Category Archives: news

Liquor Prohibition in J&K?

The Jammu & Kashmir People’s Democratic Party (PDP), led by Mehbooba Mufti, has started a signature campaign seeking prohibition. The PDP has called the ruling National Conference of Omar Abdullah a government indulging in ‘hypocrisy’.

Across Srinagar, the PDP has put up posters seeking a ban on liquor sales and urging tourists to ‘respect local culture and traditions’. The campaign was spearheaded by Iltija Mufti, daughter of Mehbooba Mufti. Even as posters are coming up the police is getting the posters removed.

But what is more surprising is that the government had conducted an economic survey and presented it to the Assembly. The report projected a 4% increase in excise revenue, expected to touch ₹2,000 crore in 2024-25. The rise is attributed to policy changes, including strengthened tracking mechanisms, transparent auctions for liquor vends, and an overhauled excise framework.

PDP has led the charge, with MLA Fayaz Ahmad Mir submitting a bill to ban the “advertisement, sale, purchase, consumption, and manufacture of alcoholic drinks” in the region. The National Conference and independent legislator Sheikh Khurshid Ahmad followed suit with the BJP also voicing support.

In Jammu, the former J&K BJP president Ravinder Raina had earlier staged protests against alcohol sales. PDP chief and ex-CM Mehbooba Mufti’s daughter Iltija launched a signature campaign recently to rally public backing, vowing to take it to every constituency in Kashmir. “We want J&K to be declared a dry state like Gujarat and Bihar,” Iltija said. “J&K is called the land of rishis and peers (Sufi saints). We have our own sensitivities, culture, and customs. That should be respected.

Recently traders at Srinagar’s historic Lal Chowk had put up posters that, after welcoming tourists, said, “For a memorable and enjoyable trip, we kindly request: Love and cherish your family, avoid liquor, drugs, spitting on roads and smoking. Respect our culture and traditions”.

Health Ministry Directive to BCCI Not to Advertise Alcohol, Tobacco during IPL

The Indian Premier League (IPL) jamboree is going to commence from March 22, coming soon after the ICC Champions Trophy which India won. In India, to state the obvious, cricket has the highest viewership and liquor companies have been taking the route of surrogate advertising. However, this time, the Ministry of Health and Family Welfare wants to crack the whip on surrogate advertising.

In a letter addressed to the IPL chairman Arun Singh Dhumal and the Board of Control for Cricket in India (BCCI), the Ministry has urged the two entities to ban the sale of tobacco and alcohol products at all IPL-related events and sports venues. It also said that all forms of tobacco and alcohol promotions, including surrogate advertising, is prohibited. The directive covers advertisements at stadiums, IPL-related events, and national television broadcasts during matches.

In a letter dated March 5, director general of health services Atul Goel also called on the cricket board to prevent players and commentators from endorsing tobacco or alcohol-linked products, either directly or indirectly. Cricketers serve as role models for young people, making it crucial for the IPL to uphold its social responsibility, he said and added that the IPL, being the country’s biggest sporting event, has a duty to support public health initiatives and align with government efforts to curb tobacco and alcohol promotion.

Non-communicable diseases (NCDs) such as heart disease, cancer, chronic lung conditions, diabetes, and hypertension are a major health concern in India, contributing to over 70% of annual deaths, Atul Goel stated while highlighting the growing burden of these illnesses and the need for stricter regulations to curb their risk factors.

“Tobacco and alcohol use are key risk factors for NCDs. We rank second in tobacco-related deaths worldwide; with nearly 14 lakh annual deaths, while alcohol is the most common psychoactive substance used by Indians,” he said.

Major sponsors during ICC Champions Trophy

During the recently concluded ICC Champions Trophy, played in Pakistan and Dubai, saw Oaksmith Packaging Water advertising majorly. JioStar which was the official broadcaster and streaming platform for the mega event had confirmed sponsorship from Dream11, Pernod Ricard India, Beam Suntory, Kohler, Birla Opus, Vodafone Idea, ICICI Direct among others.

