Tag Archives: alcohol industry

IndSpirit 2021 Awards underline quality of brands and packaging: Judges

After two years of Covid, Indspirit 2021 Awards evaluation got underway with all seriousness.

It was indeed nice to see the coming together of professionals, after a two year lull, for the Ambrosia wine and spirits tasting sessions, as part of the Indspirit 2021 awards which is happening on December 17 in New Delhi. Five judges for the Ambrosia Alcobev products tasting and four judges for the packaging awards huddled together for two days to judge 252 brands. The eminent jury tasted different brands in all categories of whisky, vodka, gin, rum, brandy, craft spirits, wine and beer and the jury on packaging evaluated on various parameters.

Eminent jury panel

The eminent tasting jury comprised Dr. Binod.K.Maitin, ex-USL and an independent consultant; Graeme Bowie, President – Malt Plant, Piccadily Agro Industries Ltd; Ajoy Shaw, Wine Maker and consultant; Sheetal Kadam, Wine & Spirits promoter and independent consultant; and Bernard Schaefer, a veteran judge from Germany.

The expert packaging jury consisted of Pranav Bhide, Leo Burnett Creative Director; Prof. K. Munshi, former Head of IIT Design department and independent consultant; Dr.Santosh Kshirsagar, Dean of J.J.School of Applied Arts; and Shekhar Ambedkar, Assistant Director and Head of the International Packaging Centre.

Scope for new entrants

The alcobev industry in the country largely comprises of Indian made whisky which accounts for a sizable share in boosting the growth of this sector. Across segments, domestically produced brands account for a higher share of consumer preference and there is still significant scope for new entrants to gain consumer preference.

The spirits industry in India with over 60% preference for whisky, offers great untapped potential for growth. There are several opportunities within the domestic sector markets for Indian whiskies to grow. There is huge country liquor consuming audience base that is seeking better quality products and have been upgrading over the years. India’s relatively young population sees newer individuals/consumers added each year to the legal drinking age – wherein Indian whisky could become the entry point for this audience. There has also been a growth of women whisky drinkers aided by on-premises and retail environments. All of these factors indicate the scope to fully explore the Indian spirits market.

Internationally, markets with a large Indian diaspora as well as those having similar palette to the Indian consumer see a strong preference for Indian whiskies. Some of the world’s top-selling whisky brands come from India and find much consumer love, globally as well.

What the judges have to say about the range

Dr. Binod Maitin says Indian whiskies are predominant among the top whisky rankings based on volume of sales. Indian whiskies have a distinct identity due to the tradition of blending with neutral alcohol produced from cane molasses to produce extra neutral alcohol (ENA). Economy whiskies are made with ENA and flavourings, premium blended whiskies contain Indian and Scotch malts, and single-malt whiskies use only Indian malts. Neutral alcohol from grain has also been adopted by manufacturers, particularly for premium whiskies.

Graeme Bowie, opines that there is huge improvement in quality of the products, even in the economy category. “There is passion for quality.”

Ajoy Shaw is impressed with the huge variety of spirits available for the Indian consumer. The discerning consumer looks for good value, good quality and a plethora of options. Similarly, Sheetal Kadam is delighted to see the expanding range of spirits in the Indian market. The portfolio is ever expanding and good for the consumer who is now spoilt for choice.

Bernard Schaefer, a veteran judge, is always in awe of the brands presented at Indspirit competition, however, some don’t exactly make the mark according to him. One good thing, he says is that there is constant improvement in the quality of products presented every year.

Sensory evaluation

Talking about the competition, Binod Maitin says, “Sensory evaluation is used as the primary means of flavour control in the industry. This chapter describes the origins of flavour in whisky and the typical sensory methods used both during production and in consumer research. The panel is experienced and harmonised. Mistakes in samples are pointed out. Samples are provided for references.”

Graeme Bowie says the brands are fairly good, endorsing the same is Ajoy Shaw who feels that all brands can easily get a bronze medal and more. Sheetal Kadam believes that the quality is above average.

Technology driving change

Technology is driving change in operations and strategy – right from crop analysis to smartphones scanning product labels. Big data and analytics have also been major drivers for the alcobev industry when it comes to improving insights across the supply chain. Having in-place solutions to provide real-time insights can help identify the largest problems at hand and find ways to optimise production and maintain quality.

Analytics is beneficial

Additionally, when we look at operations and quality assessment, and analytics strategy can go a long way in helping run plants, raw material test analysis, blend inspection analysis, quality control, compliance, end of line quality analysis, hygiene assessment, and managing customer complaints. There are multiple visual and physical checks required across various stages, and because it is a restricted environment wherein companies are bound by various regulations, analytics can be extremely beneficial.

Quality of brands improving every year

Talking about the quality of brands on offer, Binod Maitin, who has created many succesful blends, says the alcobev brands are okay. Wines are a problem, he says because of storage issues. Graeme Hamilton opines the products are plausible. Ajoy Shaw believes all brands can do well in the market place. Sheetal Kadam says there is improvement to a large extent as there is demand for upgradation.

Packaging market to touch nearly $39 billion by 2026

The alcoholic drinks packaging market was valued at USD 29.84 billion in 2020, and it is expected to reach a market value of USD 38.87 billion by 2026, registering a CAGR of 5.06% during the forecast period (2021-2026). Globally, growth in disposable income, coupled with increased spending on recreational activities, is a major influencing factor that collectively lead to growth of alcohol consumption, which fuels the growth of the alcoholic drinks packaging market over the forecast period.

Major manufacturing companies in the alcohol industry follow attractive packaging formats, which include ceramic glass bottles, whiskey pouches, bag-in-box, bag-in-tube, etc. Changing consumer preferences are also affecting the market significantly. Over the years, growing awareness among the brand manufacturers about differentiating their alcoholic products based on the packaging is also expected to contribute to the growth of the alcoholic drinks packaging market.

Conventionally, European and American manufacturers are often referred to as the leading producers of alcohol beverages. However, with the rise in demand for Chinese beer and Japanese whiskey, Asia-Pacific is increasingly becoming a major market for alcoholic beverage production, creating a massive demand for alcoholic drinks packaging solutions.

Metal packaging growing market

Owing to various benefits offered by metal packaging, such as better hermetic sealing and high mechanical strength, there is a growing preference for metal packaging from the companies present in the alcoholic drinks packaging market.However, fluctuating raw material prices and implementation of stringent regulations on packaging materials used for alcoholic beverages may hinder the growth of the market.

