Author Archives: Sanchit Mishra

Excise takes a hit in Delhi; Political battle between AAP and BJP

• Delhi government discontinues Excise Policy 2021-22 from August 1, 2022

• 468 private liquor shops operating in the city, shut from August 1 as licenses expire on July 31

• Mad rush at liquor vends as supply chain affected

It is a massive political battle out in the National capital between the Bharatiya Janata Party (BJP) and the Aam Aadmi Party (AAP) and the casualty has been the liquor industry. While the battle rages on, there is short supply of liquor and with private vends closing down, there is mad rush for liquor of whatever that is left.

As such Delhi was experiencing short supply of liquor for some months now, but the government did not really pull up its socks.

While the situation was such, came another shocker for the AAP government when its Chief Secretary on July 8 reported that there has been ‘deliberate and gross procedural lapses to provide post tender undue benefits to liquor licensees for the year 2021-22’. The Chief Secretary’s report also pointed out to prima facie violations of GNCTD Act 1991, Transaction of Business Rules 1993, Delhi Excise Act-2009 and Delhi Excise Rules – 2010.

Based on the Chief Secretary’s letter and the corruption murmur in the capital, the Delhi Lieutenant Governor,
Vinai Kumar Saxena recommended a probe by the Central Bureau of Investigation (CBI).

Alcobev industry at its wits end

The alcobev industry which had hailed the Delhi Government’s new Excise Policy 2021-22 is at its wits end with the political battle going on. Many industry experts had hailed the policy but had complained that implementation was the stumbling block.

AAP blames BJP for the crisis

However, the Deputy Chief Minister of Delhi, Manish Sisodia in a press conference has put all the blame on the BJP for the excise crisis, stating that private vendors were threatened by the Enforcement Directorate and the CBI, forcing them to shut shop. The BJP, on the other hand, has alleged that the Delhi Government had doled out licenses to private vendors on a quid-pro-quo basis, charging AAP of large scale corruption. The two parties are leveling charges against each other while the alcobev sector and the end-consumer has to bear it all.

Government vends would be revived: Sisodia

Manish Sisodia said that the government vends would be back from August 1 as private vends were ‘scared’ to venture into this business. The number of government vends, would not exceed 850. Stating that there was an orchestrated campaign by the BJP to fail the new excise policy, he said only 468 shops were running and that number would further reduce drastically from August 1. “Their (BJP) plan is to stop legal sale of liquor and promote illegal sale of liquor in which the BJP has stake of thousands of crores of rupees,” he said and referred to the Gujarat model where there is prohibition, but illegal liquor trade is strong, leading to illicit liquor, consequently to hooch tragedies.

Citing that the AAP government had planned it’s vends to cater to the population without exceeding the number of vends from 850, he cited how in BJP-ruled States the number of vends was higher, thus encouraging liquor trade, both legal and illegal. There was one outlet for over 4,000 people in Gurugram; one for over 12,000 people in Bangalore; one for over 700 people in Goa, while in Delhi it was one outlet for over 22,000 people.

Another reason for the BJP to derail the Delhi policy, he said was as the former feared that the state revenue would jump from `6000 crore to `9,500 crore which would mean the success of the new policy.

BJP holds Sisodia responsible

Meanwhile, the BJP has upped its ante charging the AAP led government of corruption to which the Delhi Chief Minister has termed it as ‘false and that the BJP was afraid of AAP’s growth’. The BJP said the Excise Department, which is headed by Sisodia, reportedly gave a waiver of `144.36 crore to the licensees on the tendered license fee citing pandemic as an excuse.

Policy was to give enriching customer experience, now going back to government vends

The 2021 policy was to pave the way for a range of sweeping reforms to boost excise revenue, crack down on the liquor mafia and to improve customer experience. The Government wanted to provide a ‘decent standard of customer experience commensurate to the stature of the National Capital’ and one of the most noticeable changes was abolishing the iron grills in front of the shops. The policy amendment also allowed for online sales in sync with the ‘new normal’. There is no mention of what would happen to online sales, considering that the supply chain itself is adversely affected.

Framework for grant of licenses

The process of granting of the license was to ensure equitable coverage so that there is no instance of un-served and underserved areas in Delhi including Non-Conforming Areas. The number of retail liquor vends had been limited to 849, including five super premium retail vends, but absolutely no Government owned liquor vends for IMFL/FL.

The policy had ended on May 31 but extended by two months offering the retail licensees chance to renew their licenses paying fees on the pro rata basis for the extra period. However, many license holders did not opt for the extension and shut shops as they were already finding it difficult to reach break even after paying high license fees, some liquor traders have claimed.

Then there was the issue of some retailers giving massive discounts up to 40% to consumers while some big players offered ‘buy one, get one free’ schemes. The government intervened and capped the discount at 25%, but some retail shops went beyond that, some in the trade have complained.

Excise policy extant vs Delhi Master Plan rules

Under the excise policy extant, each licensee had to open three stores in each municipal ward. However, out of 272 municipal wards, 100 were non-conforming where the shops could not open due to action by civic bodies against violations of Delhi Master Plan rules, officials said thus leading to inadequate liquor stores.

