brewery, one that would emphasize grace, nuance, intention and the sort of generous hospitality we long to experience at beer bars. In Patrick’s beers, so elegant and subtle, you can taste the hand of the maker. Each one feels like getting to know him. What food could we possibly pair with those beers? And what design? Where else was the hand of the maker so intimately and earnestly felt? The more we dreamt, the bigger our dreams became. We wanted Deana’s flowers, books and gifts, Jordan’s cocktails, and our favourite Dim Sum cuisine.

We carefully curated each ingredient and offering. We poured ourselves into the smallest spaces, choosing every light bulb, every table top and chair so that each tangible part of 218 Blount Street became a loving frame for their makers and their art”.

“It is our hope that Bhavana becomes a living room for the people we love to create, collaborate, and dream. Perhaps our walls will offer you the same reprieve”

– Vansana Nolintha

TAPROOM –

Combining a Raleigh-brewed Belgian style beer with a dim sum, is the core of Brewery Bhavana. The private production brewery is located a few blocks down the road on Bloodworth Street. There, within a community of artists called Anchorlight, Brent Steffen & Patrick Woodson make Bhavan’s 10 core beers and an ever-expanding variety of provisional offerings to fill our 40 taps.

This brewery includes an expanding cooperage of wine barrels, puncheons, and foeders, from which we blend our slow-fermented, wood-aged beers.

Wine-aged beer is one of Brewery Bhavana’s specialties, and there are many variations, including a sauvignon blanc barrel-aged saison combined with apricots, mango, and passionfruit.
The New Barrel program will showcase new beverages from Brewery Bhavana’s 180 wine barrels that have been slowly aging beer for over a year now.

“Our beers are inspired and cultivated through years of travel, education, and personal experience. Each one reminds me of a moment, a person, a sensation, or a place I have loved. I hope that they will remind you of something you love too”
– Patrick Woodson

CUISINE –

Some of the earliest memories for the Nolintha’s growing up in Luang Prabang, are of morning steam rising from bao baskets and the busyness of dim sum restaurants. Dim sum represents a moment at the crossroads: an encounter between people and their stories. Chun Shi immigrated to the States in 1999 and is Bhavan’s Dim Sum executive Chef.
Her cultural understanding of dim sum cuisine is what caught Vansana’s attention. Today, she serves more than a dozen types of dim sum, like char siu bao, pai gu spareribs, and scallion pancakes at Brewery Bhavana

“Shi has a greater understanding of culture and food, with a cuisine that feels so honest. There’s no ornamentation. You bite into a bao (steamed bun), and you taste not just the flavours, but you taste your memory”
– Vansana Nolintha

Unique space to Brewery Bhavana:

The Library & Bookstore:

A collection of books lives at Brewery Bhavana solely for guests to sit and read while they are visiting. Monica Jon is the shop manager at the restaurant. She and colleague Laura White asked everyone they knew to donate a favourite book for a Bhavana library, and to jot a short inscription inside explaining why they’d chosen it.

Soon, they had a diverse bookshop inventory of roughly 350 titles – carrying only one or two copies of each, to keep offerings fresh – plus a nearly 3,000-book library.

The Flower Shop

Flowers are evocative and emotional; their language transcends words. Through them, we learn to more deeply feel and express our joy, love, appreciation and sorrow. Even the most common blossom can lift our spirits and dance on our hearts. Each one gently reminds us of our humanity: our own growth, our blooming, our wilting, our decay. In the shifting abundance and colours of each season, we learn to celebrate growth and impermanence.

Dena Nguyen’s intention for the flower shop in Brewery Bhavana is to offer flowers that are thought-provoking, expressive, reverential, and inviting, to honour my gratitude for the natural world. Creating meaningful arrangements with grace and humility: bouquets that will bear silent witness to so many important occasions.

“Bhavana was never a concept, It’s an extension of relationships. When you zoom into each component, you begin to discover fingerprints”
– Brewery Bhavana

www.brewerybhavana.com

The above story clearly depicts the passion that the founders have in giving a lifetime experience to people who visit. We truly had one of the finest and exclusive experiences that one could have. Reluctantly we sauntered out with satisfied and fulfilled smiles on our faces after two hours of bliss!

A must revisit on my next trip to the US!

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Brewing & Biotech – The Connect https://www.brewer-world.com/brewing-biotech-the-connect/ https://www.brewer-world.com/brewing-biotech-the-connect/#respond Wed, 03 Apr 2019 11:39:27 +0000 https://www.brewer-world.com/?p=4296 Dr Nirupa Bareja With a PhD in Biological Sciences and a position as Chief Adviser at the Mazumdar Shaw Medical Foundation, Dr Nirupa Bareja also serves on the scientific & technical advisory board of three innovative startups – SigTuple, Aten Porous and 1Crowd. Director-India operations-Vicus. Therapeutics USA. In an interactive session with Brewer World, Dr […]

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Dr Nirupa Bareja

With a PhD in Biological Sciences and a position as Chief Adviser at the Mazumdar Shaw Medical Foundation, Dr Nirupa Bareja also serves on the scientific & technical advisory board of three innovative startups – SigTuple, Aten Porous and 1Crowd.
Director-India operations-Vicus. Therapeutics USA.

