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Liquor Trade in Maharashtra Up in Arms with Government Mandate on AI-ML Cameras

The liquor trade in Maharashtra is up in arms as the State Government has passed a resolution mandating that all liquor vends, be it shops, bars, hotels with liquor licences etc to install cameras with artificial intelligence and machine learning features, each said to be costing ₹4.2 lakhs.

The Government Regulation was announced just one day prior to the Election Commission announcing the dates for the elections to the Maharashtra Assembly and the Model Code of Conduct coming into play, leaving the liquor trade in a hapless state.

The liquor trade is approaching the courts over this order which they believe is going to lead to ‘over-regulation’ and ‘monitoring’, besides becoming another tool for corruption. The Government’s contention has been that it wants the vends to install the cameras to ensure that these vends do not sell liquor to underage youth.

The trade terms this measure as ‘draconian’ and another way for the government to harass and make money. It is estimated that with the implementation of this order, the liquor vends in Maharashtra will cough up nearly ₹3,000 crores, with Mumbai accounting for nearly ₹100 crores.

One Vendor Likely To Benefit

The entire order, the trade states, appears ‘fishy’ as only one company is the single vendor in the absence of other suppliers. The Excise Commissioner, Vijay Suryawanshi, however, has clarified that the government only had specified the technology and not the company from whom the cameras could be purchased. He said there are three to four vendors supplying this type of equipment.

The government has initiated this on ‘an experimental basis’ in Mumbai to begin with and on successful implementation here, it plans to roll this out across the State. Soon other states may follow, leading to ‘keeping the liquor trade in a vice-like grip’. The liquor industry, as such, is highly regulated and this new rule will adversely impact businesses.

As per media reports, Pivotchain, a video analytics company, helps secure Government and private companies’ physical infrastructure with large scale Artificial Intelligence driven Video Surveillance (RAVEN AI). They leverage computer vision to provide maximum performance to vision-based systems when solving day-to-day automation challenges at government and military premises, airports, and logistics centres.

The liquor trade members wonder why the need for such sophisticated systems, best usage scenarios being government, military premises etc. There are wine shops, bars, permit rooms etc which number over 2,000 in Mumbai alone and another 1,500 in the metro region. The software company has got three distributors, reportedly owned by one individual, and this has raised doubts on the entire move itself. The government however maintains that these cameras will help track the person (minor or those indulging in criminal activities) with all his or her background and in real-time.

Constant Monitoring Of Liquor Stores

The liquor vends are seeing this as another way of ‘harassing’ the trade. With elections round the corner, the Excise Department has announced guidelines and one of which states that “Licence holders must share a photo of their shop’s closure daily in the group of excise officers and liquor licence holders to confirm adherence to the specified closing timings. Besides, they need to update their shop’s opening purchase, sales, and closing details daily before the store closes. These updates must be logged into the Excise Department portal using individual logins assigned to each licence holder.”

The Excise Department has cautioned that any violation of the guidelines would lead to stricter penalties. As per guidelines for consumers have been advised to purchase liquor well in advance as shops may close earlier than usual time. They are also required to carry valid permits (permanent or temporary) while purchasing, carrying, or possessing liquor in Maharashtra.

Toki Whisky and Yamazaki 12-Year-Old wins awards

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Suntory Whisky Toki receives its First Gold
Chief Blender Shinji Fukuyo recognized as ‘Master Blender of the Year’ for the first time

Suntory Spirits – Toki and Yamazaki Whisky’s recently have been recognized at the International Spirits Challenge 2024 Awards in London. Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category while the Suntory Single Malt Whisky Yamazaki 12 Years Old was awarded the Supreme Champion Spirit. Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards.

Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category

This esteemed recognition reaffirms yet another significant achievement among for these products. Toki Whisky has earned over 20 international awards while Yamazaki 12 Years Old award to the highest scoring Trophy winner of the competition, the top award in the Japanese Whisky category, and was also selected as the most outstanding product out of thousands of entries among all categories.

Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards

This marks the first time that Yamazaki 12 Years Old has been awarded as the Supreme Champion Spirit and the second consecutive year for a Suntory Whisky brand to achieve this accolade following Yamazaki 25 Years Old last year.

These recognitions are a testament for the company’s excellent blending skills and the pursuit of perfection in quality for its whisky making, further cementing the reputation of Japanese Whisky added the company.

Octaga Green unveils Master’s Imperial and Captain’s Select Whisky’s

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Marrying tradition with sustainability

Octaga Green introduced Master’s Imperial and Captain’s Select, two premium whiskies that embody the brand’s philosophy of blending sustainability with time-honoured craftsmanship. The Master’s Imperial whisky is priced at Rs. 1,815 for a 750 ml bottle, while Captain’s Select is available for Rs. 1,245 for a 750 ml. Both products are available for purchase throughout India and M.O.D. (Ministry of Defense) across 18 states and 5 countries.

Master’s Imperial is a premium blended Scotch whisky tailoured for discerning consumers who seek quality whiskey without a hefty price tag. This blend combines rare grain spirits with 6-year-aged, imported scotch malt delivering a smooth and unique taste. The aging process imparts a distinctive depth and complexity to the final product.

At the same time, Captain’s Select Whisky is a top-tier malt whisky that delivers a smooth and unique flavour. The blend features rare grain spirits and malts aged for 3 years, this classic whisky has been rewarded with a Silver Medal at the IWSC London in 2018.

“At Octaga Green, our vision is to shape a sustainable future while delivering world renowned spirits. True quality goes beyond the product; it’s about creating a positive environmental impact,” said Basab Paul, CEO and Managing Director, Octaga Green.

Indri Single Malt launches ‘The City Series’

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First Travel Retail Exclusive for Bengaluru Duty Free

Indri single malt launched its first travel retail exclusive ‘City Series’ with the debut Oloroso-Sherry cask expression exclusively crafted for Bengaluru Duty Free. The limited edition is solely available for travel retail and is also the first in a series of bespoke single cask expressions, where each release will embody the spirit and essence of a different Indian city, available solely through select duty-free outlets across India and the world.

This travel retail exclusive single malt whisky is specially made, designed, and bottled for Bengaluru Duty Free, celebrating the city in every bottle. The 750 ml bottle of the Indri Single Malt Bengaluru Duty Free Expression is Rs. 9,500 and will have an ABV of 58.8%. The exclusive edition is also available only in the Duty Free, Terminal 2 Departure, Kempegowda International Airport, Bengaluru.

*David Grady, Country General Manager, Avolta with Surrinder Kumar, Master Distiller & Blender, Piccadily Agro Industries Ltd.,*

The Bengaluru Duty Free Expression captures the spirit and essence of Bengaluru, paying homage to its blend of vibrant modernity and rich traditions. It showcases the intricate craftsmanship Indri is known for, presented with iconic Bengaluru landmarks incorporated into the bottle design.

The makers state that each sip of this Oloroso-Sherry single cask expression offers a taste of the city, combining complexity and warmth with layers of tradition and innovation. This expression boasts a rich and full-bodied nose, revealing sweet caramel, fresh red fruits, and gentle spices, all beautifully intertwined with nutty, caramelized notes and earthy undertones.

On the palate, it offers a warming and balanced experience, featuring fresh red berries, subtle toffee, vanilla, and nuttiness, complemented by soft spices and a gentle dryness. The finish is long and smooth, with lingering flavours of sweet vanilla, spice, and fruity undertones, creating a lasting impression of depth and complexity.

Watch the review of Indri Single Malt here.

“We are thrilled to unveil the first expression of our ‘City Series’ with Bengaluru Duty Free. Each expression of this series is a celebration of India’s diverse cities, their unique essence, and cultural richness,” said Siddhartha Sharma, Promoter, Piccadily Agro Industries Limited. Piccadily plans to launch each expression of the ‘City Series’ that will be an ode to a city’s unique culture, essence, and personality. City specific expressions will be released at other exclusive duty-free outlets, allowing travellers to embark on a flavourful journey through India.

