Category Archives: news

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

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

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

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

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)

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 Ceramic Bottle

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

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

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?

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 19th 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.

Jack Daniel’s announces Global Relaunch of its Brand

Unveils platform titled ‘Make It Count’, first global campaign in its 154-year history.

As part of the rebranding exercise and for the first time in its 154-year history, Jack Daniel’s is being relaunched globally with a new brand communication platform titled ‘Make it Count’. The idea behind the new tagline is to inject new energy into the brand.

With the new tagline the brand is looking to showcase a new way of thinking in its 154-year history to celebrate the people who drink it. And the campaign around is being focused on the impact on peoples’ lives when they decide to choose boldly and with purpose every day, much like Mr. Jack did throughout his own life. The new campaign will be brought to life through multiple executions on TV, social, digital, out of home and print platforms in 100+ countries simultaneously. 

The inspiration for the campaign comes from a vintage Jack Daniel’s ad that read “Proudly served in fine establishments and questionable joints.” 

Inspiration Ad for the Tag Line. Image Courtesy: Sinibooks

“With ‘Make it Count’ we have a long-term platform that resonates with consumers, especially in today’s environment, and carries the message of Jack’s bold, independent spirit,” said Matias Bentel, Chief Brands Officer of Jack Daniel’s parent company, Brown-Forman. 

The brand hopes that the ‘Make it Count’ platform in the long-term resonates with the consumers, especially in today’s environment, and carries the message of Jack’s bold, independent spirit. The ‘Make It Count’ campaign will be celebrated and brought to life in India market as well through a multitude of brand activities over the next few months.

“The new creative platform reintroduces Jack Daniel’s to the world in a big, bold way that would create meaning and difference in the hearts and minds of the next generation of consumers,” Vineet AgrawalMarketing and Commercial Director, India Area, Brown-Forman. 

Amrut expands into the Domestic market

Indian whiskies have slowly but surely been making their mark on an international stage. While a number of them have reached millionaire status one of the original flag bearer of putting India on that map is undoubtedly Amrut. Their Indian Single Malts have won numerous awards globally and the distillery is now looking to bring that same flavour and enthusiasm to the India consumers with their recently created Luxury Malts & Spirits (LMS) Division. As the name suggests, this division is driving the ultra-premium brands of the company to domestic market. Bhavya Desai spoke to Rakshit Jagdale, MD, Amrut Distilleries on this development. Excerpts: 

Amrut Distillers took a while in expanding their footprint in the domestic market? Any reason why?

Amrut has been catering to our customers in India for sometime now. We follow the policy of ‘steady build‘ and our brands are loved all over the world including India. 

We have recently started our Division called Luxury Malts & Spirits Division which is focusing on our Premium brands. This division is responsible for making our premium brands available in India and we are happy that the products have been received well so far. 

How has the response been to the products so far? 

We are glad to inform you that our Amrut’s Amalgam Malt Whisky has made its mark in India as well. As the name suggests it’s made out of amalgamation of Single Malts from three regions – Scotland, Asia and Our own Malts. It has already been well accepted in Karnataka, Goa, Telangana, Maharashtra, Chattisgarh, Delhi, Chandigarh etc and it’s acceptance amongst our esteemed armed forces through CSD has also been very satisfying.

Apart from this our latest offering, the Amrut’s Amalgam Peated has also been well received by the consumers who have ‘graduated‘ to the acquired taste of peat. The brand is gaining momentum state after state . 

Our Two Indies Rum which has the distinction of being made out of Jaggery is also being rolled out in India. It is a brilliant product packed with an heavy bottom glass bottle for the Rum lovers 

Amrut Peated Indian Single Malt Whisky

What is the pricing strategy of the products currently (in terms of price points, etc) against competitors? 

We follow the doctrine of supplying ‘best in class‘ products on basis of quality and packaging. We do not look at competition for pricing.

We look at the futuristic ‘need gap‘ of the consumers and a lot of work at our distillery at Bangalore to offer expressions which will suit the needs of the consumers. Our motto is to delight the consumers with world class quality and packaging. 

How has the pandemic impacted your plans and the business?

The current pandemic has definitely impacted our plans, particularly since the on-trade outlets are closed and our premium brands have a bigger presence and prominence in these outlets. Nevertheless we are all geared up and have started bouncing back in an organised manner to get back to our volumes. 

What is the quantum of increase in terms of production capacity undertaken to realise this vision? Any investment plans to increase your inventory?

We have enough expansion done as far as the production capacity is concerned. We are confident of supplying our malts as per the demands. We have a war chest to cater to the growing demands of our customers in India and abroad. 

We take satisfaction in mentioning that our philosophy of being a proud Indian Company is keeping us in good stead with Our nation’s new narrative of Going Vocal for being Local . We have being following the Indian Story since long and feel proud to be an INDIAN MNC. 

Amrut Fusion Single Malt Whisky


What is the expected growth in terms of business and revenue following this expansion?

We expect the LMS division to give us good traction and both our top and bottom line are expected to grow as per our Annual Operating Plans.