In an interactive session with Brewer World, Dr Bareja, talks about the healthy side effects of beer

Conventionally, beer is produced by mixing crushed barley malt and hot water in a large circular vessel called a mash copper. This process is called ‘mashing’. Besides malt, other starchy cereals such as maize (corn), sorghum, rice and barley, or pure starch itself, are added to the mash. These are known as adjuncts or additives. After mashing, the mash is filtered in a lauter tun. The resulting liquid, known as ‘sweet wort’, is then run off to the copper, where it is boiled with hops. The ‘hopped wort’ is cooled and transferred to the fermentation vessels where yeast is added. After fermentation, the resulting ‘green beer’ is matured before final filtration and bottling. This is a much simplified account of how beer is made. A closer look reveals the importance of enzymes and hydrocolloids in the brewing process.

The Role of Biotech; Enzymes

In a grain of cereal, the potential nutrients for the yeast are not in a form in which the yeast can use them. It is therefore necessary to break down the large molecules in the cereal grain.

During the mashing stage, enzymes present in the malt degrade starch and protein from the malt itself and from any cereal adjuncts used. The products of this degradation process are simple sugars, amino acids and lower peptides which can be used by the yeast for the production of alcohol, carbon dioxide, new yeast cells and flavouring components.

Types of industrial enzymes

In the traditional process, malt acts both as a raw material providing starch and protein and as a source of enzymes. However, malting is a relatively expensive way of producing enzymes. Considerable savings can be made by replacing at least part of the malt with industrial enzymes and unmalted cereals such as barley. Apart from the financial savings, the brewing process can be more precisely controlled due to the uniform quality and activity of industrial enzymes. In contrast, malt is a highly variable ingredient because its quality is dependent on the character of the barley used and on the malting technique. Furthermore, the wide selection of industrial enzymes available makes it possible to meet specific needs in the brewing process.

The most important uses of industrial enzymes in brewing are as follows:

Replacing malt with barley

Unmalted barley is a natural and inexpensive substitute for barley malt since it contains the same basic components. The main difference is that barley has a low enzyme content, with the exception of beta-amylase – the enzyme that forms maltose. A large amount of the malt – maybe half – can be replaced by unmalted barley. All it takes is the addition of extra alpha¬amylases, glucanases and proteases to the mash in order to obtain a satisfactory breakdown of polysaccharides and protein. I’ve personally been involved in working at a brewery to demonstrate the merit of using fungal enzymes to make the process much more efficient and productive.

Increasing the level of additives

Additives / adjuncts are used as an extra source of starch in brewing and usually consist of cereal crops that are readily available. Unmalted barley, maize grits, rice, sorghum and various sugars are the most common adjuncts. Protein plays a vital role in fermentation by providing soluble nitrogen compounds that the yeast needs in order to thrive. Since very little protein is contributed by some types of adjunct, it may be necessary to provide extra protein in the wort. This can be done by utilizing the protein in the malt more efficiently – in conventional mashing no more than 30-40% of the protein in the malt is rendered soluble. By adding a protein¬ splitting enzyme, eg protested, more protein can be solubilized and made available to the yeast.

Liquefying additives

In their natural form, starch ¬containing cereals such as maize grits and rice are highly resistant to enzymatic attack.

In order to break down this resistance, they are boiled before being added to the malt mash. The boiled (gelatinized) cereals are very viscous and difficult to handle – they need to be thinned (liquefied) before they can be pumped into the mash copper. This is done using an alpha¬amylase. Malt’s own alpha¬amylase can be used for this purpose, but supplementary enzymes are used increasingly because they are more economical and work at higher temperatures than malt enzymes. A modern thermo-stable alpha¬amylase is available that is effective even at 100°C to ensure thorough liquefaction of the starch. I’ve carried out successful trials while at Biocon R& D to demonstrate and commercialise this step.

An enzyme (alpha acetolactate decarboxylase) significantly reduces the production of  diacetyl and thereby makes it possible to reduce the beer maturation time.  The enzyme breaks down the alpha-acetolactate directly to acetoin and is added to the cold hopped wort at the start of fermentation.

Improving filtration

Slow filtration is often a problem when the mash is run off in the lauter tun and when the final beer is filtered. This may be due to the presence of certain polysaccharides, mainly beta¬glucans and pentosans, which are found in barley and poorly modified barley malt. Beta¬glucans and pentosans are gum¬like substances that increase the viscosity of the wort, making it more difficult to filter. Beta¬glucans and pentosans can also cause problems in the final beer filtration process by forming a layer of gel which blocks the tiny holes of the filters. Though normally soluble, beta¬glucans become insoluble in certain concentrations of alcohol and form a precipitate. This can happen during fermentation and lagering of strong beers. A simple solution is to break down the beta¬glucans using a beta¬glucanase added during mashing or at the start of the fermentation process.

Additionally, a unique product got from the processed & purified swim bladder of large air breathing marine cat fish called isinglass helps the clarification and sedimentation process of brewing post yeast fermentation leading to quick compaction of yeast which are drawn down by the hydrocolloids in isinglass. I’ve personally worked on this process from R& D to commercialisation stage.

Low calorie beers

Under normal brewing conditions, malt’s own enzymes cannot break down all the starch into fermentable sugars. About one third of the starch is converted into non¬fermentable dextrins, which are carried over into the finished beer. Dextrins are carbohydrates and that means calories.

