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Brexit deal scrutiny begins as trade document published

Commenting as the UK and EU agreed a free trade deal, Scotch Whisky Association Chief Executive Karen Betts said: “It’s very good news that the UK and EU have agreed a free trade deal, providing Scotch Whisky producers with more certainty about how we continue to export to our largest regional market. “We will now need a common-sense approach to the application of new rules and new border procedures from 1 January to help businesses manage the transition smoothly. The UK Government and EU Member States will need to be flexible with producers, logistics companies and importers as they get to grips with the significant changes that will take effect in just 7 days’ time.” Legal experts and MPs were poring over the 1,246-page document published on the morning of Boxing Day, as Boris Johnson worked to persuade Eurosceptic Tories to back it as the “right deal” for the country.

The Prime Minister acknowledged to Conservative MPs that “the devil is in the detail” but insisted it would stand up to inspection from the European Research Group (ERG) of Brexiteers, who will assemble a panel of lawyers to examine the full text ahead of a Commons vote. But the chief executive of the National Federation of Fishermen’s Organisation, Barrie Deas, accused Mr Johnson of having “bottled it” on fishing quotas to secure only “a fraction of what the UK has a right to under international law”.

The share of fish in British waters that the UK can catch will rise from about half now to two-thirds by the end of the five-and-a-half-year transition. The EU’s 27 member states indicated they will formally back the deal agreed by the UK with Brussels’ officials within days. It covers trade worth about £660 billion and means goods can be sold without tariffs or quotas in the EU market. EU ambassadors were briefed on the contents of the deal by Michel Barnier, who led Brussels’ negotiating team in the talks with the UK.

After a highly unusual meeting on Christmas Day – with at least one diplomat wearing a Santa hat and another in a festive jumper – they agreed to write to the European Parliament to say they intend to take a decision on the provisional application of the deal. The timing of the Christmas Eve deal forced politicians and officials in the UK and Brussels to tear up their plans. MPs and peers will be called back to Westminster on December 30 to vote on the deal, but MEPs are not expected to approve it until the new year, meaning it will have to apply provisionally until they give it the green light. The agreement will almost certainly be passed by Parliament, with Labour supporting it, as the alternative would be a chaotic no-deal situation on January 1.

But Mr Johnson is keen to retain the support of the Eurosceptics on his benches who helped him reach No 10. Mr Johnson had earlier messaged Tory MPs on WhatsApp as he tried to get them all on side. “I truly believe this is the right deal for the UK and the EU,” he wrote, in a message seen by the PA news agency. “We have delivered on every one of our manifesto commitments: control of money, borders, laws, fish and all the rest. “But even more important, I believe we now have a basis for long-term friendship and partnership with the EU as sovereign equals.” He added that “I know the devil is in the detail” but the deal will survive “ruthless” scrutiny from the “star chamber legal eagles” The “star chamber” is the nickname given to the panel assembled by the ERG, including veteran Eurosceptic Sir Bill Cash. Officials in Brussels and the capitals of EU states are also beginning to scrutinise the deal, with another meeting of ambassadors expected before the new year, possibly on December 28.

The European Commission has also announced a £4.5 billion fund to help regions and industries within the bloc which will be hit by the UK’s withdrawal from the single market and customs union – including fishing communities who face losing out as the UK takes a greater share of stock in British waters. French Europe minister Clement Beaune said it was a “good agreement” and stressed the EU had not accepted a deal “at all costs”. Mr Beaune said that British food and industrial products entering the European single market after January 1 will not pay customs duties “but will have to meet all our standards”.

Celebrating 200 years of the Johnnie Walker story from Diageo Archive

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Archive Manager Christine McCafferty speaks on what documents dating back to the 1820s can tell us about the Johnnie Walker story so far.

Johnnie Walker is such an iconic brand, with a truly special story, and it’s an honour to be celebrating 200 years since it all began. A big anniversary is of course a great opportunity to tell our brand story, but who needs that excuse. It’s something that I have been privileged enough to do on a daily basis since becoming the Archive Manager for Diageo 23 years ago – to everybody and anybody who will listen. And it’s a great story to tell, so who wouldn’t want to hear it. And we learn so much from understanding the origins of a brand and its journey, what makes the brand unique and what makes it tick.