Judging parameters

The judges looked at parameters such as unit pack, canister, graphics, new ideas and feel. This is what judges had to say on the brands that were presented for packaging, their sustainability and their comparison in the international market place.

Pranav Bhide said the first impressions of the packaging is its versatility. It is important for the brands to stand out. The buzz word in today’s world is sustainability. There is a sea change in the packaging of Indian liquor and it is towards Indianness. Indian brands can match international brands, but it is still not there.

Prof. K. Munshi says after two years of pandemic it is a nice feeling to be here for Indspirit and once again judging packaging. He felt that despite the pandemic entries this year are more and also there is qualitative improvement in packaging. “It was a tough time judging” and hoped that there would be more creativity. However, he felt there was no evidence of sustainable packaging. “Indian liquor industry needs to take help and take advice. Indian brand packaging has long way to go. We need to put in efforts in R & D and innovation.”.

Dr. Santosh Kshirsagar was of the view that this year’s packaging industry did not have much variety as compared to last year. “Indian liquor industry should have a different approach. Indianness needs to be reflected and must stand out in the market place. Sustainability is an extremely important world issue. We have not identified a value for it. It is not easy, but it is a fundamental issue. Caps of bottles are a sensitive issue.. There is a long tradition in design. India has traditional visual imagery. Futuristically it is possible to succeed with this imagery. We need to make a mark with packaging.”

Shekhar Ambedkar says he has seen at Indspirit a range of unique packaging and innovation. “There is uniqueness in materials and the future should be sustainable packaging and believes that regulation would help in that direction. This year there are very commendable glass bottles for beer, especially those with a special tint. Good design is also present. We have been matching international standards. Companies should work towards being unique and that will sell.”

Oaksmith Whisky – A blend of Scotch Malts, Bourbon and Japanese craftsmanship

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The global premium spirits company Beam Suntory has combined its knowledge and expertise of premium spirits from across the globe to bring to India, a truly International blended whisky, ‘Oaksmith Gold’. It is a first of its kind spirit with the best of Scotland and The United States of America by blending premium aged Scotch Malts, aged Kentucky straight Bourbon – some from distilleries over 200 years old – with world class Japanese craftsmanship. Oaksmith Gold and its blend are a celebration of craftsmanship and global collaboration, combining the best of East and West in a beautifully crafted 6-edged bottle. A celebratory ode to the impeccable Japanese craftsmanship, Oaksmith Gold is an iconic global brand starting off from India, bringing in an unmatched international experience with every sip.

What makes it truly gold?

The ingredients do the magic. From Grain to Bottle, Oaksmith Gold is a spirit with a smooth taste. It delicately blends high quality aged Scotch Whisky Malts from the lush highlands of Scotland with aged Kentucky Straight Bourbon whisky from The United States of America using impeccable craftsmanship of Japan. As a result of this world class unique blend created by one of the most celebrated master blenders globally – Shinji Fukuyo, the man with over 30 years of experience creating the most famous award-winning Japanese whiskies in the world such as Yamazaki and Hibiki – the taste of Oaksmith Gold is rich, smooth and refined. On the palate, the flavour profile is mild but full body with woodiness from the oaks casks, on the nose, it is rich fruity and has a sweet top note followed by a hint of smoke (peat), on the finish, it is clean and smooth making it very delightful. This makes it perfectly suited to tickle the taste buds of connoisseurs and beginners alike.

Aged Bourbon Whiskies from the Americas

Elegant. Smooth. Refined. That is what four years of aging in newly charred American white oak barrels does to the bourbon, which goes into the delicate Oaksmith Gold blend. A method tested over more than 200 years of time – a method as old as the distillery that produces it.

Aged Scotch Malt Whiskies from Scotland

Oaksmith contains carefully selected Premium and Aged Scotch Malt Whiskies that speak of the pride and confidence of some of the most charming distilleries in Scotland. Crafted as nature intended, these precisely selected whiskies are known for wholesome maltiness, honeyed sweetness, a delicious creamy texture, and as much character as the Highlands of Scotland!

The Impeccable Craftsmanship of Japan

Japanese dedication to quality and craftsmanship is world renowned. Oaksmith Gold is a perfect representation of Takumi which in Japanese means ‘artisan’ or ‘skillful’ as it is an ode to Japanese craftsmanship. The rare blend has a fine balance of smokiness, sweetness and smoothness that was crafted by world renowned Shinji Fukuyo – Chief Blender at Suntory, the founding house of Japanese Whisky – after spending hours meticulously selecting aged spirits in oak barrels. The name – Oaksmith is a tribute to this craftsmanship, and the fine oak casks that Beam Suntory’s whiskies are aged in. From seed to sip, Oaksmith Gold is gentle on the nose and strikes a balance between the oak’s woodiness with notes of rich fruity sweetness giving it a clean and smooth finish. Further, to truly match it to the local palate, he travelled across the length and breadth of India to understand the nuances of Indian food and flavours and what could match perfectly with them.

What constitutes The Perfect Serve?

This beautifully crafted whisky blends well into any cocktail and pairs well with almost all flavour profiles of food. However, the perfect serve of Oaksmith Gold, is a celebration of purity, authenticity and high quality that comes alive recommended as 45 ml poured in a pre-chilled, wide mouthed whisky rock glass. Add signature Oaksmith Gold spherical ice for this Takumi ritual, if not, four big ice cubes or six small, and finally add water to taste, but no more than the pour size (45ml in this case).

Pricing and Availability

Oaksmith Gold brings Japanese mastery – otherwise a super-premium and luxurious phenomenon – to Indian whisky price points to elevate the product experience many notches above the standard segment offering. Oaksmith Gold is currently available in the states of Maharashtra, Telangana, West Bengal, Karnataka, Chandigarh, Goa, Assam, UP and ranges from Rs. 630 to Rs. 2,000 for a 750 ml bottle.

Carlsberg India enters wheat beer segment with Tuborg White

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Carlsberg India enters the premium wheat beer segment with the launch of Tuborg White. This new Tuborg offering is beyond any ordinary lager. It is a cloudy drink with a smooth refreshing taste with a subtle fruity twist. It is yet another premium beer from the portfolio of Carlsberg India that provides consumers who are seeking beverages with a new taste profile that can be enjoyed with friends and family.

