In an e-mail conversation with Restaurant India, Abhinav Jindal, Founder and CEO at Kimaya Himalayan talked about his beer brands as new entrants in the market, how these brands are differentiating themselves from the established ones and what is the road ahead.
How has been the volume growth since the time it has entered into the market?
We entered the market in September 2019, which also meant the start of the off season of 2019. The growth has been very encouraging and both the brands have consistently performed across all the markets that we are present in. Currently the brand is available in the states of Delhi, UP and Uttarakhand. The brand ‘Bee young’ since the date of its launch has been the second highest selling beer in its category in Delhi. We expect Bee Young to be a formidable force in its category in the coming months. Since the launch on 12th of September we have now dispatched around hundred thousand cases to the market.
How has been the profit growth?
It is too early to determine profits as it has only been three months since the launch but for the first full year we expect to make minor losses on account of market entry costs. We expect to witness a decent profit on the capital employed by the second full year of operations.
In terms of its sales and profit growth, what is your target?
For the financial year 2020-21 we expect to touch about 1 million cases in sales across the markets of operations with a profit expectation of approximately Rs. 25 million.
How are you planning to expand it across the country?
We are presently available across the states of Delhi, Uttar Pradesh and Uttarakhand. We are expected to enter the markets of Punjab and Haryana very soon. Our brand Yavirā shall be available in key markets like Mumbai, Bangalore, and Goa in the next financial year.
How many cases you sell monthly? How does it differ from place to place?
In the third month of launch we are currently selling around 30,000 cases across markets. As the season approaches in March we expect this number to rise rapidly to over 1,50,000 cases a month. We are currently seeing uniform consumer acceptance and response for both the brands, in all the three states that we are present in. It is again a resounding confirmation of our core belief that an honest and quality product will find consumer acceptance across markets irrespective of demographics or socio-economic conditions.
6. In this highly competitive market, how do you differentiate your offerings?
We believe that we are our first customers. These beers are made as per International draft standards; all while respecting and preserving the Indian tradition and history of brewing. We are here to create a legacy. Bee Young and Yavirā are crafted with utmost love – and the highest technical standards of quality and consistency. Finest imported premium malts, Noble hops, basmati rice (in case of Yavirā) brewed using an indigenous recipe with water sourced from the Himalayan heights sets us distinctively apart from any competition that is currently available in the Indian market.
All these coupled with the unique 500 ML bottles being launched for the first time in the country offers the consumer an unseen advantage of enjoying their beers in an absolutely right quantity and temperature. An important thing to note as per industry standards is that The industry calculates cases on the basis of 7.8 litres per case (650mlx12). However, we sell 1.5 times more per case as all our cases are 12 litres.