Whisky is a tribute to the valour displayed by our Armed Forces during pivotal moments in history; company’s commits to contribute part of the revenue from every bottle to the welfare fund of the Indian Armed Forces.
Radico Khaitan Ltd. uncorked the Spirit of Victory, beginning with the Premium XXX Rum in 2017. In 2022 the Lemon Dash Rum was added to the flavoured white rum portfolio. Following these launches in the Rum category, the company has launched its latest Spirit of Victory 1999 Pure Malt Whisky.
The Spirit of Victory whisky is a tribute to the valour displayed by our Armed Forces during pivotal moments in history. This special collection pays homage to the bravery and sacrifices made by our soldiers in the 1965, 1971, and the poignant Kargil War of 1999. What makes this launch special is the company’s commitment to contributing a part of the revenue from every bottle sold to the welfare fund of the Indian Armed Forces. At the helm of this spirited journey is Amar Sinha, the Chief Operating Officer of Radico Khaitan, steering the company beyond being a beverage provider.
The Spirit of Victory 1999 Pure Malt Whisky involves blending different single malts, sourced globally, and expertly mixed with Radico’s Indian single malt to create a drink that is not only outstanding, but carries deep meaning. The story of the such an endevour begins in 2017 with the launch of the 1965 Spirit of Victory Premium XXX Rum.
By 2022-23, it achieved a significant milestone by selling over 1 million cases, receiving Gold Quality Awards for six consecutive years (2018-2023) at the Global Monde Selection Awards. The Spirit of Victory Lemon Dash Rum, introduced in 2022, expanded the line, entering the flavoured white rum territory. Both variants have become favourites, marking the 7th brand of the company to achieve the million- case club in March 2023.
The company is looking at reaching into the hearts and minds of consumers. From the ‘1971 War Chronicles’ animated series to the ‘Battlefield Dossier’ series on the “Spirit of Victory” YouTube channel, these efforts aim to educate the younger generation about patriotism and preserve the inspiring stories of our armed forces.
With the alcohol industry leaning towards premiumisation, the success of the 1965 Spirit of Victory Rum positions Radico Khaitan at the forefront of the premium category, challenging stereotypes and reshaping the industry.
• Jim Murray adds zing to whisky tasting event • Plan to up exports to 100 countries from 57
As whisky enthusiasts gathered at The Oberoi, Gurugram, on March 3rd for the Amrut Distilleries’ whisky tasting event featuring Jim Murray, a distinguished whisky writer and critic renowned for his unparallel mastery of the spirit, it was evident that this was no ordinary experience. The event provided a platform for enthusiasts to engage, learn, and connect. The day culminated in the unveiling of Bagheera and Portonova, marking their debut in the Indian market.
New products offerings, same class and elegance
Rakshit N. Jagdale, Managing Director, Amrut Distilleries Private Limited said, “We challenge ourselves at every step to craft new Amrut Malt variants. Take Amrut Portonova, for instance, an un-peated single malt whisky, that undergoes a unique maturation process. Initially aged in a blend of new American oak and ex-bourbon barrels, it is then transferred to once-used port pipes imported from Portugal before returning to ex-bourbon casks.”
The name “Portonova” pays homage to the town of Parangipettai in Tamil Nadu. Jagdale describes its flavour profile as offering an exotic and vibrant experience with notes of raisins, vanilla, cherry liqueur, and spices, maintaining extraordinary smoothness despite its full cask strength. Tasting notes reveal a rich nose with fruity hints, toffee sweetness, tropical spices, coconut, and cracked black pepper, while the palate delights with homemade red berry jam, caramel sweetness, tropical fruits, banana fritters, and a subtle saltiness, leading to an exceptionally long and fruity finish with traces of raspberries and cranberries lingering on the palate.
Commenting on Amrut Bagheera, he said, “This single malt is one to cherish. It exudes a sensory journey that is both complex and rewarding, making it a cherished addition to any whisky enthusiast’s collection.”
Bagheera’s profile boasts vibrant fruity notes, with hints of dried fruits and peach, accompanied by subtle undertones of mild orangey citrus, vanilla, and toffee. Upon nosing, one is greeted with the enticing aroma of salted caramel intertwined with dark chocolate, alongside a medley of fruity notes, possibly dried fruits, with a subtle oak presence and a touch of sandalwood that gradually evolves into a floral bouquet. The taste is a delightful fusion of fruity flavours accented by floral nuances, with a velvety, oily texture. The creamy middle is enhanced by hints of sandalwood and wood phenols, expertly balanced by a gentle peat undertone. The finish is both sweet and dry, leaving a lingering essence of peat.
Limited to 300 bottles allocated for sale in Haryana, Bagheera proves to be a highly sought-after and competitive endeavour, given its status as a truly premium and versatile whisky offering. Jagdale noted, “Since the market release is limited to Haryana and considering their distinctive richness and special status, the MRP for Portonova is approximately ₹15,000, while Bagheera is marked at ₹23,000 per bottle.”
