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Growing Investor Sentiment in Indian Alcobev Industry

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.

Bacardí launches Mango Chilli sweet and spicy flavour

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Reinventing one of the classic favourite flavours of the Indian summer, Bacardí recently announced its latest flavoured rum expression – the Bacardí Mango Chilli in India. This new offering combines the vibrant zest of freshly cut mango with the fiery kick of chilli, delivering a unique and disruptive flavour combination that resonates strongly with the Indian palate. Bacardí Mango Chilli is a perfect balance of sweet and spicy flavours – tangy raw mango and succulent ripe mango notes, complemented by the warm spice of chilli.

In the global spirits industry, flavoured rums have become increasingly popular, offering consumers new and exciting ways to experience the spirit. The introduction of Bacardí Mango Chilli is a testament to Bacardí’s commitment to creating distinctive flavours that cater to these evolving tastes. Bacardí remains dedicated to keeping the consumer at the centre of its innovation, with a deep understanding of the versatility of rum as a spirit and the growing consumer appetite for experimentation with flavours. By blending familiar and bold flavours, Bacardí not only enhances the rum-drinking experience, but also opens up new avenues and occasions for consumers to enjoy and explore the versatility of rum.

Bacardí Mango Chilli offers a medley of flavours that makes it the perfect drink, whether enjoyed as a chilled shot or as an exciting new twist on classic cocktails to captivate consumers seeking unique drinking experiences.

Ashish Jha, Brand Lead, Bacardí India said, “We’re delighted to be introducing Bacardí Mango Chilli to the Indian market. As a brand, Bacardí is committed to constantly innovating in new and exciting directions while keeping consumers at the heart of all that we do. India’s long-standing love affair with the mango inspired us to bring Bacardí Mango Chilli to India, to offer our consumers a novel drinking experience that captures some of the most iconic and widely loved Indian flavours. The spirits’ unique sweet and spicy flavour profile can be enjoyed in a variety of ways, right from a shot to a wide range of tasty and refreshing cocktails, and we’re sure that it will resonate strongly with Indian consumers and open up new occasions to enjoy the spirit.”Bacardí Mango Chilli will be available across the country, in the markets of Karnataka, Kerala, Pondicherry, Goa, Maharashtra, Madhya Pradesh, Daman and Diu, Dadra Nagar Haveli, Rajasthan, Arunachal Pradesh, Jharkhand, Tripura, Orissa, Meghalaya, Assam, UP, Delhi, Himachal Pradesh, and Uttarakhand. Pricing will vary as per market excise for a standard 750ml bottle across India.

John Distilleries invests Rs. 100 crore in Goa plant expansion

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John Distilleries Ltd has invested ₹100 crores in the expansion of its Goa distillery. With demand growing for Paul John Single Malt whisky in both domestic and international markets, the company has added capacity taking to 3 million litres annually from 1.5 million litres.

John Distilleries Ltd (JDL) is stepping up exports and exploring newer global markets for its Paul John Single Malt (PJSM) whiskey, the company said in a statement. Presently, Paul John is exported to over 50 countries. The company said it will be soon launching new variants of the whiskies starting October this year. The company which has distilleries across 12 locations with an overall production of 24 million cases annually, is firming up plans to roll out premium rums and vodka.

John Distilleries Chairman Paul P. John said, “We have almost tripled the capacity of our Goa distillery, from 1.3 million litres to 3 million litres annually. We invested around ₹100 crore in this expansion which will help us in meeting growing demand for PJSM whiskeys in global and domestic markets.”

According to industry estimates, in 2023-24, JDL exported close to 30,000 cases of PJSM whiskey to over 50 countries such as the US, France, UAE and Japan. In the domestic market, the spirits maker sold around 72,000 PJSM whiskey cases.

Prashant Kishor, if elected, will remove prohibition in Bihar in an hour

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Prashant Kishor Pandey, political strategist and tactician, who has formed his own political outfit ‘Jan Suraaj’ on October 2, 2022 has promised to lift the ban on liquor in Bihar if his party came to power in the State Assembly elections to be held in 2025.

Prashant Kishor vowed to the lift the ban ‘within an hour’ if his party won the elections. “We have been preparing for the last two years. If the Jan Suraaj government is formed, we will end the liquor ban within one hour,” he told a news agency.