There’s so much wealth in the Johnnie Walker brand story. It all goes back to John and the grocery shop that was opened in 1820 in Kilmarnock. This is where John started selling and blending his own whiskies for his customers. This is the beginning of an amazing story of three generations of the Walker family that we have continued through to today. It’s a story of an obsession with quality, the Walker’s would never compromise on this and neither would we, and, it’s a story of the pursuit of flavour, all to give consumer’s the best scotch whisky. It’s a story of being distinctive, always wanting to stand out from the crowd, of introducing a slanted label, moving to a square bottle, and, creating one of the most famous whisky icons in the Striding Man figure. It’s a story about taking our product around the world, making it not just the number one selling scotch whisky, but the one enjoyed in every part of the globe. It’s a story about perseverance, surviving the bad times and coming back stronger again each time. And it’s a story of forward momentum, always looking forward and what comes next, with Keep Walking as the perfect mantra. I could add words like pioneering, experimental, innovative, confident, bold, brave, ambitious – all perfect to describe Johnnie Walker and those that have created it and worked on the brand. It’s unique, it has a special place in culture, in people’s lives – and everyone has a story to tell.

And my story is all about the amazing content we have in our industry leading archive and how I share this to not only to build the brand story, but to bring it to life. It is a real privilege to be able to access original documentation right back to the time of John Walker and to see what insights they can give us into the brand story and DNA. Here’s a couple of my favourite items from the archive:

Jhonnie Walker Grocery Shop Inventory list from 1825

John Walker’s grocery shop stock inventory, 1825. This inventory is the earliest record from the shop. It lists household products; wines and spirits, including whisky of course; and exotic products such as tea from China and pepper from Jamaica. It’s fascinating to see what John was selling in those initial times and the impact they no doubt had on how he felt about flavour as he started his blending journey.

John Walker & Sons annual balance book, 1857-1886 – John’s son Alexander took over the business in 1857, evolving it from a small, local shop to a thriving commercial enterprise. This stock book documents the widening range of products, including many more whiskies and different types of tea, dried fruits, and spices. These aromas and flavours inspired Alexander to create the company’s first commercial blend, `Old Highland Whisky’ and it’s a time I would love to travel to. Imagine wandering around the aisles of the shop, soaking up the atmosphere.

A pic from the `John Walker & Sons’ book by Alfred Barnard, 1893 and their Sampling Room. This book is only one of the two such copies known to exist today

`John Walker & Sons’ book by Alfred Barnard, 1893 – In 1879 John Walker & Sons opened what were considered the most advanced warehouses in Scotland. When renowned whisky writer Alfred Barnard visited the imposing new premises on Kilmarnock’s Strand Street, he noted the Walkers’ focus on innovation and craftsmanship throughout their whisky-making, bottling, and distribution processes. A true snapshot of the business at that time, this book is one of only two copies known to exist today, and gives us a truly special window into the remarkable business being ran by that time.

The Jhonnie Walker Still Going Strong image

John Walker & Sons `Around the World’ book, 1920s – By 1920 Johnnie Walker was being sold in over 120 markets. To celebrate 100 years of the business and the global reach of their brands, John Walker & Sons produced their Around the World book, which essentially is an early travelogue. The book features all the markets in which Johnnie Walker was being sold and was a thank you to their agents around the world for their contribution to the success of the business. I love how important relationships were to the Walker’s as they established their global business, just as it is for us today.

I could, of course, go on and pick examples of beautiful historical packaging, ground-breaking advertising, photographs from all around the world, and all these items have a role to play in piecing the brand story together. The items themselves are fascinating, and I love seeing how people react to seeing the original documentation that takes us back in time. But the insights that these items give us are equally as important. I like to think of myself as a bit of a detective or journalist, pulling snippets of information and materials together from various sources, to create a really rich and vibrant story relevant for any audience. There’s certainly no shortage of materials and stories.

And we continue to add to these collections by collating materials created for the brand today so we can continue to tell the brand story as it evolves for future generations. Just as we look back with pride on the legacy we have inherited from our founders and all those who have worked on the brand, we too will leave our stories in the history books for those that come next to be inspired by. It’s fascinating to think what a brand like Johnnie Walker has lived through, 200 years of world events, and, it’s exciting to think about where our journey we take us in the next 2, 20 and 200 years. I can’t wait to see, bring it on!

Women in the Dry State of Gujarat are Jumping on the Alcohol Consumption Bandwagon!

