Tilaknagar Industries Limited, a leading Indian-Made Foreign Liquor Manufacturer (IMFL), has unveiled a new flavour innovation under its Flandy (premium flavoured Brandy) range. Mansion House Flandy has now been launched in an all-new Green Apple flavour in the state of Telangana, to begin with.
Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “Our Mansion House Premium Flavoured Brandy is a category-first innovation. It has been well-received across markets and its saliency, as a percentage of Mansion House Brandy in relevant states, has grown significantly. The launch of the all-new Green Apple flavour is a testimony to Flandy’s strong performance since its introduction in FY23, and is in line with our plans to further enhance our premium Brandy portfolio while strengthening our regional foothold.”
TI has seen very encouraging response to its Flandy range in the state, aiding the Company’s jump to become the fourth-largest IMFL player and the third-largest IMFL Prestige & Above (“P&A”) player, in Telangana, in FY24.
Tilaknagar Industries, which is one of India’s largest manufacturers of premium Brandy, had earlier rolled out its Mansion House Flandy range in Orange, Cherry and Peach flavours. Telangana is one of the prominent IMFL markets and has one of the highest Prestige & Above (“P&A”) segment with over 50 per cent saliencies across IMFL industry in India. It is estimated that the Brandy P&A segment in the state has grown by 18 per cent in FY24, as compared to almost 8 per cent growth in IMFL P&A segment over the same period. Additionally, in terms of flavours, Green Apple is the largest selling flavour in the flavoured spirits category in the state, providing a large canvas to the brand to gain market share.
First movers in premium flavoured brandy
Mr Ahmed Rahimtoola, Chief Marketing Officer, Tilaknagar Industries said, “We are first-movers in the premium flavoured Brandy category in India. In addition to this, an elevated demand for flavoured drinks and the predominant cocktail culture trend gives Tilaknagar Industries a competitive advantage across markets. The new Green Apple variant of Mansion House Flandy is another step by TI to enrich consumer experience and drive growth.”
The Mansion House Flandy range has a unique blend of natural fruit flavours. The latest offering has been infused with sweet green apple essence which is complemented by the nuanced richness of oaky undertones, delivering a truly palate-enriching experience to consumers.
In the financial year ended March 2024, Tilaknagar Industries volumes grew 16 per cent, year-on-year, in comparison to the overall IMFL industry growth of 2-3 per cent for the same period, making it fastest growing IMFL company in India for the 2nd year running.
India stands out as one of the largest markets for Brandy, globally. Within IMFL, Brandy is the second-largest product category, accounting for more than 20 per cent share of the industry by volume. Moreover, the premium Brandy industry in India is expected to continue expanding market share within the overall Prestige and Above IMFL segment.
Founded in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company has nine decades of excellence in the consumer goods category. The Dahanukar family continues to be the promoter of TI sharing the same vision and values as the founders. Under the current leadership of Amit Dahanukar, the company has grown to be the largest manufacturer of premium brandy in India. Its portfolio comprises of two ‘Millionaire’ brandy brands, Mansion House and Courrier Napoleon. TI has presence in whisky, rum and gin categories through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin.
Jim Murray stands as a prominent figure and key player in the global whiskey scene, having held the title of the world’s first full-time whisky writer for over three decades. The 2024 release of his widely successful “The Whiskey Bible” marks the 20th anniversary of the publication. Maintaining a staunch commitment to independence, Jim fearlessly critiques those deserving of scrutiny and advocates for whiskies that were once overlooked or unfamiliar.
In the present day, the likes of Ardbeg, Pure Irish Pot Still, and Canadian and Japanese whiskies such as Yoichi and Yamazaki have gained widespread popularity, thanks in no small part to Jim’s daring efforts to bring them into the public eye. Despite facing criticism and occasional attempts at character assassination, Jim’s bold choices have significantly shaped the current whisky segment.
In a conversation with Ambrosia, Jim shared insights into his passion for the spirit, details about his personal life, encounters with setbacks and comebacks, and perspectives on emerging whisky trends and Indian distilleries.
What led to your transition from journalism to becoming the world’s first full-time whisky writer, and are there any interesting stories or experiences from your journey you’d like to share?
I began my career in journalism covering sports and general news, gradually diving into more intense subjects like murders and special investigations while working for national newspapers. Amidst these experiences, my first encounter with a distillery occurred in 1975 during a hitchhiking expedition across Scotland. Boarding a boat bound for Skye, I visited the Talisker distillery, and it literally changed my life.
The vibrant sensory details of the distillery – the colours, smells, sounds, and the meticulous process – left a lasting impression on me. As a journalist, I used to get to travel a lot. Tasting whisky straight from the barrel with its 60% alcohol content was a revelation, and it sparked a personal interest. From the age of 17, during my spare time, I started making personal notes on whiskies, differentiating their unique qualities. By 1989, I began writing and selling articles about whisky globally, all while maintaining my role as an investigative journalist.
In media publications, I noticed a gap in whisky coverage. Wine writers were handling whisky topics with incorrect terminology and descriptions. Convinced I knew more about whisky, I considered transitioning into whisky writing. This decision faced resistance, especially as it meant giving up a stable income. Despite the initial resistance from my wife, in 1992, I took the leap, becoming the world’s first full-time whisky writer.
Back then, there were no whisky festivals or visitor centers, maintaining a sense of mystique around the industry. Breaking into the scene was tough. For years, I earned little, even became a single parent. Despite financial challenges, I persevered, creating fresh content for the emerging market. The books I wrote brought in money, but research costs were high due to the lack of prior literature on the subject. Believing in the cause, I endured the financial strain, comparing it to the pain barrier in athletics. It’s been a journey with continuous challenges, drawing parallels to my days as a long-distance runner facing a tough race.
A pivotal moment occurred during a meeting with Jim Milne, a J&B revered blender, who has been blending since the 1950s. In a seminar he conducted, whiskies labelled X, Y, and Z were presented without disclosing the distillery names. Upon nosing one of the whiskies, I asserted, “This doesn’t belong in your blend; it’s Fettercairn.” To this, he acknowledged, “Indeed, that is Fettercairn, and it’s included here only because of an oversight.” By identifying a misplaced sample, I earned the blender’s respect and was urged by him to share my opinions on whisky. This encounter led to a realisation – my extensive self-guided apprenticeship in studying whiskies positioned me uniquely.
