Vi-John Forms Joint Venture With Mahou-San Miguel
News: Indian FMCG firm Vi-John has formed an equal sharing joint venture with Spanish beer and wine manufacturer Mahou-San Miguel to foray into the Indian beer market. Vi-John will also launch two new beer brands - Dare Devil 10000 and Mahou Cinco Estrallas - in the Indian market. Initially, the two brands will be available in five Indian states of Uttar Pradesh, Haryana, Rajasthan, Uttrakhand and Bihar. Subsequently, the firm will launch the beer brands in other northern states such as Delhi. Dare Devil will be retailed at INR90-100 (US$1.7-1.9) for 650 ml bottle and INR40-50 (US$0.7-0.9) for 330 ml. Meanwhile, the slightly high-priced Mahou will be retailed at INR130-150 (US$2.4-2.8) for 330 ml bottle.
BMI View: The Indian soft drinks market is set for fiercer competition in 2012, with local soft drinks producers unveiling aggressive expansion plans. There are two key tenets of the growth strategies pursued by soft drinks producers in India, specifically product innovation and marketing, as they rev up their push to grab a bigger share of the high-potential market. Notably, companies are gearing their product innovation efforts towards healthier and functional beverage categories. This trend fits nicely with our expectations that the higher-value categories of functional beverages and fruit juices will experience the greatest dynamism and sales growth.