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Earlier, we reported that binge drinking among women has been increasing steadily over the past few years. Thirteen percent of adult women have reported binge drinking four times a month on an average while consuming five drinks per binge. A 2019 survey conducted by TU Dresden in Germany found that Assam led alcohol consumption among women in India. However, the North-eastern state is not the only Indian state where alcohol consumption has increased drastically. Gujarat, the Dry State, is climbing up the charts steadily too.

According to the National Family Health Survey (NFHS-5) released recently for the year 2019-20, it was discovered that the number of women consuming alcohol in the Dry State has doubled in the last four years. The survey studied a total of 33,343 women and 5,351 men from Gujarat. 200 women (0.6 percent) and 310 (5.8 percent) reported that they consumed liquor.

Previously, in the NFHS-4 Survey (2015-16), the sample under study in the state included 22,932 women and 5,574 men amongst whom 618 men (11.1 percent) claimed they drank liquor while only 68 women (0.3 percent) claimed the same.

A comparison between both the surveys shows that while the number of women consuming alcohol in Gujarat has doubled, the number of men doing the same has nearly halved.

Gaurang Jani, a sociologist, said “The middle class and upper middle class have embraced the party culture in recent times. As a result, women in families have also started consuming liquor. Earlier, men used to go out to drink. Now, a new culture of consuming liquor in family parties has emerged. People are throwing family parties to celebrate even small events. Moreover, kitty parties have also contributed to higher liquor consumption among women, NRIs are also bringing liquor with them and enjoying it during house parties here with relatives.”

Jani thus pointed out that the rise in party culture as well as the growing acceptability of drinking in society has contributed to the rise in the number of women drinkers.

UP Govt approves New Excise Policy

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The Yogi Adityanath-led government has approved its new excise policy which is set to reduce the excise duty on the alcobev products in the state. The new policy includes number of updates that reduce excise duty in certain categories including a slew of measures as part of its new excise policy.

The most notable change is the reduction in duty to 200% on beer from the erstwhile 280%. The shelf life of the product has also been extended to nine months. The government has also done away with the rule of needing collector’s permissions for opening liquor shops within five kms of neighbouring border/district.

One of the other key notable change in the policy is also to move to complete digitisation of the department in the 2021-22 year, a move that is welcomed by many manufacturers. Needless to say that the since the lockdown most states have adopted digitisation, which has been working well for them. Efforts would be made to computerise all the processes and procedures of the excise department under the Integrated Excise Supply Chain Management System (IESCMS).

The new policy will also allow sale of IMFL and imported liquor in the scotch category, with a maximum retail price of ₹ 2,000 or more, to be permissible in mono-cartons. The government is also looking at encouraging more manufacturers to invest in production of wine within the State.

Special incentives for Wines has also been added into the policy

As an incentive the wines that are made out of locally produced fruits shall be exempted from excise duty for a period of five years. However there is no clarity on how much percentage of local fruits needs to be used yet, something that will become clear in time. The local wine merchants will also be allowed to retail wine with wine taverns also allowed on its premises.

It is also now mandatory to obtain a license to keep liquor more than the prescribed limit at home now. In a statement released by the government they said, “to provide good quality liquor at economic prices, UP Made Liquor (in Tetra-pack and of 42.8% strength only) made from Grain ENA, shall be sold at an MRP of ₹ 85 through country liquor shops”.

It is now mandatory to have a PoS Machine at retail stores

It is also now mandatory for the retail shops to install card machines for selling the liquor. Also a select premium retail vendors will also be permitted at airports. Wine-tasting facilities and sale of drinking accessories shall be allowed at premium retail vends.

Japan’s Kirin Holdings to buy under 10% stake in Indian craft beer brand Bira

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According to Bira’s CEO, Ankur Jain, and a spokesperson of Kirin Holdings, the Japan-based company is buying under 10% stake in Bira, an Indian craft beer brand by investing 30 million (nearly INR 220 crore). Bira is owned by B9 Beverages, a company based in New Delhi. No further details about the financials of this deal have been released to the press yet. However, Jain mentioned that he expects the deal to be closed over the next few days.

Ankur Jain added that this investment will enable Bira to break even in the 2022 fiscal year after having reported losses in the recent years as well as in the pandemic. Furthermore, it will facilitate the plans ofthe Indian craft beer brand to launch its product in Japan in the later part of 2021.

In August, Reuters had reported that Bira was in talks with international brewing companies to sell 20%stake. Valued at $210 million in 2018 by Data Provider Pitchbook, 30% of the company is owned by theCEO Ankur Jain and his family while Sequoia Capital, the U.S. based venture capital firm, owns around 45% stake.

