Moving into India

In July, consumer metal packaging company Impress said it was looking to enter the Indian market with its 5L Party Keg beerkeg that is equipped with a unique tapping system. This announcement came after successful developments in China, Thailand and Hong Kong.

The Party Keg’s tapping technology allows consumers to easily and “professionally” serve fresh beer without dripping. The keg can be conveniently stored in the fridge, even horizontally. With its fully printable surface, the Party Keg allows maximum in-store brand exposure as well as at the moment of use.

Asia Food Journal interviews Peter Sauer, GM, Beerkegs and Food Specialities and Martin de Olde, marketing manager, Specialities, Impress, to find out more about their strategies in Asia.

Over the last five years, beer consumption in India has grown 9% per year to a volume of 12.5 million hectoliters (hL). The already strong beer segment is gaining more strength as beer-drinkers in India are younger than the average beer-drinkers elsewhere in the world.

AFJ: How is Asia part of your business?
Sauer and de Olde:Industry reports say the Asia Pacific region will take 62% of the global beer growth of 18.7 billion liters in 2012 compared to 2007. This is driven by a growing middle class with disposable income that is embracing Western tastes, as well as a shift from traditional spirits consumption.

Asia is a key focus area for us and in the last few years, we have expanded our footprint in region. In May 2007, Impress made an alliance with can maker ORG Group in China to sell Impress’ range of products. In December 2008, we opened an offi ce in Hong Kong that serves as a "hub" to strengthen our strategic position in Asia.

In June 2009, Impress and Royal Can Industries (Thailand) started a joint venture to sell and manufacture aluminum food and seafood cans. We are continuously looking to expand in the Asian metal packaging markets as we look for business opportunities with major metal can makers.

Impress says its Party Keg enables breweries to enter new market segments in India.

AFJ: Why is India your next avenue of growth?
Sauer and de Olde: India is the 12th largest economy and has a young population – nearly 60% of the population is below the age of 30 years. It belongs to the fast-growing developing economies of Brazil, Russia, India and China (BRIC) and is expected to outperform its rivals.

Drivers to growth are:

• Changing lifestyles (more to the Western lifestyle) and the rising income per capita,
• The hot and warm climate,
• The increasing consumer exposure to beer due to media and consumer mobility, and
• The ongoing investments and efforts of beer companies such as United Breweries and SAB Miller in the country.

The Party Keg’s tapping technology allows consumers to easily and “professionally” serve fresh beer without dripping.

We see an increasing demand for beer. Over the last five years, beer consumption in India has grown 9% per year to a volume of 12.5 million hectoliters (hL). The already strong beer segment is gaining more strength as beer-drinkers in India are younger than the average beer-drinkers elsewhere in the world. This makes them more likely to favor the brand for a longer period, as they are more open to new types of packaging.