Tag Archives: alcohol news

Beam Suntory global sales up 11%, India and China key markets for future growth

Beam Suntory, a world leader in premium spirits, reported full-year 2021 results, with sales up 11% globally. These results also demonstrated strong growth versus the pre-pandemic year of 2019, with sales also up 11% over the past two years.

The company’s 2021 results were led by sustained strength in off-premise sales, and very strong performance in markets where bars and restaurants reopened faster than expected. Markets including Germany, Russia, Spain, emerging Asia and Global Travel Retail all grew at double-digit rates, as did China and India, key markets for Beam Suntory’s future growth ambitions. Sales in the U.S. grew high-single digits, bolstered by robust demand for premium brands. Sales in Japan, up mid-single-digits, benefitted from strong demand for convenient ready-to-drink beverages like -196x but were impacted by extended on-premise restrictions.

Premium brands to the fore

By brand, results underscore the strength of consumer interest in premium brands. Sales grew double digits for brands including Maker’s Mark, Basil Hayden, Knob Creek, Booker’s and Legent bourbons, Laphroaig, Bowmore and Auchentoshan scotches, Hibiki, Hakushu and Toki Japanese whiskies, Sipsmith and Suntory Roku gins, and El Tesoro and Hornitos tequilas, while On the Rocks (acquired in 2020) continued to show exceptional growth. Beam Suntory’s flagship Jim Beam also demonstrated solid growth despite glass supply constraints affecting certain bottle sizes.

“We’re immensely proud of the results our business has been able to deliver in the face of historical challenges related to the pandemic, including on-premise closures and supply chain constraints,” said Albert Baladi, president & CEO of Beam Suntory. “Our results underscore the strength of our premiumisation strategy that relies on exceptional quality, superior storytelling, and executional excellence across consumer touchpoints.”

Strategic moves with accelerated investments

“Our confidence in the future is reinforced by the strategic moves we’re making, with accelerated investment in our business — including capacity, capabilities and our sustainability agenda — the 2021 acquisition of our route to market in Spain, and our upcoming joint innovations with Boston Beer. The people of Beam Suntory look forward to delivering another year of outstanding performance in 2022.”

Beam Suntory launched Proof Positive in 2021, the company’s comprehensive sustainability strategy, representing a $1 billion+ commitment to making a positive impact on nature, consumers and communities.

The key Proof Positive developments during 2021 include renewable energy usage; water conservation; sustainable brands; consumer focus and DEI (diversity, equity and inclusion).

Renewable Energy Usage: All global manufacturing sites began purchasing renewable electricity (or renewable electricity certificates) in 2021, with the goal of 100% renewable electricity usage at across operations by the end of 2022. The Fred Booker Noe Distillery opened in 2021 in Clermont, KY powered by an electric boiler using renewable electricity. In 2022, a pilot project to generate “green” hydrogen will commence at the Ardmore distillery in Scotland. This work supports the company’s commitment to the Race to Zero initiative.

Water Conservation: Closed-Loop Cooling systems were installed in two of the company’s Kentucky distilleries, significantly reducing water usage. Through watershed sustainability collaborations, the company established the first Peatlands Water Sanctuary (Scotland) and the Charco Bendito Project (Mexico).

Sustainable Brands: Sipsmith Gin & Maker’s Mark both achieved B Corp certification in 2021. B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.

Consumer: Beam Suntory has increased options for low and no-ABV drinks with products like Sipsmith FreeGlider and the expansion of Lemon Sour Zero. The company is also applying nutrition labelling to key brands across Europe and the U.S. as part of its voluntary commitment to provide nutrition information and alcohol content information on packaging or online for all products by 2030.

Diversity, equity and inclusion (DEI): The percentage of female new hires increased 6% to 50% in 2021, with the US multicultural employee population increasing by 4% at both the mid- and senior-manager levels. New and expanded opportunities for internal multicultural talent also increased, accounting for 19% of US promotions and 21% for lateral promotions.

‘Nolo’ is soon going to froth in Asia

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Specific to Asia, Carlsberg has five brands brewed in China and one in Malaysia, while it has made its presence felt in Hong Kong and Singapore markets, it is now keen on expanding to other markets in the region. Alcohol free segment accounted for the largest revenue size of USD 2 billion in 2017 owing to the increasing adoption of healthier lifestyles coupled with the benefits of non-alcoholic beer in China, India, and Japan.

