Positioning itself in the premium specialty segment, Kaltenberg beers are brewed strictly according to the Bavarian purity law and family recipes, without compromising on quality. While HRH Prinz Luitpold von Bayern is clear that they do not want to enter the mass market, Rohit Jain, chairman, CMJ Breweries informs us on the company’s marketing strategies and market trends By Kahini Chakraborty

Perceived as a socialising drink, beer has been accepted as a ‘lifestyle’ alco-beverage that appeals to all. With the India market being spoilt for choice with various beer brands available to suit the taste buds of the people, the latest entrant to explore this segment has been Kaltenberg beer. Following the philosophy of ‘beer should be fresh’, HRH Prinz Luitpold von Bayern, the great grandson of King Ludwig III, the last Bavarian King, still controls and manages the Konig Ludwig International, which has joined hands with CMJ Breweries to introduce authentic German beer ‘Kaltenberg’ in India. A family run company, started reigning the Bavarian state in 1180, and has their expertise in the brewing business since 1260 in Munich. Over almost 800 years, the family brewed in many national and international breweries. In Bavaria itself the company has 600 breweries, and in Germany more than 1200. They have set important milestones such as the Purity Law of 1516, the wheat beer monopoly, the foundation of the Brewing University at Freising, the beer garden edict and the world famous Oktoberfest. “We are the only Royal Bavarian brand, with a quality worth a king. I am still controlling the quality personally at each production place,” says HRH Prinz Luitpold von Bayern. In their castles they were running the breweries to cover the beverage need of the royal household. Besides this, they built breweries in the 17th and 18th century which were the biggest contributors to the finances of the state of Bavaria.

Reminiscing on the past, he elaborates,“In 1516 Duke William IV, the ruler at that time issued the Bavarian Purity Law, nowadays the eldest existing food law in the world. All German brewers are obliged to brew according to this law, using only hop, malt and water. In 1810 the Munich beer festival ‘Oktoberfest’ started as a part of the wedding ceremony. In 1812 the Beer garden law was edicted. The Castle brewery in Kaltenberg started brewing in 1871, and today Royal Bavarian beers are offered in over 50 international markets.”

In the making

Their core values are driven primarily on the desire to offer beer as an enjoyment to the world’s connoisseurs. On the key ingredient which should be looked out for in a beer, he points out, “Yeast is very important for a fine taste profile. We use our own pure yeast strain in each brewery. We only use two row barley summer malt and finest aroma hops from Bavaria. The precise variation is our secret.” The company has production in four breweries in Bavaria. “We are brewing under license in Sweden, UK, Belarus, Ukraine, Russia, Croatia, Bulgaria, Bosnia-Hercegovina.” Positioning itself in the premium specialty segment, HRH Prinz Luitpold von Bayern is clear that they do not want to enter the mass market. “We are perceived as the international quality market leader. The beer world is looking today no longer for green bottles and same taste – but for good taste and palate varieties. All this we do offer by heritage and legacy and is very authentic. It creates a profitable segment in the premium category.” The company will be focusing on institutional and retail sales in the India market.

Rohit Jain

In India, however, the company has partnered with CMJ Breweries, and introduced the authentic German beer ‘Kaltenberg’. As part of the licensing agreement CMJ breweries manufactures and distributes the famous brand pan India. The company has launched Kaltenberg Royal Lager and Kaltenberg Royal Strong. The product is available across 1,000 outlets over the next few months in Maharashtra, Goa, Daman, West Bengal, Bihar, Jharkhand, Delhi, Karnataka, Tamil Nadu and Andhra Pradesh. Speaking on the same, Rohit Jain, chairman, CMJ Breweries informs, “The fully automated greenfield brewery has been set up in Byrnihat, Meghalaya with an investment of about Rs 125 crore. The company has also set up 100 KLPD state-of-the-art grain based Extra Neutral Alcohol (ENA) plant at Byrnihat with an investment of Rs 250 crore. The ingredients for this beer are imported from Germany and are produced as per German purity laws which are strictest all over the world.” There are times when there has been a shift in the market sentiment towards focusing on value for alcohol and not value for pleasure. When asked about the evolution of the beer drinking culture in India and abroad, Jain opines, “The beer culture in Europe had shifted towards wine and has seen a negative growth. Several pub breweries have closed down their shops due to nonviable operations. In India, beer is surely commanding much more respect than earlier days and today it’s enjoyed across all segments of people from small pubs to five-star hotels. Nevertheless, beer will grow over the years all over the world especially in India which will see exponential growth in the next decade as its per capita consumption is very low.”

Growth potential

On the growth vision for the brand in India, he optimistically says, “We believe that India will grow strongly in the super premium sector mainly in the urban cities. Kaltenberg being the only German Purity Beer in India will command its own niche place among beer drinkers. Kaltenberg would be seen as a drink to be toasted among high level meetings, parties, get-togethers, etc. We plan to spread all over India in the next 12 months.”