Tag Archives: Alcobev products

Bira 91 ‘Imagined in India’ limited-release beers pleasing the desi palate with innovative flavours

The late English author Gilbert Chesterton once wrote: “Let a man walk 10 miles steadily on a hot summer’s day along a dusty English road, and he will soon discover why beer was invented.” He’s right, of course — there’s something about the combination of the warmest season and an ice cold brew that just works. Summer in Delhi is unbearable and we do not have an opposition for this. And, how most of us beat the heat is by gulping down frosty and flavourful beers. Delhiites can now rejoice as India’s popular beer brand Bira91 brings you a range of four new limited-release beers – Bollywood IPA, Kokum Sour, Brown Ale, and Mango Lassi – as part of their ‘Imagined in India’ initiative. Team Ambrosia was part of the preview tasting, hosted on April 07 2022 at the beautiful QLA, in Mehrauli, Delhi. The tasting was followed by dinner, curated by Chef Vicky Ratnani, and a live music set by DJ MoCity and DJ Nida. It was what we call a perfect dreamy evening filled with all the finer things in life.

A melange of flavours

The ‘Imagined in India’ beers are made with indigenous products and are inspired by the raw creativity of today’s India led by emerging artists, entrepreneurs, and startups combined with the cradle of flavours that find a home here.

The Bollywood IPA variant has a tropical twist, inspired by west coast India Pale Ales that were born in California, while Kokum Sour has traditional ingredients from the Konkan coast. We loved the Brown Ale – a blend of English Nut Brown Ale and the Antwerpian Amber with notes of coconut and vanilla. Fans of lassi would appreciate the taste of their Mango Lassi version that merges its Wheat Ale and a milkshake beer into one.

Ankur Jain, founder and CEO of the company, said, “For this generation of consumers, beer means flavour, and we deliver on that promise. ‘Imagined in India’ is an attempt to bring together the many flavours of India and its creative energy fuelled by emerging artists, entrepreneurs, and startups. Each beer is brewed with unusual ingredients – local and seasonal – which makes them unique.”

He further added, “Each of these flavours originated at the Bira 91 Limited-release Taproom at Koramangala, Bengaluru, where they received tremendous consumer love and affinity. The flavours were voted as the top-ranked choices by beer lovers, which inspired us to bring them to consumers across the country.”

Earlier, back in 2021, Bira 91, in collaboration with non-alcoholic drinks brand Svami, had rolled out Cucumber flavoured Kölsch. The Bira 91 x Svami Cucumber Kölsch is brewed with pure German Pilsner malt, a fresh cucumber flavour and the delicate caress of the finest German noble hops, with an IBU of 18 and an ABV of 6%. It is a crafted blend of bitter-sweet notes and cool cucumbers creating a crisp, balanced, and revitalising beer.

Staying true to the brand’s playful image, Bira 91 encourages consumers to be more experimental and creative, while exploring new flavours in everything, including the beers that they drink. The new ‘Imagined in India’ range is yet another exciting testament to delivering on that promise.

Collaborations for community growth

To bring alive the flavours, Bira 91 has collaborated with Kulture Co, a curated platform spearheading the new wave of Indian Graphic Art across borders. The brand on-boarded contemporary Indian artists from the Kulture Lab – artists who are breaking the mould and taking modern India to new frontiers – to conceptualise and design the packaging of the four new flavours.

Channelising their art and creativity on a new canvas, artists Ranganath Krishnamani, Osheen Siva, M. Sajid and Prince Lunawara showcase a vibrant palette of local stories around shared identities painted onto these beer cans, paying homage, and narrating the story of our home country.

Commenting on the idea behind designing the packaging of Bollywood IPA, artist Ranganath Krishnamani said, “Conceptualising the packaging of a flavour so bold and dynamic, that it takes you to the heart of Mumbai, where all things Bollywood originated, was truly exhilarating. Incorporating the charming art deco cinemas in Colaba, the iconic ‘kaali-peeli’ cabs, and the vintage colour scheme was the perfect way to capture Bollywood on a can.”

Designer of the Kokum Sour packaging, Osheen Siva, too expressed his thoughts behind the masterpiece and said, “Kokum is a tangy flavour, as Indians have developed a taste for since childhood. To depict a taste so loved yet so new to the beer industry was exciting. I conceptualised it to be something offbeat and loud. For me, the can had to give consumers an idea of what they were picking up from the rack when indulging in a Bira 91 Kokum Sour Beer.”