Growing at over 7.5% CAGR

According to a Graphical Research report, the Asia Pacific non-alcoholic beer market size was valued at USD 4.3 billion in 2017 and is expected to grow at over 7.5% CAGR from 2018 to 2024. As of now, China is leading in this segment in Asia and the drivers are the adoption of a healthy lifestyle along with shifting consumer preferences towards ‘Nolo’. The report said that increasing awareness for negative health effects of alcohol consumption is among major factors boosting market penetration.

China holds nearly 30% market share in ‘Nolo’

China holds nearly 30% share in launching new non-alcoholic beer products. As mentioned earlier, Carlsberg has four brands – WuSu Fresh Orange & C; WuSu Pineapple & C; Xixia Fresh Orange & C; Xixia Pineapple & C, and Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong while in Malaysia it vends Nutrimalt which is said to be nonalcoholic malt beverage that is nourishing and packed with vitamins and nutrients such as Vitamin C & B complex. It is said to be a great energy booster after a workout.

Manufacturers are launching new beverage brands with different flavours to expand consumer base as it is estimated that there is a sizable market which is looking at healthy brews. An increased attention on both physical and mental health has been cited as a cause of the growth of nolo products, which are increasingly popular among younger consumers.

However, in India the trend is not that perceptible, though non alcoholic brews are making the rounds, mostly propped by young beer drinkers who are either switching from standard beers to non-alcoholic variants or they are willing to taste new beers, both with alcohol or no or low alcohol content ones.

India sees slow but steady growth

Some of the ‘Nolo’ in India include Budweiser 0.0%; Heineken 0.0% non alcoholic lager beer; Kingfisher Ultra non-alcoholic beer; Hoegaarden 0.0% non-alcoholic beer; Kingfisher Radler – non-alcoholic malt drink; Coolberg Cranberry non-alcoholic beer; Crofters non-alcoholic beer; and Barbican. Carlsberg is said to be exploring the market opportunity in India with regard to ‘Nolo’. But it has been steadfast in its commitment to creating a culture of responsible drinking by promoting moderate consumption of products and addressing alcohol-related harm in society. “We therefore aim to celebrate the positive aspects of moderate beer consumption and to position beer as a relevant and responsible choice with a role to play in the ‘good life’ to which modern consumers aspire.”

Young beer drinkers call the shots

As per a survey by Mintel about 40% of young beer drinkers in India are interested in switching from standard-strength beer to low calorie or non alcoholic variants of the brew. The survey pointed out that internet users who were contacted and who had consumed beer in the past six months were interested in exploring alternatives to beer.

Carlsberg’s ‘Sail’ strategy

Carlsberg has set sail for the next five-year journey with its 2016 ‘Sail’ strategy. Since its launch, ‘Sail’ 27 has been providing a clear overall direction for Carlsberg resulting in a healthy and strong company. The company said that “In developing Sail 27, we have aimed at keeping and sharpening our strong strategic, organisational and financial dynamics while ensuring that our direction-setting was refreshed and that our new strategy reflects expected consumer, customer, societal, regulatory, economic and geopolitical trends.”

The Chief Executive Officer Cees ‘t Hart said, “SAIL’27 is the exciting next step in the evolution of Carlsberg. Co-created by a large group of employees and leaders, and built around our purpose, SAIL’27 has clear choices for brands, categories, markets and capabilities, and steps up our ambitions for top- and bottom-line growth.” In essence, SAIL’27 focusses on five strategic levers – portfolio, geographies, execution, culture and funding the journey – for which the company has made distinct strategic choices, defining the focus of our efforts and resource allocation.

Our strategic levers and choices should be viewed as an integrated set of activities that together will drive value for all stakeholders. “SAIL’27 is built around our purpose of brewing for a better today and tomorrow, and our ambition of being the most successful, professional, and attractive brewer in our markets,” Cees ‘t Hart adds.

Collaborative effort 

SAIL’27 is a collaborative, company-wide effort, co-created by over 200 Carlsberg employees from more than 30 different markets. “Talents, experts and leaders from all over Carlsberg Group have brought their day-to-day knowledge and fresh ideas into this new strategy. They have assessed the impact of the current strategy on their local business or function, shared learnings and trends they see impacting the business and challenged our thinking on the future strategy. By bringing such a diverse set of voices the process we have created an even stronger strategic path for Carlsberg,” says Marcela Linke, Director, Group Strategy. 

