One of the biggest names in the business, Scottish craft brewery BrewDog launched its first brewpub in Delhi-NCR at Gurugram yesterday. It is their third outlet in the country, the other two in Mumbai.
By the end of the year we will have three more Amritsar, Chandigarh and Hyderabad. In places like Indore, Bangalore, Goa, we hope to open 6 -- 9 more outlets next year. The CEO at Aloha International Brewpub, Karan Jain, said that the company is looking at 25 plus outlets in the next three years.
The company has invested about 30 crore and plans to invest another 100 crore over the next year. Jain says that the investment will go up to 500 crore over the next five years. He hopes to have opened 75 outlets by then.
The first outlet opened in Mumbai's Kamala Mills in mid- 2021, but it only became fully operational in February of this year after the third wave of the epidemic. The second outlet was opened in Bandra in Mumbai four months ago.
India is a nascent beer market because of the fact that craft beer has been around for only 12 -- 13 years. There are about 400 or so craft breweries in India. Nearly 50 per cent of wheat beer is produced. The remaining players are making only 4 -- 5 different variants of beer. This is where a BrewDog wins because they have a portfolio of more than 450 beers. Jain says that at any given point in time we will have at least 24 beers on tap in our bars.
While 70 per cent of the beers will be the same, 30 per cent will vary from outlet to outlet.
India is going through a wheat beer phase. Those are the ones that are doing well in our bars as well. Nearly 65 per cent of our volumes come from wheat beer. IPAs are also becoming popular. Of the 24 variants we keep at our bars, 50 per cent are different variants of IPAs. Jain says it is a homecoming of the Indian Pale Ale.
The customer is getting used to craft beer with so many breweries in so many states. Jain says that craft beer is cheaper than commercial beer in a lot of cases. The quality is something people know, because they know their beer. He says that it is no longer just about 1 1.
A report by Research Markets shows that India's craft beer market is expected to grow at a rate of 108.59 per cent in terms of volume between 2020 and 2025.
BrewDog, with revenues of 286 million pounds, exports to 60 countries and has over 100 bars across the globe, is a company with revenues of 286 million pounds. It has its own breweries in Ohio USA Berlin Germany and Brisbane Australia Ace Aloha, one of only two companies in the world to have a brewing license from BrewDog. We are currently brewing 15 variants in Pune. Jain says that we are currently importing around 10 variants. The Pune brewery has a capacity of 40,000 liters. Jain plans to open a brewery in Pune as they grow.