Unexpectedly discovering my heightened olfactory senses (got to know I had a unique skill set, ranking in the top 2% for sensitive noses), this breakthrough moment changed my perception, realising I could sense and appreciate whiskies in a distinctive way. I ventured into consulting as a blender, complementing my role as a writer. This unforeseen skill set, acknowledged by one of Scotland’s most respected blenders, allowed me to contribute to the whisky industry in ways I had never imagined.
What is your typical approach to whisky tasting? Are there specific methods or techniques you adhere to during the process?
My approach to whisky is akin to that of a blender. I first identify any flaws in the whisky before acknowledging its merits. This involves deducting points for aspects like added caramel, an imbalance of oak flavours that overpower the malt, and any weaknesses that detract from the overall quality of the whisky. I can discern whether a whisky has been meticulously crafted or hastily put together.
When it comes to public awareness, blind tastings are crucial to eliminate biases. People often have preconceived ideas about certain whiskies, which can influence their perception. Therefore, I conduct blind tastings to remove any biases and judge the whisky solely on its merits. When compiling my Whiskey Bible, I don’t taste blind as I need to consider the distillery’s style and whether the blender has captured its essence. I assess the whisky’s complexity and intended profile before making judgments.
My tasting method, dubbed the “Murray Method”, involves avoiding strong perfumes, water intake, and spicy foods to keep my senses sharp. Strong perfumes can interfere with the senses, affecting the ability to discern aromas accurately. Additionally, I avoid consuming spicy foods while working, ensuring my taste buds remain undisturbed and receptive. However, recognising the cultural practices, I understand that asking Indians not to eat spices isn’t practical, given their culinary preferences. In 1997, I authored “Jim Murray’s Complete Book of Whiskey: The Definitive Guide to the Whiskeys of the World”, which gained significant popularity, selling over a quarter million copies. While discrepancies in numbers and subsequent editions may have altered the count, the book’s success is evident.
I’ve come across articles critiquing the book “Whiskey Bible”, accusing it of being sexist. However, generally, I’ve noticed that descriptions of food in a sensual manner are common in many publications. How do you respond to this perspective?
You need to grasp the immense impact of this book. It sparked the rise of Indian whisky and catapulted Japanese whisky to new heights. I awarded World Whisky of the Year to a Japanese whisky, leading to a whopping 3 billion dollars in revenue for them. Despite this success, I personally didn’t gain financially because I don’t accept kickbacks. I maintain complete independence. However, there’s a phenomenon known as industrial espionage, where some individuals might see the power of this book as a threat.
This book is pivotal because, like food and drink share common ground: sight, smell, taste, and touch. These senses, when combined, create a sensual experience. If people in the industry argue that whisky isn’t sexy, they probably shouldn’t be part of it. As a writer, honesty is of utmost importance. The motto of the Whiskey Bible is “the truth, always above all”. Criticism requires integrity and candour.
Some distilleries hold a grudge against me because I refuse to engage in their marketing tactics or succumb to their influence. Despite my disdain for those attempting to control me, I remain impartial in assessing the quality of their whisky. I won’t conform to the prevailing trends, particularly the notion of labelling everything as an anti-feminist crime. Personally, my marriage met its demise when I embraced the role of a whisky writer, a sacrifice I made for my career. The constant globetrotting has hindered the possibility of forming lasting relationships. I’ve never remarried, but it’s not due to a lack of romantic inclinations. Unfortunately, my genuine love for others has been weaponised by jealous individuals aiming to undermine the influence of the Whiskey Bible. Frankly, I feel sorry for these people, in their pursuit to tarnish my reputation, reveal a certain poverty in their character.
During a recent visit to Kentucky, a woman expressed admiration for my writings on whisky, considering it one of the most beautiful things ever shared with her. The hypersensitive woke culture on certain social media platforms seizes any opportunity to unleash their destructive tendencies, fuelled by baseless hatred. Many of these individuals are familiar with my identity and knowledge of whisky, yet they target me simply because I’m a convenient male figure to attack. This trend reflects the fragility of Western society.
Watching a stunning sunset often sparks a longing for someone to share the experience. Similarly, I take pleasure in sharing my love and passion for whisky with the world. I want to introduce people to the finer things in life.
Jim Murray at the launch of Amrut Bagheera and Portonova
When comparing Indian whisky to traditional whisky-producing nations, do you observe any notable differences?
The primary distinction lies in the heat when comparing it to traditional whisky-making countries. The maturation process in cooler climates allows for an important element: time. This time factor plays a vital role as tannins and other components from the environment have the opportunity to integrate and blend seamlessly. In contrast, hotter countries face a more accelerated maturation process, making it challenging to achieve the desired balance. Balancing whisky in warmer climates requires more effort and skill. While some argue that water quality influences whisky, the key is ensuring water is free from contaminants like pesticides and iron deposits, which can discolour the whisky. Interestingly, despite the romanticised notions surrounding water sources, many Scotch whiskies use tap water.
Unlike the present era filled with marketing gimmicks, the industry in the late ’80s and ’70s was less saturated with such tactics. Kentuckians, for instance, boast about having the best whiskey due to their water source originating underground, having been there for centuries, dissolving limestone and aiding fermentation. This stands in contrast to other Scottish distilleries, although not Glenmorangie and Highland Park, two renowned Scottish distilleries, which also derive their water from limestone, similar to the Kentuckians. I advocate for focussing on the contents of the glass rather than getting swayed by marketing claims on labels.
What trends do you perceive in the whisky industry, in your view?
Looking back at the whisky industry’s history, it’s been characterised by cycles of growth and decline. In the 1980s, whisky consumption dwindled as it was perceived as a drink of the older generation, with younger drinkers favouring lighter spirits. A common joke was that one could spot a whisky drinker by looking at the obituary column, as they were diminishing in number. This decline in blended whisky consumption led to an excess of single malt whisky sitting idle in distillery warehouses. It was during this time that efforts to promote single malt whisky, spearheaded by individuals like Michael Jackson, began to gain traction, revitalising interest in the category.