“Imagined in India to me is being authentic, raw and connected to our roots. Capturing the taste of Brown Ale that recognises uplifts and celebrates diverse communities of India and having the essence reflect in the artwork on the packaging was a great experience,” M. Sajid, who designed the Brown Ale packaging, enthused.

Prince Lunawara, who creatively illustrated the Mango Lassi can said, “India loves mangoes and merging the flavour with beer is as creative as it can get. Through the can, my idea was to celebrate this creativity and the beauty of India’s flavours.”

The limited release beers will retail in metros like Delhi, Mumbai, Bengaluru, and Pune.

According to Expert Market Research, the India beer market stood at a value of nearly 371 billion in 2020. The industry is expected to reach approximately 662 billion by 2026, rising at an estimated CAGR of 9.2% during 2022-27.

Oh Summer Beer

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A summer beer can be just about any style, as long as it’s crisp and refreshing and makes you never want to go back inside again. They range from light and fruity to hoppy and complex, but the best summer beer is the one you come back to again and again as soon as the temperature crawls above 60 degrees.

The global beer market size reached US$ 640.2 billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 750.3 billion by 2027, exhibiting at a CAGR of 2.7% during 2022-2027, according to a new report by IMARC Group.

Beer is a fermented alcoholic beverage that is made by brewing and fermenting starches derived from cereal grains. It is flavoured using hops that not only add a buttery flavour to the beverage, but also act as a natural preservative. Apart from this, other flavourings, such as herbs and fruits, are also added to attribute a specific flavour and fragrance to the drink. It is a rich source of niacin, folate, riboflavin, pyridoxine, potassium and magnesium.

Moderate consumption of beer is widely associated with numerous health benefits and aids in maintaining blood pressure levels, preventing kidney stone formations, and minimising the chances of developing cardiovascular disorders, including angina, stroke and heart attack. Owing to this, it is gaining widespread popularity across the globe.

Global Beer Market Trends:

One of the major factors influencing the global beer market is the rapid spread of the Coronavirus disease (Covid-19) and the consequent social distancing norms and lockdowns imposed in several countries as a control measure. The decrease in the number of social gatherings is projected to lead to a decline in the on-premise consumption and sales of beer in bars, restaurants, pubs and public events. However, this trend will to be offset by the demand for to-go packs as well as home delivery services, mainly through online platforms. Another factor driving the market is the widespread preference for specialty beer among individuals. These beers are brewed to a classic style by incorporating different flavours, such as honey, chocolate, ginger and sweet potatoes. This adds a distinct flavour and aroma, which further adds innovative and eccentric flavours to the drinks. The growing inclination toward craft beer is also accelerating the market growth. Since microbreweries produce portioned amounts of beer, they lay enhanced emphasis on the flavour, quality and brewing techniques as compared to large-scale commercialised breweries.

The potential for beer growth in India is strong as well. AB InBev, for example, began brewing Budweiser in the market back in 2010. In January 2021, Kirin Holdings announced an investment of $30 million in New Delhi-based B9 Beverages, the maker of the Indian craft beer Bira. IWSR anticipates beer consumption in India to return to pre-Covid-19 levels by the end of 2023, continuing on its growth path from there.

Expanding beyond beer

As consumers moved to the at-home occasion, the trend for convenience has helped to shape purchasing behaviours. In markets such as the US, the ready-to-drink (RTD) category, which includes hard seltzers, has been taking share from beer.
RTDs provide a growing opportunity for brewers to diversify their product portfolios. Indeed, Heineken entered the hard seltzer category in September 2020, with the launch of Pure Piraña in Mexico and New Zealand. In the US, Heineken partnered with AriZona to launch the AriZona SunRise Hard Seltzer in October 2020. AB InBev states that Bud Light Seltzer is their leading innovation in the US market, with over 75% of volume being incremental to their portfolio. In fact, 2021 was the first year in which a hard seltzer commercial (Bud Light Seltzer) aired during the Super Bowl.

Malt-based RTDs are currently dominant in the US owing to their taxation base, and brewers they are in prime position to take advantage. Elsewhere, the alcohol base of choice varies by country, driven by consumer preference and local alcohol tax structures.

