A Singapore-based brewery with roots dating back to the 19th Century has returned to India after more than 60 years, launching two beers in Delhi as it seeks to jump into the country’s growing premium drinks market.
Lion Brewery Co, founded in London in 1836 and now headquartered in Singapore, has introduced its Island Lager and Pale Ale in Delhi through an exclusive distribution partnership with Copperdrop Spirits.
The beers are available in 330ml bottles, with the company planning to expand into the neighbouring states of Haryana and Uttar Pradesh before entering other Indian cities.
The great return toasts a symbolic moment for the brewer, whose history is closely linked to the origins of India Pale Ale (IPA). During the 19th Century, British breweries developed heavily hopped pale ales that could withstand the long sea voyage to India, then part of the British Empire. Lion Brewery Co was among the companies exporting beer to the subcontinent during that period, contributing to the global popularity of the IPA style.
The original Lion Brewery operated on the banks of the River Thames before it ceased operating in London. Lion Brewery Co brand was revived in Singapore in 2018 and has since expanded into international markets.
A vibrant market
The brewery’s return comes as a growing number of international beer producers seek to establish a presence in India’s expanding premium alcohol market, where younger urban consumers are increasingly experimenting with imported and craft-style beers.
India’s beer market has grown rapidly in recent years, with industry estimates valuing it at around $4.5bn (£3.4bn) in 2023.
The craft beer sector in particular is touted to hit US$1 billion by 2027 in what has been described as the market’s “growth phase,” with climbing incomes and shifting consumer tastes fuelling a thirst for higher-end products.
Lion Brewery said Delhi had been chosen as the starting point for its return because of its established premium beer market.
Copperdrop Spirits, the exclusive importer and distributor for India, said demand for premium international beer brands had been increasing among Indian consumers.
India’s beer sector surmounts challenges
Speaking about the state of the beer sector across India, United Breweries Ltd managing director and CEO Vivek Gupta told the PTI at a local event that, despite the industry remaining under “severe cost pressure” and this damaging the bottom line, he expects the category to recover and reiterated that the overall picture is “positive”.
Gupta said: “The trends in the beer category are positive, driven by good reforms in states like Karnataka and Maharashtra, and also by weather”.
The beer sector has faced a series of challenges including an unfavourable exchange rate weakening the rupee as well as ongoing global conflict, which leads to the price of packaging and other imported ingredients and materials increasing.
Gupta said: “Right now, there is a good positive top-line momentum. At the same time, there is work being done to recover the profit erosion that has happened because of the war impact”.
But, he added that the beer sector in India is, otherwise, “in a good shape” and noted “we are seeing high single-digit volume growth, and of course some price-led growth as well, but primarily it is volume growth”.