Longitude 77 launched in Punjab

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Pernod Ricard India has launched Longitude 77 in Punjab offering seekers of authentic, contemporary Indian luxury a memorable experience which was marked by a launch event at the 10^th anniversary of EYP Creations. The launch was held at the 10-year celebration of EYP Creations, which specializes in handling Punjabi music artist.

EYP Creations manages Punjabi artist like Parmish Verma, Jassie Gill, B Praak, Babbal Rai, and others out of which the event witnessed the presence of B Praak, Gurnazar, and Jassie Gill.

With the availability of Longitude 77 in Maharashtra, Goa, Haryana, Chandigarh, Rajasthan, Uttar Pradesh, Dubai, and at Delhi Duty Free, the brand is further making its way in the Indian markets with the launch in Punjab. It is aimed at providing a premium convivial experience while establishing a new benchmark for Indian whisky drinkers in Punjab.

The culinary experience featured Punjab’s bold flavours, reimagined in contemporary, experimental dishes. The event culminated in an exclusive Longitude 77 tasting experience, featuring serves along the Longitude such as Punjab Old Fashion that highlighted the finest local ingredients, recognized with GI tags for their exceptional uniqueness.

Watch our review of Longitude 77 here.

Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India said, “We are proud to bring Longitude 77 to Punjab, a region known for its deep appreciation of authenticity and grandeur. This launch marks an exciting chapter as we continue to share this unique spirit of India with connoisseurs across the country.”Nikhil Dwivedi, Founder & Director, EYP Creations said, “As we celebrate a decade of EYP Creations, it’s truly exciting to mark this milestone by partnering with such a prestigious brand like Longitude 77 for their launch in Punjab. The brand reflects the same values we stand for.”

Pernod Ricard India invests in Nagpur

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Ground breaks Asia’s Largest Malt Distillery and Maturation Facility

Pernod Ricard India conducted the Bhoomi Pujan ceremony (ground-breaking ritual), for setting up its largest malt distillery and maturation facility in Asia, to be situated in Butibori in Nagpur, Maharashtra. The ceremony comes on the back of the Memorandum of Understanding (MoU) that they signed with the Government of Maharashtra on 23^rd February 2024, and is being considered as the first-step in that realization. The projected investment of the facility is Rs. 1,785 crore over a span of 10 years.

**Jean Touboul, CEO of Pernod Ricard India and Shri Devendra Fadnavis, Deputy Chief Minister of Maharashtra**

Since the signing of the MoU, Pernod Ricard India has already committed approximately Rs. 100 crore, including land costs, as an essential first step in advancing the project. The company has already made progress on operational and construction planning. The design and layout of the facility has been finalized with efforts being aligned with the goals outlined in the MoU. The project envisages the establishment of end-to-end capabilities for producing world-class malt spirit in India and the creation of the largest malt plant in Asia, with a production capacity of up to 13 million pure alcoholic liters annually.

The project is poised to generate direct employment for 700 to 800 people, with indirect job opportunities expected throughout the region. It will also provide farmers with new avenues to cultivate high-quality barley. Additionally, the initiative focuses on skill development and fostering a culture of entrepreneurship and innovation within local communities.

The facility will use 100% renewable electricity, biomass from agricultural waste, and adopt water-positive measures to minimize its ecological footprint.

Deputy Chief Minister of Maharashtra, Shri Devendra Fadnavis, stated, “Pernod Ricard India’s decision to invest in the establishment of Asia’s largest malt spirit distillery and maturation facility in Maharashtra underscores India’s growing stature on the global economic stage. This landmark project will significantly contribute to local employment, providing job opportunities for hundreds of individuals while fostering skill development and entrepreneurship.”

Jean Touboul, CEO, Pernod Ricard India remarked, “The Bhoomi Pujan ceremony is a significant milestone that highlights our unwavering dedication to India’s growth story. Our vision is to shape a sustainable future, where India emerges as a hub for premium malt spirits crafted with global precision and local passion.”