Carlsberg said that the beer category continues to offer attractive long-term volume and value growth opportunities, though with different growth dynamics between categories and markets. Our portfolio choices target these growth opportunities. In addition, the company sees further attractive growth opportunities for selected categories beyond beer. Today, the Group has attractive widespread geographical presence and no. 1 or 2 positions in 22 markets across Western Europe, Asia and Central & Eastern Europe. While market dynamics are different in the three regions, they all offer appealing long-term revenue and earnings growth opportunities.

Carlsberg ‘Nolo’ brands grow by 11%

Carlsberg’s recent financial statement revealed its ‘Nolo’ brands grew by 11%, making it one of the most successful areas of the business for the brewing giant. While sales of other household names owned by Carlsberg shrunk (namely Tuborg and the Carlsberg brand itself), the ‘nolo’ range demonstrated quite a sizeable growth, which is perhaps indicative of a shift in consumer habits towards alcohol-free beverages.

Carlsberg said it saw good results for its recent launches in the category, including Baltika Zero Grapefruit and Raspberry, Brooklyn Special Effects and Somersby 0.0. In addition, the brewing group entered the Asian market with similar ‘nolo’ products in 2020 too, with the launch of Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong.

What’s driving ‘nolo’ growth?

“Brewers have had to adapt to unprecedented market conditions and one area of success is Carlsberg’s low-ABV or alcohol-free ‘nolo’ brands, which are notable for 11% growth as consumers continue to moderate their alcohol intake,” said Ryan Whittaker, Consumer Analyst at GlobalData.

“Increased health consciousness, which includes both physical and mental health concerns, is causing many to reduce their alcohol intake, and the pandemic has brought all of this to the fore.”

According to GlobalData, 28% of global consumers claim to be buying less beer during the pandemic and approximately 27% of consumers say that they are extremely concerned about their physical health. What’s interesting is that these trends correlate with age, with millennials being both the most extremely concerned about their health and most likely to be buying less beer than before the pandemic. Even otherwise, the millennials are known to experiment, try out new products and that is driving manufacturers to innovate.

The Struggle with Counterfeiting in Spirits Industry: Coming out of Covid Crisis

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Spokesperson: Mr. Ankit Gupta, Gov Body Member, ASPA (Authentication Solution Providers’ Association)

What has been the counterfeiting scenario in the spirits industry during the Covid crisis?

During the Covid crisis, alcohol in India has emerged as the sector with the largest number of counterfeiting incidents. This includes adulteration, trademark infringement, fake liquor, fraud, and other ways to copy products. According to ASPA counterfeit news repository study, alcohol continues to be in the top five sectors in 2018, 2019 and 2020 facing these risks. The same trend continued through 2021. Alone in Uttar Pradesh officials had seized approximately 12.57 lakh litre illicit liquor till November 2021 (Source: Aabkari Times, December 2021).

Despite being one of the most regulated sectors, in normal circumstances also alcohol industry is one of the biggest victims of counterfeiting and illicit trade. During the pandemic the industry was hit badly as sales through restaurants, hotels, etc. was adversely affected. Drinking at home became more acceptable and picked up but was still not enough to substitute the lost revenues. While the industry was struggling with low demand, criminals exploited the demand-supply gap to sell more quantities of counterfeit liquor, creating an even bigger threat to human well-being.

Why is the alcohol industry one of the top targets for counterfeiters and illicit trade?

Criminals are attracted to the alcohol industry because of various reasons e.g. high profitability, evasion of taxes, low consumer awareness, lack of universal pricing in India as well as high demand. In addition to this, the easy availability of raw material Methyl Alcohol, which is widely used for industrial purposes is another reason.

The margins for criminals are considerably huge and despite regulations, the task of counterfeiting and illicit trade is not being made challenging enough for them. During lockdowns, restricted access to and availability of good quality liquor gave a bigger push to the sale and purchase of counterfeit or illicit liquor. In some cases, it was observed that people saw the acquisition of liquor in difficult times at higher rates as social status or public image booster.

The danger has increased as criminals are using more reckless methods of producing and smuggling alcohol. For instance, many incidents of liquor being produced from sanitizers or ethyl alcohol or spirits from petrol and diesel mixed with colour being sold in copycat or discarded packaging surfaced across the country. These products are hazardous.

How can counterfeiting be controlled effectively post-pandemic?

Development of a solution always starts with recognising the problem and assessing its magnitude. Counterfeiting has been underestimated and this has prevented the development of a robust strategy and solution to curtail it. The fight against counterfeiting and illicit trade needs to be fought from three fronts – policy, brand, and consumer. A policy framework that guides support and nurtures an ecosystem which strong against counterfeiters. It should protect businesses and consumers against counterfeiting malice while enabling effective law enforcement and effective punishment to those who commit the crime.