CCPA Keeping a Tab

Ambrosia has been writing about the issue of advertising restrictions for liquor companies in India and also how surrogate advertising has crept in. Often times, the Central Consumer Protection Authority (CCPA) urges companies to guarantee compliance with advertising norms, after getting complaints of liquor brands breaching surrogate advertising regulations, over the past three years, particularly during major cricketing events.

The CCPA only recently had issued notices to 13 companies, including major alcohol, tobacco and paan masala makers, for resorting to surrogate advertising. Surrogate advertising is a deceptive practice where a company promotes products that are banned from direct advertising by promoting other products under the same brand name from the same company.

In 2022, the government had announced guidelines to curb misleading advertisements and endorsers by banning surrogate ads, while imposing strict norms for those advertisements that seek to lure consumers offering discounts and free claims. The guidelines on “Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022” seeks to regulate advertisements targetting children.

Action against violation of the guidelines will be taken as per the provisions of the Consumer Protection Act (CPA), which provides for a penalty of ₹10 lakh for first offence and ₹50 lakh for subsequent contravention, it said.

The CCPA had requested a list of products marketed under the same brand as alcoholic beverages, known as brand extensions, besides seeking revenue and turnover data related to the sale of alcobev and also the brand extension products such as mineral water, playing cards, music CDs etc. In the light of some companies sponsoring events, the CCPA also sought sponsorship details of events, payments to celebrities and influencers etc. The idea was to ascertain the correlation between the actual sales of brand extension products and the expenditure on promotions. The reason given is not to encourage drinking. It has cited the World Health Organisation (WHO) which has mentioned that bans or comprehensive curbs on alcohol advertising “are cost-effective measures” in the interest of public health. Its data shows India’s consumption of alcohol per person will rise to nearly 7 litres in 2030, from about 5 litres in 2019, a period over which fellow Asian giant China’s consumption will drop to 5.5 litres. And alcohol-related deaths in India stood at 38.5 for every 100,000 of its population, versus 16.1 for China.

Amrut Distilleries launches ‘The Expedition’

Most expensive Indian single malt whisky, priced over ₹10.5 lakh

Celebrating its 75th anniversary, Bengaluru-based Amrut Distilleries launched The Expedition, its oldest single malt whisky, aged 15 years to the world market. To commemorate the occasion, it has released 75 bottles of the limited edition, each priced over ₹10.5 lakhs ($12,000).

Ambrosia was invited for the special launch event where both the bottle and the spirit perfectly captured the essence of the celebration. The Managing Director of Amrut Distilleries, Rakshit Jagdale said that of the 75 bottles, nine would be for the Indian market and the rest going to the US, Europe and other markets. Two of the bottles have been pre-booked.

(L-R): Rakshit N Jagdale, MD, Amrut Distilleries with Bhavya Desai, Group Head & CEO, SAP MEDIA WORLDWIDE LTD and Thrivikram G Nikam, Jt. Managing Director, Amrut Distilleries

Amrut believes that The Expedition will elevate the entire luxury segment, demonstrating yet again the brand’s ability to craft exceptional malts beyond its regular range and setting new benchmarks. Amrut has been at the top of the game of Indian Single Malts, even as India’s premiumisation drive continues to motivate manufacturers to do better.

The Expedition has been matured for 15 years, the first eight years in sherry casks from Europe and then the next seven years in ex-bourbon casks from the United States, thus elevating its complexity and depth. The 15-year maturation period is a milestone in the Indian alcobev sector.

Telangana Hikes Beer Prices

The Congress-I government led by Chief Minister, Revanth Reddy has permitted the Telangana State Beverages Corporation Limited (TSBCL) to increase beer prices by 15%, following a request from the Brewers Association of India (BAI) and a brief supply halt by United Breweries which wants the government to clear its dues.

According to the revision, popular brands are going to cost more by ₹30 to ₹50 per bottle. While officials termed it a 15% increase, the actual maximum retail price (MRP), including taxes, has gone up by 15% to 19% for consumers.