Prohibition in force since 2016

The present Chief Minister, Nitish Kumar first imposed total prohibition in 2016 and that really hasn’t helped the state of Bihar as the number of deaths due to illicit liquor crossed 200 and 30 cases have been filed without any conviction. And we have the infamous statement of Nitish Kumar who said ‘Jo sharab piyega, woh marega hi’ (one who drinks liquor, will surely die).

In 2015 before coming to power in his election rally he had promised to introduce prohibition. When he came to power he said, “My government is committed to fulfilling promises made to women during the election campaign. There was a surge of complaints from women about male members of the family resorting to drinking and creating nuisance, which also affected the education of their children. Though the excise department can earn ₹4,000 crore per year, we have to think in terms of public interest and take this decision.” However, there have been instances from states where prohibition has been in place that it really is counterproductive, giving rise to illegal trade and illicit liquor and the consequent deaths.

Undeterred by such opinion, the Bihar Government on December 21, 2015, issued a gazette notification, introducing a New Excise Policy to curb the menace of alcoholism and vices related to it. The notification provided for prohibition of country liquor within the State of Bihar from April 1, 2016. Accordingly in order to achieve the desired objectives of Prohibition, The Bihar Excise Act ,1915 was amended and Bihar Excise (Amendment) Act, 2016 was promulgated and from April 5, it imposed total prohibition.

Consequently, the Bihar Prohibition and Excise Act, 2016 was notified on 2nd of October 2016, the preamble of which provides thus: “To enforce, implement and promote complete Prohibition of liquor and intoxicants in the territory of the State of Bihar and for matters connected therewith or incidental thereto. Whereas it is expedient to provide for a uniform law relating to Prohibition and regulation of liquor and intoxicants, the levy of duties thereon and punishment for the violation of law in the State of Bihar.”

Prohibition has not helped State

However, prohibition has not helped the state which has lost over 200 lives, besides revenues that come from excise. The worst part is that there has not been a single conviction in any of the cases so far. Thirteen people who were convicted in March 2021 in the 2016 Gopalganj hooch tragedy by a lower court were acquitted by the Patna High Court.

In such a scenario, Nitish Kumar has made several amendments to the anti-liquor law but that really has not helped the illegal activities. On March 30, 2022, the Bihar Prohibition and Excise (Amendment) Bill, 2022 was passed by the legislature, and the bill amended the 2016 Act. The Bill was introduced to expedite trial in the courts and to focus on punishing illegal suppliers and traders of liquor, instead of persons consuming it. The government decided to allow the release of vehicles impounded for transporting liquor after the payment of only 10% of its insurance cover, instead of the 50% required earlier, the rationale for this is inexplicable.

Penalty for consuming liquor

As per the amendment it introduced penalty for consuming liquor. The Act specifies the following as offences: (i) consuming liquor or intoxicant in any place, (ii) being found drunk, (iii) drinking and creating nuisance or violence, and (iv) facilitating drunkenness or allowing assembly of drunk persons in a house. The first two offences are punishable with a minimum fine of ₹50,000 for first-time offenders, or three months imprisonment in lieu of such fine. Repeat offenders are punishable with fine up to one lakh rupees, and imprisonment ranging from one to five years. The other two offences may be punished with fine of one lakh rupees to five lakh rupees, and five to ten years of imprisonment. The Bill only penalises persons who consume any intoxicant, or are found drunk or under the influence of an intoxicant. These offences are punishable with: (i) a fine in the first instance, and one month imprisonment in case of failure to pay fine, and (ii) additional fine or imprisonment, or both, in case of repeat offences. The state government will prescribe fines for the first instance of offence, and fines and imprisonment for repeat offenders.

Trial by Executive Magistrate

The Act said persons consuming alcohol, or found intoxicated, will be arrested and produced before the nearest Executive Magistrate (to be appointed by the state government in consultation with the High Court). The Magistrate will conduct a summary trial of such persons. The Executive Magistrate will exercise the powers of a Judicial Magistrate of the second class in such cases.

Consumption of liquor in a chemist shop

The Act provides separate punishment for persons consuming liquor in a chemist or druggist shop or dispensary. The Bill removes this provision.

Special Courts

Under the Act, all offences are tried either by a Sessions Court or a Special Court. Special Courts may be appointed or designated by the state government. The Bill provides that all offences (except for consumption of liquor) will be tried by a Special Court. It requires every district to have at least one Special Court. Special Courts will only try offences under the Act, and must endeavour to complete the trial within one year from the date of submission of the charge sheet. Judges in these Courts must be appointed by the state government in consultation with the Chief Justice of the High Court.

