Beer, cider and mixed drinks drive decline, while wine and spirits post growth

Released today, the IWSR US Beverage Alcohol Review (US BAR) provides a complete picture of annual volume trends and underlying drivers in the US market. Results from 2016 data show a fast-evolving product marketplace where lower-priced brands struggle to capture consumer attention. The term ‘category blur’, which refers to consumers drinking products across all categories instead of just sticking to one type of product, has become more prevalent and made it difficult for marketers to predict – or rely on – a loyal customer.

Total beverage alcohol consumption in the US lost 3.5m nine-liter cases in 2016 to end the year with 3.39bn nine-liter cases. The segments in decline – beer, cider and mixed drinks (FABs, long drinks and pre-mixed cocktails) – posted a combined loss of 14m nine-liter cases, a total that was unable to be offset by the addition of 10.4m nine-liter cases from spirits and wine. In total, on-premise sales volumes decreased slightly last year, bringing share of beverage alcohol consumption down as more consumers chose to drink at home. Off-premise sales picked up last year, resulting in an increased share of the market overall.

Distilled spirits ended the year up by 2.6% at 220.8m nine-liter cases and, as a result, gained 0.2% share of total beverage alcohol. The wine industry increased for its 22nd consecutive year to end last year with a total of 358.3m nine-liter cases. The beer industry modestly decreased -0.2% to 241.3m hectoliters (hl) in 2016. The overall mixed drinks category decreased 3.2% in 2016 over the prior year, falling to 101.6m nine-liter cases. The cider category skyrocketed the past three years to reach an all-time high of 2.6m hl in 2015, only to fall by -15.1% last year to end 2016 with 2.2m hl.

Widely seen as the most accurate source of beverage alcohol consumption trends, the IWSR does however see a return to growth for total US beverage alcohol, with consumption forecasts to increase starting in 2018 and reaching a compound annual growth rate (CAGR) of 0.2% by 2021.

Key Category Insights

Whisky: Bourbon increased 6.4% last year to 15.9m nine-liter cases. Imported whisky grew 3.4% in 2016. Irish whiskey increased 17.6%, the highest rate in over a decade. Canadian whisky grew by 2.4%, driven by Crown Royal and Fireball. Scotch posted the lowest growth rate among all imported whisky categories with an increase of 0.5%.

Gin: The gin category finally made progress after consecutive years of decline, advancing by 1%. This was achieved from performance in the premium-and-above segments in addition to high-end imports.

Vodka: The vodka category grew 2.3% to 74.8m nine-liter cases, driven by domestic brands like Tito’s and New Amsterdam.

Rum: The rum category posted a decline of -1.2% as consumer interest has shifted to whisky and tequila.

Tequila: Tequila sales grew 7.4% in 2016, reaching an all-time high of 16.3m cases and achieving a 7.5% share of overall spirits.

Brandy/Cognac: The domestic brandy category (+4.1%) is being revitalized through high-quality offerings from small producers. Cognac increased 18.8% in 2016, with Hennessy standing out as the star performer.

Wine: Still wine increased 1.1% in 2016 on the strength of premium-and-above varietals such as pinot noir, rose, cabernet sauvignon, red blends and sauvignon blanc. Sparkling wine achieved one of its best performances in 2016 (+7.2%). Wines priced at or above $10.00 to experience the most growth in 2016 (+7.2%).

Beer: The current trend of premiumization and drinking less but better does not translate into volume gains for the beer category. The domestic beer category was down -1.5% in total. Removing craft volumes results in domestic beer down -2.8%. To put that loss into perspective, a decline of -2.7% in the domestic beer subcategory is equal to 4.9m hl. A volume loss of that magnitude is equivalent to one of the largest domestic craft brewers closing its doors. The imported beer segment increased by 6%, primarily led by Mexican imports.

Prepared Cocktails/Mixed Drinks: The mixed drinks category is predominately made up of malt-based FABs (flavored alcoholic beverages) which hold a 90.3% share of the category, with the remaining 9.7% attributed to pre-mixed cocktails and long drinks.

Having rediscovered its wine, Armenia, once considered a cradle of winemaking, is again trying to gain popularity in the world of wine.

The story of Armenian wine began when Noah planted the first vineyard on Mt. Ararat and famously became drunk on his own wine, mentioned in Genesis 9:20. It is no coincidence that Armenia, known as the birthplace of wine, is also the site of the oldest known winemaking ruins, dating back to 6,200 years. Also, Herodotus, Greek historian, mentioned in his work ‘The Histories’ that merchants would carry wine down the Tigris and Euphrates to Babylon in barrels of palm tree wood during the fifth century. This is the first cited example in the recorded history about the use of barrels for wine storage.

Armenia has incredible amount of proven evidence that shows winemaking began 6,200 years ago. During a 2011 excavation, archaeologists announced the discovery of the world’s oldest wine production facility in Armenia. Located in the Areni cave complex, it consisted of a shallow basin for pressing grapes, a vat for storage, and fermentation jars. They also found grape seeds, remains of pressed grapes, and dozens of dried vines. James Owen from National Geographic wrote- “The site gives us a new insight into the earliest phase of horticulture—how they grew the first orchards and vineyards.”

Revival of Armenian Wines

The development of wines began in 2007 when new vineyards and organisations came in to existence. After building growth during 90s and early 2000, the wine sector is now one of the crucial segments for Armenia’s economic growth and employment. In the last five years wine production has increased exponentially. Government has taken several steps to promote the wine production in the country and established the Vine and Wine Foundation in 2016. It implements government policy and development projects in viticulture and wine making sector. The primary objective of the foundation is to preserve and develop the rich cultural and historical heritage of Armenian wine in Armenia as well as around the world.