Beer prices in Telangana (650 ml)

BrandOld MRPNew MRPDifference
Heineken23027040
Kingfisher Ultra Witbier32037050
Kingfisher Ultra21025040
Kingfisher Ultra Max22026040
Amstel Strong19022030
Kingfisher Premium15018030
Kingfisher Strong16019030
RCL15018030
Green Deer15018030
Haywards 500016019030
Knock Out17019020
Budweiser21025040
Budweiser Magnum22026040
Corona (330ml)21025040
Hoegarden (330ml)23027040
    

On January 8, United Breweries Ltd (UBL) had suspended the supply of its beer to TSBCL due to unpaid dues for past beer supplies. UBL in a regulatory filing also stated that this decision was made due to the non-revision of the company’s beer prices since 2019-20 leading to significant losses in the state. Later, UBL resumed supplies.

BAI Welcomes Hike

The Brewers Association of India has welcomed the Telangana government’s decision to hike beer prices and urged the government to release the dues to the beer industry at the earliest. “Though the increase being allowed is less than the increase in the cost of production or what the industry was expecting, we welcome it as it signals that the government is mindful of the concerns of the industry on business viability in the state and has followed through on its promise of looking into it,” the BAI said in a statement.

A market-driven system is the most efficient way to benefit everyone, and we will continue to engage with the government to advocate for this approach, said Vinod Giri, Director General of BAI. “We have full confidence in Chief Minister Reddy’s leadership and wisdom, and we hope the issue of outstanding payments for beer supplies made between February and August last year will also be resolved promptly,” he added.

Giri further emphasised that Telangana is a key state for the beer industry. Being a high-volume product, locally-made beer has a significant economic impact on the state’s supply chain, employment, ancillary industries, logistics, and the hospitality sector.

The government, it must be mentioned, had set up a price-fixing committee, comprising a retired judge, a retired senior IAS officer, and a chartered accountant. The committee, it is said, considered the price inflation in raw materials and beer prices in neighbouring states, before arriving at the revised prices.

According to official data, there are nine distilleries and six beer factories in Telangana, including one belonging to UBL. There are seven other beer companies that sell beer in Telangana but manufacture them in other states. Overall, 51 liquor and beer companies are selling 1,031 varieties of hard liquor and beer in the state through 2,620 liquor shops and 1,117 bars and pubs. These include 50 locally manufactured brands and 36 non-local brands. Every month, 45 lakh to 55 lakh cases of beer are sold, making Telangana one of the largest beer-consuming states. In comparison, only 30-35 lakh cases of hard liquor were sold, highlighting that beer is sold more in the state. The excise department’s annual contribution to the state exchequer is about ₹36,000-₹40,000 crore in revenue.

With summer around the corner, beer drinking in Telangana is going to see a surge, price hike or no price hike.

Karnataka Beer Prices Hiked

Karnataka’s beer price linked to alcohol content

The Karnataka Government on January 8 has issued a final notification with regard to hike in beer prices. The draft notification on increase in duty on beer was made first on August 23 last year. According to the Excise Department, henceforth, beer prices will be linked to the content of alcohol in it.

This is the third revision in beer prices by the Congress government in the state since July 2023. The first hike was in the July 2023 budget in which the Chief Minister had announced a 10% hike in Additional Excise Duty (AED) on beer and 20% hike in AED on all the then 18 slabs of Indian Made Liquor (IML). In January 2024, AED on beer was increased by 10% – from 185% of the declared price to 195% of the declared price.

Beer pricing has been categorised into two slabs, depending on the alcohol content. The Excise Duty (ED) on mild beers with alcoholic content less than or equal to 5% v/v has been pegged at ₹12 per bulk litre (pbl) and ₹20 pbl for stronger beers containing 5-8% alcohol. Earlier, the ED on beer was ₹10 pbl, irrespective of alcohol content.

Karnataka has made it mandatory for breweries to prepare beer – fermented liquor “from malt or grain with or without sugar and hops, and include ale, black beer, porter, stout and spruce beer” and ensuring that the sugar content is “not more than 25% by weight.” Breweries have been asked to declare the ingredients of beer.

In Karnataka, nearly 75% of total beer sales is accounted for by strong beers and some of the breweries ferment using high sugar instead of malt.

The Congress government explained that the hike was necessary to plug the revenue gap in the excise department, despite increase in liquor sales. The President of the Federation of Wine Merchants’ Associations, Karunakar Hegde said the hike is going to impact the market adversely. He added that supplies of beer had been affected and production had slowed down.

