Tag Archives: alcohol news

Glenmorangie and Ardbeg Single Malt Whiskies crowned as the Best Whiskies of the 2021

The 2021 edition of the International Whisky Competition was held from May 12- May 16 in Colorado, USA where a professional tasting panel comprising of whisky, wine and beer connoisseurs came together to determine the top whiskies of 2021. The Ardbeg Uigadail emerged as the “Best Whisky of the Year”, while Glenmorangie Vintage 1997 claimed second position. Dr Bill Lumsden of The Glenmorangie Company won the distinguished “Master Distiller of the Year” title, as a testimony of his vast experience, consistency and mastery in the art of distilling and creating remarkable whiskies.

As six out of top 15 whiskies were awarded to different expressions of Ardbeg and Glenmorangie, it truly demonstrates the craftsmanship and deliciousness of these whiskies. The variants that clinched these top positions include Ardbeg Traigh Bhan 19 Year Old, Glenmorangie Signet, Ardbeg An Oa and Glenmorangie Quinta Ruban that ranked 9th, 10th, 13th and 15th respectively.

Judged via blind tasting, each whisky was scored using a comprehensive 100-point scale system through an 8 minutes tasting session. The whiskies were rated on factors such as visual appeal, intensity and complexity, distinctiveness of aromas and flavours, and quality of finish, with three medals being awarded for each category. Thus, each win is unique and not duplicated with generic awards.

The noteworthy wins for Moët Hennessy at the 2021 International Whisky Competition establishes its brands’ expressions as favourites not only amongst the experts, but spirit aficionados and consumers across the world.

Allied Blenders & Distillers appoints Mr. Shekhar Ramamurthy as Executive Deputy Chairman

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Allied Blenders & Distillers Private Limited recently announced the appointment of Shekhar Ramamurthy as the Executive Deputy Chairman of the company with effect from the 1st of July 2021. He replaces Nick Blasquez, who has left ABD Private Limited to pursue other professional interests. Mr. Kishore Chhabria, Chairman has expressed his gratitude to Nick Blasquez for his contributions and the transformation journey that he had guided during his tenure.

Shekhar Ramamurthy, has spent over three decades with the UB Group in various leadership roles, the last of which was as the Managing Director of United Breweries Limited. He is well recognised within the alcobev industry for his leadership skills, ability to identify opportunities and drive growth and value. As the country and the industry unlocks from the effects of the Covid 19 pandemic, ABD is poised to continue its growth through building successful brands, winning with consumers and creating value for all stakeholders. Shekhar Ramamurthy will spearhead this journey.

Chivas Brothers appoints new Chief Executive

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Dumbarton-based distiller Chivas Brothers has a new Chief Executive and Chairman. Chivas Brothers which is part of the Pernod Ricard drinks empire, has recently appointed Jean-Etienne Gourgues as its new chief. Mr Gourgues replaces Jean-Christophe Coutures, who left the company in July after three years in the role. Mr Gourgues was most recently managing director of Pernod Ricard China.

The company said in a statement: “Chivas Brothers, the Scotch whisky business of Pernod Ricard, can confirm the appointment of Jean-Etienne Gourgues as chairman and CEO from July 1, 2021.

“Jean-Etienne joined Chivas Brothers from Pernod Ricard China, where he served as managing director. Previously, he was president and CEO of Pernod Ricard Japan, and he has also held senior positions at Martell Mumm Perrier-Jouët and Allied Domecq.“Jean-Etienne succeeded Jean-Christophe Coutures who will be returning to France after serving as Chivas Brothers Chairman and CEO for three years.“Jean-Etienne will be part of Pernod Ricard’s executive committee and will be based at Chivas Brothers London HQ, after relocating from Shanghai.”

Mr Coutures held senior roles with Pernod in Asia, Australia and Ireland before succeeding Laurent Lacassagne as chief executive of Chivas Brothers in February 2018. He arrived as Chivas was preparing to switch its Scottish bottling operation from Paisley to Dumbarton.

Radico Khaitan to launch 3 Premium Whiskies in the next two years

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Liquor manufacturer Radico Khaitan’s performance has been exemplary in these difficult times, highlighted by record sales and earnings. With the expectations of continued earnings and growth, the company is on course to better its performance in these difficult times. The Chief Operating Officer of Radico Khaitan Limited, Mr. Amar Sinha gives an overview of the company’s performance in these Covid times.

Is Radico focusing on premium brown spirits for growth?

Amar Sinha (Sinha): Yes. Radico Khaitan offers a wide array of products – 15 organically-grown brands including 5 millionaire brands – hence, we have something for every age group and in each category. The company, while enhancing the products in the white spirit category, is also focusing on the premium brown spirits while identifying India-specific consumer preferences in the category. In fact, among our successful premium offerings in the brown spirits category, we have 8PM Premium Black Whisky which is a master’s selection for the true connoisseurs of fine taste. 8PM is the flagship brand of Radico Khaitan and 8 PM Premium Black Whisky is a notch above offering which reflects the true essence of quality drinking.