Campari picks up minority stake in ODC (BidCo)

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Campari Group has completed the acquisition from ODC (BidCo) Limited of a 14.6% minority stake in Capevin Holdings Proprietary Limited, the South African holding company indirectly owning, in particular, 100% of CVH Spirits Limited, a Scottish company operating in the production and commercialisation of renowned Single Malt Whiskies Bunnahabhain, Deanston, Tobermory and Ledaig, and Blended Whiskies Scottish Leader and Black Bottle.

Campari Group also holds distribution rights for brands from CVH Spirits Limited portfolio in France and South Korea. In accordance with Capevin Holdings Proprietary Limited’s memorandum of incorporation, Campari Group has exercised its right to appoint a board member and has additional governance rights to protect its minority position. The purchase price paid amounted to GBP 69.6 million (corresponding to €82.6 million at the exchange rate of the transaction date). The transaction was financed using available cash.

Scotch Whisky exports in first half of 2024 reflect global economic headwinds

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Export value of Scotch whisky in H1 2024 was £2.1bn, down £463.2m (-18%) compared with H1 2023
Export volume of Scotch whisky in H1 2024 was 566m 70cl bottles (equivalent), down 64.3m (-10.2%) 70cl bottles compared with H1 2023
H1 2024 is the 4th highest value export total since record began.

The Scotch Whisky Association (SWA) has released new figures revealing that exports of Scotch whisky in the first half of 2024 have fallen by 18% compared to the same period in 2023.

Data for H1 2024 shows that the value of Scotch whisky exports declined when compared with the first half of 2023 – a year in which the industry saw a reduction in exports after a record breaking 2022. Export value in H1 2024 was £2.1bn, down 18% on 2023. In the same period, the volume of exports fell by 10.2%, to the equivalent of 566m 70cl bottles – or 36 bottles of Scotch whisky exported each second, compared to 40 bottles per second in the first half of 2023.

UK Government backs producers

Publishing the figures, which are collated by HMRC, the SWA called on the new UK government to take action to ‘back Scotch producers to the hilt’, as Prime Minister Keir Starmer promised to do in the run up to the General Election. This includes reducing the tax burden on Scotch whisky at the Budget on 30 October following the damaging domestic impact of the 10.1% duty increase in August last year.

By value, the United States remains the largest global market in the first half of 2024. The industry continues to feel the impact of the 25% tariff on Single Malt Scotch whisky, levied between October 2019 and March 2021, which cost the industry £600m in lost exports and market share. The industry continues to press for a full resolution of the underlying trade dispute and ensure that Scotch whisky is removed from further harm in this critical global market.

By volume, India is the largest market, with growth of 17.3% in the first half of 2024 compared with the previous year. This is despite the current 150% tariff on imports remaining in place. The SWA has called on the new UK government to redouble efforts to conclude the UK-India Free Trade Agreement. The phased reduction of the tariff would benefit industries in both the UK and India and could see the value of Scotch whisky exports grow by £1bn over five years.

Commenting on export figures in the first half of 2024, SWA Chief Executive Mark Kent said, “The Prime Minister has promised to ‘back Scotch producers to the hilt’. These figures are a reminder that the success of Scotch whisky cannot be taken for granted and requires government support to ease the industry through short term volatility.

“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch whisky. But it is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.

Seeks Duty Cuts by New Government

“The UK Budget on 30 October is the first opportunity for the new Labour Government to show it truly supports Scotch. Last year’s double-digit tax hike on Scotch whisky in the UK, the largest in 40 years, has already lost HM Treasury almost £300 million in tax revenue. Beginning to reverse the damage by cutting duty on Scotch whisky will boost public finances and bolster the industry through this challenging period.

“In addition, the H1 figures clearly show that our biggest market, the US, has not fully stabilised following COVID and the damage caused by the 25% tariff on Single Malt in the US. The permanent elimination of this tariff, going beyond the current five-year suspension, would remove uncertainty, give the industry increased confidence and allow our full focus to be on growing in this highly competitive spirits market.