Similar to the boom in distillery construction in the 1890s, the recent surge in new distillery openings has created a crowded market. However, the current global situation introduces uncertainty, making it challenging for new distilleries to establish themselves and sell their products. Despite these challenges, smaller distilleries are poised to thrive, although they will face significant pressure. Nevertheless, it’s crucial for them to remain authentic and transparent in their approach to whisky production.
A concerning trend observed among some Irish distilleries is the practice of finishing whisky in various casks, obscuring the true character of the spirit. This approach detracts from the whisky’s identity, akin to wearing excessive layers of clothing that mask one’s true self. Moving forward, distilleries should prioritise honesty and authenticity to attract discerning consumers. The road ahead may be arduous, but it presents an opportunity for distilleries to redefine themselves and engage with consumers on a more genuine level.
Jim Murray at the launch of Amrut Bagheera and Portonova
How can Indian distilleries enhance their quality and global standing?
When considering the steps Indian distilleries can take, it’s important to acknowledge the unique dynamics in the Indian market. Unlike Scotland, India has a massive population of over a billion people, with a growing middle class. Over the past 30 years, I’ve witnessed significant changes in India, particularly in terms of economic growth and an expanding consumer base. The challenges faced by Scotch whisky in India may not be as pronounced, given the increasing number of people who can afford high-quality whisky. Notable distilleries, like Amrut and Paul John, have set a commendable standard, maintaining their commitment to excellence. In my early involvement with Paul John, I assisted in training their blender and witnessed their staunch dedication to quality. Several other Indian companies are also making strides in improving their whisky, demonstrating a continuous pursuit of excellence. While there is always room for improvement, the progress made in all these years is remarkable.
Comparing the whisky from three decades ago to the present would reveal a staggering leap in quality. This positive trajectory showcases the dedication and attention to detail exhibited by Indian distilleries. The success of Indian whisky on the global stage can be attributed to the determination of distilleries to make a lasting impression. Unlike some companies that may compromise on quality when relying solely on their brand name, Indian distilleries have prioritised maintaining high standards. The meticulous attention to detail is a driving force behind the success of Indian whisky. Even distilleries that were once considered mediocre have elevated their standards, while new entrants to the market are setting the bar even higher.
Indian single malts have come of age, truly. And they have been savoured in India and elsewhere too. The good news is that in 2023, Indian single malts outperformed global brands, with promise of doing better. According to early estimates by the Confederation of Indian Alcoholic Beverage Companies (CIABC) Indian single malts accounted for approximately 53% of total sales in 2023, a very impressive performance considering that Indian single malts are a decade old phenomenon.
As per CIABC estimates out of the total sales of around 675,000 cases of single malts in 2023, Indian-origin makers sold around 345,000 cases and the rest was sold by Scottish and other international brands. Indian brands such as Amrut Fusion; Amrut Kurinji; Rampur Indian Single Malt; Paul John Mithuna; Indri; Kamet; and GianChand have all given the global players a tough competition. The Indian brands have been competing with well established brands such as Glenlivet, Macallan, Lagavulin and Talisker.
Domestic brands grow 23%
In 2022, Scotch brands sold 2,96,000 cases with a 35 % increase in sales, while Indian brands sold about 2,81,000 cases with a 2.4 % increase. With growing popularity, the overtaking by Indian single malts was given. In 2023, the domestic brands have registered a growth of about 23 per cent, compared to 11 % by imported brands.
Indian whiskies have been making global waves too since 2010 when Amrut Fusion got global recognition with Jim Murray’s Whisky Bible ranking it third, after blind tasting of over 4,000 whiskies. In the 2022 International Wine and Spirits Competition, of the 11 awards that came India’s way, four were for single malts.
In sync with premiumisation
The Director General of CIABC, Mr. Vinod Giri said that this has been made possible due to the premiumisation drive that is happening across all segments of the alcohol sector. Indian single malts have upped the game, in terms of quality, presentation and reach, hence the stunning turnaround was expected. Indian distilleries have worked hard to come to this level, matching international brands. CIABC, he mentioned, is working with the Indian players and government agencies to evolve product and process standards that ensure product quality uniformly and consistently.
What is heartwarming is that the Indian consumer, many of whom have travelled globally, knows that Indian brands are making it to the global stage. This endorsement of the ‘Make in India’ products has largely helped sales.
Price-sensitive consumer gravitating towards Indian brands
Hemanth Adapa, founder of Single Malt Amateur Club (SMAC) said “Indian whiskies are riding the third wave of global recognition and success. It is no simple feat that high quality single malt whiskies are being made from scratch in India and repeatedly being featured in the top whiskies of the world. While the awards and ‘expert views are giving the whiskies a thumbs up what is most encouraging is the consumer gravitating towards these. It is an extremely difficult task to convince the price sensitive Indian consumer to reach for an Indian made brand as against a Scotch which has been the mainstay for premium whiskies in India. This has taken a lot of effort by the manufacturers of repute to encourage this transition. While there are other factors to be considered such as the supply chain issues and global shortage of aged Scotch whisky causing many brands to follow an ‘allocation’ strategy towards India, this is no small feat and perhaps the greatest recognition to the quality of these fabulous whiskies.”
Asked whether the short supply of aged Scotch whisky and supply chain issues had led to increased sales of Indian single malts, answered in the negative, adding “This has not been a flash in the pan for it to be short lived. There are many risks around the governance and quality control of the newly formed category of Indian single malts which is very similar to the challenges in the Japanese whiskies but surely not a doubt around the whiskies being recognised today.”
Amrut started it all
The fact that brands such as Amrut and others have been performing consistently is testimony to the popularity of Indian single malts, not just in India, elsewhere too. One cannot forget what Jim Murray the legendary whisky critic of the world had said in 2010 that “Amrut Fusion, whisky from India, can only be a dream of many Scottish distilleries.” Prior to that, Indian whisky was not even considered as a whisky as it was only producing molasses-based whisky. ‘Amrut Fusion’ changed that as it is made of 80 per cent Indian malted barley and 20 % Scottish peated barley.