According to 2014-2025 development policy of the government, the country seeks to develop several sectors that will contribute to economic growth and poverty reduction. Particularly 2010-2020 Sustainable Agricultural and Rural Development Policy prioritises high-value added processing industries, such as wine production. The industry has received large investments, mainly from foreign investors and local entrepreneurs, secured advanced technology and improvement of production processes.

Currently, there are more than 45 Armenian companies producing over 100 varieties of wines. Overall 83percent is produced in the Ararat Valley and Armavir region. The other four winemaking regions are Tavoush, Aragatzotn, Syunik, and Vayots Dzor.

Volumes of wine produced in Armenia have been showing a steady growth from 5.9 to 6.8 million litres in the last 5 years.

Given the favourable government policies for wine production and the number of newly established wineries, it will not be wrong to expect an increase in the wine production volume. During recent years wine exports as well as the local wine sales have noticeably increased. Armenia’s key markets include Russian followed by the USA and China. Armenian wine market has expanded and wines are exported to Italy, Lithuania, Canada, and Switzerland. Larger exports volumes in new markets were observed in France, Belgium. According to International Trade Centre, Lithuania, Poland and France are promising markets where an overall sale has a tendency to grow.

Terroir and Native Grapes

Armenia has an exceptional geographical and climatic condition for vine cultivation. Volcanic soils, harsh climate and high altitude create an interesting union of the terroir’s elements.

“The complex interaction of natural conditions within the small territory of the country induced and affected the formation of quite a peculiar range of soil types, from the volcanic and semi-desert zone to the mountain meadow soils of alpine type. The climate is dry and continental due to mountains in most of the regions,” Syune Barseghyan of Armenia Wine Company (AWC) said.

Armenian grapes are distinguished by their aromas. Armenian ingenious grape varieties include Areni and Voskehat. Areni is the best known variety. It is thick-skinned and late-ripening grape, considered to be one of the finest varieties that produce fresh, bright red wines with soft, elegant red fruit flavours. Used for the production of dry wines, as well as sparkling and dessert ones, Voskehat, which means ‘golden berry’, is believed to have been cultivated about 3.5 thousand years ago.

An Icon of Modern Winemaking- Armenia Wine Company

A family-owned company, Armenia Wine Company is born out of the love the family has for its country. While vineyards plantation started in 2006, the company was established in 2008. Flaunting an array of award winning wines and state of the art winery, the AWC is the leader in local market as well as in exports in wine segment.

Even though Armenia has been producing wines for more than 6000 years, it was the Armenia Wine Company that raised the standard of the Armenian wine at international level. Armenia is a country with 1000m average altitude that produces natural high sugar concentration, aromatic and colourful grapes. The AWC is the first company to accomplish the perfect alchemy from Armenian high quality grapes to create international standard wines. “We are thankful to our French consultant, our ‘on-site’ French winemaker expertise and the state of the art European technology for making this possible,” Barseghyan said.

The company’s portfolio is represented by wines which display indigenous grapes and terroir diversity. Maintaining the diversity, the company is working in three main winemaking regions – Armavir, Aragatsotn and Vayots Dzor. “Vineyards located in Armavir region provide us the main white Kangun variety used for making still white and sparkling wines. French grape varieties Merlot, Cabernet Sauvignon and Cabernet Franc used as blends with Armenian grapes. Vayots Dzor region, known for the world oldest winery (6200 year old), provides us the iconic Areni grape used in our red wines,” informed Barseghyan.

Armenia Wine Company produces four ranges of wines- Armenia, Yerevan, Takar and Tariri. “We are producing wine for every taste and palate and our assortment includes classical red, white, rose, sparkling as well as dessert wines like Muscat and wines made from Pomegranate. Armenia and Yerevan are young, soft, fruity wines that show the unique characteristic of local grape varieties in their natural state. Takar and Tariri are premium wines, much more complex, aged in oak barrels. The price of our wines ranges from USD 3 to 23,” Barseghyan said.

The annual production capacity of the company is 4 million bottles of wine, 1 million bottles of sparkling wine and 3.5 million bottles of brandy. According to the company’s statistics, local consumption of AWC wine constituted about 44 percent of the still wine and 74 percent of the sparkling wine in 2016. This year, the numbers are significantly different due to large increase in exports. The export volume of still wine has reached to 72 percent and 61 percent for sparkling, whereas local sales have accordingly constituted 28 percent of still wine, and 39 percent of sparkling.

The ARC’s products are exported to more than 14 countries including USA, Canada, China, Mexico, Japan, Russia, Israel, France, Belgium, Czech Republic, Lithuania, Bulgaria and Belarus. This year, the company is planning to sell its wines in new markets such as UK, Poland, Finland and Kazakhstan.

Father-Daughter Duo Rocking the Wine Business-Van Ardi

Returning to his roots, both physically and metaphorically, founder and winemaker, Varuzhan Mouradian and his family moved from California to Armenia. Having fallen in love with wines, he knew he had developed a passion for making wine he couldn’t ignore. Van is the ancient capital of Armenia with rich winemaking history, where the family’s ancestors belonged. The winemaker and the family named the winery Van Ardi, meaning ‘Sun of Van’.

After scouting various winemaking areas in the country, Van Ardi settled on an exquisite plot in Ashtarak, also an ancient winemaking region of Armenia. The land was bare, and filled with stones and boulders, but its volcanic soil, slope, and position, created a tangible terroir that evoked a sense of promise. Today, the nine hectares of land is being used to plant five grape varieties.

The winery started producing wines in 2013 while the vineyards were planted in 2008. Van Ardi uses endemic Armenian varieties like Areni, Kakhet, Haghtanak, and Kangun besides Syrah. Selling more of red wines and rose, Van Ardi currently produces 50,000 bottles which is approximately 37,500 litres. Van Ardi plans to expand the winery to increase the production up to 130,000 bottles.