Enzymes can be added during either mashing or fermentation in order to break down these dextrins into glucose. The glucose is almost completely transformed into alcohol and carbon dioxide by the yeast. If this is taken into account when preparing the wort, i.e. adjusting the strength of the wort, it becomes possible to produce a beer with normal alcohol strength but with, say, one third fewer calories.

This low carbohydrate beer is of interest not only to diabetics who must limit their intake of carbohydrates, but also to beer drinkers who are watching their waistlines.

Decreasing maturation process time

During the primary stage of fermentation, alpha¬acetolactate is formed by the yeast. This substance is slowly converted into diacetyl – a chemical with a very unpleasant flavour. At the end of fermentation and during maturation, the yeast converts most of the diacetyl to acetoin, which has a much more neutral flavour. The formation of diacetyl and its subsequent conversion depend on several factors such as the yeast strain and the fermentation temperature.

An enzyme (alpha¬acetolactate decarboxylase) significantly reduces the production of diacetyl and thereby makes it possible to reduce the beer maturation time. The enzyme breaks down the alpha-acetolactate directly to acetoin and is added to the cold hopped wort at the start of fermentation.

A number of enzyme-based products are available and if added at different steps in the brewing process, significantly increasing the output per batch along with decreasing the time taken. Both these greatly aid in the product efficiency making the process both cost effective and efficient too.

The above article a glimpse of the important role that biotech plays (by way of enzyme & additive addition at various stages) in commercial brewing. Thus, truly and literally making the connect -Cheers to a great glass of beer.


On separate note –
“Pack my box with five dozen liquor jugs!”
This is the shortest sentence which has all 26 Alphabets of English.
Previously it was “A quick brown fox jumps over the lazy dog “
Discovered by a proud drinker

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The Romance of “Brewing” https://www.brewer-world.com/the-romance-of-brewing/ https://www.brewer-world.com/the-romance-of-brewing/#respond Thu, 28 Feb 2019 07:50:03 +0000 https://www.brewer-world.com/?p=4365 Dr. Nirupa Bareja A PhD in Biological science she is Director, India operations of VICUS Therapeutics, USA. She is chief advisor of Mazumdar Shaw Medical foundation. Investor in top notch companies like Sigtuple & Silvan innovation technologies. An advisor for innovative start-up companies like 1 Crowd & Plantbyte As is the case with most things […]

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Dr. Nirupa Bareja

A PhD in Biological science she is Director, India operations of VICUS Therapeutics, USA. She is chief advisor of Mazumdar Shaw Medical foundation. Investor in top notch companies like Sigtuple & Silvan innovation technologies. An advisor for innovative start-up companies like 1 Crowd & Plantbyte

As is the case with most things we do at home – be it cooking, baking, painting, pottery, sewing etc – there is a special charm when we dirty our fingers making commercially available products – both edible & otherwise in the comfort of our own spaces. One such satisfying and enjoyable activity is brewing your own beer / brew.

Believe me once you’ve decided to make your own beer, you’re about to engage in a wondrous and rewarding task almost as old as humanity itself. But there’s no reason to be intimidated. Although people have been brewing beer for millennia, the basic process has remained much the same through the ages.

In this article I will discuss what personal brewing equipment one will need to get started as well as walk you through the basic steps of how to brew a standard beer. It’s time, as homebrewing godfather Charlie Papazian says, to “Relax, don’t worry, have a homebrew.”

The Basic Process

First off, personal brewing can be divided into two types:

  • all grain and extract

Beer is made using the sugars from malted (partially germinated) grains. In all grain brewing, the brewer via a series of steps extracts these sugars from milled grains by him or herself. In extract brewing, the homebrewer uses ready-made malt extract, skipping the sugar extraction process entirely as it has already been done. Extract brewing is a good starting point for most new brewers because the process requires minimal beer equipment and procedures while still producing quality beer, and it’s the type of brewing we’ll focus on here.

Equipment required

You may know someone who has converted his or her entire basement or garage into what practically looks like a professional brewery, full of shiny tanks and kegs, welded pipework, washing stations, and fridges with tap handles always pouring out beautiful foamy beer. But rest assured there is no need to invest a fortune to get started making your own beer. The easiest way to go is to just buy a basic personal brewing kit. You can always add fancier brewing gadgets after you’ve brewed for a while and decided it’s something you love (which you will, of course).

The basic kit consists of:

  • 6.5-gallon “Ale Pail” primary fermenter with lid
  • 6.5-gallon “Ale Pail” bottling bucket with spigot
  • Easy Clean no-rinse cleanser
  • Airlock
  • Siphon and bottlin-set-up
  • Hydrometer
  • Bottle cleaning brush
  • Twin lever bottle capper
  • Liquid crystal thermometer
  • Bucket clip
  • Home beer making booklet
  • Equipment instructions
  • You will also need a cooking thermometer and a 3-5 gallon stock pot, which is available as an add-on if you don’t already have one Ingredients

Now that you have the equipment taken care of, let’s go over the main ingredients of beer. There are only four:

1. Hops

Hops are the flowers (cones, really) of the plant Humulus lupulus. Hop cones from female plants are used in brewing and contain the alpha acids that determine that particular hop’s bitterness. The higher the alpha acid percentage, the more bitterness that hop will contribute to your boil. Typical boils last 60 or more minutes because the hops’ alpha resins are not readily soluble in water and must be boiled for at least an hour to release their bitterness.