Kevin Pietersen unveils Dram Bell Blended Scotch Whisky by Ardent Alcobev

Ardent Alcobev has launched its new Blended Scotch Whisky for Maharastra in Mumbai. The launch event was held at Imara – Turf Club in Mumbai. The event was hosted by Kevin Pietersen, former England cricket captain and marquee investor in Ardent Alcobev, along with the co-founders.

The scotch whisky is exclusively bottled in Scotland and is available in two variants – the Premium variant, priced at ₹1,750, and the Reserve variant, priced at ₹2,450. According to the makers each bottle represents a blend of heritage and modern sophistication, offering a luxurious experience for whisky connoisseurs. Dram Bell is currently available in Maharashtra from November 2024 and will be available at select retail and on-trade stores. The company also plans to progressively expand distribution into other key markets in the North and South India.  

Expressing his enthusiasm for the launch, Kevin Pietersen shared his personal connection to the brand and the philosophy behind Dram Bell. “My investment in Ardent Alcobev is more than just a business decision; it’s a reflection of my values. Throughout my career, whether on the cricket pitch or in other areas of life, I’ve always valued dedication, quality, and the pursuit of perfection.”

Iain Forteath, Master Blender at Ardent Alcobev and Kevin Peterson at the launch

The evening also witnessed an exclusive Whisky Masterclass led by Iain Forteath, Master Blender at Ardent Alcobev. The interactive session provided attendees with an opportunity to taste various expressions of Dram Bell, while discovering whisky blending and tasting.

Commenting on the launch, Debashish Shyam, Co-Founder and Director of Ardent Alcobev, shared, “We are redefining India’s premium whisky market with a blend that showcases unmatched quality and craftsmanship. With Kevin Pietersen as a strategic partner, we raise the brand’s profile by bridging the gap between international acclaim and preference of Indian market. We are confident that it will appeal to whisky connoisseurs as we merge global standards with local tastes to shape the future of Indian whisky, catering to the evolving preferences of IMFL drinkers.”

ABD acquires Fullarton Brands

Allied Blenders and Distillers Limited (ABD), India’s 3rd largest spirits company, completed the strategic acquisition of all the brands and other Intellectual Property Rights from Fullarton Distilleries Private Limited. This acquisition further augments ABD’s foothold in the super-premium spirits segment and highlights its ongoing commitment with leadership in innovation within the Indian craft spirits industry.  

The acquisition includes the distinguished portfolio featuring brands such as Woodburns Contemporary Indian Whisky, Pumori Small Batch Gin, and Segredo Aldeia Rum. By bringing these award-winning craft spirits into its fold, ABD is strategically positioning itself to meet the evolving demands of India’s super-premium and luxury spirits consumers. 

Woodburns currently operates in six states and union territories, with expansion plans underway for other major markets. Pumori and Segredo Aldeia have established a strong on-trade presence in key markets such as Maharashtra and Goa. The acquisition of these recognised brands, combined with ABD’s operational scale, create a synergistic opportunity for growth and market dominance within the super-premium spirits category. 

Alok Gupta, Managing Director of ABD, said, “At ABD, our growth has always been strategic, and the acquisition of Woodburns Contemporary Indian Whisky, Pumori Small Batch Gin, and Segredo Aldeia Rum perfectly embodies this. We recognise that the luxury segment is where we have a right to win, where we can truly add value. Acquiring these brands is a natural next step in our premiumisation strategy. This isn’t just an acquisition; it demonstrates our deep understanding of where we can create the most value. This is the future of ABD, and we’re executing this vision with precision.” 

Rajiv Thadani, Founder and Managing Director of Fullarton Distilleries Private Limited, said, “Building Fullarton Distilleries since 2013 has been a journey of passion, dedication, and a commitment to crafting world-class spirits. We’re proud to see these brands move forward with ABD, a company that has the scale, expertise, and vision to take them even further. With their leadership, we are confident that the legacy we’ve built will continue to grow and thrive in the years ahead.” 