Being an integral part of the system, brands should take solid steps to protect their products by building an adequate defence of anti-counterfeiting solutions and traceability infrastructure. For instance, multi-layered protection through packaging by implementing anti-counterfeiting solutions which make it almost impossible to copy – one-time break seals and sleeves. Supported by smart solutions such as tax stamps, digitally readable labels, QR Codes, etc. Made more effective by awareness which educates consumers about how they can safeguard themselves from counterfeit products.

Consumers can play an important role in the fight against fakes, they are their first line of defence. A little bit of carefulness and attentiveness on their part while buying liquor can save them from getting cheated.

Can the online sale of alcohol be a welcomed trend? Can it help in curbing the sale of counterfeit liquor in the country?

The pandemic crisis has encouraged discussions about the online sale of liquor in many states. According to a survey by YouGov National survey findings, almost 60% of consumers are eager to purchase alcohol online. Safety and convenience have been cited as key reasons to prefer the e-commerce channel to buy alcoholic beverages. While the online channel offers consumers more choice leading to innovation within the category and incremental revenue opportunities for state governments, we need comprehensive regulations and safeguards for selling liquor online and need to tread with a lot of caution. The process and compliance regulations for alcohol delivery will vary from the delivery of groceries or essentials. Moreover, the possibility of alcohol being seized during transit and the adulteration of alcohol by criminals cannot be ruled out either. The authentication industry can offer technology-enabled packaging and anti-counterfeiting solutions that can plug these risks and challenges. The digital footprint cn help in traceability and if done with proper provisions it can ease the process of identifying and catching frauds.

The Macallan unveils The Reach Single Malt Whisky

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The Macallan has unveiled The Reach, an incomparable single malt whisky that reflects an extraordinary moment in time and exemplifies the enduring spirit that has been at the heart of the brand for almost 200 years.

Crafted during the Second World War in a period of increasing hardship, The Reach was laid to rest in 1940 before The Macallan was compelled to close its doors for the first time in its history.

Its very existence is testament to the care and commitment to uncompromised excellence that has driven The Macallan since it was founded in 1824. It also pays tribute to those who strived amid great adversity to resume distilling The Macallan’s spirit, as well as the crafts people today who continue to uphold the brand’s values.

A rare single malt at 81 Years Old, The Reach is the oldest whisky ever released by The Macallan, crafted from a single, sherry seasoned oak cask. The dark, precious whisky is encased in an exquisite decanter created from mouth-blown, hot glass, cradled on a bronze sculpture of three hands.

Each hand represents characters in The Macallan’s history and their unique story. One commemorates the Distillery workers of 1940 who crafted the spirit into existence, in challenging times, over eight decades ago. Another is the hand of one-time chairman, Allan Shiach, whose grandfather headed the company when this remarkable spirit was first consigned to its cask. The third is that of today’s Master Whisky Maker, Kirsteen Campbell, who carefully selected the 1940 cask used to create The Reach, deciding that now was the time to share this precious whisky with the world.

Kirsteen Campbell, Master Whisky Maker, The Macallan, said, “It is an honour to introduce The Reach. Created during a turbulent time in the world, this extraordinary expression showcases The Macallan’s history, ingenuity and unmistakable strength of character.

“The creation of many hands, The Reach has been a truly collaborative effort. It’s also a tribute to the people who made this precious whisky, and their enduring spirit which never wavered.

“Its deep auburn hue is the first hint of this remarkable whisky’s astonishing depth. Offering notes of dark chocolate, sweet cinnamon and aromatic peat, leading on to treacle toffee, crystalised ginger and charred pineapple, before giving way to an intensely rich, sweet and smoky finish.”

Reflecting its rarity and significance, The Reach is presented in unique packaging brought together by a collective of Scottish artisans. A tale of collaboration and connectivity, the result is a handcrafted quartet of liquid, glass, bronze and wood that is a fitting tribute to this very special whisky.

Sculptor Saskia Robinson created the timeless sculpture featuring three hands, producing countless drawings from every perspective before working in a physical medium. The veins, nails and skin detail are recorded in extraordinary accuracy, modelled on an artist’s impression of a hand of one of those original still men. The sculpture is cast in bronze and the glimmer of the metal contrasts beautifully with the amber whisky.