Over the last decade, the wheat beer segment has developed wide acceptance in India with a loyal base of consumers. There is an opportunity to expand this segment with the right liquid providing a consistent refreshing taste.

The recipe for this brew was developed specifically to appeal to Indian consumers by expert brewers in R&D center in Copenhagen, Denmark. It delivers the consistency and perfection that Tuborg is known and loved for across the world. The new brew has been launched across Maharashtra in 500ML Can and 330ML glass bottles with an attractive launch price of `170 and `140 respectively. This is the most premium priced offering in the Tuborg portfolio and in line with the choice of ingredients and its standout packaging.

Referring to the launch, Partha Jha, Vice President Marketing, Carlsberg India said, “The launch of Tuborg White reinforces our commitment to the Indian market. Tuborg White is a unique European style brew specially customised for the Indian consumer. With the easy-to-drink refreshing liquid layered under a delicate fruity twist, we are sure it will be loved not only by lager drinkers, but all consumers looking for a change from the regular. With our manufacturing & distribution capabilities, we are confident of expanding the category and will continue to offer exciting choices to our consumers from their favourite brand.”

Tuborg White is currently available in Maharashtra and will soon be launched in other states in the coming months.

Alcobev Sector enhances customer delight, thanks to Artificial Intelligence

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In 2019, Swedish whisky distillery Mackmyra released Intelligens, said to be the ‘world’s first’ whisky created using AI. Mackmyra collaborated with Microsoft and a Finland-based tech company – Fourkind, and using customer feedback data, they created AI algorithms which picked up recipes that were a delight for the end-consumer.

Microsoft, IBM and other tech companies are active in alcobev

Microsoft, IBM and other digital technology players were making significant forays into the alcobev industry. And the big boys of the alcobev industry soon realised how transformative this could be for the industry itself. They had seen the dividends the retail sector was earning and one by one, they started introducing digital technologies in their processes and the going has been good. Microsoft pitched to Danish multinational brewer Carlsberg for the ‘Beer Fingerprinting Project’ and the two used machine learning to good effect. They fed with beer ingredient characteristics to map out and predict beer flavours, shortening the time it takes to develop new beers. Then there was US-based Sugar Creek Brewing Company which tied up with IBM to use AI to improve its beer manufacturing line where there was a monthly beer spillage amounting to $30,000.

Diageo’s ‘What’s Your Whisky’ is so so customer-centric

One of the global leaders in alcoholic beverages, Diageo launched ‘What’s Your Whisky Selector’, an innovative digital experience that has found favor and flavor with many a whisky connoisseur. What did ‘What’s Your Whisky’ do? It simply used AI and ML to analyse customer’s flavour preferences (variety of sweet, fruity, spicy and smoky flavours found in Single Malt whiskies) and recommended a Single Malt whose flavour profile most closely matched the customer’s taste. Customer delight is something no company would want to miss out on. Diageo rolled-out this experience in Great Britain, Germany, Austria, Switzerland, Spain, Greece, Belgium, Denmark and the Netherlands. Ok, it is not available in India which boasts of the largest base of whisky drinkers! Diageo said that intelligent automation is deployed in over 100 applications across its business. “Through predictive analytics, machine leaning and robotics process automation, we are growing more productive and more competitive.”Around the same time, other alcobev behemoths such as Beam Suntory, Bacardi, AB InBev, Pernod Ricard and others had also started putting their money on AI, ML and robotics to enhance manufacturing and operational processes and importantly on introducing a new dimension to customer experience.

A lot is brewing in AB InBev’s Beer Garage

Belgium-based AB InBev has something brewing in its ‘Beer Garage’ wherein machine learning is at play. AB inBev has invested in data-driven solutions to help improve beer brewing on the production side, while on the customer side, it is enhancing its customer engagement programme. The world’s largest beer maker (Budweiser, Stella Artois, and Corona) is using low-cost sensors and machine learning to predict malfunctioning in its brewery, getting to fix it before it happens and thus avoiding huge downtime. Beer Garage is scaling the company’s existing capabilities in AI, ML, Internet of Things, Cloud & data analytics, automation and robotics, and exploring emerging technologies such as Blockchain, AR & VR and others. Innovation at AB InBev drives its commercial strategy, supply chain, and is building sustainable business to improve lives in communities around the world. These technologies are providing the company with unprecedented insight into the needs of its consumers and customers and supporting the growth of the beer category.

Beam Suntory Mexico plant uses drones in agave fields

Beam Suntory, the world’s third largest premium spirits company, deployed drones and AI in its Casa Sauza project. Drones helped the company get an accurate inventory of the agave (Tequila) plants in the fields and to reduce the time it takes to complete the inventory. An AI process is applied to ensure only agave plants, not weeds or any other material, are counted. The inventory data is loaded and tracked in the Sauza Blue Harvest application and later transferred to SAP for SKU tracking. The drone technology is used to manage, monitor and increase crop productivity, and to assist in diagnosing the health and vitality of the agave plants. Beam Suntory is also using digital manufacturing from Rockwell Automation and Cisco to overhaul its business models, improve efficiencies, streamline logistics and update its network. “The future’s promising for Beam’s IT infrastructure and for our networks, and how we can leverage automation and productivity, improving our flavours and our brands. It’s very important to Beam, and I think we’re really moving forward in a good direction,” said Amon Hogue, Senior Network Architect at Beam Suntory.

Pernod Ricard Winemakers gets accurate grape yield

Early this year, Pernod Ricard Winemakers, the premium wine division of Pernod Ricard, took on board Complexica, a leading provider of AI software for supply and demand optimisation. It went live with Complexica’s Decision Cloud software platform in Marlborough, New Zealand in what is Pernod Ricard’s largest global technology project. It plans further go-lives in Australia for finished goods planning and production scheduling, followed by Australian and Church Road winery operations, which forms part of a wider programme of activity to enable the business to utilise technology to work faster, smarter and safer. Pernod Ricard Winemakers also engaged Trellis to support its business and supply chain operations by providing accurate grape yield, quality, harvest timing and procurement cost prediction across Australia and New Zealand.