Van Ardi has been exporting wines since its first vintage. Initially it exported 40 percent to Russia and the rest was consumed locally. Now, 50 percent is consumed locally and the rest is exported to Russia, USA, France, United Kingdom, The Netherlands, Lithuania, Belgium, Sweden and Germany. Van Ardi’s wines range from USD 5.5- 10.5.

Describing the competition as ‘healthy’ in Armenia, Ani Mouradian, Director of Marketing and Communication at Van Ardi, said, “Most of the wineries have their own character and are different from each other in function and the kind of wines they produce. Given the number of wineries, competition has increased exponentially in the past three years. However, Van Ardi does not have any threats and we don’t see anyone pushing us off shelves. We are barely meeting our demand; if we had more wine out there, they would be consumed as well.”

Speaking about the competition it faces abroad, Mouradian said, “I feel the countries that have similar profiles in development (Moldova) or are nearby (Georgia) are our biggest competitors as they share/claim a similar history of winemaking. It is very difficult for Armenian wines to make it in foreign markets, because we can’t be price competitive.”

Steeped In Tradition- Voskevaz Winery

Combining the traditional art of winemaking and innovation, Voskevaz Winery produces high quality wines which are unique in their profile as they are produced via autochthonous style; it refers to the winemaking methods as well as to the use of only local grape varieties.

The winery was established in 1932. The renaissance of the winery began in 2004, after the establishment of Voskevaz Wine Cellar LLC. The winery is equipped with the latest Italian facilities to produce high quality wine. Today Voskevaz produces wine using both traditional old karases and modern wine-making technology. However, all of them, without exception, reflect the true nature of Armenia. The wines are produced only from local grape varieties and for wine aging rare high-quality Armenian oak barrels are used. Voskevaz Winery aims to revive the use of this ancient winemaking technology. These wines reflect the true nature of Armenian winemaking.

When it comes to the production of sweet wines in Armenia, Voskevaz Winery has pioneered the use of wine withering technology. Voskevaz products start from USD 5-52 and it sells 10 percent of the produce in Armenia. It mainly exports to Russian Federation, USA (Los Angeles for now), Lithuania, Netherlands, Great Britain and China.

Boasting of several medals at various prestigious local and international wine awards such as Mundus Vini Grand International Wine Award, Decanter World Wine Awards, Sommelier Wine Awards, Black Sea Wines and “Areni Wine Festival”, Voskevaz produces varieties of wines.

The Classic Wine line includes Voskevaz Red Dry, Voskevaz Red Semi-sweet wines (made from Kakhet and Haghtanak local grape varieties) and Voskevaz White Dry, Voskevaz White Semi-sweet wines (made from Voskehat (Kharji), Kangun Armenian grape varieties), Voskevaz Pomegranate fruit wine made from high quality Armenian pomegranate and Voskevaz Rose Dry (made from Areni variety). Vintage Line includes Areni Red Dry, Nuraz Red Dry, Voskepar White Dry, Urzana White Dry wines, Vanakan Red Non Vintage Dry wine made from Haghtanak and Kakhet grape varieties. Vintage liquor wine line includes Muscat Rozali white wine made from rare Muscat Vardabuyr grape variety and Katarine Red wine made from Kakhet variety. Voskevaz Karasi Collection includes three wines made from fine autochthonous Armenian grape varieties Areni Noir, Haghtanak and Voskehat. The wines are fermented in traditional karases (clay jars of 1000 litres) and aged in new Armenian oak barriques.

“Voskevaz Karasi Collection, Areni Noir, is one of the rare wines that reflect the pure nature of Areni Noir variety with its terroir. This wine is made with preserved old vines from Vayots Dzor region vineyards at elevation of around 1600m above sea level. Two winemaking tools, 100 year-old Karas and Armenian oak barrel, are used to create this outstanding wine. In our opinion, this kind of harmonious combination of karas and barrel is perfect for the wine tasting and aroma evolution,” said Mary Hovhanisyan, Marketing Manager.

“Also, two more wines made from local Voskehat and Haghtanak grape varieties are included in Voskevaz Karasi Collection. This is a stunning example of world-class wines that will be interesting both for the local and foreign consumer. In our opinion Armenian grape varieties are quite promising and have unique character and great potential,” said Hovhanisyan.

One of the Biggest Wineries- Karas Wines

Karas is a newly established winery in the West of Armavir Region. Located in Ararat Valley, between Mount Aragats and Mount Ararat, Armavir is the smallest and the most densely populated region in Armenia. The convenient location and the favourable climate have allowed this thriving region to become the epicenter of agricultural development.

In 2003 the pursuit for developing an inspiring project led Tierras de Armenia to discover these lands which are rich in minerals and suitable for high quality wine production. The innovation and technology were the key factors in achieving the company’s objective.

“In 2010, the company had its first commercial production and defined a new way in the production of Armenian wines. In the period of six years the Karas Wines have grown from 50,000 bottles to 1, 300, 000 bottles and aims to produce 3,000, 000 bottles,” said Gabriel Rogel, Winemaker.

“To achieve perfect quality, every element, as essential as the overall experience, is taken into account- the location of the vineyards, the window for perfect ripeness, the wine’s journey to its optimal maturity, the visual components, the length of flavours, the aromatic notes as well as the body of the wine. All of these components combine to not only measure the quality and sample of the wine, but more importantly, enhance the experience of the sample.”

Karas has more than 400 hectares of vineyards located at an average altitude of 1100 metres above sea level. The vineyards are part of Tierras de Armenia CJSC, a company that owns 2300 hectares of land in the west of the Armavir region. The soil characteristics are mainly volcanic and that rich loam also contains a stony texture spread with rocks of clay ideally suited for the production of highly concentrated wines rich in colour, aromas and flavours.

Both international and indigenous varieties are planted in the vineyards, including Chardonnay, Viognier, Kangun for white wines and Malbec, Tannat, Syrah, Merlot and Cabernet Franc for red ones. The vineyards are cultivated with modern techniques together with an individual approach for each varietal, aiming to develop the potential of each.