Important note: The acid percentage of hops varies from year to year, hop variety to hop variety, and region to region, so it’s important to keep good records of your brewing so that you can duplicate your successful brews. Refer to the package your hops come in for the most accurate alpha acid percentage.

In addition to being used in the boil to add bitterness to your finished beer, hops are also added toward the end of the boil to impart aroma and fragrance. This is important because much of what we perceive as taste comes through our sense of smell. Hops used in the boil are called bittering (or boiling) hops, while hops added at the end are known as aromatic (or finishing) hops.

2. Grains

Even if you are brewing with malt extract, using a small amount of what are called “specialty grains” can help give your beer added flavour, aroma, colour, and body. Buying your grains from a reputable homebrew shop like Adventures in Homebrewing will help ensure that you’re getting grains that are fresh, organic and have been stored properly.

To be used in making beer, grains must first be milled (or crushed). You can do this at home if you have a grain mill or other method capable of crushing the grains finely, or you can do it (or have it done)
at a commercial mill – care must be taken as regards the cleanliness of the mill equipment etc- Crushed grains should be used as soon as possible, while uncrushed grains will store well for up to four months.

3. Malt Extracts

Using malt extracts is a convenient way of making your own beer and can make the process more enjoyable for new brewers. Whether you have just a few or more than a hundred batches under your belt, extracts can produce exceptional beers. The quality of extracts has improved greatly over the years and can be depended on to provide consistent results.

Malt extract is available in a liquid or dry form. But be careful: which form you use affects how much you need for a given recipe. You can use a simple calculation to help determine what kind of original gravity – a measure of the fermentable sugars in your unfermented beer (wort) – you can expect from LME vs. DME. Here is the rule of thumb:

  • 1 lb LME will produce a 1.044 original gravity when dissolved in 1 gallon of water
  • 1 lb DME will produce a 1.037 original gravity when dissolved in 1 gallon of water
  • You can use these calculations to determine how many pounds of LME or DME you need to achieve a known original gravity if you aren’t using a pre-measured recipe kit.

4. Yeast

Beer was brewed for millennia before brewers understood the role yeast played in fermentation. A previous article of mine in Brewers world details this. Today, you may have heard the common saying, “Brewers make wort; yeast makes beer.” In brewing, yeast, which is a single-celled fungus, consumes the malt sugars and produces alcohol and CO2.

Like malt extract, brewer’s yeast comes in liquid or dry form. It used to be that dry yeast was looked down upon as being of poor quality and not adding much to the beer, but these days there are many varieties of dry yeast made specifically for different beer types.

There are advantages and disadvantages to using either dry yeast or liquid yeast. Dry yeast has a long shelf life and requires minimal preparation to use. Liquid yeast comes in vastly more varieties than dry yeast but has a shorter shelf life and requires more careful handling. Either way, you can achieve the quality beer you are looking for.

5. Water

The quality of the water you brew with is important because beer is more than 90 percent water. Basically, water used for making beer needs to be clean and free of odors (a typical example of odor is chlorine). Other factors to consider with your water include its pH and “hardness” (minerality). Good brewing water should be moderately hard and have low to moderate alkalinity. There are ways to adjust your water chemistry, if necessary, to get it where you want it; however, many pro-brewers make perfectly good beer with “as-is” tap water.

Making Your Beer

Now let’s take a look at a classic adventure in personal brewing extract beer recipe kit:

Your first question could probably be – Is it an amber or a bock beer? It’s both! We’ve had so many requests over the years for this hybrid style that we did a bunch of research and came up with this recipe. Here are the details:

  • Yield: 5 gallons
  • Original gravity: 1.057
  • Final gravity: 1.014
  • Colour/SRM: Amber
  • Alcohol by volume: 5.55%
  • IBU (anticipated, alpha acids can fluctuate): 31
  • Specialty grains: Dark Munich, Crystal 120L, Victory
  • Hops: Cluster (boiling), Saaz (finishing)

Recipe kit includes: Liquid malt, specialty grains in a grain bag, and hops

This recipe is very popular here at Adventures in personal brewing. At 5.5% ABV, the alcohol content does not overpower the maltiness of the Victory and Munich malts, and the aroma of the Saaz hops comes through nicely. This recipe is perfect for beginners and well balanced for the experienced brewer as well.

Procedure: Always read all the instructions before you begin brewing, so you can be sure you have everything you need on hand (equipment, ingredients) and that you fully understand the procedure.

1. Clean and Sanitize:
Thoroughly clean and sanitize all of your brewing equipment.

2. Steep Your Grains:
Start by heating 2.5 gallons of water in your brew pot. Add the (crushed) specialty grains to the grain bag:

  • 0.5 lbs Crystal (120° L+)
  • 0.5 lbs Dark Munich
  • 0.25 lbs Victory

Tie a knot at one end of the grain bag, leaving room for the grains to be loose in the bag. Place the grain bag in the water.

Slowly raise the temperature to 150° F to 160° F. Steep your grains at this temperature for 20 minutes. Remove the grain bag from the pot. Do not squeeze the bag; just let the liquid drain from the bag into the pot. You now officially have “wort” – unfermented beer. But there are several other steps to fully prepare your wort for fermentation.