Bacardi’s cool cocktail-making app

Bacardi this year launched a new cocktail-making app that has helped those who were dishing up new cocktail recipes during the pandemic. The app aims to reimagine the bar setting, besides giving bartenders a platform to showcase their talent. The app launched in the US and UK helped boost consumer confidence in making cocktails at home. Bacardi also signed up EPAM which streamlined the spirits manufacturer’s digital environment by implementing a digital platform for multiple brands including Bacardi rum, Grey Goose vodka, Breezer, Patron Tequila and more. The DevOps automation platform resulted in 16 times greater website development capacity, and a 42% reduction in infrastructure costs.

Digitization in alcobev still nascent

Though deployment of digital technologies is still in its nascent stages in the alcobev sector, there are a number of early adopters who have invested in digital technologies to not only create flavour profiles faster, but also for other functions, including packaging, logistics, marketing and other processes. It is no-brainer that AI has the power to transform the alcobev industry forever, albeit it is happening at a gradual pace. In fact, the pandemic has accelerated the pace of deployment of AI in the alcobev sector as online deliveries became common; home drinking was becoming the norm; and consumers were looking at new recipes. According to US-based FasTrax Solutions, total alcohol sales registered an increase of 25.5% in 2020, driven by digital marketing initiatives with AI at the core. It said in the US beer sales increased by 20.2%; wine by 30.1%; and spirits by 34.1%. Thanks to e-commerce, the sales figures are looking impressive in these difficult times. Also came along the virtual sommelier, guiding consumers on how to buy wine, how to grow vines and how to taste / judge them. In fact, some winemakers have started investing in AI in their vineyards wherein it gives insights into soil management, pest control etc. Experts believe that large vineyards will deploy drones to help growers manage their yield better. Robots will also be at work to improve efficiencies at the vineyard.

‘Smart factories’ the future

Capgemini, a global leader in consulting, digital transformation and technology services, has said that beverage manufacturing companies plan to build 40% more ‘smart factories’ in the next five years. It estimates that smart factories will contribute between USD 1.5 trillion and 2.2 trillion to the global economy. And what are ‘smart factories’? They are those that leverage digital technologies to gain significant improvements in productivity, quality, flexibility and service. Three key digital technologies enable the smart factor – Connectivity (collecting data from existing equipment and new sensors); Intelligent automation (drones, machine vision etc); and Cloud-scale data management and analytics. The alcobev industry, one of the oldest in the world, though maybe late entrant to the digitization mode, but has soon caught up. From robots to drones to AI to ML, technology is becoming a key driver for not just growth, but a new customer experience. After all, customer experience matters.

1 million cases in sales – Seagram’s 100 Pipers becomes the First and Only Scotch Brand in India to Smash the Record, yet again

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Seagram’s 100 Pipers, the largest selling Scotch whisky in India, continues to achieve bigger milestones and set new benchmarks in the industry. It has proven itself to be a market leader, thought leader, and innovation leader. In the last business cycle, Jul’20 – Jun’21, 100 Pipers has broken not one but two records.

100 Pipers became the first and only Scotch brand in India to cross the 1 million+ case mark in annual sales, twice – a solid stamp on the consumers’ love for the brand.

Adding to this success streak, the brand’s premium variant ‘100 Pipers Blended Scotch, Aged 12 years’ crossed 100,000 Cases in annual sales for the first time ever since its launch in 2012. A notable performance by the aged variant – it is now the largest selling 12-Year-Old Scotch in India, confirming that “Age Matters” to the discerning Indian scotch aficionado.

Asserting its dominance in the Scotch whisky market, the brand had recently launched a new variant ‘100 Pipers Blended Malt Scotch, Aged 8 Years’. This is the first & only ‘100% Malt’ Scotch offering in the Standard Scotch category – a game-changing innovation by 100 Pipers.

With a global footprint spanning eight countries across Asia, Europe, Africa, Middle East and South America, 100 Pipers brings a truly international experience to the Indian consumers, with the widest range of unique Scotch variants. It is also the second largest Scotch whisky in Asia.

Commenting on the multiple achievements, Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India said, “100 Pipers continues to shape the Indian Scotch segment and set new records. This is driven by its increased popularity among the younger, aspirational consumers who are resonating strongly with the brand’s purpose-led initiatives due to their uniqueness, authenticity and credibility.

Like, the international award-winning Legacy Project – which showcases endangered Indian art-forms via Limited Edition Packs and provides tangible livelihood support to artisans. Recognised internationally and in India by some of the most prestigious awards in the world for creative excellence, The Legacy Project won the Bronze Pencil at One Show Awards (New York), Merit at D&AD Awards (UK), Bronze at Spikes Asia, and multiple honours at Kyoorius Creative Awards.

Also, the 100 Pipers Play for a Cause platform that has been leveraging music for many years to raise awareness and funds for various social causes like meals for underprivileged, flood relief, etc. in addition to supporting the partnering musicians.

In addition to trendsetting campaigns, the young, aspirational consumers have also taken well to the newly launched 100 Pipers Blended Malt Scotch, Aged 8 Years. This category-first 100% Malt Scotch seeks to give younger consumers a unique experience that welcomes them into the world of Malt Scotch. With the discerning consumer increasingly experimenting with Malts, this eclectic and premium scotch showcases its craftsmanship and heritage that dates back to decades of scotch whisky making.

Overall, our strong performance over the years is a testament to great product craftsmanship, category first innovations, our differentiated and aspirational brand communication, and purpose-led initiatives – all coming together to help us build greater stature esp. amongst the younger consumers.”

As the largest whisky market in the world, India’s Scotch segment continues to be highly aspirational for whisky consumers. With sales hitting bigger benchmarks across variants and a keen eye on leading innovation, Seagram’s 100 Pipers is poised to continue as the dominant force in the market.

Gujarat High Court admits petition challenging prohibition

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The petition has argued that the government cannot decide what a person will eat or drink inside the premises of one’s house. The petition has invoked the ‘Right to Privacy’ in challenging the prohibition law. The Gujarat government’s Advocate General Kamal Trivedi said the petition should be filed in the Supreme Court as the apex court had upheld the Act in its 1952 judgment. He contended that the law validated by the apex court cannot be overturned by the High Court.