“It is welcome that the UK government has picked up negotiations on a UK-India trade agreement. Exports to India have been a bright spot in the first half of 2024, despite the current 150% tariff being a brake on future growth. Securing a deal which reduces the tariff would be a major boost to the industry and help to mitigate the impact of a slowdown in other global markets.”

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Growing Investor Sentiment in Indian Alcobev Industry

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The Indian alcobev sector has exhibited continuous growth exuding investor confidence. Liquor companies are no longer taboo when it comes to investments by the general public, resulting in a number of companies raising funds from the equity market and doing pretty well at that. Not just that, mergers and acquisitions (M&A) are adding to that growing investor sentiment.

In the recent past, the alcobev sector has witnessed some important investments, including M&A deals. One of the fastest growing craft beer manufacturers Bira 91 raised $25 million in Series D financing from existing investor Kirin Holdings, as per the Ministry of Corporate Affairs. The company has agreed to avail the external commercial borrowing (ECB) in two tranches of $12.5 million. Bira 91 has also agreed to provide Kirin Holdings with an option to convert the outstanding borrowings into Series D Compulsorily Convertible Cumulative Preference Shares (Series D CCCPS) of the company. The funding round comes a few months after Bira 91 raised $25 million from Tiger Pacific Capital in March 2024. This brings the total money the New Delhi-based company raised to $50 million in the past three months. Established in 2015 by founder and CEO Ankur Jain, Bira 91 is backed by Sequoia Capital India, Belgium-based Sofina, and Japan-headquartered Kirin Holdings.

Innovation gets funding

The trend which is quite obvious is that big players are eyeing innovative niche brands for acquisition, adding portfolio and value to their existing business. Bira 91 is one example, the other is the minority stake of United Spirits Limited (Diageo India) in Nao Spirits, the makers of India’s first London Dry gin – Greater Than – followed by the world’s first Himalayan Dry gin – Hapusa. In 2022, Diageo India with an investment of ₹31.5 crores holds 22.5% of the equity share capital of the company on a fully diluted basis. Nao Spirits had earlier raised US$ 2 million as Series A investment from a boutique VC firm, existing investors, and family offices.

The more recent follow-on investment of ₹13.15 crore comes from Tilaknagar Industries in Spaceman Spirits which is known for its Samsara gin and Sitara craft rum. In a filing to the stock exchanges, the company informed the bourses that its Board had approved the follow-on investment, thus taking Tilaknagar’s stake in Spaceman Spirits to 20.02%. Further, upon SSL achieving certain pre-agreed milestones, the definitive agreements provide an option for the company to invest or acquire further shares held by other shareholders as per a pre-determined valuation methodology.

Investments helping companies broad-base portfolio

Tilaknagar Industries, the makers of India’s highest selling brandy Mansion House, has also entered into a usership agreement wherein it will leverage its robust distribution network to sell Samsara Gin and Sitara Rum in certain states in India and abroad. Amit Dahanukar, chairman and managing director, Tilaknagar Industries, said, “The premium-end of alcobev industry in India has been witnessing phenomenal growth over the past few years. While we are already the market leaders in brandy, we will look to cherry-pick every promising opportunity to broad-base our portfolio and boost revenue growth. We feel this investment will open new avenues for profitable participation in the crafts spirit’s segment.”

In September this year, Globus Spirits, manufacturers of Gr8 Times, Rajputana etc. got a boost with Motilal Oswal Mutual Fund buying 2 lakh equity shares, representing 0.69% stake via block deal on the National Stock Exchange. Following this the stock is doing fairly well and it has got a further leg up after its announcement that it had launched DŌAAB India Craft Whisky. This new range marks the company’s foray into high-end whisky, bringing a fresh perspective to the growing segment. DOAAB India Craft Whisky, a limited-edition series, draws inspiration from the Hindi word “DOAAB”, which means the land between two rivers, reflecting the fusion of diverse influences.