Another essential driver of Radico’s growth in the brown spirits category is Morpheus Brandy (only brandy in the premium and super premium segment) which commands over 65% of the market share in the country. In the rum category, 1965 Spirit of Victory has been doing phenomenally well in the premium rum segment. Our most recent offering, Rampur Indian Single Malt Whisky, which was launched in the Indian market in February 2019 was rated amongst the top 5 world whiskies by “Whiskey Cask Magazine” US even before it was launched in the domestic market.

Which are the new products in brown spirits you are planning to launch?

Sinha: As a country, India has majorly been a brown spirits market. Though people are now open to experimenting more and showing an inclination towards white spirits, the brown spirits segment is continuing to dominate the world over. Of late, there has been a significant shift in people’s consumption pattern with many switching to more premium liquor because they have been mostly home-bound for over a year now which boosted savings to a large extent and that allowed them to move towards premiumisation. To cater to the consumer demands, Radico Khaitan is on course for the launch of more brands in the premium brown spirits space during FY2022 across categories. There are at least 3 Premium Whiskies in the brown spirits category that are currently on the drawing board which would be launched over the next 2 years. These are one segment above each other and with very high contributions in terms of price positioning. Radico has a history of launching at least 12 successful brands in the last decade and half.

What are the plans for 8PM this fiscal?

Sinha: RadicoKhaitan’s primary focus for the brand will be to take 8PM Premium Black Whisky pan India as it is currently available in 16 States. An extension of 8 PM Whisky – a flagship brand of Radico Khaitan – 8PM Premium Black Whisky successfully touched 1 million cases in March 2021, within just 2 years of its launch in the Indian retail market. This brand has been on the growth trajectory paved by its parent brand 8PM Whisky, which itself was a runaway success. It has been named the 5th Best Indian Whisky by the Spirits Business Brand Champion. We have introduced a pocket pack for 8PM Premium Black Whisky in West Bengal, Rajasthan, Telangana, Assam and Uttar Pradesh, which will soon be launched in other markets across the country. This is the first hipster pack in a glass bottle in this segment. 8PM Pocket pack is an innovative 90 ml pack size in look and feel and gives the feeling of a hip flask in glass bottle. The pack is launched to lure the consumer with its modern style and promote trial amongst new consumers.

In this digital age, what is your campaign strategy?

Sinha: While focusing heavily on brand expansion, we will also be launching campaigns with the brand ambassador Tiger Shroff to promote and celebrate the positioning of the brand. The Bollywood actor is extremely popular among the youth and is full of energy and vigour – traits that completely sync with the brand; hence we believe that the launch of the campaigns will further strengthen 8PM Premium Black’s positioning and take it to the next level. We are actively eyeing the digital medium for engaging with the brand loyalists and curating exciting digital campaigns across all social media platforms in order to enhance brand visibility.

Goa, the Gin Capital of India

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No, we are not saying move on Feni which is unique to Goa and mind you growing in its own way. Suddenly, in the last two years, despite the pandemic, about 15 brands of Gin have been crafted and launched across the country and 11 of them, yes a full team of brands, have their oriGin s in Goa. What is brewing over here in this beautiful coastal state? A lot ! And what warms the cockles of the heart is that young entrepreneurs, in their 20s and 30s, are the craftspeople. Cheers to this young brigade.

And it was a Goan – Cedric Vaz, it’s in his genes, right, to launch the first truly crafted Indian Gin by the name ‘Black Jewel’ and believe you me crafted Gin has turned out to be a connoisseur’s delight, irrespective of the brand.

There has been a resurgence of sorts for Gin . No, the pandemic has got nothing to do with it. Though the British East India company created the drink in the 1700s, it was a military cocktail, devoured by the troops to stay healthy. The British residents in India added Gin , sugar, ice and citrus and thus was born the Gin and Tonic. The witty statesman Winston Churchill words remain for eternity “The Gin and tonic drink has saved more Englishmen’s lives and minds, than all the doctors in the Empire.” Somewhere along the way, Gin lost favour and it was perceived as a ‘ladies drink’ and everyone with some knowledge has some reasoning for that. Around the same time, vodka and tequila captured the imaGin ation of the world and these spirits kind of drowned Gin. It was circa 2016 that in the United Kingdom there was growing interest in Gin which reportedly grew 44% year on year with about 100 home grown brands hitting the market. India is the fifth largest consumer of Gin after the UK, USA, Germany and Spain, but within the country Gin accounts for just about 1% of spirits consumed.

Young entrepreneurs driving craft Gin segment

But it is growing. In the recent past, it has caught the attention of the Indian spirit maker and consumer. The young co-founder and director of Stranger & Sons, Sakshi Saigal says “Though its presence in its current form is limited to the main metro cities, Gin is going through an extremely exciting phase and still transcending into the mainstream. There aren’t just new consumers every day but new Gin s too! As people travel, they have slowly started to understand India’s rich history when it comes to Gin and agricultural bounty when it comes to ingredients, so it has become an obvious choice for Gin makers alike.”

