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United Breweries (UB) has unveiled its latest innovation in the alcoholic beverage segment with the launch of Kingfisher Flavours, marking a significant step towards capturing the evolving preferences of younger consumers. The new offering, which includes Lemon Masala and Mango Berry Twist variants, represents a strategic move to blend Indian street culture with contemporary drinking preferences.
"Flavours are a global trend, with around 12% of the beer category's growth coming from flavoured variants," says Vikram Bahl, chief marketing officer at United Breweries. "We're seeing this shift in India too, especially among Gen Z consumers who enjoy experimenting with new products, particularly in the alco-bev category."
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The introduction of these flavoured alcoholic beers comes at a time when the company is witnessing a significant shift in consumer preferences, particularly among younger demographics who are entering the beer-drinking market with a penchant for sweeter, more experimental tastes.
Street culture meets beer innovation
The development of Kingfisher Flavours stems from a deep dive into Indian street culture, with the company conducting extensive consumer research before finalising their offerings.
"Both variants were extensively tested with consumers and received excellent feedback for both the concept and the actual product," Bahl explains, emphasising the careful consideration that went into the flavour selection process.
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The new variants are positioned as alcoholic beers with distinct flavour infusions, designed to appeal to both category newcomers and occasional beer drinkers who prefer sweeter, more flavourful options.
This strategic positioning reflects UB's understanding of evolving consumer preferences in the alcoholic beverage market.
Marketing strategy and target customers
"Our primary audience is slightly more affluent Gen Z consumers who are aware of trends and open to experimentation. They enjoy socialising and going out once or twice a week."
Vikram Bahl, CMO, United Breweries
United Breweries has crafted a precise marketing strategy targeting affluent Gen Z consumers who are trend-conscious and socially active.
"Our primary audience is slightly more affluent Gen Z consumers who are aware of trends and open to experimentation. They enjoy socialising and going out once or twice a week," Bahl notes.
The marketing approach focuses heavily on premium establishments, with the company placing particular emphasis on experiential marketing. "Our primary awareness channel will be in-store visibility at premium bars, pubs, and off-trade outlets. We will focus on eye-catching displays inspired by street culture and the product's unique ingredients," says Bahl.
Despite the restrictions on alcohol advertising in India, UB plans to create product awareness through trained bar staff and retailers, alongside trial campaigns at premium venues. While influencers were present at the launch event, the company maintains that its primary focus will remain on experiential marketing and in-store execution.
Phased launch and expansion plans
Kingfisher Flavours has limited its initial launch to Goa and Daman, and has identified Maharashtra as its next target market. The company recognises the regulatory complexities associated with alcohol distribution and intends to expand its operations upon obtaining necessary clearances, with a primary focus on major cities.
This launch fits strategically within Kingfisher's broader portfolio, which includes various offerings, such as Kingfisher Strong, Premium, and other premium variants. It follows the company's recent successful launch of Queenfisher, marking another step in UB's product development journey.
Future outlook and industry trends
The launch of Kingfisher Flavours appears well-timed, considering the emerging trends in India's beer market.
"We're seeing a demand for more sessionable, lighter, and less bitter beers," Bahl observes. He also notes an increasing number of female beer consumers, which previously influenced the launch of Queenfisher.
The flavoured beer category remains nascent in India, presenting both challenges and opportunities for United Breweries. The company aims to pioneer and shape this space, integrating elements of street culture such as music, graffiti, and skateboarding into its brand identity.
This launch represents a significant step in United Breweries' innovation strategy, reflecting their response to changing consumer preferences and their commitment to maintaining leadership in India's beer market, where it has a share of about 50%, as per industry estimates.
With rising interest in premium international beers and wheat beers, as evidenced by launches like Amstel Grande and Kingfisher Ultra Wheat Beer, the company appears well-positioned to cater to evolving consumer tastes.