Timeline for investigation

The Act requires the excise officer or police officer to file the investigation report within 60 days of registration of the case. The Bill relaxes this timeline to 90 days in case of offences punishable with a minimum of ten years imprisonment or death.

Offences made compoundable

At present, all offences under the Act are non-compoundable. The Bill omits this provision, implying that offences under the Act may now be compounded. Compoundable offences are those which may be settled between parties.

Confiscation of items

If an offence has been committed under the Act, certain items (such as intoxicants, vehicles, and premises) may be confiscated in such a manner as prescribed. The Bill provides that such items may be confiscated by the Collector (District Magistrate) or any officer authorised by him, based on the report of the investigating officer.

Destruction of items

Under the Act, the Collector may order the sale or destruction of articles before their confiscation. This may be done if: (i) the article is subject to speedy and natural decay, is of nominal value, or can be put to misuse, or (ii) the sale would be in the public interest or for the benefit of the owner. As per the Bill, the Collector or an officer authorised by him may destroy items either without or after confiscation. Items may be destroyed if they: (i) may be misused, or (ii) are likely to endanger public safety.

Release of seized items

The Act empowers excise officers and police officers to enter, inspect, and search any place, and seize any document, intoxicant or other items of concern, when investigating offences. The Bill adds that items or premises used for committing an offence under the Act, which have been seized by such officers, will be released (except for reasons to be recorded in writing) on payment of a penalty notified by the state government. In case of non-payment of penalty, the seized items will be confiscated.

Production of arrested persons

The Act requires arrested persons to be produced before court within 24 hours. The Bill permits arrested persons to be produced before the Special Court, or the nearest Judicial Magistrate, either in person or through electronic video.The law has been criticised by the Supreme Court too. The former Chief Justice of India N.V. Ramana said that the Bihar Prohibition and Excise Act, 2016 was made with a lack of foresight, and had led to clogging of the state’s courts. He said that 14-15 judges of the Patna High Court were kept busy each day with bail hearings in liquor cases.

Kejriwal on Bail, AAP Rejoices; Atishi new CM of Delhi

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The Supreme Court bench comprising Justice Surya Kant and Justice Ujjwal Bhuyan on September 13 granted bail to Delhi Chief Minister Arvind Kejriwal in a money laundering case filed by the Central Bureau of Investigation (CBI) against him. Kejriwal was arrested on June 26 by the CBI, before his hearing commenced in the Supreme Court for bail in the Enforcement Directorate’s case against him in the liquor policy scam.

Following the conditions, Arvind Kejriwal resigned as Chief Minister, and in his place Atishi Marlena has been made the Chief Minister.

With his bail, the Aam Aadmi Party is rejoicing as earlier the apex court had given bail to the former Deputy Chief Minister, Manish Sisodia and Rajya Sabha MP and senior leader of AAP, Sanjay Singh, besides, K. Kavitha, MLC and daughter of former Chief Minister of Telangana, K. Chandrashekar Rao. The bail for these leaders, AAP says is vindication of their claim that the Centre had falsely implicated them.

Bail conditions

The two judges delivered separate judgments, but agreed that Kejriwal satisfies the triple condition for the grant of bail. The judges said that as the chargesheet had been filed in the case and that the trial is unlikely to be completed in the near future, it granted him bail with the condition that he cannot visit the office of the Chief Minister and the Delhi Secretariat. Importantly, he is not to comment on the case while on bail.

Justice Surya Kant said that there is no impediment in terms of arresting a person already in custody for the purposes of investigation, whether for the same offence or for an altogether different offence. The Appellant’s arrest by the CBI was thus entirely permissible, in light of the Trial Court’s order dated June 25, 2024. The judge said the evolution of bail jurisprudence in India underscores that the issue of bail is one of liberty, justice, public safety and burden of the public treasury, all of which insist that a developed jurisprudence of bail is integral to a socially sensitised judicial process. The judge added that Kejriwal will not make any public comment on merits of the case and that the conditions imposed in the Enforcement Directorate matter shall apply in this case also.

Justice Ujjal Bhuyan said in so far as the arrest of the appellant by the CBI is concerned, it raises more questions than it seeks to answer as for 22 months, the CBI did not arrest him but after the Special Judge grants regular bail to the appellant in the ED case, the CBI sought his custody.

“In the circumstances, a view may be taken that such an arrest by the CBI was perhaps only to frustrate the bail granted to the appellant in the ED case.” The judge added the power to arrest is one thing but the need to arrest is altogether a different thing. “Just because an investigation agency has the power to arrest, it does not necessarily mean that it should arrest such a person.”

