Brewing giant AB InBev, best known for its beer brands Stella Artois, Budweiser and Corona, has entered the non-alcoholic energy drinks market in India and hopes to capture 10% of the market in the next two years.

Expanding their Budweiser portfolio with “Budweiser Beats” they aim to take on Austrian energy drinks brand Red Bull which dominates the segment. They will also face stiff competition from Monster, who themselves recently made a move into the beer market with their acquisition of the Canarchy brewing collective.

In an interview with Indian publication The Economic Times  Kartikeya Sharma, AB InBev President – India & South East Asia, said “We have set an ambition of getting 10 per cent (of the market share) in next 24 months.”

He continued “Our expectation is to enter into the category, improve the penetration of the category to 8-9 per cent of the larger beverage segment. By virtue of driving greater penetration of this category, we aim to get a double-digit share within next two years.”

An advert for Budweiser Beats energy drink.

The company hopes to leverage on the standing of the main Budweiser brand which is already a popular premium product in the India beer market, as well as their strength in e-commerce and offline distribution in small mon & pop shops.

“The brand equity of Budweiser is going to play a big role giving the consumer a reason to come and try the product,” Sharma added.

Budweiser Beats is formulated using caffeine from Robusta coffee beans as well as B-vitamins.

The energy drinks market in India has witnessed rapid growth in the past 5 years, witnessing a CAGR of nearly 20% a year. The market is estimated to be worth close to USD 250 million annually.

Budweiser’s franchise partners in India will be producing Budweiser Beats.