Companies that got funding

Also earlier, we have had another big investment from Zerodha which acquired 13.9 lakh shares (1.04%) in Radico Khaitan, one of the oldest and largest IMFL manufacturers, known for its popular brands like Magic Moments vodka, 8PM whisky, and Rampur premium Indian single malt. Nikhil Kamath, co-founder of Zerodha, had mentioned that Zerodha held a 1.6-1.7% stake in Radico Khaitan, valued at approximately ₹400 crore. He highlighted the strong performance of Radico Khaitan as a key factor behind this investment, noting that the stake was acquired through open market transactions.

In February 2023, Integra Essentia acquired Chateau Indage Winery for $5 million in an asset transaction and in end December it acquired Brewtus Beverages for $2 million. LIC-backed penny stock, Brewtus Beverages will unlock the business potential embedded in the liquor-based beverage industry for Integra Essentia while widening the company’s footprint via stepping into the foray of medium~hard liquor-based products adding “Beer” and “Whisky” to the product portfolio, the company has said in a statement.

Angel investors and VC funding

Jimmy’s Cocktails was founded by Ankur Bhatia in September 2019 under Radiohead Brands, offering a range of cocktail mixers. Jimmy’s Cocktails had raised ₹14 crore in a bridge round ahead of its Series A, led by Roots Ventures. 7Square Ventures and several start-up founders via an AngelList led by Vishesh Khurana, Co-founder Ship Rocket and Varun Alagh, Co-founder Mama Earth also invested in this round. Existing investors Keki Mistry, Vice chairman and CEO, HDFC Ltd; Vidur Talwar, Chairman T&T Motors; Anirudh Somani, VP CLSA also participated in the round.

Early this year, Radiohead Brands concluded its pre-Series A funding round, raising an impressive ₹35 crore. Prath Ventures spearheaded the funding initiative with a substantial contribution of ₹12.2 crore, accompanied by investments from Capital Ventures, Illeyrium Ventures, and notable angel investors Neel Bahl and Sandeep Aggarwal of Droom. This funding injection comes as a follow-up to the ₹11 crore secured in July this year, further propelling Radiohead Brands on its path to becoming a key player in the industry.

Bengaluru-based alcoholic beverage brand RockClimber with crafted wine coolers, mixers, and other wine beverages is expanding its nation-wide footprint having earlier raised a pre-Series A funding round worth US$ 1 million from angel investor Anand Prakash Sharma. Another start-up Salud which offers pre-mixed drinks, has raised funds from actor and serial entrepreneur Rana Daggubati.

List of investors

There is a list of 40 angel investors and venture capitalists who invest in wine and spirits startups and they include ah! Ventures; Inflection Point Ventures; Anicut Capital; Skayle; Chakradhar Gade; Anicut Angel Fund; Prashant Pansare; Rohan Mirchandani; Mohit Shrivastava and Nitin Kaushal (Ginglani Distillers); Kirin Holdings; Soumya Kant (Bored Beverages Company); Ankit Bhati (Salud Beverages); Srini Koppulu; Abhishek Goyal; First Cheque; Prabhtej Singh Bhatia and Dotln (Bored Beverages Company); Rana Daggubati (Iron Hill India); Sprout Investments (O’be Cocktails); Chandigarh Angels Network; Sameer Guglani; Lets Venture; VerlInvest; Eagle 10 Ventures; Japan Vyas and Roj Niyogi (Hipcask); Deepinder Goyal; Rohan Mirchandani; Saama Capital; Bold Ventures; Supermorpheus; DSG Consumer Partners; Hem Angels; Kae Capital; Mohit Srivastava; Ashish Dhawan; Bhavish Agarwal; Mumbai Angels; Kunal Bahl; Bhawna Bhatnagar; and Abhijeet Pai.