CIABC hopes the policy will be tweaked

As mentioned there were many good features in the policy but the government failed to implement. The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Mr. Vinod Giri has said that the industry had taken up the matter with the Delhi Government to reduce the size of the zones as to make the trade viable. He said by doing that it would have reduced the financial stake of licensees, improved loss bearing capacity and prevented monopolies. He attributed the failure of the policy to bureaucratic apathy towards trade, while the policy per se was good, befitting a modern metropolis such as Delhi. He was hopeful that the policy would be tweaked, but right now the political din has taken over.

There have been many such niggling issues that the Delhi Government did not iron out, while it kept patting itself on its back that it had come up with a ‘great policy’ that eliminated corruption and sale of seconds liquor. But the reality on the ground has been different, where actions did not match the words the AAP government kept bandying about. The capital is going to be mired with this controversy for some time now. The alcobev sector awaits new directives, till then the end consumer will have to find ways to quench his or her thirst.

Diageo acquires Vivanda, owner of flavour matching technology behind ‘What’s Your Whisky’

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Diageo recently announced it has acquired Vivanda, owner of the technology behind Diageo’s digital ‘What’s Your Whisky’ platform and the Journey of Flavour experience at Johnnie Walker Princes Street.

This acquisition will enable Diageo to expand FlavorPrint technology to other categories. And it will support the continued development of their advanced analytics and digital marketing capabilities, providing a deeper understanding of consumer taste preferences and helping to unlock further opportunities in innovation and personalised consumer experiences.

Powered by artificial intelligence, FlavorPrint technology, through a series of simple questions, analyses and maps consumers’ flavour preferences against a large proprietary sensory database of foods and aromas, to generate a digital representation of their unique ‘Flavor Print’. It then recommends brands and variants whose flavour profiles consumers are most likely to enjoy. The technology breaks down traditional barriers to category exploration, supporting broader consumer engagement through more personalised recommendations and helping to ensure Diageo brands stand out at every point along consumers’ paths to purchase.

Launched in 2019, ‘What’s Your Whisky’ has been rolled out across 21 markets and is available in 16 languages. It has been integrated into the physical stores and e-commerce platforms of a number of our key customers in Europe and North America, as well as across their direct-to-consumer channels such as malts.com to enable purchase recommendations.

The technology also underpins the immersive Journey of Flavour experience at Johnnie Walker Princes Street in Edinburgh, tailoring the drinks that visitors enjoy during their 90-minute tour to their palates. There are more than 800 flavour combinations available in their innovative dispense systems, meaning a consumer could visit every day for more than two years and not have the same experience twice.

Vivanda’s team will join Diageo and its founders, CEO, Oli Fuchs, and CTO, Matt Corish, will provide ongoing consultancy services to continue building on the success of the FlavorPrint technology.

Cristina Diezhandino, Chief Marketing Officer at Diageo, commented, “We know consumers are looking for more personalised, interactive experiences and that they are increasingly engaging with our brands digitally as well as in person. We’re delighted to welcome Vivanda to Diageo and we are looking forward to working together to connect with consumers in more innovative ways that help shape the future of how we socialise in person and virtually.”

Oli Fuchs, Co-founder and CEO, Vivanda, said, “We are very excited to join Diageo. Vivanda set out to create innovative technology which connects consumers with products through sensory insight. We are proud of the excellent engagement we have received from consumers and are looking forward to connecting millions more people with their new favourite beverage and creating the digital standard for taste.”

How to Make Clear Ice at Home?

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In this video, we show you this easy process of How To Make Clear Ice to enjoy your favorite beverage. All you need are simple tools to make it at home. And the benefits of making your own ice is simple, No impurities, melts slower than refrigerated ice and doesn’t spoil the taste of your drinks.

The Beaches and Bar destinations, the place to party

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For those who love the beach, and want to party, there are many options to enjoy on the beach.

For many sun seekers, visiting the beach is the reason they go on vacation. Sitting by the ocean with your feet in the sand is the hallmark of relaxation for many of us – especially over the past few years.

Beaches are love! The soft sand under your feet, the breeze running through your hair, the waves bringing sea shells on the shore and the open sky playing with shades of orange and blue. Beach bars are even greater! The soft sand under your unsober feet, the breeze running through your drunk hair, the waves bringing the most fascinating sea shells to the shore and the open sky soothing your high soul.

“Although last year was still far from ‘normal,’ these are the beaches travellers visited and loved more than any others,” said Christine Maguire, VP, Global Media Business at Tripadvisor. “Whether you’re looking for a trip where you can continue to social distance outdoors, or are comfortable heading to spring break, beaches are the perfect place to be in 2022.

Sparkling sands, cool sea breeze, beautiful waves, delectable seafood and lots of vitamin D – a beach vacation is all that and more! And considering that India has a long coastline, there are many beautiful beach destinations you can head to for a relaxing as well as adventurous holiday. Laze around, go for strolls, click fabulous pictures, collect shells, or get your adrenaline pumping with fun water sports.