“Karas Wines key markets are the USA and Russia. However, it exports to other countries like France, Germany, Chez Republic, Nederland, Estonia, China, Belgium, Canada and Argentina. The company gets maximum revenue from its premium wines with Karas Red Classic being the best seller,” said Rogel.

Talking about the competition, Rogel acknowledged the fact that Armenian wines are not so famous in the world. However, Armenian wines have something new to offer the world.

Reinvigorating Armenian Wines- ArmAs

Golden Grape ArmAs was founded in 2007 by Armenak Aslanian. Along with his daughters, he preserves an 80-year-old family tradition of wine, naming ArmAs in honour of his grandfather Armenak Aslanian Sr., the original winemaker in the family. He continues to develop ArmAs Estate with a vision to partake in upholding and revitalizing Armenia’s winemaking legacy, in the oldest known area for viticulture and oenology.

ArmAs creates elegant wines that stem from one of the country’s best natural resources, the idyllic terroir of the vine. ArmAs estate is a picturesque display of agricultural achievement, set against the backdrop of the inspiring Mount Ararat. The 180 hectares of previously desolate and disconnected rock-strewn countryside was diligently transformed into a stunning panorama including vineyards, orchards, and a world-class winery.

The ArmAs winery and distillery was completely designed and constructed by Italian architects, engineers, construction crews, and wine industry professionals. During a four year period, from concept, to completion, and utilisation, numerous teams of varied areas of expertise trained local specialists and exceptional students for continuing maintenance and management. The state of the art winery is held to the highest international standards and boasts the latest enological equipment, as well as French and Karabakh oak barrels used for traditional aging.

Only the free run, or the noble juice, of the harvested grapes is reserved for the wines, retaining its finest natural qualities. Indeed, the achievement and individual features that each of the finished wines have attained in the cellar is a testament both to the innate characteristics of the vines, as well as the nurture that these grapes received from the vineyards to the bottle.

When Tradition Meets Technology- Hin Areni

Hin Areni strives to ensure that Areni grape is given the chance to show its beauty and that Armenian winemaking can duly pride itself with quality. The winery combines traditions of winemaking with state-of-the-art modern equipment. A renowned winery design expert from Argentina – Mario Japaz, has designed the winery.

The winery is equipped with modern technology. The grapes are picked and selected by hand, then they undergo gentle pressing in a pneumatic press. The storage is done with T control in SSA tanks. The wines are aged in barrels made from oak grown on the lush slopes of Artskah. The winery has the capacity to process over 250 tonnes of grapes.

The vineyards are situated at an elevation of 1215-1250 meters above the sea level, in and around Areni, namely in Tapq, Getap and Ishkatap. Hin Areni has a total of 32 hectares of vineyards. The sedimentary and rich volcanic soil, coupled with high elevation climate of Areni gives the wines a bold structure and expressive aromatic bouquet.

Hin Areni’s Voskehat is a finely crafted wine, made from grapes harvested in the historic village of Areni, known for its millennial wine making traditions. Supple and elegant, floral to the nose, this wine boasts rich aromas of honey and hints of apricot; it is pleasantly tart and crisp to the finish. While Areni wine is complex yet delicate, slightly peppery to the nose, this wine boasts rich aromas of red berries and is pleasantly tart and crisp to the finish.

Enhancing the Quality of Wines- MAP Company

The Wine Brandy Factory of Hoktemberian was founded in 1944 in the village of Lenughi. After privatisation in 1995 it was renamed- MAP CJSC. Now, the factory is well equipped with modern winemaking machinery. Due to all this, MAP Company has become one of the leading companies in Armenia that can produce up to 14 million litres of first-class alcohol drink annually. The entire cycle of wine and brandy production (receiving grapes, processing, ethyl alcohol distillation, ageing in oak casks in wine-cellars, brandy blending and bottling) is carried out by a classic technology.

Famous for its cognacs, currently, the factory produces wine, fruit wine and cognac (brandy). A variety of red and white wine is produced by the MAP winery. The Aramé brand includes red and white semi-sweet vintage wine as well as wine derived from the Muscat, Saperavi and Areni grapes. The Aramé Grand Reserve is a special edition of red and white dry aged wine. The winery also produces Tigran red dry wine, and Hasmik red semi-sweet wine. Nowadays, MAP products can be found not only in Armenia, but also abroad mainly in Russian Federation, several countries of Europe, and the US.

Vineyards of MAP Company are located in the Ararat valley, which is considered one of the most favourable places in the country for grape growing. The total vineyard area is 114 hectares. More than 10 varieties of grapes are grown; the main ones are Karmrayut, Nerkeni, Tigrani, Kakheti, Haghtanak, Kangun, Rkatsiteli, Saperavi, and Muscat.

Toprit Saifi

While retail vendors, hotels restaurants try to change their location to circumvent the ban, liquor companies will have to bear the losses or change their strategies to cut losses.

Supreme court had on March 31 refused to relax its December 2016 order banning liquor outlets along 500 metres distance of national and state highways.

The court modified the order slightly to reduce the distance to 220 meters for municipality areas with population of under 20,000. It also exempted Sikkim and Meghalaya from this 500 metre limit. Further, it allowed the licences issued before December 15, 2016, and valid beyond April 2017 to continue until the licence expires, or September 30, 2017, whichever is earlier. Licences would remain valid till end of September for Telangana and end of June for Andhra Pradesh.

As India’s recent ban on liquor stores along highways displaces outlets, the nation’s distillers are bracing for a drop in sales of as much as 8 percent this year, biting into the country’s $31 billion spirits market, according to a local maker of whiskey, vodka and rum.

USL says that the Supreme Court ban on alcohol sales near highways will have a short-term impact on its sales.