In 2022, Amrut which soared by 183 % dethroned Pernod’s Glenlivet which grew by 39 %, according to Euromonitor data. In 2022, two Amrut offerings topped the list, much more sales than Glenlivet, followed by Paul John. Amrut Fusion sold 99,000 cases and Amrut Amalgam 94,000, Solan Gold 20,00 and Rampur 10,000 cases.
Global players go local
Such impressive sales have led to global players in India to start Indian brands such Godawan from the stables of Diageo in 2022. Godawan the artisanal single malt whisky is finished in special casks selectively curated with Indian botanicals. In 2023 Pernod launched Longitude 77, its first Indian single malt with plans to export to the UAE and later to other markets. Further endorsement has come India’s way from the Scotch Whisky Association (SWA) which said that India has overtaken France to become the largest market for whisky sales by volume and single malts are also contributing significantly.
Awards galore
From 2010 onwards, Indian single malts have been cornering global awards at regular intervals. The latest is Radico Khaitan’s Rampur Asava Indian Single Malt Whisky which bagged the ‘Best World Whisky’ at the prestigious John Barleycorn Awards. Rampur’s innovative approach to the ageing process distinguishes it from other world whiskies. The Himalayas provide polar opposite climate conditions throughout the year with the flavour of the famous Indian Summer giving Rampur an added dimension and depth. The malt interacts extensively with the cask, resulting in maturation almost four times faster than in Scotland.
Sanjeev Banga, President of International Business at Radico Khaitan Ltd, and the creator of the iconic Rampur range of whiskies says, “Our position as possibly the only Indian company in the industry with products such as Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin and Sangam World Malt Whisky in the super-luxury space, alongside international alcohol companies is testament to their quality. The global availability of our products, coupled with the admiration and recommendations from top experts including this latest achievement in the John Barleycorn Awards, stands as proof of our unwavering commitment to product quality and consumer satisfaction.” Banga further added that Rampur Asava will soon be available for Whisky aficionados in the Indian domestic market.
In emphasising the global significance of Indian whisky, Kunal Madan, Vice President of International Business at Radico Khaitan added, “India commands a staggering 48 % share of the global whisky market. While the majority stays within our borders, the efforts of producers like us have successfully introduced our exceptional Indian whiskies to markets such as the US and UK. In a landscape dominated by only a handful of Indian whiskies, Rampur has earned its place as one of the most highly regarded brands. This recognition reinforces the impact of our journey, guided by quality and innovation, beyond national borders.”
Another Indian single malt to walk away with another prestigious award is the Indri Diwali Collector’s Edition which won the ‘Double Gold Best in Show’ at the 2023 Whiskies of the World Awards, beating over 100 other varieties including scotch, bourbon and British single malts. Indri, the peated Indian single malt whisky is a product of the Haryana-based Piccadilly Distilleries, launched in 2021.
“The industry can offer much more and consumers want much more as well. This growing appetite for experimentation could translate into a brighter future for the Indian spirits market, beyond the projected flatline of 2024,” Vinod Giri added.
Keep an eye out for European Wines with Sommelier Devati Mallick
The stage is all set for VINEXPO Delhi 2023 to get underway tomorrow. While there is much to look forward to for the visitors, with many foreign producers gracing the event, the European Union (EU), located at Booth F50 in Hall 1B is expected to have a strong showing as the Region of Honour. The fair will be held from 7th– 9th December, 2023.
European wines, beers and spirits are more than alcoholic beverages, thanks to exceptional raw materials, timeless craftsmanship and unwavering safety standards. Europe is the birthplace of the world’s wine industry, and traditions of winemaking are proudly passed from generation to generation; they have defined European rural landscapes for centuries. Nowadays, the EU accounts for 45% of world’s wine-growing areas, 65% of wine production, 57% of global wine consumption and 70% of exports, making it the world leader in each of these categories.
A tradition of quality and excellence
More than 1700 European wines have Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) protections, serving as a guarantee of their authenticity and quality. The consumers can enjoy these products in the knowledge that they have been produced to the highest quality and safety standard. Whatever your preference, you will find something to delight you among the wines of Europe. Red, white, rosé or sparkling wines from Europe can help make any occasion special.
European Union: The Region of Honour at SIAL and VINEXPO in New Delhi
What makes this year’s VINEXPO particularly noteworthy is the presence of over 50 company representatives, including 14representing wines and spirits sector, facilitating B2B matchmaking sessions on December 7 and 8. These sessions offer invaluable opportunities for Indian buyers, retailers, and distributors to connect with European businesses across various food and drink sectors
Moreover, the European Union’s VINEXPO booth will host a series of enlightening masterclasses on wines, beers and spirits. Each Masterclass, lasting 30 minutes, will feature a selection of beverages for tasting. Among these, the EU Masterclasses, led by renowned sommelier Devati Mallick, promises to be a highlight. As you sip and savour the wines, you’ll embark on a journey through Europe’s finest vineyards, guided by the expertise of a true connoisseur.
As we gear up for VINEXPO Delhi 2023, we invite you to join us in celebrating the union of tradition and innovation in European winemaking. Stay tuned for an unforgettable wine experience that promises to captivate your senses and leave you with a deeper appreciation for the world of wine.
Let’s raise our glasses to VINEXPO Delhi 2023, where European wines and spirit drinks will take center stage, and the EU’s commitment to vinicultural excellence, along with the expertise of Devati Mallick, will shine brighter than ever before.
The EU’s participation in SIAL and VINEXPO 2023 is part of its ‘More than Food’ campaign, actively promoting outstanding European agricultural products on a global stage. For the latest information and updates, visit the official ‘More than Food India‘ webpage.
For media inquiries, please contact: sial2023@agripromotion.eu
To infuse moderation India, EU, UK and the US have used taxation as a tool. But other reasons also encourage moderation. A report.
The domestic alcohol beverages (alcobev) industry is expected to have revenue growth of 8-10% in 2023-24 but operating margins may contract by 90-140 basis points due to input cost pressure, a report by rating agency ICRA stated.