Goa is one of the most popular beach destinations in the country, thanks to the many breathtaking beaches it has. Apart from the golden sands, palm and coconut trees and delectable seafood, the beaches here are famous for hosting thrilling water sports and amazing late-night parties.

Goa’s Bar Tesouro, emerged as India’s Best Bar for 2021. Tesouro (which means treasure or treasury in Portuguese), is flanked by Fire Fly in the otherwise serene Colva beach in South Goa. Over the last two years, it has gone on to become one of the most talked about drinking holes in the country, much loved for its cocktails including the famous Midnight Brekkie (made using gin, vermouth, watermelon, peanut butter, and strawberry compote). The bar was founded by Donovan Vaz, scion of a Goa liquor distribution family, who quit his racing car career to become a restaurateur, along with mixologist Arijit Bose.

Bar Tesouro’s ascension is part of the surging popularity of Goan bars over the last few years. As many as four others including Escobar, Miguel’s, Gunpowder, and For The Record Vinyl Bar made into the Top 30 bars list for 2021. Delhi, Mumbai and Bangalore each have six bars each in the list. Kolkata has four, Gurgaon three, and Pune and Hyderabad have one bar each.

Surrounded by Bay of Bengal and Andaman Sea, Andaman and Nicobar Islands are among the finest beach destinations in India. Pristine blue waters, sparkling silky sands and lush green vegetation attract beach lovers in droves. Besides relaxing in beach cottages, huts and shacks, and soaking in natural beauty, adventure enthusiasts can try different water sports here.

Lakshadweep, the smallest union territory in India, has 36 islands and some of the most stunning beaches. Apart from unique natural beauty, the islands have many amazing spots that attract tourists from far and wide.

Located about 140 km from Goa, Gokarna is perfect for those looking for something offbeat. The beaches here are beautiful, calm as well as affordable. The serene surroundings, coupled with many fun activities, make Gokarna one of the best beach destinations in India.

A popular beach destination near Goa, Karwar is a must-visit. The coastal town is located at the confluence of the Arabian Sea and River Kali. Tall palm trees, golden sands and pristine waters accentuate the beauty of the beaches here and make them ideal for nature lovers and peace seekers.

Popularly known as the ‘Queen of the Arabian Sea’, Kochi or Cochin is one of the best beach destinations in India. This small coastal city is peppered with picturesque beaches that serve as perfect retreat from urban din.

Dotted with beautiful palm-lined beaches, the union territory Daman and Diu is a popular getaway in the western part of India. It is located near Gujarat and frequented by those seeking peace and quiet. The horse-shoe shaped Nagoa Beach in Diu is one of the best beaches for swimming in India.

Located on the shore of Bay of Bengal, Puri is known for some of the best beaches in India. Puri Beach is especially known for its wild waves.

Mahabalipuram majorly famous for its ancient temples and UNESCO World Heritage Sites, this historical town in South India is also one of the best beach destinations in India. Mahabalipuram lies on the shore of the Bay of Bengal and is a popular weekend getaway for people in Chennai, thanks to its proximity to the city.

Marina Beach, which is the longest beach in India and the second-longest in the world, is in Chennai. The sight of the evening sun from the beach, slowly disappearing into the ocean, is an awesome experience.

One of the four metropolis siblings of India, Chennai was known for being cautious about adopting the ever-popular trend of catering to the new age party-goers as the rest of India. But as the years went by in the last decade, Chennai became a hub for a multicultural and more importantly a very hardworking workforce of Indian youth. To meet their needs of letting loose after a hard day’s of work, a lot of pubs, clubs and bars – both fancy and commonplace now dot the capital city of Tamil Nadu.

Visakhapatnam, popularly known as Vizag, is one of the best beach destinations in India. The city is located on the east coast and boasts pristine seashores, sparkling blue waters and lush greenery.

Boasting a long coastline with many serene beaches, Mumbai is a delightful destination for travel enthusiasts. Juhu Beach, one of the most famous beaches in India, is in the heart of Mumbai.

The darling city of high-end parties, nights refuse to fizzle out here in this cosmopolitan giant. The city is especially known for the Hindi film industry, Bollywood. Juhu and Bandra are two of the most important spots where the crowd comes to every night, but other than these there are other parts of the city where partying is an option.

Located on the Konkan coastline, Ganpatipule is one of the best beach destinations in India for nature lovers and serenity seekers. The town has a long shoreline with many pristine beaches.

Kolkata is a wonderful destination for different kinds of travellers. And if you love beaches, this populous metro city has some beautiful ones along its 158 km long coastline.

Once known as the party capital of India, the party spirit of Kolkata took a hit after several political uprisings in 2010. However, it is only for so long that you can put a cap on the nightlife of Kolkata. Kolkata now hosts a range of artistic bars, old-school restaurants and gorgeous Instagram-able cafes. The city’s vibrancy of culture, art and history is so unique to Kolkata that can’t be seen anywhere else in India. So let your hair down and paint the town red in this beautiful city of artists and dreamers!