Anand Kripalu, Chief Executive Officer of the Diageo plc-owned USL, said the company “expects the impact to be mitigated eventually and where it doesn’t get mitigated the consumption will shift to other outlets”.

Following the ban, USL shares took a 15 per cent slide but after assurance from its CEO, the shares recovered to a healthy ?1,961, up nearly 3.5 per cent. The company said it will grow topline by double digit and improve operating margin to mid-high teens.

Industrywide sales would drop by as much as 15 percent in the next three months as about 40,000 outlets, including retail shops and restaurants, stopped selling spirits, wine and beer after the ban took effect April 1, Deepak Roy, executive vice chairman of Allied Blenders and Distillers Ltd., said in an interview. ABD sells around 36 million cases.

India is largely a whiskey and spirits dominated market and per capita consumption of beer in India is about 2 litres per person a year, minuscule compared to the global average of about 30 litres.

The top three companies USL, Pernod Ricard and ABD which account for 60 per cent of sales have seen zero per cent growth.

Guillaume Girard-Reydet, managing director, Pernod Ricard India, is of the view that several adverse regulatory changes and trade bans in recent months have posed difficult growth environment for the spirits industry.

In the past, Pernod Ricard India has demonstrated good resilience. But, going forward, it will be challenging for the industry as a whole to continue with the same level of performance in the short term, Guillaume pointed out.

Roshini Jaiswal’s first venture was a lounge bar called 180 Proof in Bengaluru. Bars, lounges and pubs are a tough business. With the Supreme Court ruling of not permiting bars, restaurants, liquor vends 500 kms away from highways, her liquor business if feeling the heat. Demonetization qffected the business by 25 per cent and with 25 per cent of the vends along the highway this could impact the business in the short term. The ban does not address the problem of drunken driving. By restricting sale it does not mean consumers cannot get their drinks. Drunken driving is best stopped by creating highway patrols even to the tune of 100,000 by hiring people who can revoke licenses of people who break the law of drunken driving, she advocates.

Carlsberg saw Indian volume decline almost 20%, a steep fall from about 15-20% growth it has been posting for nearly a decade. Excluding Bihar, a state where liquor was banned last April, Carslberg India’s volume declined 15% in the first quarter.

After the Supreme Court’s mid-December judgement, several companies chose channel de-stocking as there wasn’t enough clarity on the implementation, which in turn hurt their January-March sales even as nearly 30,000 shops were shut in April.

Carlsberg India chief executive officer Michael Jensen said last year that India was the most difficult market in the world, referring at that time to Bihar’s imposition of prohibition after he invested $25 million to set up a plant near the state capital Patna in 2014. “It is very detrimental for investor confidence,” Jensen had said.

India’s beer sales fell 2% in the year to March 2017. Yet, the industry expects to grow 5-7% during the fiscal on the back of new launches.

Experts say the impact on retail outlets will be transitionary as they move away from highways in due course of time. Retail consumer demand would shift to shops, which are away from highways.

Heineken, Anheuser-Busch InBev, and Carlsberg — which together control about 90% of India’s beer market — are introducing about a dozen new beer brands to fend off sales bans in a few states, shrinking store networks and stagnant demand in a warm, tropical country with promising demographics and increasing affluence.

With UK elections around the corner, BREXIT once again becomes the hot topic of discussion.

On the eve of the historic triggering of Brexit negotiations, VINEXPO has pinpointed five key issues facing the wine and spirits industries which it will seek answers to at the June exhibition. The issues will be confronted at a conference in Bordeaux’s Parc des Expositions on Tuesday, June 20 at 4.00 pm.

The five topics identify key challenges for the UK and world wine and spirit industries: Trade agreement update; Main challenges for the W&S industry: The impact on the UK market in terms of duties; Consumer prices, category management and distribution; Whether the UK will lose its leading position for re-export?; Duty Free/Travel Retail opportunities; and Protection of designation of origin areas.

The conference opens with a review of the current EU trade agreement regarding wine and spirits

imports, exports and tariffs.

Upwards of 48,000 wine producers and buyers from 150 countries are expected to attend VINEXPO in

a climate this year of intense questioning about the impact on Brexit of trading conditions, prices and

sources of supply.

Jane Anson, wine writer who will moderate the conference during Vinexpo says, “Because the UK is

the world’s second largest imported wine market and a major spirits exporter, the Brexit challenge is

as acute for the UK as it is for wine producers in France, Italy and Spain and elsewhere in the world.”

Guillaume Deglise, CEO of VINEXPO added, “In a wider context, among our 48,000 attendees there will be producers and buyers currently excluded from the EU favourable tariff zone who see Brexit as an opportunity to penetrate the UK wine and spirits market.”

The value of UK wine imports is running at circa £28 billion according to VINEXPO/IWSR data for 2015. Volume imports are forecast to slow over the next five years.

Exports of all spirits from the UK reached £4.9 billion in 2016, according to the Wine & Spirit Trade

Association, the major part lead by Scotch whisky exports.

The line up of speakers will be announced in the coming weeks.

With the beer consumption increasing in the country, industry experts say that Indians are fast catching up in their beer consumption as can be seen by the figures released by research agencies. India’s beer market is expected to reach volumes of nearly 470bn litters by the end of this year-a near thousand fold increase since 2011, read Food Navigator-Asia’s website.

The beer market is rapidly expanding and is expected to reach $9billion in 2018. It is the third largest market in the Indian alcoholic beverages industry. The size of the beer market has virtually doubled every five-and-a-half years. Beer market has been segmented into strong beer and mild beer on the basis of their alcohol content.

The country has 85 large breweries and a heavily centralised market, with just four large global players controlling 86 per cent of the market. With Heineken, Budweiser, SABMiller and Carlsberg enjoying brewing hegemony, India now ranks among the top five markets in Asia-Pacific in terms of volume, stated Food Navigator-Asia’s website.

