AND Business Consulting Blog Post - Feasibility of bottled craft beer

Feasibility of new business vertical for a leading microbrewery

Find out more about how we helped our client evaluate the feasibility of bottled craft beer in India.

1. An idea is brewing

A successful microbrewery operating in Bangalore and Hyderabad since 2012, our client acknowledged the rise of the bottled craft beer sales in India. Simply put, craft beer is a beer that is not brewed by the big “mega-brewery” corporations, and has a distinctive flavour & taste that caters to discerning beer drinkers. The client’s objective was to enter the market as a means to diversify the brand in a competitive market.

2. The bottleneck

The manufacture and sale of alcohol in India is heavily regulated with taxes & duties adding up to 70-80% of the final cost of the bottle. Moreover, policies and rates fluctuate wildly between different states making it difficult to comprehend and make an effective entry in the market.

By understanding the regulatory regime for the manufacture & sale of alcohol, we at AND provided the client reasonable estimate of how much taxes & duties would add to the final cost to consumer. In addition, we highlighted the financial feasibility of the following 3 alternatives. (i) Make in India with own manufacturing unit, (ii) Make in India with 3rd party manufacturer, or (iii) Import into India.

3. A spirited ending

We carried out the following activities to evaluate the feasibility of bottled craft beer market:

  1. Primary & secondary research to understand the tax regimes in 4 states in South India (the client’s preferred manufacturing location).
  2. Financial analysis for the 3 alternatives proposed by Client.
  3. Discussions with contract manufacturers in the target states to understand spare capacity available.

With our evaluation, the client was able to do the following. (a) Understand the regulatory prerequisites of setting up a unit, (b) Select a suitable alternative based on its financial and commercial viability, and (c) Commence discussions with a suitable JV partner among the existing breweries.

Do you need to evaluate a new opportunity? Get in touch with us, the foremost management & business consultants in Hyderabad.

2 thoughts on “Feasibility of new business vertical for a leading microbrewery

  1. Long time reader, first time commenter — so, thought I’d drop a comment..
    — and at the same time ask for a favor.

    Your wordpress site is very simplistic – hope you don’t
    mind me asking what theme you’re using? (and don’t mind if
    I steal it? :P)

    I just launched my small businesses site –also built in wordpress like
    yours– but the theme slows (!) the site down quite a bit.

    In case you have a minute, you can find it by searching for “royal cbd” on Google (would appreciate any feedback)

    Keep up the good work– and take care of yourself during the
    coronavirus scare!

    ~Justin

    1. Thanks, Justin. We use Zakra theme for our website. Its free so you don’t need to steal it :D.

      Just visited your website, and it looks great to me.

      Our 2 cents on site speed, it may not be related to your theme – instead try using a free CDN like Cloudflare and great WordPress plugins like Autoptimize, AssetCleanup, WPSuperCache to name a few. Easy to use and setup without much technical knowledge. Having said that, your site loaded pretty fast just now.

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