Fondly known as Pondi or Pondy, Pudducherry (formerly Pondicherry) is a little town with a big heart. Formerly a French colony, this beach town is known for its calm vibes, low cost liquor and delectable cuisine. Groups of friends, couples, old timers and small and large families alike, take to the streets and sit by Promenade Beach to watch the waves crash at the shore. The plethora of street food carts stationed across the town cater to the hungry mouths after sundown.

In terms of nightclubs, the city does have many to offer as it still continues to grow in that regard. And almost all of them strictly function only till midnight. But many backpacker friendly hostels and stays allow their patrons to party later than midnight and have a great time.

This small and serene union territory is known for some of the best beaches in India for honeymooners. You can unwind on the popular beaches here and spend quality time with your partner.

Delhi govt. allows city bars to stay open till 3 am

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With Delhi showing the way will Mumbai follow suit. Perhaps the commercial capital of India will want the city to mix business with pleasure. Additional taxes will help boost the government finances.

The Delhi government has granted permission to all pubs and restaurants serving liquor to stay open till 3am — a move aimed at elevating the Capital’s nightlife, which could help revive the hospitality industry that is still reeling from the pandemic, and increasing employment opportunities.

A formal order is likely to be issued soon, people familiar with the matter said, adding that the government is coordinating with Delhi Police and other agencies for the safe implementation of the new timings. Most pubs and restaurants, barring some exceptions, are currently allowed to stay open till 1am.

Though Delhi’s new excise policy was implemented on November 17, 2021, the change in operating hours will not kick in until a specific order is issued. Though Delhi’s new excise policy was implemented on November 17, 2021, the change in operating hours will not kick in until a specific order is issued.

The Delhi government has granted permission to all pubs and restaurants serving liquor to stay open till 3 am — a move aimed at elevating the Capital’s nightlife, giving a shot in the arm to the hospitality industry that is still reeling from the pandemic, and increasing employment opportunities.

Zorawar Kalra, MD, Massive Restaurants says that it will have a huge positive impact on the entire industry and the economy of the city as all stakeholders will benefit.

The government benefits due to added tax and excise collections. The employees benefit due to added shifts requiring additional people. The customers benefit as they get vibrant nightlife and the freedom to dine at whatever time they choose. And the industry benefits due to the potential of added revenue.

Abhinav Jindal, CEO & Founder, Kimaya Himalayan Beverages had this to say “Delhi Government’s recent announcement for restaurants and bars to remain open till 3 am is an appreciated move showcasing Delhi as a progressive city on the world map. We welcome this decision as a part of the industry.

This cosmopolitan city will allow people to enjoy themselves at their convenience without rushing due to time restrictions. Moreover, it will not only encourage and provide ease of doing business in the city, but will also add up to the revenues of the hard-hit HORECA industry which sees newer opportunities after two years of the pandemic.

In addition to this, this will also help us all promote responsible drinking among consumers. They will not be under the pressure of finishing drinks, rather enabling them to enjoy for longer hours and responsibly. Further enhancing experience for consumers and industry. Look forward to witnessing this positive change in Delhi’s nightlife!”

In an official government note, deputy chief minister Manish Sisodia, who holds the excise portfolio, asked the department recently to extend the closing time of restaurants, and to ensure that no establishment is subjected to harassment if it stays open till 3am.

“As part of our policy of ease of doing business and also to bring some cultural and nightlife activity in the national capital, which will further enhance the employment opportunity of our people, the Delhi government approved the New Excise Policy in November 2021 allowing the operating timings of restaurants up to 3am in consonance with the operational timings of NCR cities including Gurugram and Noida. The final implementation is being coordinated with the other agencies including Delhi Police,” read the file noting signed by Manish Sisodia.

“In the meantime, the excise department of Delhi, for all practical purposes, [is] to consider the closing time of restaurants as 3am, and no restaurant will be subject to any harassment on account of operation up to 3am,” the note added.

Among NCR cities, Gurugram allowed pubs to remain open 24×7 while in Noida, pubs can operate till 2am. In Gurugram, pubs were allowed to allowed to open till 6 am last year but the new policy announced by the Haryana government allows such outlets to remain open 24×7. In Noida, since April 2019, all pubs can operate till 1am and this can be extended to 2 am for a fee.

Though Delhi’s new excise policy was implemented on November 17, 2021, the change in operating hours will not kick in until a specific order is issued. For example, another key change in the policy — lowering the drinking age from 25 to 21 — is yet to be implemented because the Delhi government is yet to amend the Delhi Excise Act.

While Delhi Police has not issued an official response, a senior officer said they were not aware of any such order yet. “The Delhi government has not consulted with the Delhi Police while issuing the said order. When the order was notified, the Delhi Police had raised concerns related to law and order, traffic disorder, as well as safety and security of citizens, especially women,” said a senior officer, who is aware of the matter.

There have been demands to extend the operating hours since the excise policy was implemented last November, and a group of representatives of the National Restaurant Association of India met Sisodia recently to urge the government to push the change through.