The craft beer products offered by the company have gained popularity recently. According to Bira, the company has a 5-10% market share of the beer market in the metropolitan cities of New Delhi, Bangalore and Mumbai although it was launched in 2015.

On the other hand, due to falling sales in its home country, Kirin Holdings has been showing interest in investing in independent breweries. It owns a minor stake in New York-based Brooklyn brewery. But all international dealings have not gone well for Kirin. In the year 2015, its operations in Myanmar came under investigation as its local partner had military connections and in 2017, the company sold its loss-generating Brazilian unit to Heinken after losing market share.

Binge drinking is cool for Indian women

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“More women are drinking and women are drinking more,” a new survey made eye-opening claims — and not for the reasons you’d think.

Men had succumbed to alcohol long back, but women had held back. Not long ago women didn’t dare to damage their image by showing the world that she in fact drinks and enjoys it too. Now women pour and fill their glasses with more than just lemon water and juice. Wine, beer, whiskey, vodka or a cocktail; women have come to love their drinks and how!

Alcohol consumption among women is rapidly increasing, not only because she wants to relax and have fun but there’s a bigger picture here.

Nearly half of adult women report drinking alcohol in the past 30 days. Approximately 13% of adult women report binge drinking and on average do so four times a month, consuming five drinks per binge. About 18% of women of child-bearing age (i.e., ages 18–44 years) binge drink.

Questions like ‘Are women more prone to absorb bigger drinks?’ ‘Do women have higher alcohol levels in their blood than men?’ are being asked and studied. Though women have had historically lower drinking rates than men, the negative effects of alcohol abuse are typically worse and more pronounced for women. The problem is exacerbated by the special dangers that alcohol poses for women. In general, alcohol affects women more strongly than men. This is both because women’s unique body chemistry interacts with alcohol differently from men and because women are on average significantly smaller than men, meaning the same amount of alcohol will have a greater impact.

Why women drink

The survey by the Community Against Drunken Driving (CADD) studied the alcohol consumption pattern in Delhi and has revealed some major reasons behind alcohol consumption among women. Rising affluence, aspirations, societal pressure and exposure to a different lifestyle is driving women to experiment with alcohol, stated the survey. The results were found among 5,000 women aged between 18 to 70 in Delhi.

Among the reasons why women drink, the survey says “mostly all social activities are centred around alcohol, and alcohol is seen as a quick and easy social lubricant, and when everyone is doing the same thing, it does not seem like a problem. It is just the norm.”

Alcohol consumption in India increased by nearly 40% and women’s alcohol market is expected to grow by 25% over the next five years.

In Delhi itself, 40% of men and 20% of women (almost 15 lakh women) are alcohol consumers; the survey quotes a report by AIIMS as saying.

The survey reveals that 43.7% women in the age group of 18-30 years consumed alcohol out of habit or desire to do so, 41.7% women in the age group of 31-45 years consumed alcohol as an occupational requirement or because of social norm.

Over 53% women above 60 years and 39.1% women in 46-60 years had alcohol for emotional reasons.

“Driven by the market forces where cocktail and berry drinks are being promoted as feel good and relaxing drinks for women, women are enticed into drinking more with a promise of good time that awaits them,” it says.

The CADD survey lists out more reasons why women drink, it says, “At times just to fit in or as a way to unwind, more spending capacity/affluence, another way of equal opportunity or pursuit at work place/profession, alcohol as a coping mechanism to stress, depression, loneliness anxiety, pain, mental and physical traumas and to cope with the needs and pressures of fast paced life.”

India has witnessed a steady rise in its consumption of alcohol in the last decade. A 2019 study by researchers from TU Dresden in Germany, concluded that between 2010 and 2017, alcohol consumption in India increased by 38% – from 4.3 to 5.9 litres per adult per year. The decade also witnessed a boom in home grown whisky and gin labels, and saw both men and women significantly altering their tipple choices and consumption patterns.

According to this survey, women in Assam consume much more alcohol than their counterparts in other states and union territories in the country. The ministry’s 2019-20 data showed that 26.3% of women in Assam who are in the 15-49 years’ age category consume alcohol, which is the highest among all states and union territories (UTs).

Notably, in 2019, another survey, conducted by Community Against Drunken Driving (CADD), took stock of the men and women in Delhi and their drinking habits, and concluded that “More women are drinking – and women are drinking more.”