The alcobev industry witnessed a strong revival in the last fiscal in FY23 led by a healthy demand across both segments – spirits and beer, after two consecutive pandemic-hit years of FY21 and FY22 “During Q1 FY2024, the spirits industry reported a 13% YoY increase in revenues despite being the lean season for the segment, while the beer industry, despite being the peak season, “Moreover, the majority of the ongoing capacity addition is attributed towards beer manufacturing, which is expected to come up in the near to medium term with some players looking to expand to new states and deepen penetration in the existing regions.
“ICRA expects the industry to continue to demonstrate stable and healthy credit metrics supported by strong cash flow generation and limited debt addition,” it said. India is also poised to make strong spirits gains thanks to its booming economy; rising consumer incomes; market recovery and growth post-pandemic; and strong consumer confidence. However taxes play an important role in determining the prices of alcohol.
In spite of GST on alcohol not being levied, the prices of liquor continue to rise after the rollout of Goods and Services Tax. This is because the inputs used to manufacture liquor were taxed at 12-15% under the VAT regime before GST. However, after the introduction of GST, most of the input raw material now attract 18% GST resulting in increased input cost. This rise in taxes on the inputs is passed on to the end customers. The other reason for the sharp increase in the cost of liquor is the applicability of GST on transportation and freight charges. Previously, transportation and freight attracted a service tax of around 15%. However, post-GST, they are taxed at 18%. Hence, even with no major changes in the VAT rates charged on beer or liquor, the cost of beer and liquor increased due to the increase in input taxes.
Industry Analysis
The liquor industry isn’t much supportive of the government’s decision to charge no GST on alcohol. Exempting liquor from GST has led to a rise in the overall cost due to the increased taxes on the inputs. Further, as the output is a tax-exempt product for the manufacturers they need to pay input taxes on inputs and then claim the refund of ITC (input tax credit) accumulated. This is a long process, which leads to the lengthening of the working capital cycle. Most of the liquor manufacturers believe that there’s no point in excluding beer from the purview of GST as the alcohol content by volume is only 5%. Most of the industry insiders wish that beer is brought under the GST regime. This will have a remarkable impact on the flourishing tourism industry.
EU law requires every EU country to levy an excise duty on beer of at least €1.87 per 100 litres (26.4 gal) and degree of alcohol content. That amounts to a minimum tax of €0.03 ($0.03) for a 330ml (11.2 oz) beer bottle with 5% alcohol content.
After a decade of cuts and freezes to the alcohol duty in Britain, in August the level of duty will rise with inflation – an international best practice and World Health Organization recommendation.
With the new alcohol duty system alcohol tax rates will lower the cost of beer for pub-goers and will raise the cost of most other alcoholic beverages in supermarkets and other off-licenses.
In recent decades, alcohol had been getting ever cheaper, fuelling a public health crisis. In the UK, the alcohol duty is a type of tax paid by companies that produce alcohol. It is paid by the company who produces or imports the alcoholic drinks. The tax level relates to the strength and size of the product, rather than its sale price. The level of duty is decided each year in the Government Budget.
On August 1, 2023 the alcohol duty change has come into effect in the UK. It makes duty across different types of alcohol more consistent by taxing based on alcoholic strength by volume (ABV).
In the past the UK tax system has been complicated and inconsistent, with different rules for different alcoholic products. The new system is much closer to international standards in alcohol tax policy and contains elements of World Health Organization (WHO) best practices.
Evidence from across the world shows that alcohol harm falls when the population levels of alcohol consumption fall. When alcohol is less affordable, less is consumed, and so there are fewer deaths, injuries and illnesses caused by alcohol.
Alcohol harm disproportionately affects people on lower incomes and in greater deprivation, even though evidence shows these groups consume less alcohol than higher income groups.
The impact of alcohol on communities and health is also unequal across the UK. People living in the poorest areas of the country are more likely to experience illnesses due to alcohol, and a greater proportion of the population in deprived areas die due to alcohol.
Taxing alcohol by volume (ABV) targets strong alcoholic drinks, which are particularly harmful. Increasing the price of alcohol could be viewed as ‘regressive’ policy (if alcoholic products are more expensive this affects those with less money more). However, on average, people with less money tend to consume less alcohol than those with more disposable income. At the same time, the health costs and mortality from alcohol are higher among lower income communities and people.
A recent study showed thousands of deaths could be averted through lowering alcohol strength in beer, wine and spirits – something the new alcohol duty system is likely to facilitate.
Finland, the United Kingdom, and Ireland levy the highest excise duties on beer. Finland levies a tax of €0.63 ($0.66) per 330ml beer bottle, followed by the United Kingdom at €0.37 ($0.40) and Ireland at €0.37 ($0.39) per beer.
Bulgaria, Germany, Luxembourg, and Spain each levy approximately the EU’s minimum rate of €0.03 ($0.03) per beer bottle.
The EU’s wide range of tax rates spans the range of global tax rates on beer. Finland is a high tax outlier within the EU, but its tax rate is only slightly more than half of Israel’s tax rate on beer. Conversely, Germany has the lowest tax rate on beer of any country in the OECD. Tax rates across the EU are generally higher than rates in the U.S. The minimum EU beer tax of $0.03 per 11.2 oz bottle exceeds the tax rate of the median U.S. state (Virginia at $0.02 per 11.2 oz bottle).
All European countries covered also levy a value-added tax (VAT) on beer, which is charged on the sales value of a beer bottle.
Moderation increasingly driven by economic concerns
Previously driven mostly by health and wellness concerns, moderation in alcohol consumption is now increasingly being spurred by economic worries and a need to cut household spending. Consumers are choosing to cut down rather than down-trade in many markets.
Moderation – both as a lifestyle choice for health and wellness, as well as an economising strategy amidst rising inflation – is taking a number of forms, such as:
• Reducing the number of occasions during which alcohol is consumed, either by substituting with a non-alcoholic beverage, such as a soft drink, or by simply exiting the consumption occasion (such as skipping the mid-week after-work drinks).
• Reducing the number of alcoholic drinks on a given occasion, for example, by drinking less, or in some cases, by combining consumption of a full-strength alcoholic beverage with a no- or low-alcohol beverage during the same occasion.
About half of all adult drinkers of beverage alcohol surveyed as part of IWSR’s price sensitivity study across 17 focus markets in H2 2022, expressed interest in moderating their alcohol consumption. The trend is particularly strong in European markets where economic confidence is low, such as the UK and Germany.