Changes in purchasing behaviour propel e-commerce

As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel. Heineken, for example, reported that Beerwulf, its direct-to-consumer platform in Europe, nearly doubled its revenues in 2020, while in the UK, its revenues tripled. Online sales of its home-draught systems grew as well.

Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However, this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel.
Online beer sales hold the greatest market share in countries including Japan, the UK and the US. From a lower base, online beer sales will also grow rapidly over the next five years in markets such as Israel and Nigeria.

The entrepreneurial spirit of small-batch players

Craft breweries, which tend to be more dependent on the on-premise, have propelled interest in the global beer category and revitalised its fortunes in many markets. IWSR believes that the entrepreneurial spirit of the sector will mean that craft brewery regeneration will be quick. In the US, for example, IWSR has seen the pandemic lead to a “buy local” approach amongst some consumers, which will benefit small-batch players.

Innovation in the no/low space reignites the category

No- and low-alcohol beer is a bright spot for the category, as moderation and wellness trends continue to resonate with consumers. IWSR data shows that, to date, most volume has come from no-alcohol rather than low-alcohol beer across 10 key markets.

Broadly, low-alcohol beer is giving way to no-alcohol offerings particularly in markets such as Australia, France and the UK. Spain, for example, is seeing a shift from low- to no-alcohol beers, as consumers seek healthier choices and view the newer 0.0% brands as more modern. In South Africa, investment from Heineken and the emergence of a craft segment has helped to generate interest in the no-alcohol category.

While no-alcohol beer has existed for decades, in markets like the US, no-alcohol beer has premiumised through the release of no-alcohol versions of non-lager styles, long the domain of no-alcohol beer. More recent no-alcohol styles, such as IPAs, stouts or porters, are starting to make a real impression, driven particularly by new challenger brands, many of which are not linked to traditional brewing. The recent no-alcohol extension of Guinness – despite some teething issues – will help to underline that no-alcohol beers are no longer the sole domain of lagers.

While several key beer players continue to steer the no/low beer category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space. The segment is likely to become even more of a focus for smaller craft producers who are able to bring a diverse range of products to the market in future.

India and Australia sign an interim trade deal

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The India-Australia Economic Cooperation and Trade Agreement (“IndAus ECTA”) was signed by Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Government of India and Mr. Dan Tehan, the Minister for Trade, Tourism and Investment, Government of Australia in a virtual ceremony, in the presence of Prime Minister of India, Shri. Narendra Modi and the Prime Minister of Australia, Mr. Scott Morrison recently.
In his opening remarks during the Joint Press Conference with Mr. Dan Tehan after the signing in ceremony, Shri Goyal said the Australia – India ECTA truly symbolises our Ekta (Unity) & the spirit of cooperation. Terming it a historic day for India, as it is the 1st agreement with a developed country after a decade, Shri Goyal said our relationship rests on the pillars of trust & reliability, aptly reflected in our deepening geostrategic engagement through the Quad & Supply Chain Resilience Initiative.

Stating that India and Australia are natural partners, connected by shared values of democracy, rule of law & transparency apart from our shared love for Cricket, Food & Movies, Shri Goyal said Ind-Aus ECTA is expected to almost double bilateral trade to about $50 billion in five years. He said there is great potential for Indian exports in sectors like textiles & apparel, leather, hospitality, gems & jewelry, engineering goods & pharma, IT, Startups etc. Australia has committed to key areas of India’s interest in Services like Education, IT, Business, Professional Services, and Health & Audio-visual while Australia will also provide Post-study work visas for students, the quota for Chefs & Yoga instructors, and Work & Holiday visas for young professionals.

Tariffs will be eliminated on more than 85% of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91% (valued at $13.4 billion) over 10 years.

Australian households and businesses will also benefit, with 96% of Indian goods imports entering Australia duty-free on entry into force.

India is the world’s largest democracy and the world’s fastest-growing major economy, with GDP projected to grow at 9% in 2021-22 and 2022-23 and 7.1% in 2023-24.

Shri Goyal said the Agreement provides adequate safeguards to prevent circumvention, fuse to protect against sudden surge in import of goods; for the 1st time, mechanism included for compulsory review after 15 years. Underlining that the Ind-Aus ECTA will not only herald a new era of trade & commercial ties, but also take the relationship between our nations to greater heights. Shri Goyal said he will be visiting Australia in the coming days, to take the ECTA to people.