Justice Bhuyan said that the CBI should not be perceived as making the arrest in high-handed manner and must dispel the impression that it is a ‘caged parrot’ of the Central government.

The Judge said that the CBI, being the primary investigative agency, must not give any indication that the investigation was improperly conducted. Indeed, it is imperative to make every attempt to dispel any impression that the inquiry is not conducted impartially and that the arrest was made in an arbitrary and discriminatory way.

Additionally, Justice Bhuyan said, “I have serious reservations on the conditions which bar Kejriwal from entering Secretariat or signing files, but I am not making comment due to judicial restraint as it was in a different ED case.”

Star campaigner

The Aam Aadmi Party which is celebrating Kejriwal’s return said that he will continue to oversee governance and work in Delhi “will not stop”. “Arvind Kejriwal is the chief minister of Delhi, who heads the council of ministers and oversees governance via ministers of various departments. He is fully empowered to give directions to all his ministers so that work can be done in public interest,” AAP said in a statement.

“The only files that are signed by the chief minister are those that have to be sent to the LG for which he has permission from Supreme Court. Therefore, no work of the people of Delhi will stop,” it added.

Several important policy decisions, including the flagship Mahila Samman Nidhi Yojana – a scheme to provide financial assistance of ₹1,000 to all women aged above 18 – which was announced in the Delhi budget this year; dearness allowance for daily wagers; Delhi Start-Up Policy; Dilli Bazaar Portal; Cloud Kitchen Policy; Food Truck Policy; City’s Logistics Plan; Delhi Electronic System Design, Manufacturing, and Refurbishment (ESDMR) Policy 2022-27; and Industrial and Economic Development Policy 2023–33 are ready and need approval of the cabinet which is headed by the CM.As AAP’s star campaigner, his release has come at an appropriate time for the party as it is contesting all seats in the upcoming Haryana Assembly elections.

Drinking Trends in India

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Johnnie Walker, The Glenlivet, Indri, Bacardi, Patrón, Campari, Jameson, Kingfisher, Himalayan, and Schweppes dominate the list
71 Indian Brands Make the Top Ten List in different categories

A recent report ranks India’s ten most popular consumer brand choices across twenty different alcohol and non-alcohol categories, including Vodka, Single Malt, Gin, Beer, Rum, Aperitifs, Mixers, Water, and more. The report is based on direct responses from bar owners, head bartenders, and bar and beverage managers of 116 top bars in the country, spread across 15 cities in a dozen states. An impressive 616 brands were mentioned in this year’s survey, reflecting the diversity of India’s drinking culture.

The brands that top the survey rankings include Bombay Sapphire in the Gin Category; Grey Goose in Vodka; Jägermeister in Liqueurs; Patrón in Agave; Bacardi in Rum; Campari in Amaro/Aperitif; Hapusa in Indian Craft/Native Spirits; Indri in Indian Single Malts; Indri in Indian Premium Whiskies; Johnnie Walker in Blended Scotch/Malt; The Glenlivet in International Single Malts; Jameson in International Whisky; Hennessy in Brandy & Cognac; Sula in Indian Still Wines; Jacob’s Creek in International Still Wines; Moët & Chandon in Sparkling Wine; Kingfisher in Indian Beer; Corona in International Beer; Himalayan in Water; Schweppes in Mixers.

Mix of bars from across cities

As with the 2023 edition, ‘What India is Drinking 2024’, despite its name, is focussed on a small slice of the country’s giant liquor market – the drinking habits of Indians who frequent premium bars in the country’s biggest cities. The list of bars is drawn is a mix of independent bars, restaurant bars and hotel bars. No sales figures were asked for, and no sales figures were provided, 30BestBars said.

It further mentioned that each respondent was asked to rank their 5 top-selling brands over the past year, across important categories such as Whisky, Vodka, Gin, Wine, Beer, Rum, Wine, Mixers, Water and many others. In some of the minor categories, the respondents were asked to name their top 3 top-selling brands. The brands mentioned could be Indian or International, unless specified otherwise. A weighted average system was used to arrive at the final tally. With burgeoning interest in cocktails across the country, the survey also has listed the most sought-after cocktails in these bars. It targetted five popular spirit segments for cocktails – Gin, Vodka, Agave, Rum, and Whisky – for this exercise.

Ospree Duty Free marketing initiatives grow spirit sales in duty free

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Avishek Bambii Das, CEO of Ospree Duty Free by MTRPL outlines the growth of Ospree, the marketing initiatives and expansion plans.