Magic Moments Music Studio announces Arijit Singh Concerts

Magic Moments Music Studio recently announced an exclusive concert series featuring the Bollywood singing sensation Arijit Singh. Known for his soul-stirring voice and chart-topping hits, Arijit Singh will captivate audiences across four cities starting January 2025.

The concert series began in Jaipur on 25th January, followed by performances in Chandigarh on 16th February, Cuttack on 2nd March, and concluding in Indore on 5th April.

This isn’t the first time that Magic Moments Music Studio has collaborated to bring a top artist. Over the years, the brand has collaborated with SaReGaMa and BookMyShow featuring Prateek Kuhad to also featuring King live concert and powering the Sunburn Music Festival. This partnership with Arijit Singh is yet another strategy to amplify its legacy of bringing larger-than-life musical experiences to fans across India.

Amar Sinha, COO, Radico Khaitan Limited, said, “Partnering with Arijit Singh, an artist whose melodies resonate across generations, perfectly aligns with our vision of creating moments that inspire connection and joy. Over the years, we’ve collaborated with iconic artists, celebrating diverse sounds and genres, and this multi-city concert series with Arijit is a continuation of that legacy. Together, we aim to craft an unforgettable symphony of music and memories, uniting hearts and transcending boundaries through the magic of music.”

Concert Schedule:

  • Jaipur: 25th January 2025
  • Shalimar Ground, Panchkula, Chandigarh: 16th February 2025
  • Barabati Stadium Cuttack: 2nd March 2025
  • C21-Estate, Indore: 5th April 2025

The brand has also implemented 360ᵒ marketing promotions from executing high end retail promotions to activations witnessed on digital and various social media handles along with regional amplifications, across cinema and radio channels.

Radico Khaitan Limited at a Glance:

Radico Khaitan Limited is among the oldest and one of the largest manufacturers of IMFL in India. Earlier known as Rampur Distillery Company, Radico Khaitan commenced its operations in 1943 and over the years emerged as a major bulk spirits supplier and bottler to other spirit manufacturers. In 1998 the Company started its own brands with the introduction of 8PM Whisky. Radico Khaitan is one of the few companies in India to have developed its entire brand portfolio organically.

The Company’s brand portfolio includes Rampur Indian Single Malt Whiskies, Sangam World Malt Whisky, Spirit of Victory 1999 Pure Malt Whisky, Jaisalmer Indian Craft Gin, Royal Ranthambore Heritage Collection Royal Crafted Whisky, Happiness in a Bottle: A Happily Crafted Gin, Morpheus and Morpheus Blue Brandy, Magic Moments Vodka, Magic Moments Remix Pink Vodka, Magic Moments Verve Vodka, Magic Moments Dazzle Vodka (Gold & Silver), 1965 The Spirit of Victory Premium XXX Rum and Lemon Dash Premium Flavored Rum, After Dark Whisky, 8PM Premium Black Whisky, 8PM Whisky, Contessa Rum and Old Admiral Brandy.

Radico Khaitan is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry. The Company has distilleries situated in Rampur, Sitapur and Aurangabad, Maharashtra which is a 36% joint venture. The Company has a total owned capacity of 320 million litres and operates 43 bottling units (5 owned, 29 contract and 9 royalty bottling units). It is also one of the largest exporters of Alcoholic beverages from India, with brands available in over 102 countries.

Magic Moments Verve Lemon Lush in West Bengal

Radico Khaitan Ltd., one of India’s leading spirits companies, has launched Magic Moments Verve Lemon Lush in West Bengal, marking a significant step in this millionaire brand’s strategic expansion. The Magic Moments Verve range is set to appeal to the growing consumer demand for premium flavoured vodkas, offering a refreshing lemon-infused variant that combines Gandhoraj Lemon juice with superior grains.

Building on the brand’s success in key markets such as Jammu & Kashmir, Punjab, Uttarakhand, Delhi, Rajasthan, Uttar Pradesh, Assam, Madhya Pradesh, Maharashtra, Karnataka, Goa, Kerala, Pondicherry, and Telangana, Radico Khaitan aims to further strengthen its market presence in West Bengal.