Like true brothers, both nations supported each other during Covid-19. Ind-Aus ECTA covers the entire gamut of the trade & commercial relations, removing trade barriers & opening a plethora of opportunities in both goods & services. Expected that with ECTA, the present bilateral trade for merchandise & services of $27.5 bn (2021), may reach a level of about $45 to $50 billion in the next five years.

It is expected to create new employment opportunities, raise living standards and enhance the overall welfare of the peoples of both the countries. Additional employment generation is expected to be 10 lakhs within the next five years.
Australian wine exporters, however, will have to wait for the full benefits, with tariffs on wine bottles with a minimum import price of US$15 expected to reduce from 150% to 75% when the agreement enters into force. This tariff will then reduce to 25% over 10 years.

Tariffs on wine with a minimum import price of $5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years.

In services, Australia has offered 135 sub-sectors to India, while India offered 103 sub-sectors to Australia. Adequate safeguards have been provided to prevent circumvention or diversion of goods from any non-party. Provision for bilateral safeguard measures to protect against a sudden surge in import of goods. For the 1st time, a clause is introduced for a special review mechanism that provides for compulsory review after 15 years in a time-bound manner.

“The IndAus ECTA, encompassing trade in goods and services, is a balanced and equitable trade agreement, which will further cement the already deep, close and strategic relations between the two countries and will significantly enhance the bilateral trade in goods and services, create new employment opportunities, raise living standards and improve the general welfare of the peoples of the two countries,” the commerce ministry said recently in a press release.

In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Our Government’s goal is to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment.

The Australia-India Economic Cooperation and Trade Agreement (AI ECTA) signed recently will further strengthen that relationship.

Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year.

“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said.

“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.

“This is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, wool producers from Victoria and metallic ore producers from the Northern Territory.

Benefits of AI ECTA include:

Sheep meat tariffs of 30% will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20% of India’s market.

Wool will have the current 2.5% tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.

Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years (based on Indian wholesale price index for wine).

Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150% to 75% on entry into force and subsequently to 25% over 10 years (based on Indian wholesale price index for wine).

Tariffs up to 30% on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.

Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.

The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.

LNG tariffs will be bound at 0% at entry into force.

Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.

Minister for Trade, Tourism and Investment Dan Tehan said AI ECTA would also further strengthen the people-to-people links between our countries. India was Australia’s third largest market for services exports in 2020.

“This agreement will turbocharge our close, long-standing and highly complementary economic relationship in areas such as critical minerals, professional services, education and tourism,” Mr Tehan said.

“It will create new opportunities for jobs and businesses in both countries, while laying the foundations for a full free trade agreement.”

Both countries will facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies in both countries.

Australian services suppliers in 31 sectors and sub-sectors will be guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in: higher education and adult education; business services (tax, medical and dental, architectural and urban planning; research and development; communication, construction and engineering; insurance and banking; hospital; audio-visual; and tourism and travel.

Australia will also provide new access for young Indians to participate in working holidays in Australia. Places in Australia’s Work and Holiday programme will be set at 1,000 per year and Australia will have two years to implement the outcome. This is expected to contribute to both workforce requirements and to boost tourism to support our post-Covid recovery.

In a boost to our STEM and IT workforces, the length of stay for an Indian Student with a bachelor’s degree with first class honours will be extended from two to three years post study in Science, Technology, Engineering or Mathematics (STEM) and information and communications technology (ICT) sectors.

Australia and India have also agreed to undertake cooperation to promote agricultural trade as part of the agreement and will now work toward concluding an enhanced agricultural Memorandum of Understanding (MoU).

Mr Tehan signed AI ECTA on behalf of Australia during a virtual ceremony with India’s Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Piyush Goyal, attended by Prime Ministers Scott Morrison and Narendra Modi.

This announcement builds on the Morrison Government’s $280 million investment to further grow economic relationship and support jobs and businesses in both countries, that includes:

$35.7 million to support cooperation on research, production and commercialisation of clean technologies, critical minerals and energy;

$25.2 million to deepen space cooperation with India and $28.1 million to launch a Centre for Australia-India Relations.

AI ECTA is an interim agreement and both countries continue to work towards a full Comprehensive Economic Cooperation Agreement.

ISWAI propagates rationalisation of duties and policies

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Ms. Nita Kapoor, CEO, International Spirits and Wines Association of India ( ISWAI, gives a holistic view and shares insights on various issues the industry faces on account of high taxes, inflation, and interstate duties. The way forward is E-commerce, low duties via the FTA route, Maharashtra State duty cuts, Delhi Excise Policy model and premiumisation of liquor.