Petitioners say matter should be heard on merits

The petitioners, however, argued that the matter should be taken up on merits, as the provisions challenged in the pleas are materially different from what they were in 1951 as they have been amended over the years. They added that the right to privacy was not recognised as a fundamental right in 1951 when the Supreme Court upheld the validity of the provisions in the prohibition law.The batch of petitions have challenged the constitutional validity of sections section 12, 13 (total prohibition on manufacture, purchase, import, transportation, export, sale, possession, use and consumption of liquor), 24-1B, 65 of the Gujarat Prohibition Act, 1949, and sought them to be declared as ultra vires Article 246 of the Constitution.The provisions are “arbitrary, irrational, unfair, unreasonable, and discriminatory…and despite prohibition being in place for more than six decades, a steady supply of liquor continues to be available through an underground network of bootleggers, organised criminal gangs and corrupt officials”, the petitioners who were represented by senior advocates such as Mihir Thakore, Mihir Joshi, Devan Parikh and Saurabh Soparkar said.“With expanding interpretation of the right to life, personal liberty and privacy, as contained in Article 21 of the Constitution, a citizen has a right to choose how he lives, so long as he is not a nuisance to the society. The state cannot dictate what he will eat and what he will drink,” one of the pleas said.

‘Right to privacy is a fundamental right’: SC

The Supreme Court in another judgment had held that the right to privacy is a fundamental right and is an integral part of the right to life and liberty. Privacy is a right to be enjoyed by every human being by virtue of his or her own existence. It also extends to bodily integrity, personal autonomy, compelled speech and freedom to dissent or move or think. The right to privacy is to restrain government and private actions that threaten or hinders the privacy of individuals.

Regulation, and not prohibition, is what Gujarat needs: Devan Parikh, advocate

Devan Parikh, one of the advocates to the petitioner in a YouTube post by Vibes of India, has put forth the argument that the petitioners are not “asking for the removal of the prohibition policy lock, stock and barrel. We are asking the government to draw a fine line.”He pointed out that advertising of liquor in many parts of the world is not based on the alcohol content or intoxication. “Alcohol is sold basically for its refined taste. The kind of liquor that was available (when prohibition was introduced in 1961), there was some justification to have a rider. But after all these years and the knowledge base we have, the law needs a relook. Petitioners are saying balance the liberty a person can have, the choice a person can have. If it has an ill impact, then deal with those issues. You cannot throw the baby with the bath water.”

Four walls concept clarified

He further mentions that the petitioners are clear that you cannot do anything within the four walls. “If that is the case, I can consume drugs, I can commit any crime within my four walls. The four walls concept is not very well understood in this case.” The petitioners believe that one should have the liberty to drink in a manner that does not impact society at large or have adverse social repercussions. Devan Parikh referred to the Constitutional provision of principle of proportionality. “The Constitution permits you to put reasonable restrictions on the exercise of your rights, in public interest, in the society, and in your own interest… those interests have to be balanced. There is justification to put restrictions, put it, but in present times, does it make sense to have total prohibition. There is need for regulation not prohibition.”

Prohibition needs a relook

Taking the argument further, he said the rest of the country where there is no prohibition, are there problems or not. Will Gujarat have more problems if prohibition is lifted? “We are saying with the passage of time, people are more entitled… Constitution is a live organ and that this issue needs a relook. When prohibition was introduced look at the kind of liquor that was available then and look at the fatalities at that point of time.”Terming it as contradictory, government giving liquor permits on medical terms, he asked “a person consuming liquor for health reasons, will he or she not get intoxicated.” A person can permit in Gujarat for an annual fee of nearly ` 4,000 and the eligibility is that he or she should be above the age of 40 and should have some medical condition. Visitors too can apply for a temporary permit, but not the residents of the State.

Gujarat in a Gandhian-bind

The problem with Gujarat is that it has a perception problem. Gujarat is a state from where Mahatma Gandhi came who considered alcohol consumption as a social evil. Gujarat is caught in a Gandhian-bind. Devan Parikh asks the logic behind the prohibition in the name of Mahatma Gandhi. “With no disrespect to Mahatma Gandhi, I would like to state that Gandhi died in 1948 and at that time there was no prohibition in Gujarat till 1961. What happened during this interim period to Gandhiji’s advocacy?Till such time the High Court gives its verdict, we are going to see a lot of heightened activity from both sides espousing their causes and social media is going to flame it further. Meanwhile, liquor (including spurious) will be available through various ‘underground’ channels in Gujarat, a state which has seen many deaths due to illicit liquor. In 2012, 143 deaths were reported from Gujarat in a hooch tragedy.

Bengaluru shows the recovery path, alcohol consumption on the rise

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Let’s say cheers to the ‘Pub capital’ and ‘Microbrewery capital ‘of India, Bengaluru. It is showing the way to the country that the pandemic should not upset social life with alcohol being an intrinsic part of social life. Consumption of alcohol is on the rise in Bengaluru and other parts of Karnataka and mind you there is considerable amount of ‘responsible drinking’ happening, with a few exceptions here and there.

The city which introduced pub, microbrewery and nightlife culture is slowly bouncing back, negotiating all the restrictions, ambiguous and unambiguous ones, placed by the government in its bid to check the spread of Covid-19. Though the bars and restaurants are tottering their way back into business, the end-consumer has found ways to keep the spirit going. This is good for the business. The end-consumer is infusing confidence in the liquor business as we witness increased liquor offtake.

Beer and IML offtake up

Consumption of beer has gone up by 38.98 % and Indian Made Liquor (IML) by 31.54% in the first five months of 2021, compared to the corresponding period in 2020 and the Karnataka Excise Department is laughing all the way to the bank. Liquor has been a money spinner for many governments and Karnataka is among the leading states to register good excise revenue. These are the first signs of recovery of the industry which like almost all other sectors was battered by the pandemic.

Karnataka hoping to touch `25,000 in Excise Revenues

Between April and August of 2021, Karnataka had sales of 87.56 lakh cartons of beer, up from 63 lakh cartons of beer in 2020. The trend was similar with regard to IML – 2.61 crore cartons in 2021, up from 1.98 crore cartons last year. Thanks to the end-consumer, the Karnataka Excise Department was able to cross the `10,000 crore revenue mark for the 5 months’ period, an increase from `7,755 crores during the corresponding period in 2020. In these five months, the Department has already registered 41.49% of its annual target and is hoping to surpass the target of `24,580 by the end of the financial year. In 2020, the Department had earned `23,332 crores, getting past the target of `22,700 crores.