“Restaurants have already paid the excise fee as per the new policy, but continue to be restricted to the old operating timings – leading to huge business losses in this critical recovery phase for the industry. Non-implementation of this most important change is putting the industry into much deeper distress than before. This will surely negate the gains that are expected from the reforms undertaken by the Delhi government,” said the NRAI representation submitted to Sisodia.

According to Rahul Singh, trustee of NRAI, restaurants not serving liquor in Delhi are allowed to operate 24 hours if they so choose, but restaurants serving liquor operate with an L-17 licence, which only permits the service of liquor in independent restaurants till 1 am.

To be sure, the 24-hour service of liquor is allowed in restaurants inside five-star hotels, and those located in the arrival or departure terminals of IGI airport.

Restaurants serving liquor in Delhi need multiple licences from different agencies to operate in Delhi, but only the excise and police licences specify timing restrictions. The health, and shop and establishment licences given by the municipal corporations, the food safety licence given by the Food Safety and Standards Authority of India, and the fire licence given by Delhi Fire Services, don’t have any timing specifications.

Restaurateurs welcomed the Delhi government’s move

“Delhi is truly a world city, the capital of our nation, and the most visited city too. Tourists as well as the residents truly deserve a global experience. With longer office working hours and the commute, there is always a paucity of time for patrons to have a relaxed evening. Extending service of liquor in a restaurant will provide relief from binge drinking. This will increase jobs in the hospitality sector, and more revenues to the city’s exchequer. While some will question the law-and-order aspects, one has to realise that when there are people on the street and the city is vibrant, there is less crime. Look at examples of global cities and even our own airports, railway stations which operate 24/7,” NRAI’s Rahul Singh said.

Sanjeev Mehra, president of Khan Market Traders’ Association, however, cautioned against the move. “It will also not lead to any increase in business for many of the regular traders and shop owners. But the move will definitely put additional burden on Delhi Police, which is already overburdened, and may lead to increase in law-and-order issues,” he said.

Meanwhile, the BJP slammed the Delhi government’s move. “The new excise policy is going to destroy the future of Delhi’s youth. Permitting restaurants to serve liquor till 3am is nothing but promoting use of alcohol among people. It may also lead to law-and-order situation in the capital,” said Ramvir Singh Bidhuri, leader of opposition in Delhi assembly. Delhi satellites Noida and Gurugram come under Uttar Pradesh and Haryana respectively, and both states are ruled by the BJP.

Feature image courtesy: https://airballingdtx.com/

Punjab looking at different state excise policies, to shore up exchequer

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The newly formed Punjab government of the Aam Aadmi Party (AAP) is contemplating upon allotting liquor vends through a tender system in its bid to shore up revenues from excise. However, the traders are not open to this idea and want continuation of draw of lots. In Delhi where AAP has been ruling the new excise policy has been welcomed not just by the industry, but also consumers. The Minister of Finance, Harpal Singh Cheema has directed officials to study excise policies of other states and plans to roll out the policy soon. Punjab is likely to pick up inputs from Delhi and other states before it announces a new excise policy for 2022-23 sometime in June to be effective from July 1. The excise department has already initiated informal discussions with the trade to understand their requirements while boosting the exchequer.

Like many states, Punjab’s major source of revenue is from excise. It has estimated the revenues for the current financial year at ₹7,002 crores, with an increase of 20% from ₹5,794 crores of 2020-21. According to media reports, the excise department has already achieved the revenue target for 2021-22.

In end March, the AAP government renewed the 2021-22 policy for a period of three months to those existing licensees who will give 1.75% excess revenue over minimum guaranteed revenue (MGR) of financial year 2021-22 for their respective groups and zones in order to maintain stability in the liquor trade. The minimum guaranteed revenue of groups and zones is estimated at ₹1,440.96 crores for this three month window and the revenue target is expected to be ₹1,910 crores.

The MGQ of Punjab made liquor (PML) called desi, Indian made foreign liquor (IMFL), beer and imported foreign liquor (IFL) of each group and zone has been increased by 10% of the corresponding first quarter of last financial year of the respective group and zone. Further, to allow retail licensees to lift liquor as per their requirement, the amount of additional fixed license fee has also been increased. The ratio of fixed and open quota of PML shall be 30:70 as was prevalent during financial year 2021-22.

It may be mentioned here that the government of Capt. Amarinder Singh had allotted vends through a draw of lots till 2019-20 and in the last two years it extended the trade licenses of those who guaranteed generating 12% excess revenue over the fixed minimum guaranteed revenue. It is learnt that the government is planning to increase the reserve price and license fee of liquor vends and also to increase the size of the group up to ₹20 crore, having 7 to 10 vends.

The government is on a mission mode to fill the coffers. The Finance Minister is on record stating that despite high liquor consumption in the state, it has been able to generate enough for the exchequer. “This is our mission now. We have to fill the coffers.” While lauding the Delhi excise policy, the Minister talked about basic difference between liquor consumers in Delhi and Punjab. “While Delhi consumes Indian Made Foreign Liquor (IMFL), Punjabis consume Punjab Medium Liquor (PML). We will have to work out our policy taking into consideration all these points.”