What was the rationale behind the creation of Ospree?

MTRPL operates across seven international airports in India, with future plans for global expansion. Our vision behind the creation of Ospree was to bring all existing duty-free stores under a single, unified brand identity.

The brand ‘Ospree’ represents a contemporary, customer-centric approach to redefining the shopping experience at duty-free outlets.

Ospree serves as MTRPL’s strategy to consolidate its duty-free operations across locations in Mumbai, Thiruvananthapuram, Amritsar, Lucknow, Jaipur, Ahmedabad, and Mangaluru under one cohesive brand. By doing so, we aim to create a seamless and consistent experience for travellers, whether they are flying from Mumbai or Jaipur.

The brand identity of Ospree is tailored to meet the evolving expectations of modern, discerning travellers. Our goal is to make Ospree the ultimate destination for global travellers seeking a premium and elegantly curated shopping experience. Ospree seeks to transform the duty-free shopping landscape, offering a mix of luxury and convenience. With its carefully curated range of premium products and its focus on customer satisfaction, Ospree strives to create a luxurious and approachable atmosphere, redefining duty-free shopping in India.

What is the retail strategy adopted to grow liquor duty-free sales at your duty-free shops?

Ospree Duty Free has developed a multi-pronged strategy to significantly increase liquor sales. This approach is built on four main pillars: premium assortments, immersive retail experiences, competitive pricing, and simplified pre-order system. Additionally, we have largely expanded our single malt category and now house over 250 brands under one roof. Other introductions include various Japanese whiskey brands, Teremana tequila, Ardbeg, Idaya Rum, House of Suntory, D’YAVOL and more.

Exclusive Product Curation:

Ospree collaborates with major global brands such as Diageo and Moët Hennessy to offer a wide selection of premium and rare liquors, including exclusive duty-free releases. These premium assortments are particularly attractive to international travellers who are often on the lookout for unique spirits that aren’t available in regular retail outlets. By curating a high-end selection, we drive both impulse buys as well as planned purchases by knowledgeable customers.

Immersive Shopping Experience:

Enhancing the customer experience is one of Ospree’s top priorities. We have designed our stores to offer an immersive shopping experience with interactive displays, expert-led product recommendations, and tastings.

These experiential elements elevate the shopping journey, transforming it from a transactional experience to a memorable one. Additionally, our personalised “White Glove Service” caters to high-spending customers, offering them tailored advice and ensuring a seamless, premium shopping experience.

Competitive Pricing and Promotions:

Ospree’s tax-free pricing offers significant value across its liquor portfolio, making it an attractive proposition for travellers. Furthermore, our ongoing promotions – such as “Buy More, Save More” and the “Shop and Win” contest, where travellers can win luxury prizes – have been highly effective in boosting customer engagement and driving larger purchases.

Digital Pre-Order Simplified:

Adani One’s pre-order service offers our customers an even more convenient and rewarding duty-free shopping experience. The platform makes it easier than ever for travellers to browse our wide variety of products, secure the best deals, enjoy ease of product selection, receive additional pre-order discounts, and skip the queues. This innovative partnership is a major step toward transforming duty-free shopping into a seamless and stress-free experience for all travellers.

By combining these strategies, Ospree has successfully established itself as a leader in duty-free liquor sales, strengthening both customer loyalty and sales growth.

Is there any pricing strategy in place? How cheap is it to buy in Indian duty-free than in the local market?

Yes, Ospree has a robust pricing strategy that emphasises the authenticity and originality of the products it offers. All products sold at Ospree Duty Free either come directly from the country of origin or are obtained through official brand channels, ensuring their authenticity.

Our pricing is highly competitive, with products available at an average of 20-30% lower than those found in downtown retail stores. This is a significant draw for international travellers who are looking to purchase premium products at better prices. By offering a combination of tax-free pricing and exclusive duty-free deals, Ospree provides an unmatched shopping experience.

How has Ospree Duty Free grown in the Indian Travel Retail Market?

Ospree Duty Free has experienced tremendous growth in the Indian travel retail market, driven by several key factors. First, we have launched over 100 initiatives aimed at accelerating growth by revisiting what we call the 7 Ps of Duty-Free Excellence: Product, Price, Premiumisation, Penetration, Presentation, Promotion, and People. Additionally, we have expanded into six seaports, including Mundra and Krishnapatnam (recently launched), with Kattupalli and Hazira set to open by the end of June, followed by Dhamra and Gangavaram by the end of July 2024. These new locations will cover a total retail space of 6,500 sq ft and serve over 600 vessels monthly. They will offer a wide selection of international duty-free goods, including imported liquor, confectionery, perfumes, travel accessories, and destination-specific products.