The surface of the glass decanter features subtle indentations that match the fingerprints of the bronze hands which support it, while a beautiful cabinet crafted using wood from an alien elm tree, which is thought to have been on The Macallan Estate in 1940, houses the decanter.

A film has been created by renowned London-based photographer Nadav Kander working closely with his art director, Matt Willey, who was previously the art director at The New York Times Magazine. Featuring original music composed and recorded by Scottish band Mogwai, recently shortlisted for the prestigious Mercury Prize, it tells the story of The Macallan’s legacy and the collaborative process behind The Reach.

Highly limited to only 288 decanters worldwide, The Reach will be on display at The Macallan Estate Boutique from 9th February 2022 and later in The Macallan domestic and travel retail Boutiques. The RSP is $125,000/£92,000/€110,000.

Russia’s alcohol market

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As vodka comes under the spotlight amidst Russia’s invasion of Ukraine, IWSR takes a deeper look at the Russian alcohol market.

Russia is the 4th largest alcohol market in the world in terms of volume, with imports accounting for 9% of total consumption. Whisky makes up 5% of Russia’s spirits consumption, and a third of its spirits imports. 91% of Russia’s whisky consumption is from imported whisky. While there have been calls to ban Russian-made goods in light of the country’s invasion of Ukraine, boycotts of Russian vodka brands will have a fairly minimal impact on Russian vodka producers. Any significant impact is more likely to be symbolic.

While Russia is the largest vodka producer in the world, with over 30% of global production, the vast majority (over 90%) of Russian-made vodka is consumed domestically.

Outside of Russia, the UK, Germany, the US and Israel round out the top five markets for Russian-made vodka, although volumes are relatively small.

Russian vodka accounts for under 3% of all vodka consumed in Europe (excluding CIS) by volume.

In the US, the world’s second largest vodka market by volume, Russian vodka accounts for less than 1% of all vodka consumed. Approximately half of all vodka consumed in the US is made in the US. While vodka is the country’s largest export, Russia is also a relatively large producer of beer and wine – though much of this is consumed domestically.

Russian beer makes up 1% of the global beer market. Over 99% of Russian beer is consumed domestically.

Similarly, Russia produces 2% of the world’s still wine, with almost all of it consumed locally.

Russia also produces 6% of the world’s sparkling wine, with 99% of it consumed domestically.

No discounts or offers on Alcohol in Delhi says Excise Department

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Following complaints of congestion outside vents and the ongoing danger of COVID-19, the excise commissioner of Delhi advised liquor outlets in the city on Monday to cease giving discounts and rebates on alcohol brands. In an order, the government urged licensees to stop offering concessions, rebates, or discounts and threatened action against shops that did.

Crowds were observed thronging the vends as booze stores offered discounts and incentives such as ‘buy one get one free.’ There were also reports of law-and-order difficulties, and police were sent in to quell the mob. People in Jagatpuri, where a liquor store refused discounts, had lately resorted to throwing stones, breaking the shop’s glass panes, and injuring the employees.

“It has been brought to the notice of the excise department that as a result of discounts being offered by the licensees through their retail vends, instances were reported of large crowds gathering outside the liquor stores leading to law-and-order problems and causing inconvenience to locals,” the order by the excise commissioner stated.

As a result of liquor retailers lowering prices on various brands of alcohol by up to 40%, many consumers began acquiring and storing significant quantities, believing that the programmes would be discontinued at the end of the current fiscal year. According to the ruling, the Excise Department also learned that the programmes and discounts given at liquor stores were contributing to “unhealthy” market practises. The Covid pandemic is not ended, and the risk of infection remains, according to the directive, which adds that large crowds are expected to exacerbate the issue in Delhi.

“Commissioner Excise hereby orders that all L7Z licensees shall neither give concession, rebate or discount on the maximum retail price of liquor and hereby directs all L7Z licensees to strictly abide by Rule 54(3) of Delhi Excise Rules 2010. If any such instance of discount/rebate/ concession is brought to the knowledge of the undersigned, action as per Rules and Act as well as penal action as per tender document will be taken against defaulting licensees,” read the order.

The intent of the government in allowing discounts by retailers was to promote consumer choice and healthy competition and determination of price by market forces, it said. “The discounting of this nature was not the objective of the government while permitting the discounts in the new excise regime. The licensees are seen indulging in various promotional activities through social media and banners, hoardings outside the stores which is a non-permissible activity under the Delhi Excise Act, 2009 and Delhi Excise Rules, 2010.”