Home-drinking gives a push

Thanks to the end-consumers, who quickly adapted themselves to the pandemic situation, and found ways to get their supplies and to drink at home. The Covid-19 pandemic and its associated government measures to limit mobility impacted patterns and places of alcohol consumption. Home became central for survival, for hope, for businesses to have some continuity. Work from home; online shopping; online classes; drink at home; work-out at home and the like have become the new normal, even as businesses are slowly opening up, depending upon what restrictions each State Government keeps announcing on a frequent basis. Remember Lockdown 3.0 last year and when liquor shops reopened? It was crazy queues, not just in Bengaluru, but across the country. The Karnataka Excise Department recorded liquor sales of `45 crores on the first day of reopening, even before the shutters were pulled down at 7 pm. Around 3.9 lakh litres of beer and 8.5 lakh litres of IML was sold on just one day. And one store – Tonique which boasts to be Asia’s largest liquor boutique, made a whopping business of `4 crores on its first day of reopening.

Seek lifting of restrictions

Bengaluru has become a highly vibrant city in the recent past and restaurant and bars are open till 1 a.m, though at the time of writing all restaurants, bars, clubs and wine stores have to close by 9.30 p.m. The Bengaluru Hoteliers Association President, P.C.Rao who recently met the Chief Minister, Basavaraj Bommai tried to convince the government on lifting the ‘unscientific restrictions’. He asked ‘Does the virus come only at night or on weekends?’ Presently, the liquor business is driven by retail vends with night curfew in place and restrictions of seating in bars and restaurants. There is no online sale of liquor in Bengaluru, but people can buy at wine stores, in mega super markets which have a separate liquor outlet and boutique stores.

Mumbai doubles liquor revenue

It is not just Bengaluru or Karnataka which is witnessing growth in sales of liquor, it is happening across the country, though dampened by the pandemic. In Mumbai, liquor revenue doubled from `264.85 crores to `512 crores with the lockdown turning out to a blessing in disguise. The Excise Department here has set a target of `19,500 crores for 2021-2022.

Pune has the most drinkers

According to a 2020 survey by Statista, Pune topped all the cities with 39.02% people consuming alcohol, followed by Mumbai (37.87%), Lucknow (37.5%), Bhubaneswar (37.3%), Hyderabad (37.24%), Delhi (35.54%), Bengaluru (33.39%), Indore (33.33%), Jaipur (32.18%), Chandigarh (28.33%), Chennai (28.16%) and Kolkata (23.5%).

FY21 sees decline in IMFL sales

However, In FY 21, there has been a 12% decline in sales of Indian Made Foreign Liquor (IMFL) compared to FY20, according to the Confederation of Indian Alcoholic Beverage Companies (CIABC). For the entire fiscal year, the total sales of IMFL was 305 million cases of nine litres each.

Positive trend in third and fourth quarters expected

The Confederation Director General Vinod Giri said that many states have showed a positive trend through the quarters and added that strong performance in the third and fourth quarters of FY21 ‘reflects the fundamental strength’ in the business. “It also confirms that there is no lasting shift against alcoholic beverages in consumption baskets.” The Confederation listed five states that helped recovery in liquor sales – Maharashtra, Goa, Haryana, Himachal Pradesh and Uttarakhand. Some states such as West Bengal, Rajasthan and Chhattisgarh witnessed large decline in sales compared to the previous financial year. There is some interesting statistics when it comes to West Bengal. According to economic research agency ICRIER and law consulting firm PLR Chambers, West Bengal ranks second after Uttar Pradesh in terms of absolute number of people who consume alcohol – 1.4 crore. The five southern states of Andhra Pradesh, Karnataka, Telangana, Tamil Nadu and Kerala together consume as much as 45% of all liquor sold in the country.

Big players bet on recovery in fiscal 2022

Carlsberg’s global chief executive Cees’t Hart said, “Our business had another very volatile year with frequent changes in restrictions. In Asia, the situation is uncertain in a number of markets such as Laos, Vietnam, Cambodia, India and also Malaysia due to the low level of vaccinations. In India, it’s a bit better. Infection rates are in decline. And there we see the off-trade more or less open to 90-95% and 70% in on-trade.” Beer sales in India grew in double digits in the quarter to June compared to the year-ago figure, but were still nearly half the sales in the pre-Covid corresponding period of 2019. However, Carlsberg’s India business grew 40% year-on-year in the quarter ended June. Similarly, Pernod Ricard, the world’s second largest distiller after Diageo, said it expects some recovery in India in fiscal year 2022. “For this year, we expect a gradual recovery. India was up 9% and was very resilient given the environment, while the underlying consumer-driven trends are clearly there,” said the Chairman of Pernod Ricard, Alexandre Ricard. The ICRIER report shows promise with India among the fastest growing markets for alcoholic beverages globally, with an estimated market size of USD52.5 billion in 2020. The market is expected to grow at a CAGR of 6.8% between 2020 and 2023. This indeed is music to the ears and we would like to hear from companies on how they are promoting ‘responsible drinking’.

AIDA races to meet blending 20% of petroleum products by 2025

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After the Prime Minister’s call to blend 20% of blending of petroleum with ethanol from 2030 there is an urgent rush to ramp up the capacity and increase the type of feedstock required to boost production to meet the required amount of ethanol needed to blend up to 20% of ethanol. In an interview with Ambrosia V. Raina, Director General, AIDA outlines the roadmap to achieve this along with the newer distilleries planned in the next few years.

What is the current production capacity of ethanol in India?

The total ethanol production capacity is 473 crore litres that includes grain-based ethanol, molasses based and others sources. Alcohol production capacity out of molasses is 693 crore litres whereas grain based capacity is 258 crore litres. This production capacity is expected to increase further with nearly 15-20 new distilleries coming in the next few years with the help of the Indian Government. In order to boost the growth the govt. has provided financial assistance on interest subvention.

Can you tell us more on the new Distilleries that are upcoming in the next few years?

The new distilleries are grain based only with 15-20 new ones coming into the market and approximately 25-30 existing distilleries expanding their capacities. Also with the change in the guidelines you can now put up a new distillery with more ease. Earlier it would take longer time to get permissions and clearances. But now the Government has allowed all permissions, all guarantees up to the capacity of 200 KLPD for grain based and 100 KLPD for molasses based can be given by the State Governments. Since ethanol and high alcohol (above 95%) comes under the purview of the Central Government putting up an ethanol distillery doesn’t have any challenges unless liquor is produced.

Where are the new distilleries now being focussed in UP and Maharashtra or elsewhere also?

