Spanish beer giant Mahou wants to change the way India drinks

Of late, the Indian beer market has been witnessing the entry of quite a few premium label foreign brands, which gives a potential customer a wide array of options to choose from instead of relying only on the likes of Kingfisher or Tuborg.

Among the foreign brands that have forayed in the Indian market, Spanish beer giant Mahou San Miguel’s entry in the country was undoubtedly highly anticipated.

In India, Mahou started off by forming a 50:50 joint venture with Rajasthan-based Arian Breweries in 2012. Later in 2015, the Spanish firm acquired the remaining stake to rename it as Mahou India.

Additionally, the 100% family-owned beer maker had also announced that it was investing 18 million euros in the next four years in order to brew and sell only its high-end brands in the country.

A year later, three of the Mahou brands- Mahou 5 star, Mahou Clasica and Dare Devil are widely available across states in the country and the response has been overwhelming, according to the company.

“India is the only country outside Spain where we have our own brewery and looking at the potential of India's beer market, made sense to jump at the tremendous opportunity that the country presented,” Erik d’Auchamp, CEO Mahou India told Business Insider.

Erik who’s running a company for the first time says that doing so in a country like India is a unique experience for any CEO. “No one says no to a challenge here. They always manage to find a different solution. It’s also great how the team is coming together like a family. I think that has to do a lot with the value the bond of a family holds in the country.”

The idea, Erik claims is to change the way people view and drink beer in the country.

“Mahou India has positioned itself in the mainstream plus/premium category and we’re targeting the urban population who are above 25 years of age. Someone who is beyond drinking beer to just get high, but instead drinks it to enjoy the flavour of the beer. We want to get the Indian markets to adopt beer as a social drink- a drink whose flavour is admired and shared.”

And, in order to attain that, the company has also worked on the flavour of their beers to suit the Indian palate.

According to Erik, Indians have a liking towards beer that is less bitter and he claims that the unique yeast that Mahou uses yields a distinct flavour that is sure to please the Indian taste buds.

Erik is also of the view that the incredible speed with which the Indian beer market is evolving is a sign that beer can be relished for social enjoyment. “As a consequence of the rapidly evolving market, there is an influx in the beer culture wherein there are outlets that are brewing beer themselves. People going out more is also helping in beer sales, and as a whole, this is a good time to be in the business,” he explains.

Another aspect that Mahou as a company absolutely prioritizes on is the concept of responsible drinking. “We are strong believers of the fact that we should serve our beers who are only 25+. We’ve set an example globally with our CSR activities and have even pioneered the 0.0% segment; which is a beer with no alcohol in it. Mahou India is presently working on innovation projects based around responsible drinking.”

Infact, even their website is inaccessible to anyone who’s under the legal age of drinking in their country.

When asked whether he is keen to develop a beer with no alcohol for a country like India, he is quick to respond, “Yes absolutely. It would be relevant here.”

While talking about the future of Mahou India, Erik admits, the goal at hand is to double up volume this year and keep on delivering exceptional quality through their beers.