3. Begin the Boil:
Bring the wort to a rolling boil, being careful to avoid a boil-over. Once you’ve achieved a boil, remove the brew pot from the heat source.

Now add:

  • 7 lbs Pale LME
  • 1 oz Saaz hops
  • Stir the wort until the malt extract has completely dissolved. Any undissolved extract allowed to sit on the bottom of the pot will burn, so make sure you’ve stirred thoroughly before returning the wort to a rolling boil.

4. Add Aromatic Hops:
Let your wort boil for 55 minutes, then add:
a. 1 oz Saaz hops
These are your aromatic (or finishing) hops. Because you are boiling them for only five minutes, they add no bitterness but contribute their aroma and fragrance to the finished beer.

5. Cool the Wort:
Following the 60-minute boil, you’ll need to cool your wort down to below 100° F as quickly as possible. There are many ways to do this, but we at Adventures in personal brewing recommend using a wort chiller. (See our “How to Cool Wort Fast” page.)
If you haven’t already, now is a good time to sanitize your fermentation equipment, i.e., the “Ale Pail,” airlock, hose, and hydrometer. Your wort at this point is a big feast for microbes, and you don’t want any uninvited guests showing up to the dinner party. Anything that may come into contact with the wort should be sanitary.

6. Transfer the Wort to the Fermenter:
Siphon the cooled wort into your primary fermentation vessel (your “Ale Pail” if you’re using the basic personal brewing equipment kit), then top it off with enough cold water so that you have five gallons. You’ll also want to aerate the wort, either by using a diffusion stone or simply by rocking the fermenter back and forth once the lid is in place.

7. Determine Your Original Gravity:
Now is when you want to use your hydrometer to measure the wort’s original gravity (OG), which basically indicates a number of fermentable sugars present. You’ll want to record the number as you will use it later, along with your final gravity reading, to calculate your beer’s alcohol by volume (ABV). (See our “How to Read a Hydrometer” page.)

8. Pitch the Yeast:
Now it’s time to add, or “pitch,” your yeast into the wort. During fermentation, the yeast will consume the malt sugars and produce alcohol and CO2. The wort should be cooled to around 78° F before you pitch your yeast, but follow the procedures outlined on the yeast package. We suggest using one of the following yeasts for the American Amber Bock:

White Labs 001 California Ale Yeast. Famous for its clean flavours, balance, and ability to be used in almost any style ale. It accentuates the hop flavours and is extremely versatile.

Wyeast 1056 American Ale Yeast. Very clean, crisp flavour characteristics with low fruitiness and mild ester production.

A very versatile yeast for styles that require dominant malt and hop character. This strain makes a wonderful “house” strain. Mild citrus notes develop with cooler 60-66° F (15-19º C) fermentations.

Fermentis Safale US-05. A ready-to-pitch American ale yeast for well-balanced beers with low diacetyl and a very crisp end palate.

After you’ve pitched the yeast, seal the fermenter tight, attach the sanitized airlock and stopper, and fill the airlock with water.

9. Let the Wort Ferment:
Put the fermenter in an out-of-the-way, temperature-stable place. You should see activity within 24-48 hours as CO2 begins to escape the airlock. It will take from one to two weeks for the fermentation to complete, during which time you should do nothing to disturb the process.

Some brewers include a secondary fermentation step after about a week. It involves siphoning the beer into a secondary fermenter, such as a glass carboy, and allowing it to condition for another week or two. This step is optional (at least for some beers), but the advantages include allowing the beer to clear more, resulting in less sediment once you’ve kegged or bottled it.

10. Determine Your Final Gravity and Calculate ABV:
Use your hydrometer to take a reading of the beer’s final gravity (FG). You can calculate the beer’s approximate ABV using the following formula: ABV = (OG – FG) x 131.25

So, using our targets for the American Amber Bock, we’d get: (1.057-1.014 ) x 131.25 = 5.64% ABV

Note that this calculation provides only an approximation of the beer’s ABV, but it is the simplest method and is generally “good enough” for personal brewing.

11. Keg or Bottle Your Beer:
Siphon the finished beer into the bottling bucket. If the recipe calls for any bottling additives (such as priming sugar) to be added to the bottling bucket, add them now.

At this point, follow kegging or bottling procedures.

That’s all there is to making your own beer. After allowing the beer to condition, it’s time to share it with friends and family and brag about how you made it yourself. Welcome to pro/personal brewing!

Now you know the basic process for brewing your own beer. As you gain experience and confidence, you can work in more wrinkles, such as using gypsum to harden your brewing water (if necessary) or adding Irish moss to your boil to help with beer clarity.

There are many other aspects to personal brewing and we’re here to help you with all of them. Be sure to read our other “How-To” pages covering different brewing subjects. Or contact us with your questions.
Happy brewing!

I end my article with a quote from a good friend & business colleague Dr Newell Bascomb who lives in the US.

