Happiness brewing in neighbouring Bhutan for desi beer makers

Several companies in India are brewing their beer in Bhutan to access the product’s main ingredient—water. Specifically, natural spring water from the Himalayan nation, to help differentiate their brand and command a price premium. While Elfa and Kati Patang have started selling ‘Made in Bhutan’ beer over the past few months, Simba, Arbor Brewing Co. and White Rhino are exploring the landlocked country for expansion prospects.

So far, India’s craft beer industry, which accounts for 2-3% of the overall domestic beer market, has mostly explored Germany and Belgium, especially for wheat beer styles such as Hefeweizen and Witbier.

But from contract brewing and bottling of craft beer to procuring licences, Bhutan scores ahead of India, said marketers.

Superior Taste, Transit Edge
“Setting up a brewery in India is very difficult as it is expensive and procuring licences from government officials is an ordeal,” said Abhishek Dahiya of Punjabbased Madmax Brewing Co., which owns Elfa.

“Since Bhutan is a neighbour, the transit period is just a couple of hours. In comparison, it takes two months to get shipments from Europe or the UK.”

Ease of doing business with Bhutan’s Kinjore Brewery, located in Pasakha, has convinced Dahiya to scale up as he gets ready to add one more variant in June and expand distribution to Haryana, Uttarakhand, Himachal Pradesh and the North-East by August.

The Bhutanese brew is also superior in terms of taste in a market where competition has intensified as craft beers have boomed on the back of esoteric products. Bottled craft beer brand Kati Patang, which made its debut in Delhi seven months ago, is brewing its amber ale at the Ser Bhum Brewery in Hungtsho. It plans to expand distribution to Mumbai and Bengaluru in the next two months followed by Bhutan.

“Like whiskey makers look to the Scottish Highlands, craft beer brewers are discovering Bhutan now. Water, a key base ingredient that impacts the flavour of beer, is of higher quality in its natural state in Bhutan than in India,” said Kati Patang cofounder Shantanu Upadhyay, who drew up his business plan after meeting US craft beer pioneer Jim Koch of Boston Beer Co. “We get spring water from this brewery located at10,334 feet above sea level rather than Indian water, which needs RO treatment and addition of minerals.”

Also, Indian breweries need large production volumes to break even and are suited for mass brands, compared with artisanal small-batch brewing. With high import duties and transportation costs, a shorter transit period helps. It’s a challenge however for packaged craft beer brands to retain flavour as they have a shorter shelf life than pasteurized commercial products such as Kingfisher and Budweiser.

Mizoram-based packaged beer brand Local recently shut its Aizawl brewery as the state is set to go dry. It has collaborated with Namgay Artisanal Brewery for facilities in Paro, Bhutan. With capacity doubling, the brand is looking to expand distribution and add variants to its existing bottled pale ale.

Source:-https://economictimes.indiatimes.com/industry/cons-products/liquor/happiness-brewing-in-neighbouring-bhutan-for-desi-beer-makers/articleshow/69606280.cms