Murray endorses
The tasting event gave an opportunity to whisky lovers to get a peek into the world of Amrut. Murray said, “I’ve known Rakshit [Jagdale] for an extended period. He embodies humility, gentleness, and authenticity, much like his father – a fact I find truly honourable. His expertise is on par with their master distiller and blender, Ashok Chokalingam. Together, they possess an acute understanding of the essence and nuances of their whiskies. I have a genuine appreciation for their creations. While I offered some minor input in guiding their direction, my primary inclination is to assist others naturally. When they released Amrut Fusion, I was thoroughly impressed. It stood out as a pinnacle of quality and innovation. In fact, I ranked it as the third-best whisky I tasted in 2010 due to its exceptional balance. The growing demand for their products prompted them to double their capacity. The recent additions, Bagheera and Portonova, hold immense promise. The dedication of the entire team is apparent in the exceptional quality of their products.”
Future plans and projections
Talking about future plans, Raju Vaziraney, Head of Business Development & Adviser, said the goal for Amrut is to remain a trusted brand in India and a place to find innovation and freedom. This means further experimentation into the soul of single malt distillation. “We will be taking our products to 100 countries around the world by 2030. Additionally, we have plans to introduce several special edition releases exclusively for the Indian market in the upcoming years. Furthermore, we intend to distribute limited batches of Portonova and Bagheera to regions beyond Haryana, but it’s important to move with the aspirational trend among Indian customers, emphasising the cautious approach in opening new markets without sufficient stock.” Amrut is presently exporting to 57 countries.
Gurmeet S. Johal, MD of GD Group, the official distributor for Amrut, added, “We handle a few states for them in North India, including Punjab, Delhi, Chandigarh, and Haryana. Our belief in Amrut’s quality is solid, and their commendable passion for their products has been a driving force for us. Over the past six to eight months, we’ve been in discussions with Amrut to bring in some of their exported malts, even in small quantities, to ensure that local consumers can savour the best offerings from Amrut. We strategically selected Haryana due to its premier status as a high-end alcohol market and with a duty-free environment.”
Johal elaborated, “After months of discussions and tastings, involving Jim Murray in the process, we finalised Bagheera and Portonova. These limited quantities were brought into the market. Looking ahead, our plan is to introduce one or perhaps two limited editions annually. Importantly, these limited editions will not be repeated. With Amrut currently offering around 45-46 different expressions of single malt, even if we request one or two each year, it will be 20 years before we consider repeating something. I want the market to understand this about Amrut: we are not merely a one or two-expression single malt company like the rest.”
The Tamil Nadu government has increased excise duty on alcohol. Accordingly, the Tamil Nadu State Marketing Corporation (TASMAC) has increased liquor prices from February 1, 2024. The corporation said the price of 180 ml of regular and medium-quality liquor has been increased by ₹10; premium quality liquor by ₹20 and 650ml beer by ₹10.
Tamil Nadu has been earning sizable revenues from liquor sales. In the previous financial year (2022- 23) the revenues were ₹44,098.56 crore, up from ₹36,050 crore in 2021-22. During 2022-2023, the revenue earned by the government through special fee on imported foreign liquor was ₹44.79 crore and the revenue earned by TASMAC from service charge alone was ₹12.23 lakh.
Planning to shut 500 shops
The previous Tamil Nadu Minister for Prohibition and Excise V Senthil Balaji, during the demands for grants for his department in the Assembly last year said that of the total 5,329 retail liquor shops run by TASMAC, the government has decided to shut down 500 shops this year.
Dysfunctional automatic vending machines
While wanting to shut some shops, TASMAC last year introduced automatic liquor dispensing machines in five places in Chennai, to help curb some TASMAC outlets overcharging customers. Automatic vending machines were introduced on a pilot basis, charging as per MRP. However, tipplers in Chennai were dejected as the machines either were empty or dysfunctional. In April last, vending machines were installed in imported liquor shops located in five malls in the city – VR Mall in Anna Nagar, Phoenix Market City in Velachery, Forum Vijaya Mall in Vadapalani, Express Avenue in Royapettah, Ampa Skywalk in Aminjikarai.
Exploring 90ml tetra packs
Similarly, the government is exploring the possibility of opening TASMAC outlets early after requests from workers who wanted them open between 7 am and 9 pm. The current timings are from noon to 10 pm. The Minister for Excise and Prohibition, S. Muthusamy has mentioned that TASMAC is also exploring introducing 90 ml tetra packs. The Minister said the decision to sell liquor in cartons as opposed to glass bottles was being taken because glass bottles are thrown on streets and farmlands, causing an inconvenience. He said that “to prevent this, the government is planning to introduce 90 ml tetra packs as they can be used just once. We studied how it is done in other states.”
Tasmac is a state-run company, which oversees wholesale and retail sales of alcoholic beverages in Tamil Nadu. It was established in 1983 by the then Tamil Nadu Chief Minister late M.G. Ramachandran. It is incorporated under the Companies Act, 1956 on May 23, 1983.