Last year, the Delhi Government adopted the Excise Policy 2021-22, as well as the terms and circumstances for the award of several kinds of licences. On November 17, 2021, the policy went into force. According to the Excise Department’s tender document for issuing 849 retail liquor licences, licensees are permitted to provide a rebate/discount/concession on the maximum retail price of liquor set by the Excise Commissioner. According to the ruling, under clause 15.2 of the tender document, the Department of Excise may, in its sole discretion, but without any obligation to do so, update, revise, or supplement the information in the tender document issued last year.

Svami pays a tribute to the Legendary football player by collaborating with Amazon Original Series Maradona: Blessed Dream

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Svami, a brand in the non-alcoholic beverage segment, has teamed recently with Amazon Prime Video’s most anticipated football series on the legendary player, Diego Maradona. Svami has launched a Limited-Edition bottle for 2 Cal Cola in honour of Maradona’s No. 10 jersey. The partnership also commemorates Maradona’s birth anniversary, as the series premiered on the same day. The series premiered exclusively on Amazon Prime Video on October 29, 2021, across 240 countries and territories.

This collaboration between Svami and Amazon Prime Video is a one-of-a-kind partnership in which Svami’s varied selection of beverages and mixers, especially the new limited edition 2 Cal Cola, is the ideal choice of refreshment while watching the all-new exhilarating series at the edge of one’s seat. Through this collaboration, the brands aim to reach out to a larger football fanbase across the various metros of India. They have an exclusive retail tie up with Foodhall pan India and engagement on social media by involving the Maradona fan base has been on the cards. The brand will also run a digital ad to announce this partnership.

Aneesh Bhasin, Cofounder at Svami further added that, “Svami always has a different taste when it comes to collaborations. When we got to know that Maradona: Blessed dream was going to be launched on Amazon Prime Video, it was a no-brainer for us to onboard and thereby engage our football fan base via this collaboration. The launch of 2 Cal Cola Limited Edition, is our way of paying a tribute and celebrating the No 10 associated with this legend.”

Svami is spearheading the category of mixers and non-alcoholic drinks for adults. Svami’s comprehensive portfolio of drinks ranges from products like tonics to non-alcoholic rum and cola, giving people choices for great tasting drinks on all occasions. In a short period, Svami has become the default choice for bars and restaurants and retails in 40+ cities in India, Singapore and Hong Kong.

Maradona: Blessed Dream follows the controversial life of legendary footballer Diego Armando Maradona. A boy from Argentina with a dream of greatness, made his mark in the international football league, earning himself a well-deserved place in history. Living a life strewn with drugs, sex and public scrutiny, he played by his own rules regardless of the consequence.

Bombay Sapphire launches bar quality ready-to-drink Gin & Tonic

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Bombay Sapphire recently announced the launch of Bombay Sapphire & Tonic Ready-to-Drink (RTD), enabling its consumers to now enjoy the world’s number one premium gin as a bar-quality Gin & Tonic serve, no matter where they are. The much-anticipated offering combines the brand’s heralded, vapour-infused London Dry Gin with the perfect balance of tonic water, for a superior taste experience.

Bombay Sapphire has been disrupting the category ever since its iconic blue bottle landed on shelves within a sea of green glass. Now, consumers can prepare themselves for a drink that stays true to the brand’s long-standing commitment to only the finest ingredients with a bar-quality taste.

Bombay Sapphire & Tonic is best enjoyed cold, straight from the fridge and poured over ice with a refreshing squeeze of lime. Whatever the occasion, whether it’s al-fresco events, to intimate gatherings at home, or being on the move, the pre-mix is meticulously crafted to showcase the signature juniper and citrus notes of Bombay Sapphire gin. Aside from its versatility and convenience factor, Bombay Sapphire & TONIC ensures it does not compromise on quality and taste. The perfectly balanced gin’s amalgamation with tonic offers a premium quality cocktail to-go with no artificial flavours or colours added to the final product. The ready-to-drink cocktail cans are sure to become a widely demanded product that is ideal for outdoor gatherings, festivals, beach days, and more.

Adtnu Tiwari, Senior Brand Manager, Premium White Spirits, Bacardi India Private Ltd., expresses his views on the launch, “Bombay Sapphire is known for stirring creativity in various capacities and disrupting the market with its innovative vision. Besides versatility and convenience, one of the key focuses while launching the Bombay Sapphire RTD was to emphasise and ensure that the quality of the drink remained intact. While the product enables its consumers the ease of portability and storing the drink, what sets it apart is its taste that’s at par with that of a premium bar cocktail. Bombay Sapphire’s RTD is going to fit all occasions, anytime and anywhere; it is going to grow into becoming the next most demanded product under the RTD category.”