“I first got started with brewing because of a Father’s Day gift from my daughter several years ago. After following the kit instructions and not really understanding what or why I was doing we were all surprised when we tried our first bottle and exclaimed “it tastes like beer” Small step! From then I was hooked. There are so many ways to vary the components; different grains, hops, yeast and more recently I’ve used “additions” like oak chips to create an infinite variety of flavours. As a “retired” microbiologist/biochemist, in addition to making some really enjoyable beverage, I get to keep “playing in the lab”. One thing that makes my brewing a bit unusual is that I continue to brew only a gallon at a time. While many fellow brewers encourage increasing to 5-gallon batches (after all, it’s the same amount of work and time they argue), by doing a gallon at a time I get to try many more combinations, and if it doesn’t work out I loose 10 bottles of beer. I’ve actually never made anything we didn’t enjoy! What am I fermenting now? I just bottled a rum barrel porter and have a bourbon double IPA in the fermenter. Great for cold days in the mountains. When that goes to bottle, I’ll just have time to make my Saison with mulling spices in time for the holidays.”
– Dr Newell Bascomb

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Drinking Beer is trending, diven by indian youth https://www.brewer-world.com/drinking-beer-is-trending-diven-by-indian-youth/ https://www.brewer-world.com/drinking-beer-is-trending-diven-by-indian-youth/#respond Wed, 27 Feb 2019 06:46:29 +0000 https://www.brewer-world.com/?p=4231 BIJAY BAHADUR Bijay Bahadur, has more than 29 years of experience in Indian/multinational breweries, IMFL bottling plant and brewery greenfield and brownfield projects and factory operations – maintenance, production, environment health and safety and project management. Author of Brewing – A Practical Approach, is for practicing brewers, students pursuing careers in Food Technology, Biochemical Engineering, […]

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BIJAY BAHADUR

Bijay Bahadur, has more than 29 years of experience in Indian/multinational breweries, IMFL bottling plant and brewery greenfield and brownfield projects and factory operations – maintenance, production, environment health and safety and project management. Author of Brewing – A Practical Approach, is for practicing brewers, students pursuing careers in Food Technology, Biochemical Engineering, Brewing Science and consultants who provide technical advice to the breweries and entrepreneurs. A practicing brewer and he has specialized in the manufacturing of beer, including formulation of recipes, overseeing new technical developments, implementation of standard operating procedures, planning budgets, warehousing and inventory control, liaising with Quality Assurance Department (QAD). He is a lifetime member of The Institution of Engineers (India), Indian Institute of Chemical Engineers and Association of Food Scientist & Technologist (India). He has been authorized to use the style and title of Chartered Engineer (India) by The Institution of Engineers (India). Mr Bahadur is currently working at Yuksom Breweries Ltd (Sikkim).

GROWTH DRIVERS – BEER PREFERRED OVER ALCOHOL

India’s alcohol market is the third largest in the world. Sales of low alcohol drinks, such as beer, are growing, especially among younger members of the burgeoning middle class. Beer is being increasingly accepted as a social drink and for the urban youth in particular it is the preferred alcoholic beverages. Indian consumers are looking for choices away from hard alcoholic drink. It is not just the men who are charmed by beer but also women who equally enjoy beer.

In 2016, consumption of beer in India was 4.6 liters per capita as against 57 liters per capita of fast-growing economies in Asia. In India, young growing middle class with rising disposable incomes will lead to greater spending on alcoholic drinks, and in particular beer. They associate beer, which is an easy-to-drink product, with celebration, friendship and enjoyment.

RISKY ENVIRONMENT DUE TO REGULATORY ISSUES

The Indian liquor industry is a high-risk industry, primarily on account of high taxes and innumerable regulations governing it. As a result, liquor companies are affected with pricing pressure, consequently investments by the industry is low, resulting in inefficient capacities. All these constraints lead to low margin and weak financial performances.

Government regulations at every level have affected the Indian liquor industry, introducing structural rigidities. Apart from the high level of taxes and levies, regulations pertaining to licensing, Greenfield or Brownfield brewery project, manufacturing process, distribution and advertising restrictions on the industry have a roll to play in slow growth. The latest drawback of no liquor to be served within 500 metres of a highway had resulted in closure of multiple outlets. Especially in the beer city Bangalore, the pubs have shut down in the Central Business District, bringing along with it tremendous losses. Further liquor being a state subject, every state has different regulations and tax rates for the industry apart from restrictions as well as levies on the inter-state movement of liquor.

Few regressive regulations have impacted the industry on all fronts. The high level of taxes and levies, restrictions on interstate movement of liquor which means companies have little control over distribution system, limited pricing flexibility, hence, low margins. However, a few large players have either acquired or entered into contract manufacturing and bottling agreements with local players in various states to overcome the hurdle of interstate movement of liquor. This means fragmented capacities with high overheads and poor economies of scale, which has further impacted margins.

In the long term, the liquor industry is expected to witness a shakeout and further consolidation, with weaker players exiting the industry. Larger players and those with strong parent company support are likely to survive.

In spite of the complex taxation structure, it is believed that there is a significant long-term growth potential as a beerdrinking culture is gaining momentum.

It is also expected that increasing levels of investment into the market from both local and global players, will accelerate growth.

Higher liquor taxation has forced consumers to shift to strong beer, which continues to corner more than 80% of the total beer sales in India.

