Cobra Beer Ltd has today announced its first ever brewery acquisition in India. Cobra has acquired a controlling stake in Iceberg Industries Ltd, a leading brewery based in Bihar, north east India. Cobra has purchased 76% of the equity from the Katyal family-owned brewery with Amit Katyal retaining a 24% share. The move marks a significant stage in the company’s ambitious global development strategy.
The new brewery comes in addition to existing manufacturing in Poland,Belgium, the Netherlands, the UK and five further locations in India.
Lord Karan Bilimoria, Founder and Chairman, Cobra Beer, comments: “Since we began brewing Cobra in India for the Indian market, back in 2005, we’ve made phenomenal progress. The market is expanding at an incredible rate – over 27% last year, and we’re delighted to see so many Indian beer-lovers embracing Cobra as the market grows. The purchase of Iceberg will help us take Cobra to a whole new level in India, allowing us to increase and manage our capacity and to really focus our efforts on the Indian market.
Mr. Amit Katyal adds: “Cobra Beer is a great partner for the business, which over the years has built a strong national presence. We believe that together with Cobra, the company has a great future as the brewery will now serve a truly international brand in Cobra Beer. We look forward to strong and sustained growth for Iceberg and Cobra in the years ahead.”
Iceberg currently has a manufacturing capacity of 3 million cases per year, which Cobra intends to increase to 7 million cases per year in a few years, to cater for its markets in north and east India. Iceberg also has its own strong beer brand, Iceberg 9000, which is available in selected markets in the Bihar region and Cobra will continue marketing. Cobra Beer will have full management control including operations, marketing, sales and brewing.
Ms Poonam Chandel, Chief Operating Officer, Cobra Indian Beer Pvt Ltd., comments: “We have previously brewed Cobra under license with Iceberg and have enjoyed an excellent working relationship with the Katyal Family, which we’re sure will be further strengthened through this joint venture. We’re looking at capturing a 10% share in the Indian beer market by 2012 and in order to achieve this we need to substantially increase our brewing capacity to sustain our growth. This is an important first step in helping us do this.”
The success of the Cobra Beer over the past one year is attributed to deepening of distribution, new brewing capacities through contract manufacturing and widespread product acceptance. The beer has made strong in-roads in key markets such as West Bengal, Chandigarh, Delhi, Rajasthan, Maharashtra, Goa Andhra Pradesh, Karnataka, etc. With the strengthening of its distribution reach, Cobra Beer now has pan-India presence.
Setting standards in beer & the industry
Cobra’s decision to domestically brew beer in India is backed by its desire to set the highest standards of brewing excellence. Last year Cobra Beer was awarded 20 gold medals in at the 2007 Monde Selection, World Quality Awards, Brussels, including a grand gold medal for its Indian-brewed beer. For the third year running, Cobra beer won more gold medals for beer than any other brand in the world. Cobra beer was also awarded two high international quality trophies for winning gold medals for three years in a row at two of its production facilities worldwide.
Source: Money Control