The sleek, matte finish packaging has been carefully designed to preserve the standard of the serve, both on-shelf and once purchased. The material helps protect the liquid from sunlight keeping the G&T fresher and colder for longer. Available individually or in a pack of four, the can is 100% recyclable. Bombay Sapphire & Tonic will soon be on the shelves of all top retailers for gin fans to pick up.

Uttar Pradesh increases license fee, sets excise revenue target at Rs. 40,000 for 2022-23

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Uttar Pradesh became the first state to announce its excise policy for the year 2022-23, setting an excise revenue target of Rs. 40,000 crore, up from Rs. 34,500 crore in the previous year. To achieve the target, one of the routes the UP government has taken is to increase the license fee across all categories. The increase ranges from 20% to a whopping 172%, depending upon the nature of license.

Revenue Target

The UP government collects 20% of its annual revenue from excise, however in the last two years, due to Covid, there has been a dip in the collection of excise from the set targets. In 2020 -21 targetted revenue was `37,500 crore which was reduced to Rs. 34,500 crore in the current financial year (21 -22) against which by this year end the expected revenue collection is Rs. 36,000 crore. Considering the positive trends and situation becoming normal the UP government has fixed an optimistic revenue of Rs. 40,000 crore. This is 16% more than the revenue target of 2021-22. The breakup of revenue planned for 22-23 is shown below :

Avenues for Revenue

Licence Fee

To achieve Rs. 40,000 crore, it has increased the licence fee and security amount across all categories of licences. Some of these licences are shown below:

Besides the above mentioned increase, the processing fee for these licences has been increased to `1.0 lac as against Rs. 55,000 for each application.

Brand & Label Registration Fee

Label registration is very tedious work which the entire beverages alcohol industry has to indulge in every year by compromising manufacturing and supplies till new labels are registered. Manufacturers spend a good amount of productivity of its people besides paying the stipulated fee. The industry feels it is difficult to understand the reason for this increase every year. Under the new excise policy, this fee has been increased from 33% to 90%.

Excise Duty

There is a very nominal increase in the Pratifal fee of IMFL. This increase will be between 0.75% – 1.50% maximum per case of 9 litre depending upon the Liquor category (Economy, Medium, Regular, Premium etc.). Similarly for beer the Pratifal fee has been increased by Rs. 1 per litre. At least this is a relief to the industry which has a direct impact on fixation on MRP.

Country Liquor – The Milking Cow

Due to high sales, massive production stakes with minimal import allowed from outside state, country liquor (CL) has always been top priority for various state excise departments. CL’s contribution in overall excise revenue ranges between 45% – 50% every year and therefore a lot of effort is made to safeguard this major chunk of revenue. The UP excise has therefore initiated following steps to ensure its revenue of Rs. 19,140 cr. for the fiscal 2022 -23;

Reducing MRP by Rs. 5 per unit of 200 ML
Removal of Covid cess
a) Not increasing the excise duty
Removing 42.8% v/v MASALA CL . Now there will be only two types of MASALA CL i.e. 36% & 25% v/v
However 42.8% v/v UPML shall continue to sell at reduced MRP

It is very interesting to note that the same UP Govt and state excise department which had become very strict on changing the packaging norms of country liquor last year has changed its decision in just a couple of months . After two subsequent hooch tragedies in western UP in early 2021, the alternatives of the CL in PET bottle were being discussed at high levels of government and in the months of July – August 21 pressure was mounted on the industry to source aseptic brick carton filling machines aka Tetra Pack machine since this kind of packing is considered as 100% tamper proof. In fact few circulars were issued to industry to start supplying at least 20% of CL in Tetra Pack immediately. There was much hue & cry in UP’s distillery sector because there is hardly any manufacturer of this type of filling machine in India and import of this machine can take minimum 90 – 120 days’ time. In the new excise policy this condition has been replaced from Tetra pack to glass bottle packing having a shrink wrap on the cap. This will certainly give a boost to Firozabad (UP) glass industry which has been requesting the government to provide a platform for its revival.

Wine: Still a Mirage

The total excise revenue generated through wine sales in 20 -21 was only Rs. 9.68 crore out of total revenue generated of approx. Rs. 30,000 crore. Wine’s revenue contribution increased to Rs. 29.54 crore in 2021-22 of Rs. 34,500 crore. The growth in wine sales in UP has phenomenally increased by 200% in just one year which clearly shows the scope and opportunities for wines. The increase of revenue is directly proportional to consumption.