There is no grain distillery in the state of UP. Primarily it is in Punjab but now they are coming up. The grain is there. Other distilleries are resisting. UP will come over, Bihar will come over new one. Even Odisha has a new distillery.

Beside grain what other sources are being experimented on?

Apart from grain Maize and Rice are being experimented upon since these are considered as damaged food grains which are not edible for human beings. However, these are currently in short supply. We have introduced good rice also because you have to purchase it from Food Corporation of India (FCI). The basis of these purchases are on rates that are already determined/fixed based on the feedstock. For instance the rates are fixed at Rs. 20 per kg. or Rs. 2000 per quintal by the Food Corporation of India (FCI). If you purchase it from sugar cane juice the rate is Rs.62.65 per litre of ethanol. If it is molasses because sugar supply is in surplus it is Rs. 57.61. The rates for General Molasses is Rs.45.69 whereas damaged food grain that includes rice, maize, jowar, bajra etc are priced at Rs.51.55.

What are the benefits of manufacturing Ethanol?

The benefits of manufacturing ethanol is that there is no limit to the supply. The more you can supply the better it is. For instance if you can supply 1000 litres or 1 crore litres the government welcomes that. The rates are fixed for purchase by petroleum companies, which includes – Bharat Petroleum, Hindustan Petroleum and Indian Oil. Also your payments are assured to be given in 15 days, which has reduced from the earlier timeline of 30 days.

Will this short supply affect the liquor industry?

The ENA prices have also gone up with the availability at Rs.50-52 per litre from where you produce alcohol. The prices have already increased by more than 5%. ENA is Extra Neutral Alcohol which is used for the production of better quality of alcohol and normally not used in the production of country liquor. The total requirement of alcohol by the year 2025 is 1350 crore litres. Out of these for liquor and other purposes we need about 334 crore litres. For liquor and industrial purposes like chemicals etc. and the balance 1016 crore litres will be for ethanol. Out of the total estimated requirement of 1016 crore litres the sugar industry will give 684 crore litres and ethanol from grain will be 666 crore litres by 2025.

What are the challenges that distilleries face for increasing the targeted alcohol production?

The biggest challenge is to achieve the target of 20% by 2025 since originally that plan was to achieve it by 2030 which was upped to 2025. The only downside is that if we achieve these numbers then there might be a shortage of feedstock.

How much of this target can be achieved realistically?

We can achieve about 75% – 80% of the target. There won’t be any short supply for liquor production because the governments are strict. Nowadays’ the government is not giving molasses which is under State Governments. The moment molasses is produced they will make a reservation and allot it for the country liquor. Even if there is shortage of total supply I don’t see any difficulty for the liquor production because the State Governments are taking care of that thing.

Greater Than Gin, yes, what can be?

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In the last couple of years, there has been a count of nearly 15 new gins entering the market, reviving the gin spirit, so to say. Of that 11 are from Goa. “It started off as a fluke as we decided that Goa had the best bottling partners for us. Since then, it seems quite a few others have taken that to be the precedent set and got to work,” that is Anand Virmani, the founder of Nao Spirits, manufacturers of Greater Than and Hapusa – premium crafted gins that are making waves in the markets available.

Virmani has his own take on how the crafted gin segment is evolving. He believes that Goa is not any more liberal than many other states in the country when it comes to excise policies. He dismisses it as a factor for launching Greater Than in Goa. Similarly, for the availability of botanicals, he states that the main ingredient for gin has to be either imported our sourced from the Himalayas in the north and that Goa is no different than any other part of the country when it comes to sourcing botanicals. As regards to water quality which Goa touts about, he is of the view that since all water in the production process has to be demineralised, the oriGinal water quality should not really matter.

But when it comes to Goa as the watering hole, he believes so that it is a great marketing tool. “The spirit of trying out new things is certainly important, especially since so many tourists come to Goa and take back gin bottles with them.”

Ambrosia: What is the reason for resurgence of gin which had taken a beating when vodka entered the Indian market?

Virmani: Vodka did this to gin in the 1950s globally. Gin has come back primarily because of the resurgence of cocktail bars which propagate classic cocktails, many of which just happen to use gin as their base. Ambrosia: There is a talk about uniqueness of the botanicals that goes into gin making. From a consumer perspective, what does botanicals signify?Virmani: Botanicals are what separate one gin from another. They are the main flavour components in any gin. Also, only high quality gins like ours use actual botanicals as opposed to artificial flavouring used by the cheaper, cold-compounded gins.

Ambrosia: What kind of growth are you seeing in the overall Gin market in India?

Virmani: The premium+ gin market in India (which excludes the low-end mass produced gins) are growing phenomenally well; easily around 30%+ CAGR. Ambrosia: We see a lot of premium brands being launched, is it because they are not meant for the masses?Virmani: Craft gin can only ever be premium. A low-priced gin, will not ever be a craft product. Even so, we aim to make our gins as accessible as possible.

Ambrosia: Could you tell us about the spark that led to the creation of Greater Than?

Virmani: The spark was quite simply the growing disbelief that India was not able to produce a single brand of gin that we could proudly call our own. It did not make sense to us, especially since India was the birthplace of the Gin & Tonic as well as the heart of the world spice trade.

Ambrosia: Which are the markets it is presently available now and what are your expansion plans?

Virmani: Our gins are present in seven different states across India currently as well as in over 15 countries outside India. We continue to grow as far and wide as we can without over-stretching ourselves. Assam has been our newest addition within India while New Zealand has become our most recent export market to come online.

Ambrosia: How is Hapusa different from Greater Than?

Virmani: Hapusa is a very small batch produced gin. It is primarily made with Himalayan juniper along with other botanicals found and sourced from across the country.

Ambrosia: Which are the markets it is present in – how do the two compete with each other – what is the USP of both?

Virmani: Greater Than is a classic London Dry Gin and is ideal for making cocktails or Gin & Tonics. Hapusa however, is far more characteristic and best enjoyed as a sipping gin or included in stirred cocktails like the Negroni or Martini.

Ambrosia: What next from ‘Nao Spirits’?

Virmani: Lots more

Stranger & Sons eyeing top bars of the world

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Craft brands in India are currently redefining the perception of premiumness. It is now much more about authenticity, craftsmanship and embracing innovation to produce something uniquely groundbreaking. Today, we see a lot of Indian consumers are excited to try a good homegrown product without it being a compromise and brands like ours are able to communicate and ensure our high quality standards. Moreover, with India’s growing cocktail culture, we see that a lot of Indian consumers are open to trying new, atypical cocktails as well as local, homegrown products which have indeed contributed to the rise of craft producers in the country. That is Sakshi Saigal, the co-founder and director of Stranger & Sons. In an email interview, she maps the journey of crafted gin which has just embarked upon an exciting phase of spirits in India.

