Viiking Ventures acquires Kings

Beer for Rs 90 cr
The 330 ml pint of the rebranded beer will be sold
at Rs 85 in Maharashtra and Karnataka
Urvi Malvania | Mumbai Last Updated at August 4, 2015 00<27 IST

Kings Beer, the brand synonymous with trips to Goa, will now be available
in Maharashtra and Karnataka, too. The brand has been acquired by
Sachiin Joshi-led Viiking Ventures for Rs 90 crore from Impala Distillery
and Brewery and will be rebranded Goa Kings.

The cost of acquisition includes the investment on expansion of the plant,

as the beer can only be manufactured at the current location. Now that it
will be available outside Goa as well, the output requirement will increase,
hence the expansion.

With this, the company will have two beer brands in its portfolio – Goa
Beer, the brand developed by Viiking Ventures, and Goa Kings, the
acquired brand. “We will run the two brands separately. While Goa Kings
will continue to be the mass brand, Goa Beer is the more premium brand.
That way, we will be present at different niches within the beer segment,”
says Joshi.

While its name will change from Kingʼs Pilsner Beer to Goa Kings, the
packaging will remain the same. However, the 330-ml pint of Kings is set
to become dearer by almost 100 per cent with the proposed price at Rs
85 versus Rs 40-45 right now. Among other reasons, the hike is on
account of excise duty, which will come in to play as the beer is
distributed to places beyond its home state.

Apart from the Rs 90-crore that Viiking Ventures is shelling out on

acquiring the brand and expanding the plant, it has also ear-marked Rs
100 crore on marketing over the next three years.
“The challenge (and hence cost) in marketing alcohol in India is huge. We
will be looking at events and below-the-line associations,” notes Joshi.

“We want to be present in the alcohol space in a big way. Over the next
five years, we have to have our brands in the market for not only beer, but
vodka, whiskey and wine as well. Weʼve already done a soft launch for our
brand of pre-mixed vodka – Triple X and will be following that with the
launch of a premium Vodka brand Trip. In case of wine and whiskey, Iʼm
open to acquiring foreign boutique brands,” he adds.

Viiking Ventures has interests across sectors such as hospitality, media

and entertainment, health and fitness, realty and aviation. In the
beverages segment, it already has Goa Beer and an energy drink named
XXX Energy Drink along with the XXX Vodka Mix, which is positioned in
competition with Bacardi Breezer. It also has two brands of packaged
drinking water – Life and Pani, the latter positioned in the high-end
segment.