Defying the slump in equity markets on Friday, the stock of United Breweries Ltd. shot up by more than 1.5% on the exchanges. The surge came after the beer maker announced the launch of a new product for the domestic market.
In a regulatory filing, United Breweries noted that it would be launching Amstel Grande on Saturday, April 5. Described by the company as "premium strong beer", the product at present would be focussed on the "domestic market only".
Amstel, notably, is a Dutch beer brand founded in The Netherlands in 1870. United Breweries said the tie-up to launch Amstel Grande combines its "brewing excellence with Amstel's 150-year heritage".
United Breweries, which is part of the Heineken Company, will be launching the premium beer in Uttar Pradesh, India's most populous province. It has been priced at Rs 110 for a 330ml bottle, Rs 160 for 500ml bottle, and Rs 210 for a 650ml bottle, a press release said.
"After receiving an overwhelming response in Maharashtra and West Bengal, we are excited to bring Amstel Grande to Uttar Pradesh. Uttar Pradesh is a vibrant market with a growing demand for premium beverages," said Vikram Bahl, chief marketing officer of United Breweries.
Amstel Grande is developed locally in India, the release said. "The beer is slow brewed and matured longer, allowing its flavors to fully develop, resulting in a rich, smooth taste," it said.
With no added sugar and perfected through extensive global and local testing, it achieved top scores in consumer research, the company further claimed.
United Breweries Stock Rises
Shares of United Breweries rose 1.6% to a high of Rs 2,014.95 apiece on the NSE on Thursday. At the time of publishing this report, the scrip pared only a fraction of the gains, and was still trading strong at Rs 2,011.8, up 1.45%, at 1:52 pm. In comparison, the benchmark Nifty 50 was down 1.5%.
The alcohol beverage company's stock, however, is still down by nearly 4% on a year-to-date basis, and up by around 1.8% over the past year.
Among the 17 analysts tracking the company, seven have a 'buy' rating on the stock, two suggest a 'hold', and eight recommend 'sell', as per Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 1.2%.
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