There are several reasons for this resurgence, one of which certainly is the drinking culture which is getting nuanced, thanks to the new generation which likes to explore, experiment and be expressive. The Chief Operating Officer of Radico Khaitan, Amar Sinha states “The Gin market appears very promising in the country as over the years people have been open to move beyond the regular brown spirits. They have started developing and appreciating the fine taste of the white spirit for the botanical infusions. There are many factors behind the popularity of this category such as increased exposure to global culture, the growing trend of cocktail culture, and Generation Z’s inclination towards experimentation with white spirits.”

Craft Gin comes with a price and why not?

If one looks at the drinking profile, these crafted Gin s seemingly are not for the hoi polloi. Almost all of them (Stranger & Sons, Greater Than, Hapusa, Samsara, Jin Jiji, Pumori, Jaisalmer and a few others) are priced in a way attracting the upwardly mobile. This is the segment that these manufacturers are looking at and not for nothing most of them are produced in small batches. “Craft Gin can only ever be premium. A low-priced Gin , will not ever be a craft product. Even so, we aim to make our Gin s as accessible as possible,” states Anand Virmani, Founder and CEO of Nao Spirits and Beverages (creators of Greater Than and Hapusa).

However, Mac Vaz of Madame Rosa distillery and the founder president of the Goa Cashew Feni Distillers and Bottlers Association, has another take on it. The first craft Gin , Black Jewel, from Madame Rosa stable is reasonably priced as to make Gin drinking accessible and affordable. All of them in some way or the other are working in that direction, coming up with a distinct touch of their own. It makes sense in a market which is slowly opening up, thanks to the many bartenders who are peppered across the country and ever open to experimentation.

Botanicals are at the core of this revolution

Botanicals are coming into that experimentation while Juniper is the predominant botanical ingredient in Gin , there are other accompaniments, most of them sourced locally. States Sakshi Saigal “Our botanicals are crafted together, taking inspiration from India’s culinary heritage which is centred around spices. Spice boxes are commonly found in almost all Indian kitchens and for centuries, they have been manipulated in different ways to create flavour in food, liquid, sweets and scents. Our Gin goes beyond the customary juniper and highlights inherently Indian botanicals and spices that are indispensable to every Indian household and form the backbone of India’s culinary heritage.”

In an article in The Hindu, Anoothi Vishal cites Dr. Anne Brock, master distiller at Bombay Sapphire, “I believe it is important that juniper remains the core, but we may need to relax and encourage difference. Gin is a global spirit with different botanicals and styles, and consumers are interested in the people who make their Gin , its provenance and story.”

Goa, India’s watering hole has friendly policies

And it is all happening in Goa, India’s watering hole. That is good enough a reason for many of the distillers to descend upon Goa, an investment-friendly state in the hospitality industry. Mac Vaz emphasizes “Goa being the apex tourist destination of the country gives smaller players a cost-effective advantage due to the consumer watering hole ! Also unlike in most other parts of the country, in Goa there is no hypocrisy and taboo quotient connected to liquor consumption in moderation. Lastly, Goa has a brand, has a natural USP in perception. Everything that is produced within Goa has its exotic positioning – Feni is a classic example of this.”

Why Goa? And Sakshi Saigal has the perfect answer for that going beyond the friendly excise policies of the state which has been eulogized at various forums. “We often hear a lot being said about Goa having more liberal excise laws and so on, making it easier to start brands there but honestly, that undermines what Goa truly has to offer. A former colony, Goa adopted a lot of the Portugese way of life which adds to its own unique charm. The roads wind through green fields, the people speak Konkani with as much ease as they do Portuguese; colonial bungalows and local spice markets all co-exist with some of the most progressive hospitality and restaurant establishments. Further, the Goan way of living life to the fullest inspires us every day to strive for innovation and keep experimenting with various spirits and expressions of our Gin .”

She adds “A truly special place for most Indians where you’ll find the cuisine, architecture and culture of India & Portugal come together, Goa is home to Stranger & Sons. Tucked away in a corner of South Goa, you’ll find us, hunched over our still, throwing iconic Indian botanicals into our Gin , while the local women peel fragrant Indian citrus outside. Goa indeed has its own strange ties to Gin , having been the heart of spice trade for centuries. Our wonderfully strange roots in Goa where cultures, societies and spiritual beliefs stand united under a liberal approach to life translates into the invisible essence in our bottle. When we aren’t distilling, you’ll find us sitting on a porch sipping on some Gibsons made with our pickles! “

Strange it may sound, can you believe it, there are over 3,000 registered micro distilleries in the coastal state and they have enough capacity and more to allow for manufacturing of any spirit. If you have an idea, some capital and a good recipe, just head to Goa.

Canned alcoholic beverages market size worth $13.4 billion by 2028

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The global canned alcoholic beverages market size is expected to reach USD 13.4 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 13.3% from 2021 to 2028. Canned alcoholic beverages are gaining popularity among consumers since cans are more convenient, portable, and travel-friendly. Moreover, these metal cans are less expensive as compared to glass bottles and have a considerably higher recycling rate than glass.