TASMAC is vested with the exclusive privilege of wholesale supply of IMFL for the whole State of Tamil Nadu as per Section 17 (C) (1-A) (a) of the Tamil Nadu Prohibition Act, 1937 (Tamil Nadu Act X of 1937). It has taken over the wholesale distribution of Indian Made Foreign Liquor from the Private Sector in the whole state of Tamil Nadu during May 1983. The exclusive privilege of Retail Vending of IMFS was granted to TASMAC under Sec.17 (C) (1-B) of the Tamil Nadu Prohibition Act, 1937. TASMAC is doing the retail business also successfully with effect from 29.11.2003.
TASMAC procures IMFS and beer stocks locally from 11 IMFS manufacturers and 7 Beer manufacturers in the State. It also procures wine locally from one manufacturer. It also procures Scotch, whisky and few wine brands from other states. TASMAC also engages in retail sale of Foreign Liquor.
Distribution of IMFS and beer items to the licensees are being done through the 43 depots of TASMAC located throughout the State. The distilleries are – Enrica Enterprises, Chennai; Mohan Breweries & Distilleries, Chennai; Shiva Distilleries, Coimbatore; Empee Distilleries, Kancheepuram; Southern Agrifurane industries, Villupuram; Midas Golden Distilleries, Kancheepuram; Accord Breweries and Distilleries, Kancheepuram; SNJ Distilleries, Madurantagam; Kals Distilleries, Pudukottai; Golden Vats, Tiruvarur; and Kals Beverages, Coimbatore.
The breweries supplying are – United Breweries, Thiruvallur; Mohan Breweries, Chennai; United Breweries, Thiruvallur; SNJ Breweries, Madurantagam; Kals Breweries, Pudukkottai; Apollo Distilleries, Thiruvallur; and Accord Breweries, Kancheepuram.
The Apex Court in an observation on January 22 has asked respondents Indore-based JK Enterprises if they are willing to change the trade dress of the brand London Pride whisky in a trademark infringement case filed by Pernod Ricard India Pvt Ltd., makers of Blenders Pride and Imperial Blue whiskies. A bench of the Chief Justice of India, D.Y. Chandrachud, Justices J.B. Pardiwala and Manoj Misra adjourned the case by two weeks while asking the respondents – JK Enterprises to get instructions in this regard.
The Supreme Court in two recent hearings saw the petitioners – Pernod Ricard India Pvt Ltd and ANR – presenting their case by bringing bottles of whisky of the two contending brands to highlight trademark infringement. Senior Advocate Mukul Rohatgi representing the petitioners had taken permission to display the bottles in the Court to point out the similarities in the name ‘Pride’, trade dress and the bottle shape. The trade dress between London Pride and Pernod Ricard’s another brand ‘Imperial Blue’ has similarities.
Pernod Ricard said, “The respondent has copied the trademark Blender Pride by adoption and use of London Pride and further copied the colour combination, get-up and trade dress of Imperial Blue of petitioners including use of bottles with embossing of Seagram, the house mark of the petitioner.”
Pride is a generic word, CJI
Presenting the bottles to the Court, advocate Rohatgi said, “In this case the name is not the copy. In this case the trade dress, and even the bottle is identical. And something worse, bottle is absolutely identical.” Rohtagi showed “London Pride” to the bench, however, the bench said the bottle had a different shape. Chief Justice Chandrachud said that the term “Pride” is a generic word. Rohatgi went on to argue on the ‘deceptive similarity’ by recalling similarities in name such as Royal Stag-Indian Stag, Blenders Pride-Casino Pride, Amritdhara- Lakshmandhara, Imperial Blue-Imperial Gold, Golden Deer-Double Deer, Johnny Walker-Captain Walker, Lal Kila-Hara Kila, Field Marshal-Sona Marshal, Officer’s Choice-Green Choice etc. It may be mentioned here that the Supreme Court had in September last year refused to grant interim relief to Pernod Ricard India in its trademark infringement plea against United Spirits which manufactures whisky under the name ‘Royal Challengers American Pride’.
Misuse of embossed bottles
Rohatgi further pointed out how the respondent had misused ‘Seagram’ embossed on the bottles. “Seagram is also mine, which they are using. They are either getting manufactured from somewhere else or getting from Kabadi. Because they can’t get Seagram.” The CJI then asked the petitioners to point out where the bottle was embossed with the word ‘Seagram’. The bench in lighter vein asked the petitioners not to hand over the bottle but to indicate from their place where the embossed word was.
The CJI on seeing the bottles remarked “Why have you (London Pride makers) but adopted the same trade dress and colour and all? Get instructions on whether you will change. We will keep it on Friday week. Ask yourselves, why you suddenly chose to use ‘Pride’?”
Price difference pointed out by respondents
The apex court witnessed interesting exchanges between the two parties. When Senior Advocate Dr. S. Muralidhar, appearing for the respondent, said that affluent customers can easily discern between London Pride and Blenders Pride, the latter being a premium product. Countering this argument, Abhimanyu Bhandari, representing JK Enterprises, submitted that London pride was much cheaper. He argued that while Blenders Pride was priced around ₹1,650, London Pride cost about ₹600. Therefore, someone willing to buy a Blenders Pride would never buy a bottle of London Pride, he contended.