According to ‘Outlook for India’s beer market’ report, beer sales in India are expected to see an annual growth of 7.5 per cent over the next five years despite regulatory hurdles, as rising disposable incomes in the hands of middle class will lead to higher spending.

“We believe India holds significant long-term growth potential as a beer-drinking culture is growing in momentum. We expect to see increasing levels of investment into the market from both local and global players over our forecast period,” the report said.

It further stated, “While spirits will continue to dominate India’s alcoholic drinks market, we expect to see strong growth in beer consumption over our forecast period. In volume terms, beer sales will rise at CAGR of 7.5 per cent between 2017 and 2021.”

Beer continues to be readily accepted, especially amongst the youth. In addition, prolonged periods of hot weather have a positive impact on the performance of beer in both on-trade and off-trade. Furthermore, the proportion of beer consumption is not skewed towards weekends as much as spirits, thus considerably increasing the occasions for beer consumption. Beer being a low alcohol by volume (ABV) beverage has also increased its proposition as a refreshment/entry level drink, especially amongst the youth, which currently is the biggest demographic segment in India. Also growing popularity of micro-breweries has promoted awareness and indirectly demand for off-trade beer sales

Craft beers and microbreweries are niche concepts in India which have been growing for past few years and are beginning to take shape now. They are mushrooming in many parts of the country. This is an emerging trend that is certainly attracting middle class Indians, particularly in urban areas. The craft beer market in India is pegged at Rs. 280 crore and may grow to Rs. 4,400 crore by 2020.

Beer in India is dominated by the off-trade channel which accounts for 79% of volume sales. 97% of the off-trade sales are through the food/drink/tobacco specialist channel. These are stores that are called ‘wine shops’ and are present in every city across India. However, companies are focusing on increasing their sales through the on-trade channel. Oktoberfests or beer festivals are organised in cities like Bangalore which is famous for its pub culture.

Beauty lies in the spirit of packaging It was the first Packaging News Live Spirits Summit in Edinburgh on a cold and frosty morning but nonetheless the issue of packaging was on the front burner. “As well as a full programme of speakers, the Summit also had an exhibitors’ room which included our Scotch Whisky Association stand.  Although, in contrast to other exhibitors, we didn’t have an array of luxury spirits packaging to display, we attracted a constant stream of visitors to our stand wanting to hear more about our Association and how we help our members”, stated Morag Garden, head of environment and sustainability at the SWA.

HPMF celebrates 6th Anniversary, Annual Convention & Awards at Mayfair Lagoon, Bhubaneswar

It was an event to remember for the record breaking congregation of hospitality purchasing heads, of nearly 250 professionals who networked and attended interactive knowledge based sessions, B2B Meetings and witnessed the HPMF Procurement Excellence Awards

The entire delegation of over 250 hospitality purchasing managers from across India, along with dignitaries, vendors and consultants, gathered at the verdant luxurious property of Hotel Mayfair Lagoon and Convention Center, a ‘museum, jungle and hotel rolled into one’ located in the midst of Bhubaneswar city, Odisha.

Delegates from Mumbai, Hyderabad, Pune, Ahmedabad, Bengaluru, New Delhi, Chennai, Goa, Guwahati, Jaipur, Indore, Nagpur, Vadodara, Bhubaneswar and Puri, were overwhelmed with the programme put together by Nitin Nagrale, General Secretary & Founder of HPMF and the core committee including Chairman Mohan Deshpande, General Manager Materials Hotel Aureole; Teckbahadur Sarke, Manager Hotel Sahara Star – Mumbai & Aamby Valley City – Lonavala (Pune); Harvey Rodrigues Director Procurement – Hotel Meluha The Fern and Hotel Rodas An Ecotel Hotel; Mahendra Shinde, Materials Manager – The Resort Mumbai; Ganpat Dalvi – Director Procurement Four Seasons Mumbai, Jaideep Gupta, Operations, Procurement and Pre-opening professional; and Gary Coutinho, Supply Chain Manager Devyani Airport Services.

Inaugurated by Ashok Chandra Panda, Minister of Tourism and Culture, Government of Odisha, the occasion was also graced by His Highness Giriraj Singh Lotwara, President of Shree Rajput Sabha, Jaipur; Dilip Ray, CMD of Mayfair Hotels; Debasis Pattnaik, Director, Crown Hotels; Lion Pankaj Mehta; and Souvagya Mohapatra, Executive Director, Mayfair Hotels among others.

The role of a Purchase Manager in the Hospitality industry has gone through several fundamental changes in the last few years. Many companies have shifted from a Regional unit Procurement approach to a Center-led Global Procurement strategy. The Purchase department has become a valued partner & a recognized asset who collaborates effectively across the Organization driving procurement excellence.

India’s leading Hospitality Purchasing Managers’ Forum (HPMF) In an unprecedented style organized a three-day convention for successful purchasing professionals, marking its sixth anniversary with lots of Learning and Leisure, Awards and undying Memories.

One of the key objectives was to meet, discuss & find solutions to the challenging issues faced when it comes to Procurement, Supplier Relationship Management, and strategies revolving around it, as well as to network under one roof. The highlight of the forum was also to bring industry though leaders to deliberate on the challenges faced on the talent and skill development initiatives and how to bridge the gaps in the same. Another objective is to equip the hospitality purchase professionals with the latest trends and tools so as to better manage and excel in their current functional roles. Key benefits for people participating will be to nurture existing relationships and foster new business partnerships via One to One Networking Opportunity during the entire 3 days of the event.

Highlighting the importance of purchasing managers, who are more a background artist, Mohapatra said, “From every tile in the floor to the entire structure, purchase is involved. They play an important role in material, marketing and money management.”

Debasis Pattnaik added, “Purchase managers are not visible on the foreground but they are like platelets in the blood.”