In Asia Pacific, the market is expected to witness a CAGR of 13.9% from 2021 to 2028. The major factor driving the market in the region is the presence of young consumers and rapidly growing economies.
The wine segment is projected to register the fastest CAGR of 13.7% from 2021 to 2028. The rising awareness among consumers for more eco-friendly alternatives to plastic bottles coupled with the growing taste for convenient products is propelling the demand for canned wine.

The online segment is expected to register the fastest CAGR of 13.6% from 2021 to 2028. The hassle-free shopping experience offered by various online platforms is expected to drive the growth of the segment.

The hand seltzers segment held the largest revenue share in 2020 and is expected to maintain its dominance over the forecast period. Hard seltzers are carbonated water-based drinks, which are usually infused with fruits and spirits. These have become quite popular among millennials due to their low alcohol content. Low prices of hard seltzer, easy availability across supermarkets and convenience stores are factors anticipated to boost their sales in the upcoming years.

The liquor stores segment contributed a majority of the share to become the largest division in the global revenue in 2020. These stores have been a widespread and well-established distribution channel for canned alcoholic beverages. The wide availability of both premium and private label brands at these stores attract consumers to purchase products through these channels.

In addition, a report published by Fior Markets claims the global functional beverages market is expected to grow from $125.39 billion in 2020 to $216.7 billion by 2028, growing at a CAGR of 7.08% during the forecast period 2021-2028.

Functional beverages are liquids that often contain a health claim and are used to hydrate the body and maintain nutritional balance. On the basis of type, the global functional beverages market is segmented into drinks, energy drinks, fruit and vegetable juices, herbal and fruit teas, fortified water, rehydration solutions, dairy beverages, non-dairy beverages and others.

The energy drinks segment dominated the market and held the largest market share of 20.9% in the year 2020. This growth is attributed to the rising adoption of energy drinks and the increase in reliance on them for instant energy amongst an increasingly busy population.

The market is booming and there’s already a large number of brands. Some popular drinks include Tequila Cazadores RTDs, Onda Sparkling Tequila, Miami Cocktail Co., Dogfish Head RTDs, St. Agrestis Spritz, and Lunar Tamarind & Rice Paddy Herb.

Tequila Cazadores RTDs
These ready-to-drink (RTD) tequila cocktails are available in Margarita, Spicy Margarita and Paloma flavours and continue the trend of tequila RTDs outshining almost all other canned drinks.

Onda Sparkling Tequila
The best designed of the tequila RTDs, this sparkling beverage (which features actress Shay Mitchell as the “Chief Brand Officer”) just launched two new flavours, Watermelon and an incredibly refreshing Blood Orange. Fizzy, light and citrusy.

Miami Cocktail Co.
While this RTD brand flashes a lot of healthy catchphrases (vegan, gluten-free, non-GMO, “clean calorie”) their organic spritzes should appeal to anyone. Ridiculously great in hot weather, the brand offers everything from Rosé Bellini Spritz to a Grapefruit & Hibiscus Paloma Spritz.

Dogfish Head RTDs
It turns out it takes a brewery (and distillery) to finally make a good vodka soda. The Blueberry Shrub RTD here is light but flavourful. And brown spirits fans: The Cherry Bergamot Whiskey Sour is the rare summer-ready whiskey drink.

St. Agrestis Spritz

The Spritz however, is a refreshing, herbal/citrus combo of the St. Agrestis Paradiso Aperitivo, sparkling Italian wine and sparkling water.

Lunar Tamarind & Rice Paddy Herb
Described as the “first and only Asian American craft hard seltzer made with real, premium fruits and ingredients from Asia,” the brand just launched a limited-edition “Heritage” line that pays tribute to well-known Asian foods and is co-developed with New York-based chefs and owners of popular local restaurants. The Tamarind & Rice Paddy Herb release will be unlike any canned drink you’ll try now … and portends a promising and innovative future for the category.

Beverage Cans Market size is estimated to reach $17.24bn by 2025, growing at a CAGR of 4.9% during the forecast period 2020-2025. Beverage cans are the metal containers that are used to store liquid drinks like alcoholic beverages, carbonated soft drinks, fruit and vegetable juices, energy or sports drinks and others. These cans are usually made of aluminum and steel. The increased demand for the alcohol beverage which is to be stored at low temperatures is driving the usage of this beverage cans as they help in storing the drinks at low temperatures which helps to hold the taste and properties of drinks. The rise in health concerns among the people to avoid plastic containers as they are harmful and non-bio-degradable is driving the usage of beverage cans market during the forecast period 2020-2025.

The global Beverage Cans Market based on Material type has Aluminum and Steel. The Aluminum segment registers for the highest market share in 2019 and is set to continue for the forecast period 2020-2025, owing to the increased usage of aluminum in making beverages cans. Overs 70% of beverage cans are made of aluminum globally. Aluminum cans are easily recycled with properties like lightweight and easy to manufacture, transport and are economical. Having many advantages over other materials is driving the market of aluminum beverage cans during the forecast period 2020-2025. The steel beverage cans are having below-average growth as they are heavy and is set to react with beverages in those cans, however, cans made with a composition of steel and other material are being introduced into the market to decrease the cost of beverage cans.
Based on geography the global Beverage Cans Market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America had a dominant share in terms of revenue in 2019 and it holds the largest market share during the forecast period 2020-2025, owing to the availability of the high number of consumers of aluminum can stored beverages. The Asia-Pacific region is also set to have healthy growth during the forecast period 2020-2025, owing to the availability of a large population and increased consumption of beverages. The availability of large raw materials like aluminum and steel are also factors that are supporting the growth of the market in the Asia-Pacific region.