Second, our strategic expansion into major international airports has enabled us to capture a larger share of the travelling public. By focussing on creating a premium shopping experience, particularly with our diverse range of luxury products, we have successfully appealed to customers seeking a more sophisticated and refined retail experience.

Our attention to detail in product curation and customer service has translated into increased foot traffic and higher sales. By continually refining our offerings and focussing on customer satisfaction, we have been able to differentiate ourselves from competitors in the Indian duty-free market.

How are luxury spirits performing in the Indian duty-free market?

Luxury spirits have consistently outperformed other categories in the Indian duty-free market. Ospree’s commitment to offering a broad selection of over 275 single malts, paired with competitive pricing, has made it a go-to destination for liquor enthusiasts.

The demand for luxury spirits has been driven by several factors, including the rise in disposable incomes and the increasing number of international travellers. The appeal of exclusive, high-end brands, available at competitive prices, has ensured that luxury spirits remain one of our fastest-growing categories.

Aside from whisky, which other liquor segments are doing well in the Indian market?

In addition to whisky, other liquor segments such as vodka, gin, and tequila are performing well at Ospree Duty Free, collectively contributing around 4-5% of our liquor sales.

In recent months, Ospree Duty Free has seen remarkable growth in its tequila category, reflecting our commitment to offering a diverse and high-quality selection of spirits. Tequila was introduced at Ospree Duty Free Mumbai 12 months ago and now accounts for 7% of the total alcohol sales at that location. Don Julio 1942 has become one of our top three SKUs. High-end brands like Clase Azul, Patrón El Cielo, and the soon-to-arrive Avión Reserva Cristalino are further establishing tequila as a lifestyle statement in India.

One of the standout additions has been Teremana Tequila, which we are excited to introduce for the first time in India. This premium, small-batch tequila is crafted with a strong emphasis on sustainability and quality, and its arrival at Ospree underscores our commitment to offering unique, global products to travellers. By expanding our tequila selection, we continue to cater to evolving customer preferences and enhance the shopping experience at our stores.

Additionally, we have observed significant growth in our wine category, particularly with French and Australian wines, which are growing at a rate of 7-8% month-on-month.

Champagnes, along with red and white wines such as Bordeaux, Moët & Chandon, and Dom Pérignon, are among the most popular items. Overall, the wine and champagne category has experienced over 50% growth, further diversifying our liquor offerings.

Flemingo has a strong presence in the Indian duty-free market. How has Ospree leveraged its expertise?

Ospree has effectively leveraged Flemingo’s extensive experience in the Indian duty-free market to optimise its own operations. By incorporating Flemingo’s best practices in retail and customer service, Ospree has enhanced the overall shopping experience while customising it to meet the specific needs of its customer base.

How have Flemingo and Ospree grown in recent years?

Cannot comment on Flemingo’s growth. But Ospree has experienced significant growth in the Indian travel retail market. The rebranding has played a pivotal role in this growth, allowing us to expand our duty-free operations and offer a more diverse range of luxury and premium products. By focussing on creating a seamless, upscale shopping experience, we have been able to attract a wider range of customers and increase our market share in a highly competitive industry.

How many airports does Adani Enterprises operate in India?

Adani Enterprises currently operates seven airports across India. These include major airports in Mumbai, Trivandrum, Ahmedabad, Lucknow, Mangalore, Jaipur, and Amritsar. Additionally, Adani operates three seaports: Mundra, Krishnapatnam, and Hazira, further showcasing its extensive presence in India’s infrastructure sector.

How large is the Indian luxury spirits market in duty-free?

The Indian luxury spirits market within duty-free continues to experience impressive growth. Brands like Indri and Jaisalmer have become star performers at Ospree, while Indian liquor brands such as Paul John, Old Monk, Rampur, Amrut, and Stranger & Sons are gaining global recognition. These brands contribute around 5% of our total liquor sales.

As more Indian travellers venture abroad and their disposable incomes increase, the demand for luxury spirits continues to rise, creating favourable market conditions for Ospree to expand its footprint in this segment.

Does Ospree offer special promotions to boost Indian premium spirits at major international airports in India?