The long-established trend of moderation as a health and wellness choice continues, especially amongst those on higher incomes in countries such as the US, Canada, Australia, and China. Germany remains the largest market for no- and low-alcohol products, however smaller markets, such as the US, Canada and Australia, will show more dynamic growth, with volume CAGRs 2022-2026 outpacing that of Germany.
For some consumer segments, such as millennials in select markets, previous interest in no- and low-alcohol products due to wellness concerns has now been combined with an economic imperative, amplifying the trend.
The International Spirits & Wines Association of India (ISWAI), the apex body of the premium alcobev sector, unveiled its report titled “Economic Value of the Indian Alcoholic Beverage Industry”, presenting it to Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog. This comprehensive report is a first-of-its-kind and takes an in-depth look at the vital elements and the significant roles played by the Indian alcobev sector.
The report offers valuable perspectives on the alcoholic beverage industry, highlighting its economic impact, patterns of consumption, and its positive effects on related industries like agriculture, tourism, and more.
Expressing her gratitude, Nita Kapoor, CEO, ISWAI, said, “I extend our heartfelt thanks to Shri Amitabh Kant, G20 Sherpa, on behalf of ISWAI for allocating the time to receive this crucial report. This is a significant moment for ISWAI and the broader industry, affirming the sector’s substantial relevance to the nation. The alcobev Industry serves as a pivotal economic engine, making it imperative for pertinent stakeholders to recognise and value our sector’s economic contributions.”
Nita Kapoor further emphasised, “The alcohol industry holds a vital position within the national economy, presenting opportunities for growth, job creation, and revenue generation. As we look to the future, the importance of the alcohol industry in India is poised to expand. Therefore, it is crucial to simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full potential for growth.”
Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog, being presented a copy of the Report titled ‘Economic Value of the Indian Alcoholic Beverage Industry’ by Nita Kapoor, CEO, and Suresh Menon, Secretary-General of the International Spirits and Wines Association of India (ISWAI) at his office in New Delhi.
Key Highlights:
With an estimated market size of $52.4 billion in 2021, roughly 2% of the country’s nominal GDP, the Indian alcobev industry is significant and burgeoning (₹3.9 lakh crore, including country liquor).
Projections suggest the Indian alcoholic beverage industry could reach an astounding $64 billion over the next five years, ensuring India’s position as the fifth-largest contributor to global market revenues in the near to medium term.
In the fiscal year 2021, the industry contributed a significant ₹2.4 lakh crore in indirect taxes to the state governments, representing many income streams. Customs duty on alcoholic beverages alone accounted for ₹2,400 crore.
The alcohol revenues represent 1.2% of India’s nominal GDP, 7.7% of the total tax collection, and 11.7% of the nation’s indirect tax revenue. The sector contributes a significant 24.6% of the overall own tax revenues of the states.
Around 1,235 million litres of extra neutral alcohol (ENA) were used to produce Indian-made foreign liquor (IMFL) and ready-to-drink alcoholic beverages in 2021. It is estimated that to produce 741 million litres of extra neutral alcohol for IMFL, 1.9 million tonnes of grain are required. This amounts to 0.6% of India’s total grain production of 316 million tonnes in 2021-2022.
Approximately 724,611 farms and 36,23,057 farmers are involved in grain production for ENA. 2.9% of the persons employed in the agriculture, hunting, forestry, and fishery sectors are engaged in the production of grain/sugarcane/grapes utilised for ENA for spirits and wine.
The scope of the alcohol industry in terms of employment is remarkable at a staggering 79 lakh individuals, both directly and indirectly. This accounts for 1.5% of the total manpower employed in the country.
About 14-19% of the overall revenues of the organised F&B industry are dependent on the ₹28,000 crore sales of alcoholic beverages.
An enabling policy environment for the alcoholic beverage industry can thus drive investments, jobs, and exports. India-manufactured alcoholic beverages have large untapped export potential and should be treated like any other industry.
On the occasion, Suresh Menon, Secretary-General, ISWAI, remarked, “Beyond its substantial tax contributions, the industry plays a vital role in supporting farmers’ livelihoods. It is also intricately linked to the food and beverage, hospitality, tourism, and packaging sectors. With India’s demographic shift, the growth of the young and expanding middle class is projected to persist for several more decades, driving an increase in per capita consumption of various goods and services. Constructive governmental policies can streamline the ease of business in this sector, fostering a more conducive operational climate. By addressing and removing certain barriers, we can propel the sector’s growth to the advantage of all involved parties.”
ED files chargesheet stating Singh got Rs. 3 crores
AAP claims vendetta for raising Adani issue
The Enforcement Directorate (ED) on October 3 arrested Aam Aadmi Party Rajya Sabha MP Sanjay Singh with regard to the Delhi liquor scam. Sanjay Singh has been remanded to 5-day ED custody by Special Judge M.K.Nagpal. After the former Deputy Chief Minister, Manish Sisodia was arrested, Singh is the next high profile leader to get arrested.
The noose around the leaders of AAP seems to be tightening and the apex court made an observation why the AAP is not a party in the case, since the agencies have been mentioning that AAP has been the beneficiary. The BJP spokesperson Shehzad Poonawala and MP Parvesh Verma alleged that Kejriwal is the “kingpin” behind the “scam” and his role will soon be investigated.
While the onus continues to be on the agencies to prove that these leaders and the party have ‘illegally’ benefitted from the excise policy, the AAP is crying hoarse that it is ‘vendetta’ politics and that ‘no money’ was found by the agencies in any of the raids. However, this time the agencies have put it on record that the AAP MP benefited by Rs. 2 crores.
The ED has told the Rouse Avenue Court that Rs. 2 crore in cash was delivered to Sanjay Singh’s residence. The ED made startling revelations that the cash was given in two tranches to Sanjay Singh and a total of Rs 3 crore was given. This cash delivery was confirmed by Dinesh Arora, an accused-turned-approver and the ED said this was confirmed by the AAP MP himself. Dinesh Arora, it is claimed, was a close aide of Sisodia. And Arora was arrested by the ED under criminal sections of Prevention of Money Laundering Act (PMLA) in a case linked to the liquor scam.
