United Breweries Ltd (UBL), a part of HEINEKEN, aims to achieve growth within the middle of the decade and a margin of around ten percent. The company seeks to leverage the potential of the underdeveloped Indian beer market by accelerating the premiumization process and increasing productivity through the implementation of technology, artificial intelligence, and automation.
At its Capital Markets Day in 2026, UBL highlighted the significant structural potential of the Indian beer market. Per capita beer consumption in the country is about 2.5 liters annually, which is significantly lower than the global average of 25 liters. More than 25 million young people reach the legal drinking age every year, and rising incomes, urbanization, and changing consumer preferences are expected to support long-term category growth.
UBL emphasized that taxation remains a serious obstacle to beer affordability. Despite having a lower alcohol content, beer is taxed 1.3 times higher than Imported Made Foreign Liquor (IMFL). Excise duties account for approximately 65 percent of the retail price of beer, leaving room for increased affordability through volume-based pricing and tax reforms.
Vivek Gupta, Managing Director and CEO of United Breweries Ltd, expressed strong confidence in the future of beer in India. He noted that as a market leader, the company aims not just to participate in the category's growth but to drive it by enhancing awareness, improving availability, and expanding its portfolio. With iconic brands, a growing premium portfolio, sharper execution, and a forward-looking approach to technology and productivity, UBL is well-positioned to shape and lead the next phase of category growth and create sustainable value.
Recent state-level changes have demonstrated potential for faster category growth. Following the introduction of a beverage excise structure in Karnataka, the category saw an increase of approximately 55 percent in the first month. Improved retail availability in Jharkhand led to growth of about 55 percent in the first half of the 2026 fiscal year, while reforms in Maharashtra contributed to an increase of approximately 35 percent over the same period. UBL reported exceeding category benchmarks in these markets, driven by its portfolio, product-market fit, and enhanced availability.
Premiumization is another key growth driver. Premium beer is growing approximately 2.8 times faster than the overall category, with nearly 70 percent of premium segment consumers switching from regular beer. UBL's premium portfolio includes Heineken, Heineken Silver, Amstel Grande, Kingfisher Ultra, and Ultra Max. In the first half of the 2026 fiscal year, this portfolio became profitable, with gross profit increasing by more than 1000 basis points year-on-year.
In the last quarter, Kingfisher Ultra and Ultra Max grew by 11 percent, and Heineken Silver increased by 28 percent. Regional brands in specific markets showed a 30 percent growth, while the broader Kingfisher portfolio grew by 6 percent on a large base. The company is also focusing on commercial execution and supply chain efficiency. Kingfisher achieved 100 percent coverage in target stores supported by over 50,000 coolers, and draft beer consumption increased by 2.3 times.
Over the past two years, UBL has added eight contract manufacturing capacities and plans three capital projects in the 2026-27 fiscal year. Furthermore, the company is increasing local sourcing and production while expanding long-term partnerships with suppliers.
Tristan van Strien, Global Head of Investor Relations at HEINEKEN N.V., stated that India is one of the fastest-growing volume markets for HEINEKEN and an increasingly important growth engine for the company. UBL has gained significant momentum and is expected to become a major player in HEINEKEN's global premium volume. The opportunities in the Indian category and UBL's strategy position the company for profitable growth.
The brewery employs a state-by-state strategy to balance growth and profitability, focusing more on increasing margins in low-margin markets and increasing share in high-margin states.