Yes, Ospree has implemented several promotional initiatives to highlight Indian premium spirits. These promotions include exclusive discounts, high-visibility promotional areas within stores, and limited-edition releases. Some recent highlights include the launch of Idaaya Rum and exclusive releases from Ardbeg Circus, which have garnered attention from travellers.

These initiatives have not only increased awareness of Indian premium spirits, but have also encouraged travellers to explore the rich heritage and craftsmanship behind these products.

What are your expansion plans for the Indian market?

Ospree is actively pursuing expansion plans, which include increasing its portfolio of luxury brands and exploring opportunities to acquire non-Adani airports for duty-free operations. Our goal is to further establish Ospree as a premier destination for luxury shopping, both within India and globally.

What are your sales in terms of volumes and value?

Ospree primarily focusses on value over volume, as sales vary based on the demand for specific categories. Ospree Duty Free has achieved unprecedented growth (almost twice pax growth) in the last FY 23–24.

Ospree Duty Free FY 24 Business Highlights:

YOY Sales Growth: 44%, YOY Pax Growth: 23% and SPP Growth: 15%.Additionally, departure sales grew three times the PAX growth. We also have observed a 30% increase in the average sales per passenger. Our luxury sector has also expanded, growing from 7% last year to 20% this year.

Radico scaling New Heights every year

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Incorporated in 1943, Radico Khaitan is one of the most recognised Indian Made Foreign Liquor (IMFL) brands in India, scaling new heights every year. It has achieved many milestones in its over eight decades of existence. One of the milestones is that seven of its brands are recognised as million-dollar successes. Its vodka brand – Magic Moments – is making waves, having captured an impressive 60% of the market share. In the luxury gin category, Jaisalmer has garnered 50% market share and is blazing guns. Ambrosia spoke to the Chief Operating Officer at Radico Khaitan,
Amar Sinha giving insights into how the company is looking at future growth.

Since rejoining Radico Khaitan, what changes have you brought in the company?

When I rejoined Radico Khaitan, the aim was crystal clear – we were focussing on our strategic goals of strengthening market position and driving long-term growth. To align with our core business strategy, my team and I worked extensively on developing operational excellence. From product development to market expansion, the idea was to go all out, and that’s exactly what we did – We streamlined operations, introduced new brands and innovated new variants while catering to the growing trend of premiumisation. Massive efforts were made to expand the company’s market presence, and we worked on integrating advanced technology across business operations, smoothening our manufacturing prowess.

What was the thought process and strategy behind these changes?

The idea and the objective were clear – Making Radico the largest, most successful and a profitable IMFL company of India.

Distribution is the key to this business apart from the quality product and pricing, how was this achieved?

Distribution is indeed a crucial component of Radico’s success, and the company has implemented several strategies to optimise its distribution network. Our distribution strength is underpinned by a robust network of over 80,000 retail outlets. We have systematically categorised our Off-Trade and On-Trade outlets, allowing for tailored strategies that address the unique needs of each category.

Our on-ground sales team undergoes regular and comprehensive training programmes. These initiatives are designed to enhance their skills, ensure they remain abreast of industry best practices, and effectively represent our brand.

What is the current overall volume for the company and what is the company turnover?

In FY2024, we reported a gross turnover of 15,483 crores. Our net sales went up to 4118 crores, out of which our Prestige & Above brands showed a significant volume growth of 20.3% (Y-o-Y) garnering sale of 11.26 million cases reaching a 68.5% in value.

How have the brands performed over the years, under your leadership?

We have achieved significant milestones, with seven of our brands now recognised as million-dollar successes, many of which have attained notable global rankings across various segments.

Our flagship brand, Magic Moments, has captured an impressive 60% of the market share in the vodka category, establishing itself as a dominant force. Similarly, Morpheus has risen to command 65% of the super-premium brandy segment, reinforcing our position in the high-end spirits market. Jaisalmer has also made remarkable strides, securing a substantial 50% market share in the luxury gin category.

Additionally, Royal Ranthambore has achieved extraordinary 2X growth, becoming the fastest-growing brand in the semi-luxury whisky segment. Notably, it is the first Indian brand to be priced above the best-selling Scotch whisky in India, a testament to its rising prestige and consumer appeal.

These accomplishments reflect our unwavering commitment to excellence and our strategic vision for expanding our brand portfolio on a global scale.

Radico has been able to successfully create wealth for its investors, what reason would you attribute to that?