The need for HPMF is in bringing together the purchase heads of hotels on one platform to network, explore new aspects of purchasing and gather knowledge of the advantages of technology in purchase. “I am elated to host HPMF in Bhubaneswar,” said Nitin Nagrale, thanking Mayfair Hotels and the supporting vendors for successfully organizing the convention.

In continuation, Mohan Deshpande said, “Purchasing Managers are an integral part of the industry and they need to understand & showcase their own value”

Some of the Networking Professionals had this to say. “It is hard to find words to match the efforts put in by the HPMF team, in the spotless execution of this wonderful programme.” – Shiv Menon. According to Santosh Bhame, “It was very well planned, organized and executed, bundles of surprises, so many new friends, so much knowledge sharing… this is very good memory for a life time.” “Congratulations to the entire HPMF family for a very successful event. Everything was just perfect. You have raised the bar for all.” said Jairaj Singh echoing the sentiments of many of the professionals.

Sanjay Goyal said, “We had a wonderful three days of knowledge sharing, networking and fun. Thank you for executing a convention of this quality, scale, excellence in terms of content, right mix of knowledge and fun. We raise a toast and salute our soldier Nitin Nagrale for the true dedication and our solidarity.”

The Indian hospitality industry has been rapidly evolving since last two decades and has witnessed a spurt in the number of domestic and international players entering the market with ambitious and world class projects. This has resulted in quantitative and qualitative needs which are far more complex than before. Today, the hospitality procurement industry is pegged at an annual figure of US $10 billion dollar. But considering the sustained economic development and an impressive GDP ratio of India, the hospitality procurement needs are expected to grow by leaps and bounds in the coming years. The hospitality procurement is not only scattered but needed some reference body to assist them at every stage. There were no formal education institutes or bodies to assist. And also every one working in their organizations were working in isolation.

Touching upon the most important topics, experts from the hospitality industry discussed ‘Importance of Value Engineering and Life Cycle Analysis in Procurement’; ‘Work Life Balance, Vendor Relationship & Strategic Sourcing’; ‘Creative Strategies & Future of Procurement’ besides other presentations and highly inspiring motivational talks by Lion Pankaj Mehta and Pradip Almadi.

B2B Meetings

The entire buyer delegation was divided into groups of 6 members and an excellent B2B meeting schedule was organized so that all the partners could meet the buyers on one on one basis. It was a super hit session on both days as all partners not just met every attending delegate but created bond between them.

Entertainment was also an integral part of the three day event. Exhibiting their talents, purchasing managers took stage on fire with hit Bollywood old songs on the saxophone; puppet show, comedy besides multiple bands rocking on the latest numbers.

“We thank all the delegates for taking time out to be present in such large numbers, our vendors who have supported us whole heartedly and experts who have made the sessions a big success. I also take this opportunity to thank LG for once again partnering with us and making this wonderful event possible,” concluded Nitin Nagrale.

BOX

2nd HPMF Procurement Excellence Awards

This year’s Living Legend Award was conferred on Sundaram RM, Vasantabhavan Hotels India Pvt Ltd and Basil Christopher Massey, Duet India Hotels. The Life Time Achievement Award was given to Narinder Kapoor, The EIH Ltd.

There was stiff competition in the other categories and the panel of jury had to rework to emerge with the most deserving winner. “While we started planning and preparing this event more than six months back, the awards were put together in 45 days,” said Nitin Nagrale. The winners in the other categories are:

Most Innovative Procurement Person of the Year: Parag Pawar, Purchase Manager, Royal Orchid Central, Pune

Most Innovative Procurement Person of the Year: Hara Prasad Balliarsingh, Senior Manager, Mayfair Lagoon and Convention, Bhubaneswar

Best Cross Functional Procurement Leader of the Year: Mahendra Shinde, Materials Manager, Hotel The Resort, Mumbai

Best Procurement Person of the Year – Male: Boominathan Panchanathan, Commercial Manager, Fortune Select Grand, Chennai

Best Procurement Person of the Year – Female: Shikha Sharma, Retreat Hotel and Convention Centre, Mumbai

Best Use of Innovative Technology for Procurement: Ram Vriksh Dwivedi, Assistant Materials Manager, The Lalit, Mumbai

Special Jury Award: Vijayanand Thantri, Head Procurement – Intellistay Hotels, Mumbai

Superman of the Year Award: Abdul Kareem, Purchase Manager, The Leela, Chennai

Best Use of Green Initiative as a Team: C. Rajendiran and team, Novotel Ibis Sipkot, Chennai