The apex court bench pointed out that the question whether ‘London Pride’ name is deceptively similar to ‘Blenders Pride’ requires arguments from both sides. The petitioners had alleged that the Indore-firm was hurting Pernod’s ₹4,400 crore annual turnover.
The Chief Justice of India observed there was no absolute similarity with regard to the names of Blenders Pride and London Pride. “You used the word ‘Blender’, they use the word ‘London’, and the bottles are also different. They are also saying 42 other manufacturers also use the word. Blender and London are two completely different words.” The CJI asked an open-ended question “Will a person walking into a store to buy Blenders Pride only say give me ‘Pride’ or ‘Blenders’?”
Appearing for Pernod Ricard, Senior Advocate Dr. Abhishek Manu Singhvi argued that the makers of London Pride were riding piggy-back on Blenders Pride. Pernod Ricard was also represented by advocates Hemant Singh, Mamta Jha, Mohit D Ram, Rajul Shrivastav, Monisha Handa, Sambhav Jain, Reha Mohan and Anubhav Sharma.
Appeal against Madhya Pradesh High Court order
Pernod Ricard India had approached the Supreme Court following the order of the Madhya Pradesh High Court of November 3, 2023, which had rejected their petition to stop the sale of London Pride whisky on grounds of trademark infringement. The Madhya Pradesh High Court had found no visual, phonetic or structural similarities between the two whisky brands.
The High Court in its judgment had held “…The first word of the trade mark of plaintiffs is ‘Blenders’ whereas that of the defendant is ‘London’. There is absolutely no similarity in them leave aside any dissimilarity. ‘Pride’ being a generic, common place and laudatory expression in ‘Blenders Pride’ mark, the common man would certainly treat ‘Blenders’ part of plaintiff’s mark as the dominant part. The question of comparison of the words ‘Imperial Blue’ and ‘London Pride’ does not even arise…”.
Court contends that consumers can distinguish between two brands
The High Court went on to conclude that “It can be safely presumed with a sufficient deal of certainty that the consumers of such products would be mostly literate and having reasonable intelligence to distinguish between the bottles of Blenders Pride/Imperial Blue and that of London Pride. Even if they are of average intelligence with imperfect recollection, they would be able to differentiate between the rival competing brands… Liquor consumers of scotch whisky are educated and discerning type. They are literate persons belonging to the affluent class of society.” During the conclusion of the day’s hearing in the Supreme Court, the CJI remarked in lighter vein that Dr. Muralidhar had spoken with “much authority” on the whisky products, to which the latter replied “I am the only sober one here.”
On July 7, 2023, the Congress (I) government in Karnataka gave a jolt to the alcobev sector by hiking existing rates of excise duty on Indian Made Foreign Liquor (IMFL) by 20% and on beer from 175% to 185%. And within six months, the government has announced yet another increase to the beer industry. A draft notification of the government mentions that additional excise duty on bottled beer manufactured in Karnataka or imported into the state will be increased by 10 percentage points from 185% to 195%.
As per the notification, the hike would result in every 650 ml bottle to cost an extra ₹8 to ₹10. The government has proposed the hike in a draft notification to amend the Karnataka Excise (Excise Duties and Fees) Rules, 1968. The new rules allowing the hike are likely to be finalised this month or early February as the department is seeing ‘a big growth in strong beer sales’, even as summer is approaching.
Government desperate to raise revenues
The Congress (I) government is desperate to raise resources as it is not able to fund the freebies it offered to the electorate just before elections. The Congress party came to power on the five election guarantees (read as freebies) it offered to the people – free electricity up to 200 units; free bus travel for women; 10 kg rice for every member of a below poverty line (BPL) household; ₹3,000 every month for unemployed graduate youth and ₹1,500 for unemployed diploma holders; and ₹2,000 for every woman head of a family.
Five guarantees draining exchequer
These five guarantees are going to cost the newly elected Congress government headed by Chief Minister Siddaramaiah, a whopping ₹52,000 crores. Excise revenue is crucial for the state government. In the 2023-24 fiscal, Karnataka has set a target of earning ₹36,000 crore from excise.
Excise revenue registers 13.43 growth in 2022-23
As per the annual report for 2022-23 of the Karnataka Excise Department, the excise revenue has been steadily increasing from ₹7.11 crores in 1967-68 to ₹26,377.68 crores in 2021-22. In 2022-23 the excise revenue collected was ₹29,920.37 crores, an increase of ₹3,542.69 crores when compared to the previous year, registering 13.43 growth. It said that the department’s salary and other expenses was ₹247.88 crores which is 0.83% of the total excise revenue.