The new variant’s smooth, refreshing taste and the citrusy flavour of the Gandhoraj lemons make it an ideal choice for the region’s tropical climate. The product’s versatility also makes it an excellent base for a variety of cocktails, perfectly positioned to meet the growing trend of cocktail culture in urban social settings.

Amar Sinha, Chief Operating Officer at Radico Khaitan Ltd., said, “Expanding Magic Moments Verve Lemon Lush into West Bengal aligns with our ongoing strategy of premiumisation and market expansion. With flavoured vodka now the largest growing segment in the category, we see significant potential in tapping into this demand with an innovative product offering that appeals to the evolving tastes of modern consumers. As the fourth-largest vodka brand globally, we continue to lead the market with a portfolio designed to meet the diverse preferences of our customers. The successful reception of this variant in other markets further strengthens our confidence in its success in West Bengal.”

Priced at ₹240 for 180ml, ₹450 for 375ml, and ₹860 for 750ml, Magic Moments Verve Lemon Lush is available in three convenient pack sizes across the state. The product will be distributed in prominent markets with strong demand for premium vodka, in line with Radico Khaitan’s strategy to reinforce its positioning as a leader in the premium spirits category.

Globally, Magic Moments continues to solidify its position as a market leader, earning recognition for its consistent quality and performance. According to the Brand Champions 2024 Report published by The Spirits Business, Magic Moments has been ranked as the 4th largest vodka brand by volume worldwide.

Additionally, Magic Moments Verve has been awarded Gold at the prestigious Global Monde Selection Awards for ten consecutive years (2013-2023). Specifically, Verve Lemon Lush has earned Gold for three consecutive years (2021-2023), alongside the International High-Quality Trophy, further cementing its status as a top-tier product in the spirits industry.

Diageo India appoints Praveen Someshwar as CEO-Designate, Hina Nagarajan to Global Executive position

United Spirits Limited (“Diageo India”) on January 13 announced the appointment of Praveen Someshwar as CEO-Designate. Hina Nagarajan, current Managing Director and CEO of Diageo India, will transition into another position on Diageo’s Global Executive Committee after four very successful years.

Praveen will join the company on 1 March 2025 as CEO-Designate. In accordance with the applicable law and upon receipt of the necessary approvals, Praveen will take over from Hina Nagarajan as Managing Director and CEO of Diageo India and join the Diageo Executive Committee, effective 1 April 2025.

For the last five years, Praveen has been MD and CEO of HT Media, one of India’s largest and best-known media groups, where he leads multiple digital, print and radio outlets including India’s second largest newspaper, Hindustan Times, the leading financial news outlet Mint, and several radio outlets.

Diageo Chief Executive Debra Crew said “Under Hina’s leadership, Diageo India has combined strong top-line growth and margin expansion with impactful strategic initiatives, reshaping and premiumising our portfolio and positioning Diageo India as an innovative leader in the AlcoBev industry. As she moves on to a new role within Diageo, she leaves a significant track record of success and a highly engaged, talented and diverse team.

“Praveen joins us with an outstanding track record of leading consumer businesses, with a passion for both strategy and executional excellence that will serve us well as we plan for the next phase of Diageo India’s exciting growth story. I can’t wait to welcome him on board.”

Mahendra Kumar Sharma, Chairman of the USL board, said “On behalf of the USL Board, we wish to extend our sincere thanks to Hina for her strong stewardship of the business and her partnership with the Board. Together with the team in India, she has led a bold ambition for growth that has driven market share gains across multiple categories, and she leaves the business with a clear strategy and growth momentum. The Board and I also wish to welcome Praveen, who we look forward to working with and offering our full support as he transitions into this important leadership position.”

Hina Nagarajan said “It has been a true privilege to lead Diageo India during a period of strong strategic progress and sustained, profitable double-digit growth for the business, with our market capitalisation growing to more than INR 1 trillion (~US$ 12.5 Bn). I wish all my Diageo India colleagues ongoing success and look forward to supporting them as they continue their work in building this fantastic business under Praveen’s leadership.”

Praveen Someshwar said “I am delighted to be joining Diageo – a business with world-leading brands, talented colleagues, and a long-term commitment to developing its business sustainably in India. I look forward to working with my new colleagues to build on their great work.”