Women are also not just taking up important roles in breweries, but also leading alcohol brands in various capacities. In fact, Dewar’s master blender Stephanie Macleod, who created the world’s best whisky, as per the 2020 edition of International Whisky Competition, was recently awarded the “Master Blender of the Year” award.

New research has found that despite the potential health risks of exceeding national drinking guidelines, many middle-aged and young-old women who consume alcohol at high risk levels tend to perceive their drinking as normal and acceptable, so long as they appear respectable and in control.

Amrut launches Fusion X (ten)

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To commemorate and celebrate its Late CMD N R Jagdale legacy

To celebrate the 10th anniversary of the brands flagship Single Malt Whisky – the Amrut Fusion, the company launched its ultra-limited-edition Single Malt whisky – the Amrut Fusion X (ten) yesterday. The Fusion X also commemorates the legacy of the their late CMD Neelakanta Rao R Jagdale with the launch timed to celebrate his birthday.

The reason we call it an ultra-limited-edition is due to its availability of only 1010 bottles worldwide. And in India only 60 bottles will be released in Bengaluru at a price of Rs. 15000 per bottle at select retail outlets.

Amrut Fusion X is a combination an ode to the company’s past and also their vision for the future. The whisky has been created after further maturing Amrut Fusion for a period of 4 years in a Px-Sherry casks, adding a dimension to the whisky unlike ever before, taking the total age of the spirit to nearly 8-9 years. It also comes packaged in a special ceramic bottle that features a sketch of their late CMD, Mr. Jagdale along with number of other important highlighted places on the bottle, that have played a key role in the journey.

The bottle is a culmination of talents from three countries, which includes India, England and Portugal. With the spirit coming from India, the special ceramic bottle has been crafted by Wade from England and the cork is handpicked and shipped from Portugal.

The Fusion X is also the first time that any alcobev product in India has integrated an NFC chip on the bottle that can be scanned using a smart device. Buyers can tap the NFC chip to verify if the bottle has ever been opened before. It also provides detailed information about the whisky and users can provide feedback of the same as well.

Rakshit N Jagdale, Managing Director, Amrut Distilleries said ‘it gives me immense satisfaction to make this special release of Fusion X on his birthday as both a celebration of 10 years of love by consumers around the world and a tribute to his life and legacy.’

The bottle comes in a lush velvet jacket and is surely something worth collecting.

Pernod Ricard posts encouraging results than expected

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The world’s second biggest alcobev manufacturer, Pernod Ricard posted its results recently and they seemed more encouraging than expected. The Q1 FY21 marked and improvement versus the Q4 FY20. The results were encouraging thanks to partial on-trade reopening and continued brand resilience in off-trade as India continues to be a resilient market for the company.

The total sales for the first quarter of FY21 totaled €2,236 million, which included an organic decline of -6% due to off-trade channel remaining resilient in the USA and Europe. Although there was a partial on-trade reopening, the report suggests that the channel is still disrupted with Travel Retail showcasing significant decline.

Results in India

Closer to India, which is one of the key markets for the manufacturer, continues to be in a double-digit decline. The growth in India revenues from its India operations grew only 6% in the year ended March 2020 against 27% jump a year earlier. The company recorded gross sales of Rs 21,424 crore in India in the year-ended March. However it recorded a 24% jump in its net profit for the year at Rs 1,612 crore as it focused more on premium brands. This was more than double of its larger rival United Spirits’ profit of Rs 705 crore during the year. Currently, India accounts for 11% of the manufacturers global sales. The company that follows a July-June fiscal globally, said that the Indian business declined 11% in the year ended June 2020 with heavy impact due to the pandemic. Alexandre Ricard, Chairman, Pernod Ricard informed investors last month that the fact that the business fell only 11% in the FY20 ‘despite the very strict lockdown disrupting the fourth quarter’ showed India’s resilience as a market. “We consolidated our leadership position with our market share still above 45%, and in fact, still growing slightly,” he added.

Results by Geography

With the festive season in the offing the results were strong in markets like USA and China, with strong shipments auguring well for the company. There was good resilience in the markets of Europe as well thanks to Off-Trade and ‘staycation’ over the summer. There was also strong dynamism in the UK and Germany with France nearing stability. However the markets of Spain and Russia showed decline.