EVERY DAY IS A CHALLENGE

What is really attractive about beer brewing is that brewer should always do something that is connected directly to the approach, science and technology and art of the beer brewing. Indian beer market is changing very fast because of the Government policies. Liquor business in India face new challenges every day. Based on the Central and State Government’s ever-changing policies, the liquor industry has to be on its toes. In the SWOT analysis below, a new player can find out the challenges he is likely to face in this industry.

SWOT ANALYSIS

Strengths:

  • Recession proof
  • Ever increasing market share
  • Favourable across demographics
  • Adequate supply of raw materials

Weaknesses:

  • Highly taxed and regulated
  • Surrogate advertising
  • Inadequate market infrastructure
  • Unjustified pricing
  • Multiple restrictions

Opportunities:

  • Low per capita consumption
  • Urbanization and global exposure
  • Rising disposable incomes
  • Discretionary spends

THREATS:

  • Social drinking may extend to wine which is considered a Woman’s drink
  • Non-priority sector for the Government
  • Uncertainty of liquor business dynamics
  • Imposition of prohibition in every business

ADOPTING NEWER TECHNOLOGIES

Many breweries are using a technology that remained basically unchanged over a period of more than five decades. New technological breakthroughs are rarely applied to the brewing process because most of the brewers are wary that the change would affect either the quality or the image of their brand. In recent years, the situation has been changing- mergers and takeovers have created big brewing groups, and increasing competition in a shrinking beer market has forced the brewery to be more cost effective than before. Now, technological innovations are used to increase productivity, to save energy, or to create superior products.

There will probably always be a market for the home grown, traditional brewery. The larger brewing groups, however, need to closely follow technological changes.

India’s brewery industry has enjoyed impressive growth in recent decades, and demand for high-quality beer with specific taste and character has grown parallely. Demand for the highest quality has a profound effect on process technology in beer brewing – “Quality is best served through dedication and long working hours”.

The technological side of brewing has changed radically over the past few decades. All the stages in brewing have become and are still becoming faster, more effective, more flexible and more product-and environment friendly.

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Regulatory Challenges of the Alco-Bev Industry in India https://www.brewer-world.com/regulatory-challenges-of-the-alco-bev-industry-in-india/ https://www.brewer-world.com/regulatory-challenges-of-the-alco-bev-industry-in-india/#respond Tue, 26 Feb 2019 23:30:09 +0000 https://www.brewer-world.com/?p=4194 ASHOK CAPOOR Former President & MD, United Spirits Limited The beer industry is getting active now, unlike in the past.  The weak point is, taxation varies from state to state- drastically. There is really no logic of why taxes are what they are across the country. It is driven by political agendas, with revenue objectives. […]

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ASHOK CAPOOR

Former President & MD, United Spirits Limited

The beer industry is getting active now, unlike in the past.  The weak point is, taxation varies from state to state- drastically. There is really no logic of why taxes are what they are across the country. It is driven by political agendas, with revenue objectives.

The liquor industry has been facing a huge amount of challenges because of the regulations and restrictions which different states have put on them. For the states, one of the easiest ways to get higher revenue is increased taxation. That means consumer prices go up very sharply, which creates a problem in terms of the growth of both the industries – spirits as well as beer.

For the beer industry, India is the only market in the world where beer is consumed less than spirits. Across the globe, beer is the dominant drink, almost 80-90% of the market. In India, it is the spirits volume which is larger than beer – because of the high taxation and the relatively higher prices of beer vis-a-vis spirits.

IMPACT OF TAXES

Indians are so value conscious that they see how much kick they get per drink. That is why strong beer is a preferred drink amongst youngsters. They compare it with a small bottle of whisky or hard drinks in terms of the value equation. The reality is that both these sectors are very price sensitive, and the relative price of beer vs spirits, which depends on the taxation of beer vs spirits, plays a major role in the growth of these two sectors.

The other factor which plays a big role is seasonality; a long summer will push up beer sales dramatically. If you have a long winter, then rum sales will go up. So, if we have a long rainy season, it impacts the sales of beer, and if hotter days are there, beer gains. Two things have the maximum impact on the markets of beer and spirits relative pricing and seasonality. They play a major role in the relative growth of both spirits and beer. Hard liquor has the challenge of duplication, which beer doesn’t have because it needs huge amounts of CAPEX as compared to liquor.

Another very significant factor is GST, which is going to be implemented by July 1st. This will have a major impact on both beer and spirits because they both have been kept out of the GST regime. Since alcohol is a state subject, they will not get the GST benefit on their inputs while other industries will get the benefits. Liquor and beer will not get any benefits under the GST regime. Also, their raw materials prices will go up. They are trying to work with the government to get some relief, or the only other recourse will be to increase prices, which will again impact consumption. This is a big spoiler for both these industries.

In India, the per capita consumption is much lower than the West. The demographics are favourable since 50% of our population is below the age of 25. They start drinking early, so beer is the first drink adopted. Since the social taboos of drinking are breaking down, it’s seen as fashionable, especially in the urban areas and now, even in tier 2 and 3 cities.

Even for imported beers, taxes have made them very pricey and that is the bottleneck. If taxes are more rationalised, they would do well.