Beverage Cans Market Drivers
Increased consumption of beverages
The increase in the consumption of beverages globally is driving the demand for beverage cans. Increased promotional activities by different manufacturers of beverages to increase demand for drinks are driving the usage of beverage cans owing to increased sales of beverages. Beverage cans being eco-friendly, recyclable and lightweight are driving the market growth during the forecast period 2020-2025.

Beverage Cans Market Challenges
Fluctuation in the cost of raw materials
The fluctuations in the cost of raw material are challenging the production of the beverage cans. The defects in three-piece type cans, such as leaks, inability to withstand high pressures and temperatures are challenging the market during the forecast period 2020-2025.

Alcohol consumption patterns in India

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To start off, it has been assessed by the World Health Organisation that an individual consumes about 6.2 litres of alcohol per year. According to the World Health Organization (WHO), average alcohol consumption in India was 5.7 litres per person above the age of 15 per year in 2016, up from 4.3 litres in 2010. On per capita consumption, India is ranked 101 (with Moldova leading with 15.2 litres. In the immediate neighbourhood, the figure for Pakistan is 0.3 litres and China is 7.2 litres).

Moreover, about a third of India’s population consumes alcohol on a regular basis and 11% of the total number of Indians are moderate or heavy drinkers. One-third of males and one-fourth of females in India who have made it a part of their lives say, in surveys, that it causes problems to their physical health, finances and household responsibilities. But alcohol —the recent events have shown—is an intricate and essential part of the Indian economy.

Now let us evaluate state wise consumption of alcohol, measured in consumption per capita, per week in millilitres. For Toddy and country liquor, Andhra Pradesh and Telengana have the highest levels of consumption which drops to the lowest levels in states like Jammu and Kashmir, West Bengal, Maharashtra and Gujarat (for obvious reasons). The consumption in these states are as low as 100 ml per capita per week. Levels of Toddy consumption have seen a sharp decline in the northern state of Bihar as well, which still ranks in the medium to average range (101 – 500 ml. per capita per week).

Moving on to beer, imported wine and imported alcohol varieties, we see that Andhra Pradesh and Telangana still consume more than 300 ml. per capita, making those states the highest consumers in this category. Himachal Pradesh shows a sudden spike (101- 300 ml), and so do the north eastern states of Arunachal Pradesh and Mizoram and the islands of Andaman and Nicobar (>300 ml). Goa too, sees a high trend in this category, with the average between 101 and 300 ml per capita per week. The rest of the country remains quite conservative in their consumption trends of Indian Made Foreign Liquor (IMFL) varieties.

Overall, it has been observed that the Union Territories of Dadra and Nagar Haveli, Arunachal Pradesh, Andaman and Nicobar Islands, Andhra Pradesh, Telengana, Daman and Diu, Sikkim and Pondicherry are among the highest consumers of spirits and alcohol varieties in India.

Now one of the reasons why there has been greater number of calls for bans on alcohol in certain areas is due to the fact that these regions suffer from chronic alcoholism and resultant poverty. The regular consumption of any variety of alcohol and especially country made liquor has also been found to be inversely proportional to family income, thus providing further evidence for this trend.

Consumption of local brews and toddy is one of the major reasons for deaths in alcohol related incidents. In recent years, about 136 people were killed in one single incident. In January 2015, in a village in eastern Maharashtra, 94 people lost their lives due to hooch liquor contamination and resulting toxicity. The states that have prohibition in place presently are: Nagaland (since 1989), Manipur (since 1991, except the hill districts), Kerala (2014), Gujarat and Lakshadweep (on all islands except Bangaram).

India is one of the fastest growing alcohol markets in the world. Rapid increase in urban population, sizable middle class population with rising spending power, and a sound economy are certain significant reasons behind increase in consumption of alcohol in India.

Indian Alcohol Consumption – The Changing Behavior provides a comprehensive analysis of the market size of alcohol industry on the basis of type of products, consumption in different states, retail channel and imported and domestic. The Indian alcohol industry is segmented into IMFL (Indian made foreign liquor), IMIL (Indian made Indian liquor), wine, beer and imported alcohol. Imported alcohol has a meager share of around 0.8% in the Indian market. The heavy import duty and taxes levied raise the price of imported alcohol to a large extent. Alcohol is exempted from the taxation scheme of GST.

The Indian alcohol market is growing at a CAGR of 8.8% and it is expected to reach 16.8 billion liters of consumption by the year 2022. The popularity of wine and vodka is increasing at a remarkable CAGR of 21.8% and 22.8% respectively. India is the largest consumer of whiskey in the world and it constitutes about 60% of the IMFL market.