Change Maker Award: Teckbahadur Sarke, Sahara Star Hotel, Mumbai

Change Maker Award: Gary Coutinho, Devyani International, Mumbai

Make Mumbai 24 x 7 was the buzz word at Indian Nightlife Convention and Awards 2016 as the industry debated as to how create a more vibrant night life which in turn would be a boon to the restaurant industry. India Nightlife Convention and Awards (INCA) 2016 presented by Danke in association with Johnnie Walker, powered by Dineout, the intellectual property of Kickstart Entertainment and an initiative by National Restaurant Association of India (NRAI) brought India’s nightlife industry together. It is the first platform specifically designed to bring together and recognize the various stakeholders of one of India’s most vibrant and fastest growing Industries – Nightlife. The 25th morning began with a customary lighting of the lamp followed by a dynamic opening speech by Riyaaz Amlani, President NRAI. Riyaaz spoke about the revenue that the nightlife industry contributes to the economy and the need for regulation and easy single door policy to make doing business smoother. He went on to highlight the need for the leaders of the hospitality trade to bring in a more ethical and streamlined approach to doing business as a club or bar. “National Restaurant Association of India strongly supports the India Nightlife Convention & Awards” said Riyaaz Amlani, adding, “The Contribution of the Nightlife industry also known as PBCLs (Pubs, Bar Cafes, and Lounges) to the nations GDP and employment has largely gone unrecognized. Currently there are over 6200 licensed bar premises, contributing over 11,500 crores to the Indian economy growing at an astonishing CAGR of 20% making it the fastest growing Industry in the country outperforming the Indian IT Industry and beating GDP growth rates 3x employing over 20 Lakh people. The Nightlife business is also the fastest growing segment in the overall foodservices space, growing twice as fast as QSRs and Casual Dining segments. The time has come for the Nightlife industry to be recognized as an independent booming Industry of its own.” Mr. Aaditya Thackeray, the keynote rhetorician at the convention then discussed his plans to help revive the nightlife of the city through amending necessary laws.  Aaditya Thackeray the new emerging dynamic leader of the Shiv Sena aims to help in establishing the financial capital of India as a tourism hub helping in generate revenue, employment and paving the path to a safer city with malls, theaters, food establishments, chemists, convenience stores staying open 24X7, and creating special nightlife entertainment zones in non-residential areas. He made an announcement saying that his current focus is the Single Window Licensing Policy for the food service industry which will be getting a nod from the Government very soon.  Those that spoke on day one of the convention included Riyaaz Amlani (President, NRAI and CEO & MD, Impresario), AD Singh (Olive); Sophia Sinha (Moet Hennessy), Kishore DF (Bang on Consulting), Himanshu Vaswani (Bajao), Ayaz Basrai (The Busride), Rahul Singh (The Beer Café), Jay Singh (JSM Corporations), Karan Kapur (Irish House) and many more.  International Speakers included Lutz Leichsenring (Berlin Clubcommission), Ewan Gunn(Diageo), Bradley Drummond (Harman International). The regional award winners were also announced at intervals throughout the first day of the convention. Day two saw a number of influential speakers with sessions taking place at two different stages: one at the ballroom and one at the terrace garden. Bollywood actor Imran Khan, David Desouza (Tito’s), Sandeep Singh (Bira), Gaurav Gupta (Danke), Rahul Mehra (Gateway Brewing), Sohail Arora (Krunk), Naveen Deshpande (Mixtape), Keenan & Ryan Tham (Trilogy), Dino Morea (Playground), Mona Juneja (Butter), Priyank Sukhija (Lazeez Affaire Group), Manu Chandra (Olive), Tanya Swetta (id8 media solutions), Malini Agarwal (Miss Malini), Toshit Bharara (Zomato), Rishi Jaitly (Twitter), Shatbhi Basu, International speaker Alan Miller (Night Time Association Industries) and many more came together to speak on various topics pertaining to nightlife. Gaurav Gupta CEO, Danke Exim India Pvt. Ltd said, “We are very proud to be a part of INCA as there cannot be a better platform than this to announce the launch of Danke to the who’s who of the Nightlife industry and we look forward to redefine the beer culture in India.” Also seen present were members of the Advisory Board – Riyaaz Amlani (President, NRAI & CEO/MD, Impresario Entertainment & Hospitality Pvt Ltd), AD Singh (Owner, Olive Bar & Kitchen Pvt Ltd), Dilip Joshi (Consultant for Restaurants, bars, nightclubs & Lounges), Kishore DF (Director, Bang On Consulting), David DeSouza (Owner, Tito’s Goa) and Jay Singh (Co -Founder and Executive Director, JSM Corporation Pvt Ltd), title sponsor Gaurav Gupta (Danke Exim India Pvt Ltd), Bradley Drummond (Solutions Manager at Harman Nightlife), Ewan Gunn (Diageo Whisky Master), Alan Miller (Chairman & Founder at Night Time Industries Association) and all partners and sponsors.   Speaking on the success of India Nightlife Convention & Awards 2016, Aman Anand Director of Kickstart Entertainment said, “We are proud to have presented a huge prospect to the industry enthusiasts helping them gain insights and the personal experiences of International renowned speakers as well as felicitating the best in the bar and nightlife industry. The event attracted attendees from across India and assisted the nightlife peers to connect and develop a social network thereby helping them build their customer base. After the success of the first edition of India Nightlife Convention & Awards, we are looking forward to taking INCA a notch higher in 2017.”   Riyaaz Amlani, President, NRAI said, “It was great to be a part of an intellectual property like India Nightlife Convention & Awards. The whole idea of creating a nightlife community like INCA and promoting accessibility, ideation, cross-pollination and development was victorious in every possible way. All stakeholders of the industry whether musicians, restaurant owners, talent or government authorities were present at one venue, networking and helping contribute to the vibrant nightlife of the country. It has helped in nurturing a cultural bridge creating better conditions for the nightlife industry to flourish.” BOX Below are the various award categories listed down along with the national winners:  Best Dive Bar-The Ghetto/The High Spirits Cafe Best Open Air Bar-AER Best Bar Food-Monkey Bar Best Café Bar-Heart Cup Coffee/Beer Cafe Best Debut Bar-Masalabar Best Bar Chain-Social Best Beer Bar-Doolally Taproom Best Cocktail Bar-PCO Best Resto Bar-Café Zoe Best Sports Bar-Underdoggs Sports Bar Best Bar in Hotel-The Library Bar Best Nightclub-Trilogy Best Venue for Live Performance-Bluefrog Best Wine Bar-The Tasting Room Best Concept Bar-Bar Stock Exchange Best Bar Interior-Social Best Lounge-Asilo Best Pop-up- Playground Best Promoter The Wild City Best Artist Manager-Only Much Louder Best Live Bands/Acts-Peter Cat Recording Co. DJ of the year-Nucleya Bar of the year-Social Best F&B Director-Mayank Bhatt Best Music Event Festival-Bacardi NH7 Weekender Best Bartender/Mixologist-Nitin Tewari/ Dimitri Lezinska Lifetime Contribution Award-David DeSouza