Beer major Anheuser-Busch InBev has forayed into the non-alcoholic segment with its flagship brand Budweiser. The move will allow the Belgium-based brewer to take the brand to states such as Gujarat where alcohol is prohibited.

Non-alcoholic beverages could also generate additional business for the company, which is grappling with frequent changes in excise regulations.

States such as Bengal and Maharashtra have hiked the excise rate on beer, leading to manufacturers cutting back on their supplies and temporarily creating a shortage in the market.

The company said “Budweiser 0.0” is brewed using the usual recipe of the brand containing barley malt, choice hops, yeast, filtered water and the beechwood aging process. But at the final stage alcohol is removed while retaining the taste of beer. Beer usually has a lower alcohol content of around 5-7 per cent.

The company said the non-alcohol beer would be available across e-commerce platforms, modern retail channels and at major department stores in cities such as Mumbai, Delhi, Bangalore, Pune, Chennai, Hyderabad, Calcutta as well as in Gujarat.

The beverage has been priced at Rs 80 for a 330ml can and Rs 90 for a 330ml bottle —lower than the price of beer. The beer will have to be imported as excise regulations do not allow non-alcoholic beverages to be produced within licensed premises.

“While the market for non-alcohol beers is still nascent in India, as a leading brewer we see an opportunity to grow in this segment. The launch is in line with our Global Smart Drinking Goals to ensure that low and no alcohol beer make up at least 20 per cent of our global beer volume by 2025,” said Ben Verhaert, president – South Asia, AB InBev.