Source
2020-21
2021-22
2022-23
IML
20,217.80
22,889.10
24,663.85
Beer
2,438.16
2,757.30
4,460.60
License Fee
643.87
684.10
745.84
Others
32.27
37.18
50.08
Total
23,332.10
26,377.68
29,920.37
Source wise excise revenue in Karnataka
Excise revenue from liquor sales in Karnataka has seen a 65% jump over the last five years, increasing from ₹17,948.5 crores in 2017-18 to 29,920 crores in 2022-23. The revenue is estimated to double by March 2024, given the budgetary target of ₹36,000 crores from liquor sales, as enumerated in CM Siddaramaiah’s budget proposal.
Expenditure is just 0.83%
Of the total revenues realised the expenditure of the department is just 0.83% and that expenditure is also seeing a downward trend.
Particulars
2020-21
2021-22
2022-23
Revenue
23,332.10
26,377.68
29,920.37
Expenditure
222.87
234.43
247.88
Percentage of expenditure
0.96
0.89
0.83
The department also reported growth in sales of both IML and beer (in lakh carton boxes). It can be seen from the statistics that beer has seen a quantum jump from 2021-22 to 2022-23 from 22.40 lakh carton boxes a month to 32.5 lakh carton boxes a month respectively, indicating the growing trend for beer, particularly strong beer.
Liquor type
2020-21
2021-22
2022-23
IML
583.23
660.16
698.46
Average per month
48.60
55.01
58.21
Beer
237.82
268.83
390.66
Average per month
19.82
22.40
32.5
For the excise year 2022-23, the renewed licenses were 32 distilleries, 12 breweries; 23 wineries; and 68 microbreweries. The number of trade licenses (12 categories) has gone up from 11,457 in 2021-22 to 12,454 in 2022-23.
In an earlier article, Ambrosia had raised this issue as to how the government would fund these guarantees. One is through increased borrowings and two through hike in excise duty and other taxable methods. Immediately, after coming to power the Congress government increased electricity tariff by ₹2.89 per unit and several industries are up in arms, stating that it will render many units economically unviable due to high cost of production. Then came the hike on IMFL and beer. The Chief Minister who holds the finance portfolio had levied 20% on all 18 slabs of excise.
However, draught beer has remained untouched which is currently at 150% of declared price. For microbrewery it remains unchanged at 50% of the annual installed capacity at the rate of ₹25 per bulk litre. The Chief Minister had then said “Even after the increase in excise rates, the price of liquor in our state would be lower when compared to the neighbouring states.”
Karnataka among highly taxed, industry
However, the liquor industry states that Karnataka is among the highest in excise duty rates. The Confederation of Indian Alcoholic Beverage Companies (CIABC) in a statement had then said the hike in the additional excise duty (AED) may not increase the revenue for the state exchequer. “Consumer prices in Karnataka are already very high. I think further increase, that too to that extent, is going to hit sales in a big way,” said CIABC Director General Vinod Giri.
CIABC said that there is enough empirical data to show that the liquor demand turns quite elastic after 8-10% increase in price. “We may also see consumers downgrade to cheaper products. Considering that we fear that this tax increase may actually not lead to more tax collection as expected by the government, but will turn out to be counterproductive as many such increases in the past in other states have been. If that happens then all major stakeholders, i.e, the Government, the industry and the consumer will come out poorer.”
Similarly, the CEO of International Spirits and Wines Association of India (ISWAI) Nita Kapoor had urged the state to rationalise AED, reduce the MRP of premium brands in line with its neighbouring states. But the government has its own plans, considering that it has to keep its election promises. The government cannot falter at this moment as the Lok Sabha elections are round the corner and it can’t be seen faulting on its promises. The axe has to fall on alcobev sector which continues to be an easy target.
INDSPIRIT 2024 and Ambrosia Awards 2024 was held recently in Gurgaon, Haryana in front of a packed audience.
Join us at INDSPIRIT 2024 for an invigorating Keynote Address by Vijay Rekhi, the visionary Chairman & Managing Director of Vizanar Alcobev & FMCG Advisors LLP. Dive into an inspiring session titled “Empowering India: Unleashing Entrepreneurial Potential for a Brighter Tomorrow.”
In this pivotal keynote, Vijay Rekhi shares groundbreaking insights and strategies on nurturing entrepreneurship and innovation within India. Discover the keys to unlocking your potential, fostering growth, and driving meaningful change across industries. Whether you’re an aspiring entrepreneur, a seasoned business leader, or simply passionate about India’s economic future, this session is designed to spark a wave of entrepreneurial spirit across the nation.
Stay Tuned: Subscribe and hit the notification bell to get updates on all things INDSPIRIT 2024. Share your thoughts and questions in the comments below, and let’s engage in enriching discussions on the future of the alcobev industry.
Follow Us on Social Media for more such reviews & updates on the Alcobev Industry!
INDSPIRIT 2024 and Ambrosia Awards 2024 was held recently in Gurgaon, Haryana in front of a packed audience.
Dive into the heart of the alcobev industry with the inaugural address of INDSPIRIT 2024, delivered by Trilok Desai, the visionary Publisher & MD of Ambrosia & SAP Media Worldwide. As we celebrate the 16th edition of this iconic event, get ready to explore the dynamic shifts and growth trajectories shaping the future of alcohol beverages in India and beyond.