What role has ISWAI played to boost the interest of its members?

ISWAI is an apex body of the premium alcobev sector, promoted by multinational alcoholic beverage companies having investments and business operations in India. Founded in 2004, ISWAI strives to transform the Indian spirits and wines industry, upholding the highest level of quality, responsibility and ethical business practices.

ISWAI is actively engaging with state government and policymakers and committed to a supportive, predictable, harmonised, and progressive policy environment that enables member companies to thrive in India and build economic value for the States where they operate. ISWAI and its members advocate for responsible alcohol consumption by creating conversations about the negative impact of misuse, spurious and counterfeit products, illicit products, drinking and driving, and underage drinking.

Members of ISWAI include global leaders in both the spirits and wine industries, like Bacardi, Beam Suntory, Brown Forman, Campari, Diageo-United Spirits, Moet Hennessy, Pernod Ricard, and William Grant & Sons. Taken together, ISWAI’s members account for a substantial part of the revenue generated from alcoholic beverages across the country.

How have the international beverage companies coped with the Covid phenomenon?

Covid-19 has affected almost all businesses across sectors. The alcobev brands manage disruptions caused by Covid by focussing on efficient supply to ensure stock availability. The service of outlets is in line with the lockdown timings and guidelines laid down by each state. The alcobev companies also urge the state governments to consider home delivery of alcobev products as a regular service. It will minimise the disruption of retail businesses and improve job opportunities at the last mile route to consumers.

What is the strategy being adopted by the international beverage companies post-Covid?

In addition to what we mentioned above, ISWAI and its members engage with the state governments through regular consultations, which are essential to forging a predictable and progressive policy framework.

We have also seen a trend of premiumisation in the alcobev sector, which has further accelerated during the pandemic. The alcoholic beverages consumers are opting for better and premium quality brands. At-home consumption is paving the way for home delivery, social acceptance, and a rise in women consumers on account of home delivery during the pandemic.

Besides this, we are already seeing trends play out with consumers experimenting with craft gin, red wine and ready-to-drink (RTDs), which are anchored on differentiated and low alcohol content.

Do you see other states following suit by cutting duties like Maharashtra did?

West Bengal has already reduced its duties, and yes, we would expect other states to rationalise the additional duties on Bottled In Origin (BIO) products as a 150% customs duty is already levied, and any additional tax is a ‘tax on tax’ that artificially inflates the price of BIO products making it unaffordable for the consumer and thereby creating economic leverage for the counterfeit and spurious products. The reduction of duty in Maharashtra will lead to curtailment of counterfeit products, improve state revenues on account of minimal cross border inflow of spurious products.

The alcobev industry in India is witnessing significant changes influenced by a global culture leading to a trend towards premiumisation. Indian consumers are increasingly opting for ‘Bottled in Origin’ (BIO), and geographical indication (GI) tagged niche products, which carry a stamp of premium quality. The Maharashtra government has taken cognizance of the emerging growth trends of BIO in the alcobev segment and the importance of GI-tagged products, which is commendable. The decision by the Maharashtra government to halve the duty on imported alcoholic products (from 300% to 150%) will bring price rationalisation, disincentivise, if not eliminate, inter-state product smuggling, and increase volume offtake, thereby boosting the state excise revenue.

How is the Delhi government’s new policy likely to impact the international alcoholic beverage companies?

ISWAI believes that extended hours for on-premise alcobev outlets, reduction in the number of dry days, super-premium vends, an overhaul of consumer experience by privatising retail, auctioning of retail outlets, are all steps in the right direction and in keeping with Delhi’s image of a modern and bustling city that caters to a large number of young residents and tourists. It would also provide relief to the hospitality industry that has been hit hard by the pandemic.

As per the new policy, only private liquor shops will run in the city, and each municipal ward has 2-3 liquor vends. The Delhi government’s new policy is a welcome move. It is likely to curb illicit practices by equitably redistributing liquor shops, improving the consumer experience, and reducing corruption besides increasing government revenue. Every liquor outlet in the city will provide a unique walk-in experience to its customers, who will have multiple choices of brands. The entire selection and sale process will be completed within the vend premise.

Is all-around inflation likely to impact the industry?

