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Top 3 Beer Stocks in India to Invest Right Now

Top beer stocks in India to invest now

The top beer stocks provide an opportunity to investors to look above and beyond the more traditional hard alcoholic beverages drinks. Beer as a product gets consumed as an alcoholic beverage and is more youthful in terms of target audience and in terms of consumption. There are some homegrown brands in India but, over the years, beer segment was dominated by multinational labels. Biggest local brand Kingfisher is now owned and operated by international major. Investing in top beer stocks means investing in the companies which have high brand recall or in those companies having high growth performance. 

Beer has been categorised as one of the most popular alcoholic beverages in India in the past 2 decades. Majority of beer’s market growth continues to stem from young consumers and from those consumers considering beer a trendy and fashionable drink in comparison to other traditional spirits. There continues to be a significant demand for foreign beer in urban markets. Maximum levels of consumption of beer in India is observed in southern states. Healthy growth rate for beer industry exhibit strong growth opportunities available for breweries and beer manufacturers in India. Most of the distilleries and breweries globally have now decided to create a base in India, either in form of manufacturing unit or with the help of distributors and JVs.

In India, pub and bar culture has been escalating at a rapid pace, and this culture is more popular between the age group of 20-45. Experts believe that beer market should touch US$23.5 billion and should compound at ~9.5% over 2019-2024. This growth should be supported by higher alcohol consumption in urban areas of the country. 

Over the past couple years, it has been seen that microbreweries have gained strong popularity and they have changed the face of craft beers. Higher demand for craft beer appears to be an outcome of efforts, time and money invested by micro-breweries. These micro-breweries focus on developing perfect craft beer in India. Experts opine that craft beers and microbreweries are in early stages and they need support to develop to their full potential. This support should come from Indian government and from several other agencies which regulate this sector. 

With this in mind, let us quickly have a look at top beer stocks in India to invest.

1. United Breweries Limited-top beer stocks in India

In the year 1915, foundation of Good Times was laid when 5 breweries in South India came together. In today’s scenario, the company’s beer business has been categorised as an undisputed king of Indian beer market. United Breweries Limited is supported by innovation and aggressive marketing which is being complemented by strong distribution network. 

United Breweries Ltd has released its results for quarter ended June 2023. Volume in the quarter saw a decline of 4% excluding RTM changes mainly due to Telangana & Haryana. In Telangana, the company saw capacity constraints during peak season considering continued strong growth of industry. Gross margin during the quarter came in lower in comparison to previous year (-369 basis points) and there was an improvement vs previous quarter (+196 bps) supported by revenue management & cost initiatives. 

The company incurred capex during the quarter of INR45 crores, mainly in supply chain initiatives. UBL is optimistic regarding the long-term growth potential of the industry, supported by higher disposable income, favorable demographics & premiumization. 

2. Associated Alcohols & Breweries Ltd

The company was (and still is) a leading producer of domestic liquor and it has been categorised as an efficient manufacturer of global brands. As of now, the company continues to transform itself into a company having its own high-reputation of brands. 

In FY23, the company saw record revenues of INR703 Crore, exhibiting a strong growth rate of 37%. The company saw high double-digit percentage growth in volume and revenue throughout all the value-added product portfolios. Indian Made Indian Liquor (IMIL) portfolio saw revenues of INR240 crore, exhibiting a spectacular growth of 51%. Indian Made Foreign Liquor (IMFL) proprietary brand portfolio saw revenue of INR107 Crore, a rise of 66%. IMFL licensed brand portfolio saw INR198 crore in revenue, which exhibits exceptional growth of 83%. 

Significant achievements and challenges characterised the company’s performance in FY23. However, the company remained optimistic about its future. Focus of the company is on improving its profit margins. It will continue to navigate challenges, seize growth opportunities, and drive long-term shareholder value. 

Some green shoots of economic revival are visible as there was a rise in rural growth during last quarter and a decline in consumer price index inflation to less than 5% in April 2023. Outlook for private business investment is positive even though there has been an increase in interest rates. India seems to be less exposed to Chinese economic weakness as it has much less direct trade with China in comparison to many Asian peers. 

3. Winsome Breweries Limited

Based in New Delhi, India, the company is engaged in the business of brewing and marketing beer in India. The company is being promoted by Shri R.K. Bagrodia and was set up in 1992 in technical collaboration with Henninger Brau of Germany. Henninger brands are exported to ~60 countries globally and it is known for their excellent quality.

Growing market demand on the basis of increasing youth population in India and higher living standards with increased purchasing power should result in good market growth and good revenue generation for Winsome Breweries Limited. The company expects that existing capacity should be enough to meet the company’s requirement at least next 5 years. It has expansion plans to double its manufacturing capacity over upcoming years to address the growing market demand.

To sum up

Investors who are planning to bet on domestic consumption story and growth in youth population in India should invest in the top beer stocks mentioned above. Selecting the top beer stocks can help an investor in diversifying portfolio and capture a consumer segment which has a direct relation to the fast-growing younger population in India.

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CEO & Editor
I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as,, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

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