Don’t miss out on this comprehensive overview of today’s alcobev landscape, filled with expert analysis, future forecasts, and a celebration of industry achievements. Whether you’re a professional in the field, an enthusiast, or simply curious about the evolving world of alcoholic beverages, this video promises insights and inspirations aplenty.
Stay Tuned: Subscribe and hit the notification bell to get updates on all things INDSPIRIT 2024. Share your thoughts and questions in the comments below, and let’s engage in enriching discussions on the future of the alcobev industry. 🔗
Follow Us on Social Media for more such reviews & updates on the Alcobev Industry!
Central Consumer Protection Authority monitoring surrogate advertising, brand extensions
17th edition of IPL, big ticket event begins, liquor companies looking at eyeballs
Advertising Standards Council of India too tracking
The Central Consumer Protection Authority (CCPA) has issued a directive to liquor companies to ensure that there is no violation of advertising norms and has sought a list of brand extension products sold under the same name as alcohol products in the last three years. Some examples of brand extension products include mineral water, soda, music CDs, playing cards etc.
The CCPA gave this directive on March 19 after it observed that some liquor brands had been violating regulations of surrogate advertising. Hence, it has sought details of revenue, turnover data related to the sale of alcobev as well as the brand extension products. It directed companies to provide details of expenses incurred in event sponsorship, payments to celebrities and influencers and television advertisements during the last three years, in its bid to correlate between actual sales of the brand extension product and the money spent on event promotion / advertising etc.
The CCPA Chief Commissioner, Rohit Kumar Singh said “This assessment is critical for determining whether promoting of brand extension products authentically represents the extended product or functions as a surrogate for alcoholic beverages under the same brand.”
He further said “The industry is advised to ensure that all brand extensions follow the broad principles of advertising only genuine extensions (that is, turnover and distribution in proportion to advertising spends), and ensure that advertisements contain no cues of restricted category such as tag lines and layouts and do not unduly suppress the category name and extension being advertised.”
Last edition of IPL fetches Rs. 10,120 crore from advertising
The CCPA order comes ahead of the 17th edition of Indian Premier League (IPL) which kicks off on March 22. It may be mentioned here that the 16th season of IPL saw the tournament pocketing a whopping Rs 10,120 crore from all forms of advertising revenue, a significant growth as per market research and analysis firm Redseer Strategy Consultants.
Cricket gets the maximum eyeballs in India and advertising during matches have helped in brand development. During the last ICC World Cup cricket held in the Indian sub-continent, brands spent about $240 million in advertisement spots on streaming platforms. A 10-second advertising slot during matches costs up to 3 million rupees, a 40% increase compared to the last World Cup.
One of the big sponsors is Bira91, fast growing craft beer brand, had entered into a major five-year deal with the International Cricket Council, becoming its Official Partner for the ICC Cricket World Cup 2023, ICC T20 World Cup, ICC World Test Championship, ICC U19 Cricket World Cup and the ICC Women’s Championship. This is Bira91’s first foray into sports and as an official partner, it integrates the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. And now in the IPL, Bira91 is also one of the sponsors for Royal Challengers Bengaluru and Sunrisers Hyderabad and Kolkata Knight Riders.
Laws in place
The Cable Television Network Act, 1995 envisages that, unless such advertising is in conformity with the advertising code prescribed in the Cable Television Networks (Amendment) Rules, 2006- no person shall send or transmit any Advertisement through a cable service. The above provision, however, does not apply to foreign satellite channel programs that can be received without any specialized gadgets or decoders being used.
With regard to alcohol (Beer, Wine, and Spirits), the law says “any advertising directly or indirectly promoting the manufacture, sale, or consumption of alcohol, liquor, or other intoxicants is prohibited by the Cable Television Network Regulations, 1994, the Advertising Codes of Doordarshan, and the All-India Radio and Guidelines for Journalist Conduct published by the Press Council of India. Some states, however, allow ads, albeit subject to several limitations, through billboards, signboards, etc.”
In June 2022, the CCPA banned surrogate advertising with the introduction of a new set of guidelines to curb misleading advertisements. Violators stand to face a penalty of Rs 10 lakh for the first offence and a Rs 50 lakh fine for subsequent offences. That is the stated position, but we need to see what action has been taken.
Well-defined guidelines for brand extension: ASCI
The CEO and Secretary General of the Advertising Standards Council of India, Manisha Kapoor, asked ahead of the World Cup had said “The Advertising Standards Council of India’s (ASCI) code clearly mentions that products whose advertising is restricted or prohibited by law or by the ASCI code must not circumvent such restrictions by posing to be advertisements of other products whose advertising is not prohibited by law or the code. To differentiate between surrogate ads and legitimate brand extensions ASCI has well defined guidelines for Brand Extension products with set criteria for brands to qualify as a valid extension of a liquor brand/brand whose advertising is prohibited. The ICC World Cup is one of the most popular sporting events in the world and garners record-breaking viewership numbers. Given the scale of the event and sponsorships involved, we are mindful that the issue of surrogate advertising could arise, hence we have intensified our monitoring efforts during the ICC World Cup 2023. At ASCI, we have shifted our monitoring from weekly to daily feeds for this period.”