AAP national convenor and Delhi Chief Minister, Arvind Kejriwal had stated during the run up to the election that the AAP government would look at liquor and sand for generating funds.

Methanol in wine

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Greg Hodson1, Eric Wilkes2, Sara Azevedo1 and Tony Battaglene1

1 – FIVS, 18 rue d’Aguesseau, 75008 Paris, France

2 – Australian Wine Research Institute, Hartley Grove, Urrbrae SA 5064, Australia

Abstract

This paper examines the origins of methanol in grape wine and the quantities typically found in it, as well as in other foods such as unpasteurised fruit juices. The toxicology of methanol and the associated regulatory limits established by competent authorities in various parts of the world are also considered. It is concluded that such limits are not driven by public health considerations and thus authorities are requested to consider the need for methanol analyses to be performed and reported on certificates of analysis as a condition of market entry for wine. Where methanol limits are still deemed to be necessary to achieve policy objectives, authorities are encouraged to establish them in the light of the levels of methanol typically found in grape wines produced by the full array of internationally permitted winemaking practices, and to consider harmonising their limits with those that have already been established by other governments or recommended by appropriate intergovernmental organisations.

This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).

Introduction

The origin and significance of methanol in wine, and the associated establishment of regulatory limits for its presence there, are causes of much confusion and misunderstanding in international trade. This paper, produced by the FIVS Scientific and Technical Committee, reviews the topic in some detail, providing reference materials to assist with further study. It concludes that the levels of methanol commonly found in grape wines are broadly similar to those that may be found in many freshly squeezed and unpasteurised fruit juices if they are stored for a period of time after squeezing. It is further demonstrated, from a comparison of regulatory limits for methanol in wine with food safety risk assessments that have been conducted by reputable bodies, that the limits themselves do not serve any real food safety purpose. This is because many litres of wine per day or even per hour would need to be consumed (even if the product contained the highest content of methanol permissible in regulations) to even approach intake levels of any known toxicological concern [1].

2. Chemical properties and other information for methanol

Methanol is chemically characterized as follows [2]:

2.1. Chemical Formula, Synonyms, CAS Registry number

Chemical formula: CH3OH

Synonyms: Methyl alcohol, Carbinol, Wood alcohol

CAS Registry Number: 67-56-1.

2.2. Physico-chemical properties

Physical appearance: Methanol is a colourless liquid with characteristic odour.

Melting Point: –98 °C

Boiling Point: 65 °C

Solubility in water: Miscible.

3. Origin of Methanol in wine

3.1. Action of pectinase enzymes

3.1.1. Action of endogenous pectinase enzymes on pectin in grapes

Methanol is produced before and during alcoholic fermentation from the hydrolysis of pectins by pectinase enzymes (such as pectin methylesterase) which are naturally present in the fruit. More methanol is produced when must is fermented on grape skins; hence there is generally more in red wines than in rosé or white wines (see Sect. 4 below).

3.1.2. Use of exogenous pectinase enzymes in winemaking

Exogenous pectinase enzymes are permitted for use in winemaking (generally as clarifying agents) in at least the following countries: Australia, Canada, the 28 Member States of the European Union, Japan, the Republic of Georgia, New Zealand, South Africa, and the United States. Their use is also deemed to be an acceptable winemaking practice by the International Organisation for Vine and Wine (OIV) [3]. As with the activity of pectinases naturally present in grapes, the use of exogenous pectinases as a winemaking practice will have the effect of increasing the levels of methanol in the resulting wine.

3.2. Treatment of wine with Dimethyldicarbonate

Dimethyldicarbonate (DMDC) is an effective pre-bottling sterilant, accepted for use in winemaking in Argentina, Australia, Cambodia, Canada, Chile, the 28 Member States of the European Union, the Republic of Georgia, Hong Kong China, Myanmar, New Zealand, Russia, Singapore, South Africa, Thailand, Turkey and the United States, whose use is generally limited in international regulations and recommendations to a maximum treatment of 200 mg/L of wine [4]. For other alcoholic beverages and mixtures of alcoholic and other beverages with an alcoholic strength by volume of less than 15%, the limit on usage is often set at 250 mg/L. The use of DMDC can be important in stabilizing lower alcohol products from additional fermentation in the bottle, and also allows a reduction in the quantity of sulphur dioxide that is used where the oxygen in wine is kept below 1 mg/L. DMDC breaks down rapidly in wine, producing carbon dioxide and leaving methanol at very low levels not harmful to health and other innocuous products in the wine. Methanol at a level of about 100 mg/L is created in wine from a DMDC treatment at the typical maximum treatment level of 200 mg/L [5].

4. Typical levels of methanol in wine

It was noted above that the presence of low levels of methanol in wine is expected due to the action of pectinase enzymes that are naturally present in the grapes. A study of the literature indicates the following information concerning the typical levels of methanol that may be found in wine (these levels generally do not account for any additional amount that may result from a DMDC treatment):

• Red wines will tend to contain more methanol (between 120 and 250 mg/L of the total wine volume) than white wines (between 40 and 120 mg/L of the total wine volume), because of the longer exposure to grape skins during the fermentation [6].