Though India is one of the largest consumers of alcohol in the world owing to its huge population, the per capita alcohol consumption of India is very low as compared to the Western countries. The per capita consumption of alcohol per week for the year 2016 was estimated at 147.3 ml and it is expected to grow at a CAGR of 7.5% to 227.1 ml according to estimates.

The states of Andhra Pradesh, Telangana, Kerala, Karnataka, Sikkim, Haryana and Himachal Pradesh are amongst the largest consumers of alcohol in India. The most popular channel of alcohol sale in India is liquor stores as alcohol consumption is primarily an outdoor activity and supermarkets and malls are present only in the tier I and tier II cities of India.

The trends and pattern of alcohol consumption are changing in the country. With the increasing acceptance of women consuming alcohol, growing popularity of wine and high demand for expensive liquor, the market scenario seems to be very optimistic in the near future.

The study reflected changing pattern of the consumer’s mindset towards alcohol consumption in India. 3% of the respondents who consumed alcohol favoured wine for its health benefits. Though the popularity of whisky is highest in the Indian market, its market share is expected to decrease in future.

Alcohol consumption in high-income countries witnessed constant growth, but it has been growing in low and middle-income countries as well. Before 1990, Europe had recorded the highest level of alcohol use. However, the study forecasts that Europe will not hold that title for long.

Going ahead, the world will drink more, and more people will drink as well. The research also suggests that almost half the adults across the world will consume alcohol by 2030, whereas a quarter of them will become binge drinkers.

Binge drinkers are those people who drink 60 grammes or more pure alcohol in one or more sittings, in a month.

Starting Young

Indians are not just drinking more, they are drinking dangerously as well. As many as 57 million people are facing the after-effects of alcohol addiction. A survey by the Community Against Drunken Driving (CADD) revealed that over 88% of youth below 25, consume or purchase alcohol though it’s illegal. Punjab, Goa, Tripura, Chhattisgarh and Arunachal Pradesh rank high on alcohol consumption. However, Uttar Pradesh has the highest number of alcohol drinkers in India.

Regulating alcohol

A few state governments like Bihar, Gujarat, Mizoram and Nagaland, have prohibited the sale of alcohol. States like Kerala, Bihar, Tamil Nadu have imposed variety prohibition since 2016. The state government of Rajasthan allows sale of liquor only until 8.30 in the evening. India has also witnessed an increase in the number of drunken driving cases. According to reports, fines from drunk driving in India in 2018 alone, was at around `6 crore.

Assam is the highest alcohol consuming state in India

In the 15-54 age group, with 59.4%, men from Assam were found to be the highest consumer of alcohol in the country. In the latest Health and Family Welfare Statistics (HFWS) in India, it has been reported that 26.3% of women and 59.4% of men between 15-54 years of age consume alcohol in Assam. This is the highest in the country and the national percentages for the same age group are respectively 1.2 and 29.5. However, in terms of percentage of the population for both men and women in the age group 15-49 years who drink alcohol about once a week out of a total population (men and women) who drink alcohol, Assam women scored 44.8% and men scored 51.9% Meanwhile, in the 15-54 age group for women, Nagaland, Himachal Pradesh, Goa, and Karnataka recorded the lowest alcohol consumption with 0.1%. In the same category for women, Jammu & Kashmir occupies the second position with 23% women found to be consuming alcohol. In the 15-49 age group, with 59%, men from Arunachal Pradesh were found to be the highest consumer of alcohol in the country. The HFWS report further revealed that percentage of the population of men and women in the 15-49 years who drink alcohol about once a week was found to be 45.2% and 55.1% respectively for women and men of Arunachal Pradesh. For women and men in Nagaland, the percentage of the population who drink alcohol about once a week in the 15-49 age group was found to be 65.5% and 46.4% respectively. As for the other states from the northeast, the percentage of the population of men and women in the 15-49 years who drink alcohol about once a week are – Manipur 21.3% and 40.1%; 25.1% and 42.4%; Mizoram 20.3% and 41.2%; Nagaland 65.5% and 46.4%; Sikkim 33.9% and 43.5% and Tripura 50.8% and 47.1%. The five southern states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala together consume as much as 45% of all liquor sold in the country. The financial position of these states is precarious as the Coronavirus lockdown completely dried up this crucial liquidity tap for them in April. Although these states consume as much as 45% of all liquor sold in the country annually. Not a drop was sold in April, and given the dire state of their revenues, these states have been anxious to make good the losses by opening up the vends, said the survey. While Tamil Nadu and Kerala top the list in revenue percentage terms at 15% each, for Kerala the tax on liquor is its single largest revenue source. The revenue share is 11% each for Karnataka and Andhra Pradesh and 10% for Telangana, shows the report. Delhi is at number three when it comes to liquor revenue share with 12% of tax revenue, but its citizens swig only 4% of the national intake. Tamil Nadu has another distinction – it is the single largest consumer of liquor in the country, guzzling as much 13% of national sales, closely followed by Karnataka with 12%. Andhra quaffs 7% of the national intake, followed by Telangana (6%) and Kerala (5%). While all other states have high population, when it comes to Kerala, despite being home to only 3.3 crore people, it draws the highest revenue because among the five states it charges the highest tax rate on liquor. However nationally, Maharashtra charges the highest rate, but draws only 8% of its tax revenue from liquor – primarily because it is the most industrialised state and has many other sources of income – and also consumes only 8% of the national intake despite being the second most populous state. Twelve states – the five southern ones, Delhi, Punjab, Uttar Pradesh, West Bengal, Madhya Pradesh and Rajasthan – account for 75% of liquor consumption in the country. But uncorking the bottled spirit will also be a problem for these 12 states as they contribute to more than 85% of all Covid-19 infections/deaths as well. Among these 12 states, Kerala has the lowest national average in this at under-1%, the report said. You might associate Goa with booze and partying, but a higher proportion of people in Telangana consume alcohol than in the former. And a larger percentage of men drink in Bihar, a state under prohibition, than in Maharashtra. Gujarat and Jammu & Kashmir, in that order, have the least consumption of alcohol among men. When it comes to women’s consumption of alcohol, Sikkim and Assam, with 16.2% and 7.3%, respectively, top the charts. But here, too, Telangana comes next, topping Goa. Barring Telangana and Goa, most of the states at the top are in the northeast. The consumption among rural women is significantly higher than in urban areas in most states, which could also be due to less hesitation in admitting to alcohol consumption compared to urban women. This difference in prevalence of alcohol consumption exists between rural and urban men too, but the difference is not as high as among women. Covid-19 may change many aspects of work, life and the economy, but India’s relationship with alcohol will likely remain intact. If anything, the linkages might get stronger. When the pandemic-induced lockdown was first announced, the Centre excluded liquor shops in the category of establishments that would stay open. It was not deemed to be “essential”. States backed the Centre’s stance. But as the days under the lockdown accumulated, and as the economy and tax collections slumped (with more money from the Centre not forthcoming), states started clamouring with the Centre to allow liquor vends to reopen.