Ambrosia: Could you tell us about the spark that led to the creation of Stranger & Sons?

Saigal: It goes without saying that we individually are not just cocktail enthusiasts, but also had access to observe the beGinnings of the Gin Revolution first hand. I was working towards my MBA in Barcelona, while Vidur was studying in the UK and Rahul had just set up his craft brewery in Mumbai. While we were tasting and drinking a variety of gins every day – whether in London’s cocktail bars or the Gin Tonics of Barcelona, we were getting well acquainted with the gin landscape. That’s when it piqued our interest as to why India wasn’t up to speed with gin although gin manufacturers all over the world looked to India when it came to sourcing botanicals and we kept encountering brands based on a vision of India that we knew very well had never been a reality. This made us question why products with these botanicals are made everywhere but here. To add to this, there wasn’t any other quality homegrown product then that was conveying the story from our perspective; so we decided to change that and embarked into a lot of research before setting up Third Eye Distillery.

Ambrosia: Could you give us insights into the growth journey of Stranger & Sons?

Saigal: It’s honestly been a phenomenal experience so far! Right from the start, we wanted to build a truly Indian gin that would stand out on the shelves of top bars in the world but fit in just as well in the colourful and vibrant bars in Panjim. Made from inherently Indian botanicals, Stranger & Sons Gin captures the essence of contemporary India in every bottle for a curious and discerning consumer. What makes Stranger & Sons interesting is how we celebrate our diverse, unique and complicated history while recognising India in its current context instead of the stereotypical version with just palaces, elephants, and so on. Embracing this wonderful strangeness inherent in the contemporary India we live in today through our gin allows consumers to connect with the story and the brand in a very organic manner. Creating this emotional connection with our audience has always been at the core of our thought process and that’s where we believe that it’s not just what our gin is made of that matters, but what it represents.

Starting out as a home-grown gin brand from Goa to being declared one of the 8 best gins in the world by the International Wine & Spirit Competition in 2020, to winning the highest honours at The Asian Spirit Masters 2021, we’ve managed to put Indian gin on the world map and continue to work towards showcasing India’s diversity to the rest of the world! We’ve had an action-packed and eventful journey so far and the terrific response we get from our consumers at our international and domestic events is backed by an exciting, entrepreneurial team, all of whom feel very strongly about the brand. With regard to sales, we sold 25,000 nine litre cases in our first full year of operations, which was extremely exciting for us and was mainly attributed to being available in just two Indian cities and one international market. This year, despite the pandemic, we will be focussing on domestic and international expansion.

Ambrosia: How much has the pandemic hit production?

Saigal: Being absolutely aware that it has been an extremely tough phase for the hospitality industry and brands including ours, thanks to our team’s sheer creativity and persistence, we never lost sight of our consumers, favourite bars and bartenders. During the pandemic, we launched ‘Strange Times’ bottled cocktails in Singapore as an initiative to support the trade, made in collaboration with some of the best bars there to help keep the spirits up amidst the pandemic. We also got selected as the first Indian brand for the Craft Gin Club and shipped bottles to over 70,000 homes across the UK. During the lockdown, we launched India’s first distilled cocktail with local, seasonal pink guavas – Perry Road Peru, in collaboration with The Bombay Canteen, a high-end Indian restaurant which was a massive success in the market! Regardless of the digital shift, we continue to prioritise innovation, crafting immersive experiences and strengthening our relationships with consumers and trade alike.

Ambrosia: Which markets are you present in and what are your expansion plans?

Saigal: We launched Stranger & Sons from the shores of Goa and expanded to Maharashtra, Delhi, Karnataka and Rajasthan within India and UK, Singapore, Thailand and the UAE, internationally. We will indeed be exploring various domestic markets including Telangana, Uttar Pradesh, Assam, and more. In terms of international expansion, we look forward to increasing our global footprint through our upcoming launches in Australia, Mauritius and more, very soon. Each new market brings a unique, diverse consumer base which makes the experience, well, let’s just say thrilling!

Ambrosia: What are the challenges – regulatory and distribution network – faced in India?

Saigal: In the spirits world, India has always been known for the sheer volume of alcohol we produce over anything else. The distilleries here are mostly large-scale, daunting structures and it’s difficult to contract distill small quantities here which is often a great way for craft distillers to beGin their journey. Adding to the challenge, India follows a federal system of laws and when it comes to alcohol and so, the guidelines and regulations vary across states in India. Access to good quality equipment and adequate space also pose a challenge, particularly once companies start expanding.

Ambrosia: Tell us about the botanicals that make your gin unique?

Saigal: Indian botanicals and spices that are indispensable to every Indian household and form the backbone of India’s culinary heritage. Among India’s most fertile states, Goa was a natural choice for us for its lush expanse of spice farms. The mace, cassia bark, licorice, black pepper and nutmeg that perfume our gin are sourced from spice farms surrounding our distillery making Goa the beating heart of our narrative. Our unique citrus peel mix of Indian Bergamot, Nimbu (Indian Limes), Nagpur Oranges & Gondhoraj have also been put together to represent different parts of our country and each of these citrus’ are extremely integral to the region they represent and make their way into local cuisine, juices, pickles, jams, preserves and more. By making use of all the wonderful spices available to us, we built a three-dimensional Gin that is proudly Indian and true to its oriGin. Our signature serves include fresh, flavourful Gimlets & aromatic, layered Gibsons which are also homage to India’s pickling and cordialling culture.

Ambrosia: What next?

Saigal: Third Eye Distillery was never built as a one-product-company right from the get go. There doesn’t go a day when someone from the team isn’t trying to answer this same question and one up the other. There are so many things that we’re working on at the moment when it comes to innovation and new product releases, no thought goes untested and no idea wins without a fight! We are also constantly trying to do our bit to make our distillery more responsible and sustainable while exploring new extensions and experimenting with various ideas. The one thing we know for sure, whichever product we release next, it won’t just be another bottle on the shelf, but will truly be adding to the conversation and be integral to taking our cocktail culture to the next step.