• Wines made from grapes that have been exposed to Botrytis cinerea (e.g. late harvest wines, such as Sauternes or Tokay) also have higher methanol levels than standard grape wines (as much as 364 mg/L of the total wine volume) [7].

• Wines made from non Vitis vinifera grapes tend to contain more methanol than wine from pure Vitis vinifera [8].

4.1. Case study: Typical levels of methanol in Australian wine

A recent survey looked at 150 wines from across Australia to determine typical levels of methanol in commercial wine [9]. The sample set consisted of 90 red and 60 white wines from multiple varieties and vintages. All wines were analysed using a GC-FID in the Australian Wine Research Institute’s ISO 17025 accredited laboratory. No evidence of DMDC treatment (a source of methanol) was found for any of the wines tested.

Typical ranges for methanol found in Australian wines were; 60–280 mg/L in reds (mean 170 mg/L) and 40–120 mg/L in whites (mean 58 mg/L). All wines tested had some methanol content. The main driver for higher methanol levels appeared to be skin contact during processing. Variety or vintage had no significant impact.

4.1.1. Typical values

Results for red and white wines were significantly different. Red wines typically contained higher levels of methanol across a larger range of content, reflecting greater variation in skin contact times. All wines were found to be within Australian and OIV guidelines (Fig. 1).

4.1.2. Impact of variety

No significant differences of methanol content were found based on grape variety. The only difference found was between red and white wines, reflecting the differences in processing for the different wine styles (Fig. 2). 4.1.3. Impact of vintage

4.1.3. Impact of vintage

No significant impact of year of production on the methanol concentration was found (Fig. 3).

Nepal bans import of liquor, among other items, to rein in economic crisis

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India’s neighbours – Sri Lanka and Nepal – are in deep economic crisis. The crisis is a bit similar as both countries largely depend on revenues from tourism and that was severely affected due to the pandemic. Unlike Sri Lanka, Nepal is not that debt-ridden. Nevertheless, the Himalayan country is witnessing unprecedented inflation and its economy is just rolling down the mountains with no immediate relief in sight.

Hence, the Nepal Government headed by Sher Bahadur Deuba has initiated certain measures, including ban on imported cars, liquor, playing cards and nearly a dozen other “non-essential” goods to address the widening trade deficit and declining foreign currency reserves. Nepal’s central bank has said reserves are only sufficient to cover just over six months of imports, down from 10 months in mid-2021. The Finance Minister Janardhan Sharma has stated that the situation is nothing like Sri Lanka’s and that Nepal is in a “slightly better position” than Colombo in terms of production and revenue. He admitted, that although the forex reserves are stressful due to escalated imports of luxury items, Nepal is not burdened with foreign debts like Sri Lanka. Nepal’s trade deficit rose by nearly 34.5% on-year to $9.35 billion in mid-March, while forex reserves have fallen below $10 billion. Hence, the ban on some imported goods, including liquor.

“This is a short-term measure taken to prevent the economic condition of the country from going bad,” said ministry joint secretary Narayan Prasad Regmi. “The government has decided to curb imports of certain luxurious and non-essential goods as the recent surge in imports has put pressure on our economy.” The central bank had already verbally directed private lenders not to issue letters of credit for luxury goods earlier in April.

India major exporter to Nepal

In 2020, Nepal imported $5.58M in hard liquor, becoming the 142nd largest importer of hard liquor in the world. In the same year, hard liquor was the 228th most imported product in Nepal and the imports are primarily from India ($2.64M), Singapore ($1.76M), United Arab Emirates ($786k), United Kingdom ($169k), and Malaysia ($140k).

While emergency restrictions on imports of high-end vehicles might temporarily bolster Nepal’s balance of payments, the fact that imported wines and spirits represent less than 0.2% of the country’s total import value suggests that the ban will have negligible economic impact, state some experts. The heavy taxes on imported wine and spirits generate almost $55 million in the form of excise and customs,

The fear is that ban on imported liquor may lead to ‘bootlegging’. Nepal has a significant informal alcohol market. According to research by the World Health Organisation and the Nepal Health Research Council, at least 66% of all alcohol consumed in Nepal was either illegal or home-produced, making for an illicit market that is more than twice the size of the legal market.

Experts said that prohibiting the import of international spirits and wines will only compound this problem, increasing the share of illicit alternatives through smuggling across borders into Nepal and counterfeiting of popular, premium international brands.

Local brews

Locally, Nepal is known for some brews that mostly are made in homes. Rakshi is the Nepali term for a traditional distilled alcoholic beverage. Its alcohol content is around 45%. That is to say as a whiskey. Nepalese drink this homemade drink during the festivals.

Production and consumption of alcohol is controlled by the Madira Aain 2031. License is required to sell alcohol. However, it permits brewing and consumption for household purposes without a license. Gongo is made from scraps of ugali and maize, fermented over several days, and then distilled through a jerry-can of cold water into a soda bottle. This has hints of ethanol, but surprisingly palatable.