By category, Sales were driven by

International Brands declined by -10% with significant declines for Martell, Chivas and Ballantine’s, primarily due to the restrictions in Travel Retail. But Malibu and The Glenlivet displayed strong growth with Jameson showcasing resilience. Local Brands saw a decline of -6%, with decline of Seagram’s Indian whiskies. But there was double-digit growth of Kahlua, Passport, Ramazzotti and Wiser’s. Specialty Brands saw an increase of +30%, thanks in particular to Lillet, Malfy, Aberlour, Avion, Altos and Monkey 47. Wines registered a growth of +9%, driven by double-digit growth of Campo Viejo and Brancott Estate with Jacob’s Creek growing by +8%. The overall reported sales declined by -10% due to unfavourable FX impacts, mainly from US Dollar and emerging market currencies. The Q2 is expected to still be strongly impacted by Covid-19, but Sales to return to growth in H2. Alexandre Ricard added that for FY21, “we expect continued resilience of our business in an uncertain and disrupted environment. I would like to take this opportunity to praise our teams, whose engagement and performance are exemplary

in these very challenging times. We will continue to implement our strategy, in particular accelerating our digital transformation. We will tightly manage costs while maintaining the agility to reinvest to adjust to market opportunities.”

Alcobrew launches One More Pure Craft Vodka

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One More Pure Craft Vodka, from Alcobrew Distilleries was launched recently in UP recently. The vodka has been launched keeping in mind the growing popularity of white spirits doing well in India in the last one decade and poised to continue its growth in the coming decade as well. The brand believes that the alcohol has a very trendy, cosmopolitan feel to the liquor and it gives a lot of freedom to the bartenders to curate quirky cocktail flavours, which are highly appreciated by the experimentative millennials.

The vodka has been launched in two flavours, Plain and Green Apple. It is made from high quality imported Indian grain spirit and natural extracts giving it a smooth and refreshing taste, making it the best tasting vodka in its category. The multiple distilled vodka has been produced using the latest ‘Eco-fine’ technology which makes the blend extremely pure.

Alcobrew believes that being a craft vodka makes it stand apart with quality outweighing quantity. The craft vodka is manufactured in smaller batches with select ingredients meticulously supervising the quality of each lot. The entire process, therefore, requires more time and more expertise but guarantees the best tasting vodka in the category.

The brand name ‘ONE MORE’ comes from the promise of ‘MORE’: MORE distillation, MORE taste, MORE smoothness, MORE fun and MORE excitement. The brand also has its cool and funky mascot fondly called ‘DJ Mono’ (Mono means Monkey in Spanish).

The packaging of the bottle has a millennial touch with a unique shape replete with neon colours. The idea behind this unique, funky packaging is to create curiosity and grab attention of the youth, making them feel a sense of owning something that will instantly make them stand apart in the crowd.

Alcobrew is one of India’s youngest liquor manufacturers. The company caters to civil, canteen store depots and institutional markets in liquor, across India and abroad. The company established the Old Smuggler brand in India with its state-of-art manufacturing facility and robust distribution channels. Besides Old Smuggler Scotch whisky and rum, Alcobrew is proud of its quality in-house brands comprising of White & Blue Whisky, Golfer’s Shot Whisky, White Hills Whisky, Lion Daddy Rum and Victorio Brandy that are manufactured, bottled, distributed and marketed by the company.

Will India move to Ban Imported Goods at Defence Canteens?

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A recent report from Reuters states that India has asked its Canteen Stores Department (CSD) to stop procuring imported Scotch for its 4,000 military stores. Signalling that it could be a challenge for international companies like Diageo and Pernod Ricard. Reports indicate that imported liquor sales at defence stores generate only about $17 million in annual sales, which isn’t a lot, but would still act as a dampener for international brands.

The report states that an internal order was issued on October 19^th of this year by the defence ministry, stating that in future, ‘procurement of direct imported items shall not be undertaken’. The order also said that the issue had been discussed with the Army, Air Force and the Navy in May and July, and was aimed at supporting Prime Minister Narendra Modi’s campaign to promote domestic goods. Although the order did not specify which products would be targeted, it is believed that imported liquor could be on the list.

Reuters had earlier reported in June that Pernod and Diageo had briefly stopped receiving orders for their imported brands from such government stores. Although that could be part of the challenge due to the pandemic and SOPs at that time.

The defence canteens of India sell liquor, electronics and other goods at discounted prices to soldiers, ex-servicemen and their families. The annual estimated sales of this canteen/shops is over $2 billion making it one the largest retail chains in India. Although liquor makes a small portion of these sales, according to Defence Studies and Analyses (IDSA) imports make up around 6-7% of total sales value in the defence shops for all consumer products.