Our growth is a testament to the strength of our brands, the exceptional quality of our blends, and the strong acceptance by our customers. These factors have not only driven our business success, but have also created substantial value for our stakeholders. Central to this success is the excellence of our team, whose dedication and professionalism have been pivotal in achieving our goals. Their unwavering commitment to high standards and continuous improvement has set us apart in a competitive market.

Additionally, the support and visionary leadership of Abhishek Khaitan, Managing Director Radico Khaitan Limited, has been instrumental in guiding our strategic direction and fostering an environment where innovation and collaboration thrive. This cohesive effort has propelled us forward and solidified our position as a leader in the industry.

Andhra Pradesh’s New Excise Policy; Retail Back with Private Players

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The Andhra Pradesh government led by N. Chandrababu Naidu on September 18 announced a new excise policy to come into effect from October 1, 2024, the highlights been retail sale by private players; availability of cheaper select brands starting from Rs. 99; setting up of premium liquor stores and expecting to generate revenue of Rs. 2,000 crore per year.

Reversing the decision of the previous YSR Congress Party (YSRCP) run government, the TDP government has claimed that there was a revenue loss of Rs. 18,860.51 crores from 2019 to 2024 due to a skewed policy. The AP government has fixed price of affordable liquor at Rs 99. The allocation of licenses will be done through an online lottery, and four license categories have been fixed with fees ranging from Rs 50 lakh-Rs 85 lakhs.

In a white paper, released earlier, the TDP said that the non-availability of Indian-made foreign liquor (IMFL) brands had resulted in an increase in sales of poor-quality brands and spurious substances. It may be mentioned that the YSRCP had promised prohibition in Andhra Pradesh in 2019, but only imposed restrictions on the liquor trade instead of complete prohibition.

Premium Liquor Stores To Get Nod

The new excise policy will be in force for two years. It will also allow for the setting up of premium liquor stores and alignment of liquor prices with Telangana and Karnataka. It also decided to reserve 10% retail outlets for toddy tappers and to open premium shops at 12 locations other than Tirupati.

The Minister for Information and Public Relations K Parthasarathi said the NDA alliance promised to bring an excise policy that ensures the quality of liquor at affordable price. He alleged several irregularities took place in the previous government in sale of liquor at every stage.

“The cabinet decided to adopt a private retail system for sale of liquor as part of an attempt to increase management efficiency. Of the 3,736 retail outlets in the state, 10 per cent will be allotted to the toddy-tappers community.”

The new government expects to generate additional excise revenues following the implementation of the policy. In fact, Andhra Pradesh had seen a gradual growth year-on-year in excise revenue, up from Rs 17,473 crore in 2019-20, escalated to Rs 23,785 crore in 2022-23 fiscal, even as the YSRCP government was working on reduction in the consumption of alcohol.

Reversing Previous Government Notification

The previous government in a notification in November 2023 had avowed policy of reduction in the consumption of alcohol levels in the State. In order to realize the objective, the Government had taken several measures such as removal of belt shops, dispensing with permit rooms, which are meant for consumption of liquor in the vicinity of shops, removal of private players from the retailing by shop etc.

YSRCP Had Reduced Shops By About 33%

Further, the A.P. State Beverages Corporation Limited had been granted exclusive privilege of retailing of IMFL and Foreign Liquor by the shop from the appointed date i.e. 01.10.2019. Further, the Government had reduced the number of shops to 2934 i.e. by about 33%. Keeping in view the policy imperative and after careful examination of the proposals submitted by the Commissioner of Distilleries and Breweries & Managing Director, the A.P. State Beverages Corporation Limited decided that it will continue the retailing of IMFL & FL through the retail outlets.

The licence period of the Shops shall be one year from 01.10.2023 to 30.09.2024 with the Commissioner of Prohibition & Excise empowered to renew the existing retail outlets run by the APSBCL under Rule 8 of the A.P. Excise (Grant of licence of selling by shop and conditions of licence) Rules, 2019 on payment of annual licence fee. The policy also said there will be no permission or renewal for shops on the road from Tirupathi Railway Station to Alipiri via RTC Bus Stand, Leelamahal circle, Nandi circle, Vishnu Nivasam, Srinivasam. Likewise, no Shop shall be permitted on the road from Leelamahal – Nandi circle – Alipiri – SVRR Hospital – SVIMS in Tirupathi Municipal Corporation area.

The APSBCL shall be permitted to establish walk-in shops (Elite Shops) in the State as per the requirement but without any change in the number of retail outlets permitted. The previous policy also mentioned that it would take up campaigns to educate the public on the evils of consumption of liquor and other intoxicants.