To a question on whether people were aware of brand extensions or these brand extensions were just an excuse, Ms. Kapoor replied “It is true that under the CTNR, advertising of brand extensions of liquor and tobacco products is allowed, as long as the product being sold under the brand extension makes no direct or indirect references to the prohibited product. Since consumers do miss out on the nuances, ASCI clearly defines in its guidelines the criteria for what qualifies as a brand extension and what does not.”
She also clarified that “At ASCI, our chief concern is about the content of the advertising rather than monitoring the availability of products in the market. However, when it comes to brand extensions in order to verify that the advertised product is indeed a legitimate extension and not a surrogate, ASCI does ask for third party verified sales data of the advertised product from the advertiser. Our brand extension guidelines have a clear criterion for both old and new products in the market to qualify as a valid extension. Instances where advertisers fail to satisfy the criteria are treated as surrogate ads.”
However, the CCPA guidelines states that in case of any ambiguity or dispute in interpretation of the guidelines, the decision of the CCPA shall be final. Sure enough, there are going to be claims and counter-claims.
The 16th edition of the prestigious Ambrosia Awards 2024, organized by Ambrosia Magazine – the Wine and Spirits Magazine, celebrated the finest achievements in the Alcobev industry at a gala event. Recognizing excellence in products, packaging, and individual categories, the awards showcased the industry’s best and brightest talents.
Ambrosia magazine, now in its 32 nd year, continues to be a hallmark of excellence in the industry. With a focus on blind tastings for the product category, the awards ensure a fair and unbiased selection process, akin to top international standards.
Trilok Desai, MD and Publisher of SAP MEDIA WORLWIDE LTD, remarked, “The Ambrosia Awards stand for excellence, and our international jury ensures that only the best are honored. Each year, we witness remarkable advancements in product quality, packaging, and technology, setting global benchmarks.
Another highlight of the evening was the launch of the 3rd Edition of Cheers – Coffee Table Book, authored by Trilok and Bhavya Desai. The book, inaugurated by Vijay Rekhi, CMD of Vizanar Advisors, and Former President and MD of United Spirits Ltd (USL), commemorates the industry’s journey and milestones.
Among the individuals recognized, Shiv Kumar Reddy, Managing Director of Seven Seas Distillery Private Limited, was awarded Entrepreneur of the Year. Amar Sinha, COO of Radico Khaitan Ltd, was named Business Leader of the Year. Dr. Lalit Khaitan, Chairman and MD of Radico Khaitan Ltd, received the Ambrosia’s Paramount Achievement Award for his outstanding contributions, achieving the status of India’s newest billionaire. The Lifetime Achievement Award (Posthumous) was presented to Mr. S.S Gandhi, Former President of United Spirits Ltd, honouring his significant impact and achievements in the industry.
This Product Jury included:
Bernhard Schafer – A Whisky Expert, Spirit Consulting and A Master of Quaich
Stephen Beal – Senior Master of Whisky, Chairman of The Council of Whisky Master 2024
Dr. Binod. K. Maitin (PhD) – Technical Expert & Former SVP and Head of Technical Centre USL
Eddie Nara – CSE & Spirits Expert
Ajoy Shaw – DipWSET Winemaker, Consultant and International Wine & Spirits Judge
Julie Lee – Industry Expert and Entrepreneur
This Packaging Jury included:
Prof. K Munshi – Industrial Design Centre, IIT Powai
Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre
Pratish Mepani – Founder of SMBD Group
For More Information Follow Us on our Social Media Handles:
It can be a common misconception that women don’t like the tipple. From the dawn of the early ages women have also known to enjoy wine and spirits. And if you’re looking for unique alcohol gifts this Women’s Day, then we’ve got you covered. From specialty coffee blends to exquisite spirits, here’s a list of offerings to celebrate that special Woman. Whether she’s a coffee connoisseur or a cocktail enthusiast, these are sure to pour some happiness into her day.
Godawan Artisanal Single Malt Whisky
A single malt that breaks aways from the norm – Godawan is bringing to life Indian single malts that cater to every palate – from fruity and spicy to rich and rounded.
Matured in premium PX (Pedro Ximenez) Sherry Casks and American Standard Barrels, this rich liquid is then treated with two unique Indian botanicals – Rasna and Jatamansi. Each sip features the aromas of sultanas and dried fruits, complemented by a syrupy smooth texture, with a finish of caramel and a butteriness like baklava.
The second expression is a sweeter and fruity variant. Matured in virgin oak casks to release vanilla and clove aromas, as well as American Standard Barrels. It also treated with two unique Indian botanicals – Rasna and Jatamansi. With a distinct touch, this whisky is finished in cherrywood casks, enhancing the whisky’s sweet and sour taste profiles, impressive fruit aromas, and dark colour.