Further consolidating on its evidence, the ED said Dinesh Arora’s chartered accountant had confirmed that the cash was delivered to Singh’s residence and has seized documents that corroborate the same. The ED reportedly conducted searches in 239 locations while seizing documents and phone of Sanjay Singh and told the court that it is examining the documents and other evidence and needed 10-day remand of the AAP leader.
Unlike in Sisodia’s case where the ED has not established any money trail, the ED this time is stating that it has established the trail between the two individuals and the AAP MP was instrumental in formulating the Delhi Excise policy which was revoked, post the scandal. In the charge sheet, the ED stated Arora met Singh at a party in the latter’s restaurant ‘Unplugged Courtyard’ and Singh is said to have asked Arora to generate funds from restaurant-owners for the Aam Aadmi party for the Delhi Assembly elections. He said he gave a cheque of Rs 82 lakh.
The charge sheet further mentioned that Arora in his statement that another accused, Amit Arora, sought help in shifting his liquor shop from Okhla to Pitampura. The ED said Singh was involved in getting this done through the help of Sisodia who in turn got it sorted by the Excise Department. Further Arora claimed that he met the Delhi Chief Minister Arvind Kejriwal once at his residence with Singh while he had spoken to Sisodia five-six times.
“They are just putting false cases. Nothing comes out in the investigation. This is a waste of time for the investigative agencies. The country will not progress by putting false cases on people,” said Kejriwal.
AAP takes to streets
The Kejriwal-led party has gone to the streets stating that the ED was targeting Singh as he has been raising the Adani issue in Parliament and outside. AAP spokesperson Reena Gupta said, “Sanjay Singh kept on raising questions on the issue of Adani and this is why the raids are being conducted at his residence. The Central agencies found nothing earlier and won’t find anything today either. First, they conducted raids at the residence of some journalists yesterday and today, raids conducted at Sanjay Singh’s residence.”
The now scrapped Delhi Excise policy was rolled out in November 2021 for the 2021-22 financial year, marking the exit of the Delhi government from retail sales of alcohol. It allowed private players to bid for licenses. The investigating agencies have alleged that kickbacks were paid to implement the excise policy which was scrapped after Delhi’s lieutenant governor VK Saxena asked for an investigation into alleged irregularities.
Meanwhile, the Supreme Court has questioned both the Central Bureau of Investigation (CBI) and the ED why the AAP has not been named as a beneficiary. The apex court asked how was a case made based on some “pressure groups” seeking policy change and whether bribery was involved. “We understand there was a policy change and everyone will support policies which are good for business. Pressure groups are always there but policy changes without money consideration will not matter. It’s the money part which makes it an offence. If we go to an extent to say that there cannot be any pressure groups, no government can function…Lobbying will always be there. Of course, bribes cannot be accepted,” the SC bench of Justices Sanjiv Khanna and SVN Bhatti said. The Additional Solicitor General argued that the policy was introduced to benefit the wholesalers and increase their share of profit. “Under the old policy, there was no way you can get the kickback and hence, there arose the need for policy change.”
“You have to establish a chain. The money has to flow from the liquor lobby to the person concerned. We agree with you that it’s difficult to establish the chain because everything is done under cover. But that’s where the competence of investigators comes in,” the bench added.
Sisodia was arrested by the CBI on February 26 after the agency alleged that many ineligible vendors were awarded licences by the Delhi government in exchange for bribes. The liquor policy, introduced in November 2022, was withdrawn eight months later amid allegations of corruption. Sisodia has been in custody since then. The ED arrested him in a money laundering case stemming from the CBI FIR on March 9. Sisodia resigned from the Delhi cabinet on February 28.
The Delhi Government has decided to grant license in form L1, L1F and L2 for the wholesale vend of Indian liquor in the National Capital Region (NCR) of Delhi for the licensing year 2023-24 with effect from October 1, 2023.
The Excise Department has said that the prescribed forms can be obtained from its website and that there would be a processing fee of Rs. 5,000 for each license. The Department said that the terms and conditions for the licensing 2023-24 would be the same as that of 2022-23. The government said that it reserved the right to review the duties / fees to be paid / payable in case of any amendment to the law related to liquor and bonded warehouses.
The Department said that in case of existing licensees / registered brands active up to September 30, 2023 there is no change in the EDP / right structure / label / source warehouse etc. The registered brands for the year 2022-23 may be registered for 2023-24 on the same terms and conditions of the previous year, consequent to the payment of requisite fees and submission of undertaking / affidavit of the same.
It said that for new registration of brands applications received without complete information and supporting documents as required in the prescribed form along with annexures shall be liable to be rejected.
These changes are to ensure continuity of supply and the amendments will be in place till the new policy is formed. This will be third time the Delhi Government is giving the extension.
It may be mentioned here that the previous policy introduced in 2021 by the Aam Aadmi Party (AAP) government had to be scrapped as it ended up in scandal which is currently under investigation.
The excise department has proposed to extend the existing 2020-21 liquor policy by six months till March 31, 2024, to ensure the continuity of liquor supply. The excise department will issue a formal order in this regard.
Expert welcomes policy
Mr. Raju Vaziraney, one of the veterans of the wine and spirits sector and presently Adviser and Business Development Head of Amrut Distilleries, has welcomed the policy saying technically it is a new policy thereby allowing new companies to get registered and pay one-time fees and not fees from retrospective effect. The Companies will be encouraged to bring – in new brands, thus ensure more variety of brands, more consumer choice. However, he said the new policy gave only two days for companies to submit all documents.
However, he reiterated that the salient features are a) Existing Licences to be renewed by giving an undertaking / affidavit; Existing licences are renewed till March 31, 2024; Existing brands with existing EDPs to continue till March 31, 2024; Existing brands to pay proportionate fees of six months and not 18 months as was the practise in the policy of 2022-23.