State controls

India has had a conflicting history with prohibition. States have been torn between the need for revenues and the broader problems its abuse created. As a result, they have been imposing dry days, and some form of control. Some states have gone the full hog in imposing prohibition: Gujarat (since 1960), Nagaland (since 1989), Bihar (since 2016), Mizoram (since 2019), and in most parts of Lakshadweep. In most parts, states control liquor distribution. Take, for example, TASMAC (Tamil Nadu State Marketing Corporation), set up in 1983 by then-chief minister M.G. Ramachandran as the monopoly liquor wholesaler for better control over distribution. For retail, it auctioned licences to the private sector. This, in turn, led to problems, including cartelisation and customer complaints – and lower revenues to the state. Twenty years later, the J. Jayalalithaa government claimed monopoly over retailing too. It has served the state well. Its revenues jumped from `2,828 crore in 2002-03 to `31,157 crore in 2018-19. It’s also a reason why Tamil Nadu has been pushing the Centre to reopen liquor shops. Unlike the purchase of a car or a computer, lost liquor sale is lost forever. Thus, for TASMAC, which was selling 160,000 cases of Indian-made foreign liquor and 90,000 cases of beer every day, the sales might not necessarily return, reducing the ability of Tamil Nadu to fund even ongoing schemes. The time has come to ‘de-criminalise’ liquor as the state of Goa has done successfully. Considering that 50% or more of the price of every bottle finds its way to the coffers of state governments, it is preposterous that tipplers are treated with such scant respect.

Brexit deal scrutiny begins as trade document published

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Commenting as the UK and EU agreed a free trade deal, Scotch Whisky Association Chief Executive Karen Betts said: “It’s very good news that the UK and EU have agreed a free trade deal, providing Scotch Whisky producers with more certainty about how we continue to export to our largest regional market. “We will now need a common-sense approach to the application of new rules and new border procedures from 1 January to help businesses manage the transition smoothly. The UK Government and EU Member States will need to be flexible with producers, logistics companies and importers as they get to grips with the significant changes that will take effect in just 7 days’ time.” Legal experts and MPs were poring over the 1,246-page document published on the morning of Boxing Day, as Boris Johnson worked to persuade Eurosceptic Tories to back it as the “right deal” for the country.

The Prime Minister acknowledged to Conservative MPs that “the devil is in the detail” but insisted it would stand up to inspection from the European Research Group (ERG) of Brexiteers, who will assemble a panel of lawyers to examine the full text ahead of a Commons vote. But the chief executive of the National Federation of Fishermen’s Organisation, Barrie Deas, accused Mr Johnson of having “bottled it” on fishing quotas to secure only “a fraction of what the UK has a right to under international law”.

The share of fish in British waters that the UK can catch will rise from about half now to two-thirds by the end of the five-and-a-half-year transition. The EU’s 27 member states indicated they will formally back the deal agreed by the UK with Brussels’ officials within days. It covers trade worth about £660 billion and means goods can be sold without tariffs or quotas in the EU market. EU ambassadors were briefed on the contents of the deal by Michel Barnier, who led Brussels’ negotiating team in the talks with the UK.