Yes, inflation has affected the alcobev industry significantly. The triple whammy of suppressed volumes, runaway inflation, and reducing supplier share of the consumer rupee, makes it very hard for alcobev manufacturers to sustain their business operations.

The industry needs a predictable policy, a regulatory overhaul and an inflation-embedded approach to pricing. This would consider various factors such as differences in operating conditions between states, such as state levies, cost of materials, transportation, route-to-market, etc.

For example, the costs of a fast-moving brand in the value segment have increased by ₹60 per case compared to the previous year (A case is twelve bottles of 750ml each).

As per the estimates by the ISWAI, wet alcoholic ingredients, such as ENA and Scotch, are now 5% more expensive than last year, while the cost of packaging materials such as glass bottles rose by 8%, cartons by 37%, and labels and closures by 5% and 15% respectively, in just one year (FY21 and FY22 (est)). Additionally, transportation costs have shot up by 68% between FY18 and FY22.

With most states holding onto the historical lowest EDPs, no price increase leeway has been provided to the industry over the years, resulting in the Indian alcobev sector facing a sustainability crisis.

However, the need of the hour is to allow alcobev manufacturers to seek price increases recognising the supply chain and inflationary pressures. The excise policies of the states need to adjust for inflation.

Do online sales of alcobev products have a future in India?

In a pandemic-induced environment of social distancing, offering home delivery of liquor to curb counterfeit, spurious products, transparent pricing and simultaneously limiting crowding at shops is highly recommended. We believe that if the services are handled maturely by the retail trade and with all the necessary regulations in place, this could become a potential channel for the growth of revenue for states.

ISWAI urges state governments to consider ex-retail home delivery of liquor as a sustainable and long-term model. The state government can consider allowing home delivery to be included as a permanent feature of the excise policies of the states to cater to consumer demands and minimise industry disruptions during the Covid surge. It would enhance livelihood opportunities and unlock the potential of an alternative channel towards state revenues.

Has the premiumisation of liquor grown the sales of foreign liquor?

The premiumisation trend across beverage alcohol has been going on for some time. While Covid-19 has greatly impacted the alcohol industry in 2020, premiumisation appears to continue as consumers adopt new purchasing habits. Disposable income spent on going out to eat and drink before the pandemic was redirected to premium-and-above products for at-home consumption. As per IWSR Drinks Market Analysis data, total sales volume (all alcobev) declined about 29% to 474 million cases in 2020 from 668 million in 2019. Sales of spirits (which include whiskey, gin, vodka, rum and brandy) were down 20% to 277 million cases in 2020. The industry is yet to recover to pre-Covid levels and the jury is out there to confirm the growth of foreign liquor sales.

What is the possible outcome of the FTA between the UK and India?

We are encouraged by the forthcoming outlook shared by the Union Minister for Commerce and Industry, Piyush Goyal and the UK Secretary of State for International Trade, President of The Board of Trade, Anne-Marie Trevelyan, during the launch of the India- UK Free Trade Agreement (FTA) on January 13th,2022 in Delhi. The schedule to complete the early harvest agreement in the coming months is what we look forward to. Both ministers assured that the two nations would proactively and regularly engage with each other, deliberating on the trade deal’s scope and coverage.

Mr. Goyal said, “Atmanirbhar Bharat is about opening India’s doors wider so that India engages with the world from a position of strength, on equal, fair & reciprocal terms.” He calls for enhancing sectoral cooperation by addressing market access issues and removing trade restrictions.

Together with the Scotch Whisky Association (SWA), ISWAI has proposed a reduction in the customs duty, for products above a price threshold, from 150% to 75% immediately, and a final resting rate of 30% at the end of 5 years. Improved market access for Scotch would enable an increasing number of Indian consumers to enjoy these premium products. A similar reduction of duties on Bulk Spirit would also be good for our industry to step up the quality of its products by blending with aged Scotch, step up exports, and increase Indian government tax revenues – a win-win for all.

Ambrosia Awards 2017 – Jury speaks about Prohibition

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Prohibitions and the ban on alcobev products is one of the pain points for most manufacturers in the industry. With Kerala instituting a ban on sale of liquor in its state few years ago and Bihar following in the recent history, Ambrosia thought that we would speak to the global experts to give you an update about what their thoughts were about Prohibitions.

The experts were the part of the Jury rounds for the Ambrosia Awards 2017 and come from different parts of the world having a combined experience of over 50 years. Click on the video to see what they had to say about the issue.