At the moment there is not a single winery in UP and to boost the wine industry the government is continuing with its endeavour as provided in its last years excise policy by :

Exempting wines produced in UP from all types of excise duty & levy for a period of another four years
Allowing vintner to sell wine in a store inside the winery by paying a small annual fee of `50,000 for a year
Allowing wine taverns inside the winery.
A licence fee of Rs. 57,500 for establishing a winery in UP

The new excise policy also indicates towards a separate new wine policy being prepared. It is suggested that the UP government establish a wine promotion board on the lines of the Karnataka Wine Board which is headed by a knowledgeable and senior IAS officer and other administrative officers who closely work with wine industry to find our more and more avenues for increasing wine production and consumption. Associations and federations like the Indian Wine Academy should also come forward to tap this potential.

Ease of Doing Business

We can see some steps the U.P. government is taking for ease of doing business in the excise policy. Some of these initiatives are:

Annual licence fee for home/personal possession of liquor licence has been reduced to Rs. 11,000 from Rs. 12,000 from last year and the refundable security amount has also been reduced to Rs. 25,000 from earlier Rs. 51,000.
Wine manufacturing and selling soaps as mentioned.
No increase in bar licence fee.
Microbrewery can sell/supply craft beer in 50 litre kegs.
Wholesale licence can store stocks w. e. f. 15th Feb.22 meant for next excise year.
Renewal of retail shops is permitted.
No increase in any licence fee and excise duty for defense forces establishments in UP.
Rs. 50,000 will be given as discount on the licence fee if bar & microbrewery both licences are applied simultaneously.
Track & Trace system to be extended to the retail sales.

Analysis By: Gopal Joshi

Strategist & Consultant

Beverages Alcohol Industry

linkedin.com/in/gopal-joshi-78a2a33

Baileys predicts the mouth-watering treat trends for 2022

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Global Brand Director, Jennifer English, looks at the trends which are set to take the world of treats by storm and why less but better, kindness, and mother nature will be inspiring how we treat ourselves this year.

The uncertainty and unpredictability of the last two years has seen consumers look for moments of spontaneity and joy in their lives, more than ever before. Gone are the days where treats are seen as frivolous luxuries, people now see them as essential parts of a balanced joyful lifestyle.

Over the last few years, we’ve repositioned Baileys as a year-round adult treat and successfully established it within the treating and indulgence category which is forecast to grow by £302 billion by 2025.

While once seen as a cream liqueur enjoyed only on special occasions, we’ve inspired consumers globally to get creative with Baileys all year round, from drizzling over ice cream in summer to adding a splash to your hot chocolate in winter. During lockdown, as home baking soared, Baileys was added to banana cake drizzle, dalgona coffee, mochi ice cream and more, as consumers looked for new ways to add a touch of indulgence to their sweet treats.

So, what’s next? Working with food futurologist, Dr. Morgaine Gaye, and renowned chefs, bakers, journalists, writers and food stylists from around the world, here are the macro trends that will impact the scrumptious treats we’re set to see and taste in 2022.

Less but better: 2022 is going to be all about indulgences that are meaningful – spending a little bit extra on more premium treats. Think along the lines of treating yourself to a beautifully crafted barista coffee or the ‘fancy pants’ chocolate rather than impulsive till point purchases. We want to make sure our treats are as meaningful as possible. It’s all about quality over quantity.

Taste of kindness: We’ve all seen the importance of kindness in recent times. And there’s no better way to express kindness than through the act of giving. But our need for kindness doesn’t stop at turning up at a friend’s house with a homemade brownies or box of cupcakes – we’re going to be looking for foods that are made with compassion, be it cocoa from a B-Corp chocolatiers or a Fairtrade coffee. We want to celebrate the spirit of community.

Inspired by Geo-Nature: Treats are about to get visually exciting – we want a feast for the eyes, as well as our bellies. A treat for all the senses… foods that glisten with iridescent gold, or mimic nature in the form of flowers, snowflakes and crystals. We’re ready to walk into a brand-new day, with some jaw-droppingly gorgeous treats to mark the occasion.“

Treating in 2022 will reflect our response to the past two years, as we emerge from a time of feeling restricted. We now want to explore our freedom and embrace indulgent fun in our treats, whilst also being mindful of the impact on the planet and how they integrate with nature itself,” says, Dr. Morgaine Gaye.