Product details: 700ml; ABV: 46%
Price – INR 2800 – INR 6000
Available in Delhi, Rajasthan, Maharashtra, Karnataka, and Dubai
Maka Zai Gold: Tribute Edition
India’s first homegrown premium artisanal rum makes for a dash of opulence this Women’s Day. High-quality and matured, the Maka Zai Gold Rum is blended on the Goan seashore. It is a perfect dessert and sipping rum. Its silky, elegant and approachable charm gives you the feeling of a sunny, late afternoon.
With a clear colour and creamy and elegant aromas, the Maka Zai White Rum runs a sweet and spicy finish. This flavoured rum that boasts a spicy and grassy palate makes for a star component in cocktails.
Product details: 750 ml; ABV – 42.8%
Price – INR 1100 onwards.
Available in Goa, Maharashtra, Karnataka, Delhi, Haryana and Puducherry.
Amrut’s ‘Children of a Lesser God’
Single Malt Amateur Club, whisky appreciation club, and Amrut Distilleries have joined forces for ‘Children of a Lesser God.’ Amrut’s first Single Cask Special Edition, exclusively available to SMAC members (membership is free). Matured in an ex-rye cask, the expression offers a unique flavour profile, marking unexplored territory in Indian whisky. The bottle’s design, featuring diverse Indian cultures, adds a fun, floral twist to traditional whisky branding.
Product Details: 750 ml | ABV: 50%
Price: INR 9999
Beachville Coffee Roasters – Specialty Coffee
This specialty coffee company offers high quality blends and is sure to make the perfect gift this Women’s Day. With their very own roastery, Beachville Coffee Roasters brews excellence in every sip.
With coffee sourced directly from various regions in India, Beachville provides an array of blends, each boasting its own distinct flavour profile. The single origin specialty coffees are chosen from estates including Nachammai in Yercaud, Mooley Maneh in Coorg, Hippla and Kelagur Heights in Chikmaglur. And, for those who appreciate tradition, the Filter Coffee Blend never disappoints. Moreover, each variety offers customizable grind sizes, including options such as whole bean, espresso grind, pourover, and South Indian filter blend.
Product details: 250 gm
Price: INR 375 onwards
D’YAVOL
Celebrate Women’s Day by indulging in these premium spirits – where craftsmanship and authenticity come together to deliver a decadent sipping experience!
D’YAVOL Single Estate Vodka: Originating from Poland, this sipping vodka is made from 100% winter wheat. The luxury spirit stands out with its unique Black Pearl Filtration, resulting in a velvety smooth finish and enhanced mouthfeel. As a single estate vodka, each hand-selected ingredient is sourced from the pristine land surrounding the distillery, reflecting a strong commitment to the grain-to-glass ethos.
Product details: 750ml; ABV: 40%
Price: INR 2,700 onwards
Available in Delhi, Uttar Pradesh, Haryana, Telangana, West Bengal, Maharashtra, Goa and Karnataka
D’YAVOL INCEPTION
This 100% pure malt Scotch whisky is a carefully crafted medley of eight single malts from the distinctive whisky-making regions of Scotland. Undergoing multiple years of maturation in first-fill Tawny Port and rare Madeira casks, the resulting dram has a distinct palate of sherried sweetness, perfectly complemented by gentle Island peat.
Product details: 750ml; ABV: 47.1%
Price: INR 6,000 onwards
Available in Delhi, Uttar Pradesh, Haryana, Telangana, West Bengal, Maharashtra, Goa and Karnataka.
44°N Gin – Comte de Grasse
Celebrate Women’s Day by showing your appreciation to the hard-working women in your life with a gift that pampers and indulges them. Introducing 44° N Gin, a luxury gin crafted on the shores of Grasse that captures the essence of the Mediterranean in every drop. Imagine a harmonious symphony of scents, combining the refreshing burst of grapefruit, the timeless allure of Immortelle, and the delicate fragrance of jasmine – all designed to transport your loved one to the sun-kissed shores of the French Riviera, a place of serenity and relaxation, the perfect escape from the stresses of daily life.
Product details: 500 ml ABV: 44%
Availability & Price:
Delhi: INR 11,230
Haryana: INR 9,800
Mumbai: INR 15,500
Uttar Pradesh: INR 8,910
Geist Crowlers – Geist Brewing Co.
For the beer-loving women look no further than Geist Brewing Co – their range of crowlers are sure to impress. From the zesty Geist Kamacitra with its citrus notes, to the rich and comforting Geist Uncle Dunkel, each brew has its own distinct taste and flavour. Whether she’s relaxing after a long day or enjoying a special moment with friends, a 6-pack of Geist crowlers is an excellent choice to leave a lasting impression.
Celebrate with the exquisite 06 Vodka Rosé by Comte De Grasse. This super-premium vodka has an enchanting pink hue that will infuse your celebration with the alluring essence of the French Riviera. The delicately intricate flavour profile of 06 Vodka Rosé makes it the perfect choice for a self-indulgent intimate evening or a gift. With its refined aromas of strawberry and subtle floral notes, 06 Vodka Rosé sets the stage for a celebration filled with sophistication and charm.