Anheuser Busch looks into India's beer market

The American brewing group Anheuser-Busch Cos. reportedly is interested in purchasing a 26 per cent stake in India's largest brewer United Breweries, reports the St. Louis Post.

According to industry experts, this deal could strengthen the Anheuser-Busch's position in Asia, a market with enormous potential.

The news comes weeks after Anheuser Busch's aborted bid to buy Brauerei Beck GmbH & Co., the German maker of Beck's beer, which was sold to Interbrew NV of Belgium for $1.6bn (Euro1.754bn).

Currently, the brewing company owns 91.8 per cent of the Budweiser Wuhan International Brewing Co. and a smaller stake in Tsingtao Brewing Co., both in China, and also has license agreements with breweries in Japan, South Korea and the Philippines.

Brewery executives have expected for a long time that China will become the world's largest beer market, but India could develop into a major market for Anheuser Busch, said Tom Pirko, a beer-industry consultant in California.

India boasts a middle class bigger than the entire U.S. population, he said.

The $1bn (Euro1.096bn) Indian market for liquor is expanding 10 per cent a year.

"India is a phenomenal opportunity," Pirko said.

"It is a serious place to do business."

United Breweries was founded in 1915, operates 14 breweries throughout India and controls about 44 per cent of the local market.

Last year's sales amounted to $425m (Euro466m) last year, largely on the strength of its popular Kingfisher brand.

Over the past few months, the company has been looking for a strategic partner that can extend the international reach of Kingfisher, which the company exports to 50 countries.