In order to ensure continuity of supplies the online transparent system worked overnight & supplies commenced from October 3, 2023. However in view of paucity of time lot of prominent brands are under process of being made available. Mr. Vaziraney said that however, the challenges are that Delhi will have to wait till six more months to get a full-term year policy with possible participation of private trade thereby offering a great buying experience. The vends at the airport could also open next year as presently a world class city like Delhi does not have any vends at the airports
It is expected that Delhi will have a full year policy which will bring-in consumer choice brands and also bring – in reforms in terms of more liquor stores, more in trade outlets, he added.
IWSR Drinks Market Analysis has announced the appointment of Julie Harris as its new CEO. The transition comes following Mark Meek’s decision to step back from the CEO role and to take up a non-executive director position within the company, the world’s leading source of data and intelligence for the $1.5 trillion global alcoholic beverage market.
Julie Harris joins from Comparison Technologies, a leading tech-enabled comparison and customer acquisition platform in the home digital services market, where she was CEO since 2019. Prior to this, Julie held several CEO roles across a number of sectors, including WGSN, the global leader in trend forecasting for the fashion and retail industry.
Julie Harris commented, “I am delighted to be joining the very talented team at IWSR at such an exciting stage in its evolution and to build on the phenomenal growth of the last few years. Mark leaves the company in fantastic shape and I look forward to working with our global teams to continue to develop new and exciting products for our valued clients.”
Under Mark Meek’s leadership, IWSR has delivered annual revenue growth of 20% and has significantly expanded the coverage and functionality of its core database. The company has also developed a range of new products, including annual strategic consumer sentiment studies on topical issues such as e-commerce, no-and-low alcohol drinks and the impact of Covid-19. In conjunction with its strong organic growth, IWSR has also completed the acquisition of Wine Intelligence France, broadening its coverage of the wine sector.
Julian Masters, managing partner at Bowmark Capital, leading private equity investor and IWSR majority shareholder, commented, “Mark has been both a great leader of IWSR and partner to Bowmark, driving transformational change during his tenure as CEO. We thank him for his significant contribution to the company’s success and are delighted that we will be continuing to work together in his new role. We look forward to working closely with Julie Harris on delivering IWSR’s next phase of growth and continued product development.”
Mark Meek said, “I’m incredibly proud of what the IWSR team has accomplished, with the support of Bowmark, since the management transitioned from our founder. The business has grown strongly, and we’ve considerably enlarged our talent base and product range. The future continues to look bright. So now, after nearly 10 years, I believe it is a great moment to hand over the reins of the business to the talented Julie Harris. I look forward to being part of the IWSR story as a non-executive and will give Julie all my support to ease her into the new role.”
The Ron De Ugar Rum comes from Ugar Sugars Works Ltd who have been in the Sugar business for about 75 years. And as you know that manufacturing ENA is a natural extension of being in this business and in line with that Ugar Sugar also has a portfolio of spirit products in the market. This is their first rum product and is priced at Rs. 1300 in Goa for a 750 ml bottle. The rum features a 42.8% ABV and is currently only available in Goa and Karnataka, with plans to launch it soon in others states as well.
Why the Name?
It is common to believe if this rum is from India? The name suggests that it might be an international product and honestly I also thought for it to be one at first glance. But this is a 100% Indian handcrafted Rum and it is manufactured in the Ugar Khurd region, which is a small hamlet in the erstwhile princely state of Sangli in the West of India, on the border of Maharashtra and Karnataka. The region is a sugar manufacturing-focused township with large areas under sugarcane cultivation, which is where the distillery is based and also of course this rum is also made there. And since this comes from the Ugar region, its named after it, the ‘Ron de’ has been added to give it some flair of course.
Apart from the name there are few other interesting things about this Rum, and the most important is that this is made from cane spirits and not molasses. Most of the rums that you find in India are made from Molases, whisky’s also in fact. Much like Camicara Rum, which is also a small batch rum made from cane spirit, Ron De Ugar is mixed with mature 3-5 year rums and cane spirit.
Another interesting thing about this rum is the moniker on the rum. When you look at him it seems like an international figure, but this is actually Shivaji’s Naval Commander, Kanoji Angre, who use to monitor that belt and is also known as askilled navy chief hence used here.
Kanoji Angre features as the moniker on the label
How is it made?
So, how exactly is this rum produced? The aged rums are combined with cane spirits and left to mature gradually in Oakwood casks. Afterward, they’re mixed with fragrant spices to create a unique flavour. This rum is crafted and bottled at the Ugar Sugar Works Ltd. in Ugar Khurd, located in the Belagavi district of Karnataka.
The Rum is matured in Oakwood Cask
Packaging:
Similar to many other rums available in this segment, it comes in a canister. A marron base colour along with gold letterings make it look good and the canister also has some night texture with the picture of the Naval Commander Kanoji Angre on it. The shape of the bottle is similar to that if Monkey Shoulder whisky somewhat.
The bottle looks like Monkey Shoulder Whisky
Nosing:
With an alcohol by volume (ABV) of 42.8%, this rum is undoubtedly smooth while nosing. Its sweetness carries note reminiscent of vanilla, which is evident from the aroma it imparts. There’s a distinct and clear vanilla scent. While there’s not much spiciness, the scent is deep and intense. Taking a whiff of this rum can also provide a pleasant sensation, gently expanding one’s nostrils.
Tasting:
Talking about the taste, as expected, it’s smooth. When the spirit enters the mouth, it feels refined, smooth and also warm. The spiciness hits you slightly late just as the vanilla sweetness fades away. There’s a lingering texture on the palate, offering a warm and comfortable feeling. Interestingly, although the spiciness isn’t obvious at first sip, it becomes evident shortly after. The spiciness is balanced and not overwhelming, providing a relaxed experience. The finish is prolonged, felt at the back of the throat, and carries a warm sensation with a subtle hint of spice. Despite the enticing aroma of vanilla and sweetness, these flavours don’t translate as strongly onto the palate. For a rum with a 42.8% ABVit goes down smoothly.
Conclusion:
Priced at ₹1300, this rum certainly falls into the premium category. It’s important to note that this isn’t a budget-friendly option, especially when considering potential higher costs in other states. But the makers are very clear that this is meant to be a handcrafted small batch rum. While the rum is good I would’ve been happier if it would’ve been priced at around Rs. 900 – 1000, it would’ve flown off the shelves then. But overall you must try this for sure, atleast once.
