Kingfisher: No longer the king of good times?

M. Gautham Machaiah
Bangalore

After an international beer conference in London, all the world’s top brewery bosses decide to go out for a beer together.

The Chairman of Budweiser says, “I would like the most refreshing beer in the world, ‘The King of Beers’, give me a Budweiser.”

The Chairman of Guinness says, “I would like the only beer in the world worth really, truly waiting for, give me a Guinness.”

The Chairman of Carlsberg says, “I would like the world's best beer, drunk in more countries than any other, give me a Carlsberg.”

Vijay Mallya sits down, looks around and says, “Just give me a Coke.”

The other brewery bosses laugh loudly and say, “Hey Vijay, how come you are not drinking a Kingfisher?”

“Listen,” says Vijay Mallya, “If you guys are not drinking beer, neither will I.”

Well, any Kingfisher fan would agree with Mallya. In fact, until recently you would walk into a restaurant and just ask for a beer. And a beer in most parts of the country invariably meant Kingfisher. Beer and Kingfisher were synonymous with each other. Not any longer.

With the entry of several international brands like Carlsberg, Foster’s, Tuborg, Budweiser and Tiger, the consumer is spoilt for choice. But that is not the only reason why bad days have befallen the king of good times.

Over the past few years, Kingfisher could not match up to its rivals in terms of aggressive branding, advertising and marketing, thus failing to encash the equity that it enjoyed.. While other brands launched a blitzkrieg targeting the youth, Kingfisher remained content resting on its laurels. Thus, the younger generation today considers it more hip to be seen with a bottle of an international beer than good old Kingfisher.

There was a time when competitors struggled to get even a toehold of the market, but in a reversal of roles, Kingfisher has been shown the door in many up-market pubs. Some pubs even consider it infra dig to serve the popular home grown beer. Another common excuse of pubs is that Kingfisher is in short supply, something unheard of in the past. Unfortunately, this is the state of affairs in Kingfisher’s hometown Bangalore too

Whatever be the reason for this dismal performance, Kingfisher fans are a distraught lot. Beer like wine is an acquired taste and Kingfisher lovers swear by their favourite brand. However, with Kingfisher often being unavailable, patrons are forced to sample other brands. Though many affirm that “there is nothing to beat Kingfisher”, some others have slowly begun switching loyalties.

Has Mallya taken his customers for granted, is there a genuine shortage of Kingfisher beer or have his executives been lax? Whatever be the reason, after seeing many moons of good times, Kingfisher fans may have to brace themselves up for some bad times too. That is not something you can raise a toast to.

(Picture sourced from www.travelpod.com )

COMMENTS

Yes, there has been a lot of competition for Kingfisher, but do you have some statistics on the sales and market share? May be that would prove your point that Mallya is not heading for good times..I believe that market is growing bigger for beer and KF still holds large chunk of it.
- Lakki

I was pleasantly surprised to know of its popularity among New Zealanders when I was there recently. The brand is popular at the innumerable Indian eating places there. Was quite amusing to watch the Kiwis order for a strong version along with naan and butter chicken. It is considered an essential part of the Indian platter! I also remember a Kiwi who had been to Mumbai some years ago, lamenting about the mild headache he had when he downed them. “I believe they add Glycerin to your beer?” he asked me. Well, 'The king of good times' does need a revamp of its packaging and marketing.
-Deepti Ganapathy, Mysore

Well, there is no doubt that competition has increased, but the fact remains that Kingfisher is still the king of good times. In the alcoholic beverage industry in India, it is not just about establishing a brand, but it also about building a strong distribution network besides liaison with government officers.

People have now got an opportunity to taste other MNC brands (Of course, even KF is an MNC brand now), but how far they will be loyal to new brand in long run is the question to be asked. In Andhra Pradesh, for instance, there was no supply of Kingfisher during the peak of summer, which actually is the season, due to the legal tussle between UB and Andhra Pradesh Brewery Corporation Limited. Thus, Kingfisher was off the shelves during the months of April, May, and first half of June. The new MNC brands did take the advantage by trying to flood the market with their products.

But the moment Kingfisher was back in the market, stockists found it difficult to sell other brands like Tiger, Budweiser and Carlsberg. Mallya's UB and USL (United Spirits Ltd) empire has grown with a good dealer and distributor network along with strong support from the government authorities. This lethal combination at any given time can make or break a brand overnight no matter how strong it is out side India!
-Anju A, Hyderabad

Nobody is denying Mallya’s network of dealers and contacts with the Government, the question is: Why is Kingfisher beer not available in many pubs of Bangalore? Is there really a scarcity or have other brands succeeded in convincing pubs not to serve Kingfisher?
-C.L. Mohan Kumar, Bangalore