Alcobev, a good bet for investors

What does these investments all indicate? That the alcobev industry, which has been among the fastest-growing industries in India, is a good bet for investors, given the ever-evolving demand for liquor and related products and the consistent performance of the companies. Though the industry is highly regulated, vastly varying from one state to another, the growing demand from consumers for premium products has encouraged the producers to further explore the markets. India is one of the largest alcohol markets in the world. Given the production scale, evergreen demand, and a vast range of products, the industry has grown consistently.

Adding zing to the market are the startups who are disrupting with their brands, nevertheless adding considerable value to the thriving liquor industry in India. The exponential growth of the homegrown premium brands – Indian Single Malts are making waves the world over – has further enthused investor confidence.

Diageo Begins Trial of the First Paper-Based Bottle for Johnnie Walker

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first-of-its-kind 90% paper-based bottle for Johnnie Walker Black Label
Running exclusively at Johnnie Walker Princes Street’s 1820 bar, in Edinburgh

The makers of Guinness, Don Julio Tequila and Smirnoff Vodka has launched on a trial basis the first-of-its-kind 90% paper-based bottle for Johnnie Walker Black Label exclusively at Johnnie Walker Princes Street’s 1820 bar, in Edinburgh.

Created in partnership with PA Consulting, as part of the Bottle Collective with PA and PulPac, this is Diageo’s first paper-based 70cl bottle trial in the on-trade. The trial began on September 25^th of this year and is expected to assess how bartenders interact with and pour from the bottle, and how the bottle fares in a bar environment. A total of 250 paper-based bottles are being for the trial period which is expected to run until mid-October 2024.

Diageo said that members of the public will be able to see the bottles in use behind the bar, however they cannot purchase the bottle. This will be the second paper-based bottle trial from Diageo and PA, following the success of the Baileys paper-based bottle mini format (80ml) trial, using a similar Dry Molded Fiber innovation at the Time Out Festival in Barcelona earlier this year.

Diageo said that the design team had taken learnings from the technical aspects of the miniature format, to make a larger and more complex shape for Johnnie Walker. The bottle’s design retains the iconic square shape of Johnnie Walker Black Label, whilst enhancing the premium appeal with unique facets cut into the sides of the bottle and embossing of the Striding Man on the bottle and closure.

Paper Bottle is about 60% lighter

The trial bottle is made from 90% paper and a very thin plastic liner. The innovative technology makes the paper-based bottle approximately 60% lighter, with initial external life cycle analysis on the prototype showing an up to 47% potential reduction in carbon emissions compared to the Johnnie Walker Black Label glass bottle equivalent. The bottle closure was developed in collaboration with PulPac, Setop DIAM and PA and is made from a unique combination of cork and similar Dry Molded Fiber paper technology as the bottle. It is only intended for use during the trial and excluded from calculations.

The Johnnie Walker Black Label paper-based bottle for this test is designed considering recyclability among other aspects. The plastic liner is designed to not require consumer or bartender disassembly, as it is not attached or bonded to the outer paper layer, assisting recycling facilities to separate without disrupting the recycling process. The stopper used for trial purposes is not recyclable, however alternative solutions are in development. Throughout the trial and further development of the paper-based bottle, the recycling capability will be a key factor for future versions of the bottle as we continue to test, learn and develop.

Jamie Stone, Design and Innovation Expert at PA Consulting, adds: “These bottles break new ground in packaging design and shows the potential to significantly reduce carbon emissions.”

Beyond paper-based solutions, the brand recently introduced Johnnie Walker Blue Label Ultra, the word’s lightest whisky glass bottle, weighing just 180g without the stopper. The design featured a unique teardrop shape, lattice stopper, and bamboo frame to bring luxury and simplicity together. While Johnnie Walker Blue Label Ultra is a design experiment, the insights gained will guide future glass light-weighting initiatives across the Diageo portfolio.

These latest innovations form part of Diageo’s ambition to reduce its carbon footprint by exploring new packaging formats, including the launch of a 70cl aluminum spirits bottle with Baileys, a global licensing agreement with circular economy technology company ecoSPIRITS, and removing the cardboard gift boxes in its premium Scotch portfolio to reduce excess packaging.