THE BEER-SPIRITS INTERPLAY

As mentioned, taxation plays a very key role in the interplay of these two sectors. As an example, there was a VAT of 5.5% levied on the premise drinking in Karnataka on beer. It pushed beer to stagnancy and helped the liquor industry grow because, due to the VAT levy, hard liquor was viewed as having relatively better value. However, the VAT levy has been removed in the 2017 budget so the situation will be the other way in 2017-18. When the prices of beer come down, it will become more affordable and reasonable to the consumer. You will see this year, beer will grow while spirits will stagnate, that’s the interplay.

In Maharashtra, in the past, they increased the tax on beer, which was growing in double digits, and not on spirits. So, beer de-grew while spirits grew by 13-14%. Thus, I would say taxation is the most critical factor for the industry. The more rational the excise is, the better it is for the industry. The beer industry is today trying very vigorously to be separated from spirits and hopes to be taxed much lesser going forward.

The beer industry is getting active now, is unlike in the past. However, the weak point is, taxation varies from state to state – drastically. There is really no logic of why taxes are what they are across the country. It is driven by political agendas, with revenue objectives. Different rates of the same product in neighbouring states often encourage much worse situations – smuggling across the border and bootlegging.

IMPACT OF PROHIBITION 

Apart from taxation, the other enforcement by the government – prohibition. In my opinion, it is clearly not a sustainable model at all. It has failed even in the US, giving rise to bootlegging there as well! Gujarat has all liquor available, despite prohibition. AP and Haryana went into prohibition nine odd years ago, and started losing state revenue alarmingly fast. However, stocks were still coming in from neighbouring states, and ultimately the concerned states were the only losers. Excise from alcohol being the second largest revenue driver in any state – about `10-12,000 crores, it is not a very smart step for the government to take. Bihar’s current prohibition is driven by the women vote bank, but the neighbouring states are feeders for alcohol in the state. So, the purpose has been defeated. Nothing else has stopped, only the revenue to the government has fallen. The industry, on the other hand is also affected. Illegal routes will able to fill up only a fraction of the actual demand so brands will lose, and even new investments in Bihar will hit a brick wall since exports from these states can be prohibited as well!

The fact that it is a huge revenue generator, this kind of decision is not sustainable in the long run.

IMPACT OF GLOBAL BRANDS

Despite top global brands being present in the Indian beer market, UB is still the market leading brand. There are now products available at different price points, higher quality and packaging, backed by very efficient processes. The Indian public has accepted these brands, but because of higher taxation, they are at much higher price points. Nevertheless, they have helped in expanding the industry, creating aspirations for well-travelled people who may want to have something better than Kingfisher, especially at a higher price. But in truth, except for Carlsberg, no other brand has been able to make much of a dent. Carlsberg & Tuborg are doing extremely well, and have garnered about 17% in last 8 years. Their marketing and sales were run by people who knew the Indian market, hence creating a strong foothold in the industry.

The other brands are aspirational but niche; they are selling only in select outlets in metros and at very small volumes. The same applies to even Heineken, which is partnering with UB, though it is a very good product. At the end of the day, UB as a company is doing well and despite everything it has maintained the market share at 51%. Some of the other companies lost out because they had foreign nationals trying to work the Indian market, without understanding the Indian market dynamics – it’s like running 33 countries. In my opinion, these companies could have been more successful if they had a strong Indian leadership at the helm.
The Indian market is not a structured industry, the taxation is fickle since revenue pressures can push up taxes suddenly. You need to be ready to cope with sudden changes with a Plan B and even a Plan C. UB has people capable of that planning, they have good relationships, and they contribute large amounts to the profits of the trade. It’s very difficult for foreign brands, they face a challenge and their pricing and distribution are not up to the mark for others.

Over the next three years, I do not see much of a change. Only if alcohol moves from being a state to becoming a central subject, some change will happen, but that is very unlikely. Each state wants to keep the domain and I don’t see the trends changing, whatever is dominating will continue to dominate – unless there are structural changes or foreign companies start investing disproportionately.

Budweiser is also here they are doing OK, but compared to the potential they have they are just scratching the surface. Unless they become extremely aggressive in terms of sales & marketing, I see nothing changing. It’s a cut-throat industry and unfortunately the growth has not been too healthy, staying at 1-2%, purely because of taxation in the last 2 years.

Bihar’s current prohibition is driven by the women vote bank, but the neighbouring states are feeders for alcohol in the state. So, the purpose has been defeated. Nothing else has stopped, only the revenue to the government has fallen.

THE CRAFT SCENE

Craft beer is basically available only in a few urban areas. It has a massive following in US and Europe, where craft beer has become a big part of the industry. Here because of various laws and regulations, it’s a bit tedious to start, yet I see it gaining momentum. People are seeing a huge amount of options, it’s about different tastes, and therefore youngsters are hanging out and visiting these places.

But, since setting up a brewery is very costly, they have to see profits and the throughput has to be very good, for them to sustain. Today, all are not seeing great success, and hence have to innovate to be sustainable. If it’s a good concept, gives variety and fresh new brews, it will be definitely seen as a cool thing.They will need to create a differentiation to attract the young crowd and sustain, it is bound to grow. In foreign markets, almost 12% -13% business has gone to craft beer. In India, value for money plays a huge role so anyone who provides that, has huge growth options. Here, more craft breweries are also coming up and as kegging and bottling are now being allowed, the reach will be certainly increased.

I would think it’s a very tough ride for both liquor and beer going forward unless the taxes and regulations are changed drastically.

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