After a highly unusual meeting on Christmas Day – with at least one diplomat wearing a Santa hat and another in a festive jumper – they agreed to write to the European Parliament to say they intend to take a decision on the provisional application of the deal. The timing of the Christmas Eve deal forced politicians and officials in the UK and Brussels to tear up their plans. MPs and peers will be called back to Westminster on December 30 to vote on the deal, but MEPs are not expected to approve it until the new year, meaning it will have to apply provisionally until they give it the green light. The agreement will almost certainly be passed by Parliament, with Labour supporting it, as the alternative would be a chaotic no-deal situation on January 1.

But Mr Johnson is keen to retain the support of the Eurosceptics on his benches who helped him reach No 10. Mr Johnson had earlier messaged Tory MPs on WhatsApp as he tried to get them all on side. “I truly believe this is the right deal for the UK and the EU,” he wrote, in a message seen by the PA news agency. “We have delivered on every one of our manifesto commitments: control of money, borders, laws, fish and all the rest. “But even more important, I believe we now have a basis for long-term friendship and partnership with the EU as sovereign equals.” He added that “I know the devil is in the detail” but the deal will survive “ruthless” scrutiny from the “star chamber legal eagles” The “star chamber” is the nickname given to the panel assembled by the ERG, including veteran Eurosceptic Sir Bill Cash. Officials in Brussels and the capitals of EU states are also beginning to scrutinise the deal, with another meeting of ambassadors expected before the new year, possibly on December 28.

The European Commission has also announced a £4.5 billion fund to help regions and industries within the bloc which will be hit by the UK’s withdrawal from the single market and customs union – including fishing communities who face losing out as the UK takes a greater share of stock in British waters. French Europe minister Clement Beaune said it was a “good agreement” and stressed the EU had not accepted a deal “at all costs”. Mr Beaune said that British food and industrial products entering the European single market after January 1 will not pay customs duties “but will have to meet all our standards”.

Pernod Ricard posts encouraging results than expected

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The world’s second biggest alcobev manufacturer, Pernod Ricard posted its results recently and they seemed more encouraging than expected. The Q1 FY21 marked and improvement versus the Q4 FY20. The results were encouraging thanks to partial on-trade reopening and continued brand resilience in off-trade as India continues to be a resilient market for the company.

The total sales for the first quarter of FY21 totaled €2,236 million, which included an organic decline of -6% due to off-trade channel remaining resilient in the USA and Europe. Although there was a partial on-trade reopening, the report suggests that the channel is still disrupted with Travel Retail showcasing significant decline.

Results in India

Closer to India, which is one of the key markets for the manufacturer, continues to be in a double-digit decline. The growth in India revenues from its India operations grew only 6% in the year ended March 2020 against 27% jump a year earlier. The company recorded gross sales of Rs 21,424 crore in India in the year-ended March. However it recorded a 24% jump in its net profit for the year at Rs 1,612 crore as it focused more on premium brands. This was more than double of its larger rival United Spirits’ profit of Rs 705 crore during the year. Currently, India accounts for 11% of the manufacturers global sales. The company that follows a July-June fiscal globally, said that the Indian business declined 11% in the year ended June 2020 with heavy impact due to the pandemic. Alexandre Ricard, Chairman, Pernod Ricard informed investors last month that the fact that the business fell only 11% in the FY20 ‘despite the very strict lockdown disrupting the fourth quarter’ showed India’s resilience as a market. “We consolidated our leadership position with our market share still above 45%, and in fact, still growing slightly,” he added.

Results by Geography

With the festive season in the offing the results were strong in markets like USA and China, with strong shipments auguring well for the company. There was good resilience in the markets of Europe as well thanks to Off-Trade and ‘staycation’ over the summer. There was also strong dynamism in the UK and Germany with France nearing stability. However the markets of Spain and Russia showed decline.

By category, Sales were driven by

International Brands declined by -10% with significant declines for Martell, Chivas and Ballantine’s, primarily due to the restrictions in Travel Retail. But Malibu and The Glenlivet displayed strong growth with Jameson showcasing resilience. Local Brands saw a decline of -6%, with decline of Seagram’s Indian whiskies. But there was double-digit growth of Kahlua, Passport, Ramazzotti and Wiser’s. Specialty Brands saw an increase of +30%, thanks in particular to Lillet, Malfy, Aberlour, Avion, Altos and Monkey 47. Wines registered a growth of +9%, driven by double-digit growth of Campo Viejo and Brancott Estate with Jacob’s Creek growing by +8%. The overall reported sales declined by -10% due to unfavourable FX impacts, mainly from US Dollar and emerging market currencies. The Q2 is expected to still be strongly impacted by Covid-19, but Sales to return to growth in H2. Alexandre Ricard added that for FY21, “we expect continued resilience of our business in an uncertain and disrupted environment. I would like to take this opportunity to praise our teams, whose engagement and performance are exemplary

in these very challenging times. We will continue to implement our strategy, in particular accelerating our digital transformation. We will tightly manage costs while maintaining the agility to reinvest to adjust to market opportunities.”