Tongba is the drink of the Limbu people of Eastern Nepal and also referred as Tibetan Hot Beer. And then there is Chaang which is made from a selection of cereals.

In 2020, Nepal exported $385k in hard liquor, making it the 123rd largest exporter of hard liquor in the world. During the same year, hard liquor was the 106th most exported product in Nepal. The main destination of hard liquor exports are to Japan ($231k), South Korea ($64.1k), Hong Kong ($53.6k), Macau ($20.4k), and Belgium ($13.5k).

The fastest growing export markets for hard liquor of Nepal between 2019 and 2020 were Macau ($20.4k), South Korea ($18.4k), and Japan ($8.41k).

Ironhill builds largest microbrewery in the world

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Ironhill India in Bangalore is located in the IT hub near Marathahalli and is spread across a lavish 1.3 lac sq. ft. making it the largest microbrewery in the world. With installation art at every corner and an ambience to match, the new outlet will serve eight varieties of original craft beer. The space can accommodate more than 1800+ people at a time and makes a perfect venue for events, exhibitions and a night out as well that can be taken up with social distancing. Since the Bangalore launch the brand has established footprints with a swanky new outlet in Nellore and Rajahmundry as well. Teja Chekuri, Managing Partner, Ironhill India gives more details.

How did Ironhill India begin its journey?

Ironhill, the wonderland of breweries started its journey in 2017 at Vizag. We wanted to be the place for people from all walks of life to chill at, with our range of brews and hip ambiance. This was followed by Vijayawada, Hyderabad, Nellore, Rajahmundry and Bengaluru, with Ironhill Bengaluru being the largest microbrewery in the world. All Ironhill outlets have something unique about them that makes them stand out.

We are also, the biggest microbrewery chain in the country with a total of seven most happening microbreweries across Southern India and gearing up to other parts of the country.

Our aim from the beginning has been simple, to give our patrons a taste of the brewtiful life, with expansive spaces, galvanising ambiance, trippy music, bespoke food menu, and tasty brews to quench the thirst for magical experiences. We cater to everyone, from beer connoisseurs to newbies, regulars to one-offs, colleagues to friends, and we are just getting started!

How different are the challenges managing outlets in the US and those in India?

From a holistic perspective, it is about running all our outlets efficiently and professionally and, in that sense, there is not much of a difference. Where the difference does arise though, is in the culture, the rules and regulations, and the needs of our patron. However, we have learned and dealt with those differences with the aim of providing the best hospitality experience across the board.

Any reason for beginning your journey in the South of India?

Being from this part of the country, we saw the massive scope, the relatively uncrowded hospitality scene, and of course, the lack of awareness about, as well as presence of good microbreweries. So, we entered the microbrewery scene in the South with the sole aim of catering to the local demographic present here and introducing world-class craft beers and indeed a world-class hospitality experience to our patron. With the burgeoning demographic that sought magical experiences, it made complete sense for us to open our microbrewery in the south.

How different are your retail outlets from the competition?

We are all about the beer and food, however, that isn’t to say that our cocktails are far behind. We provide a holistic experience, with larger-than-life spaces, a majestic ambiance, music across genres, an extensive food menu that takes influences from local as well as world cuisine, you name it, and we have. We are all about crafting experiences that are as magical and as perfect as they come.

What is your game plan for India?

Now that we have a solid footing in the southern part of India, we are looking at aggressively expanding and establishing a pan India presence in the next three to five years.

What is the scope for expansion of your craft beer outlets?

We are in expansion mode, and you will hear about us soon from all parts of the country.

What was the impact of Covid on your business?

Undeniably, Covid put a spanner in the works and caused us losses. However, we have a very proactive team and that meant when normalcy was restored, we got back to business on a war footing. Having gone through the tough times relatively unscathed, we are now absolutely gung-ho about the future prospects, as of now business is brisk and we are hitting numbers that are even better than pre-pandemic times.

What kind of styles of beer do you offer at your outlets?

We believe in innovation and experimentation, and hence we launch new brews ever so often. There are staple brews of course like the Wheat Beers, Blonde Ales, Cider, etc, but we also have new beers every month based on the season, like the Mango Ale, Mango Saison, Kiwi Cider, Coco Brown Ale, to name a few.

What kind of food menu do you offer at your outlets?

We have a healthy mix of grub-inspired by local cuisine as well as world cuisine. We have ensured that we have an extensive menu, and we cater to the palates of people from varied backgrounds, so, it would be fair to say, that we have it all.

How important is location for your outlets?

Location is a prerequisite to running a successful business. Space, high footfalls, demographic, spending power, presence of competition, and many such factors are taken into account before deciding on the location of our outlets.

Myths About Drinking

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In this video we talk about some amazing and funny myths, superstition and traditions about drinking. Watch the full video and let us know in comments if you follow some of them or have some of your own too! Don’t forget to like the video and hit the subscribe button and press the bell notification for more such amazing videos!