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.
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.
In this video we tell you the common mistakes that you should avoid while buying alcohol. These 6 points will help you in making your next purchase and give you the best value for your buck. So if you are going to buy that favourite alcohol, then wait and see this before you do.
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 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 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.
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.
Grey Goose and Martini bring you the perfect way to cut through the winter chills and get in the holiday spirit with these perfect-for-winter cocktails. Bask in the winter sun with a Grey Goose Aperitivo Espresso with orange zest. Precede lunch with a Dry Apple Martini and enjoy the benefits of an apple a day all while keeping the seasonal gloom away! Relish cocktail hour with a Grey Goose Old-Fashioned on the rocks, and see for yourself why this oldest cocktail has stood the test of times. Keep the festivities alive even when the temperature drops.
APERITIVO ESPRESSO
A delightful mid-day aperitif! Coffee and vodka meet tonic water and orange zest to give it the freshness necessary to brighten up any afternoon.
Glass
Wine Glass
Garnish
Orange Zest
Occasion
Aperitif, Brunch
Ingredients
1 part Grey Goose Vodka
1 part Unsweetened Coffee
Tonic Water
Orange Zest
Method
Build in wine glass in this order: Grey Goose Vodka, coffee, tonic water, orange zest
GREY GOOSE OLD FASHIONED
As one of the oldest cocktails in the world. It’s easy to see why it has stood the test of time. Nowtry it with a simple Grey Goose Vodka twist instead of whiskey.
Glass
Rocks
Garnish
Orange Zest
Occasion
Aperitif, Cocktail Hour, Digestif
Ingredients
50 ml Grey goose Vodka
2 tsp Demerara Brown Sugar
Dash of Hot Water
Dash of Angostura Aromatic Bitters
Orange Zest
Method
1 Add the sugar and water to a rocks glass, then stir to dissolve.
2 Add orange zest.
3 Slowly trickle in Grey Goose and cubed ice, piece by piece, stirring throughout.
4 Top with cubed ice to serve.
MARTINI DRY APPLE
Ingredients
2 parts Martini Extra Dry
¼ part apple juice
1/3 part Manzana Verde
1/8 part apple syrup
2 tsp caster sugar
Juice of half a lemon
Half a green apple
Method
Shake all the ingredients with cubed ice then double strain into a chilled martini cocktail glass. Garnish.
Bira 91, one of India’s fastest-growing brands in its category, and boAt, India’s #1 Earwear brand (as per IDC India Monthly Wearables Tracker, November 2021 release) have come together to launch an exclusive ‘BOOM’ audio collection that is high on both functionality and aesthetics. The ‘BOOM’ collection will include the brand’s quirky yet powerful Stone SpinX 2.0 and Stone 190 making them the perfect party companions. For those who enjoy music in their own space, this collection will also come with boAt Rockerz 450 Headphones.
The ‘BOOM’ collection has been intricately curated for consumers who are bold and expressive, and don their wearable accessories as an extension to their personality. It seamlessly integrates the daring colour palette and the striking design of Bira 91’s ‘BOOM’ variant with the fashion-forward aesthetically designed boAt portfolio. The limited-edition collection is expected to be nothing less than the go-to style statement accessory of the season.
To bring alive the central theme of music that resonates with both brands, Bira 91 crafted a special music track for this collaboration called ‘Get Set BOOM’. The high-energy video paints a picture of the perfect weekend, with music bringing friends together in an ultimate house-party setting. The playful and upbeat lyrics and strong visuals are complemented with subtle integrations of the audio collection and other brand merchandise to create the ‘party vibe’ like never before.
Commenting on this epic partnership, Ankur Jain, CEO and Founder, Bira 91 said, “Beer and Music are a match made in heaven, which is why we are thrilled to announce our partnership with boAt. At Bira 91, we have been partnering with several like-minded homegrown brands, to provide unique experiences to our consumers. And this association with India’s largest earwear brand is another step in that direction. The launch of the limited-edition collection of ultra-stylish audio devices helps both brands deliver on their consumer promise of quality and innovation. Our endeavour at Bira 91 is to become a lifestyle brand and we have been building a dynamic portfolio of products at the Bira 91 Merch Store. This partnership with boAt takes us a step closer towards that goal.”
Commenting on this association, Aman Gupta, Co-Founder and CMO, Imagine Marketing Pvt. Ltd. said, “We are elated to partner with Bira 91, a brand that is playful, creative and resonates well with our brand ethos. We aspire to launch the most unique, vivid and quirky products in the Indian market and the BOOM collection showcases our ideology really well. We hope our boAtheads enjoy using these products as much as we did designing them.”
The BOOM collection will be available exclusively on Bira 91’s Merch store and the boAt website starting 20th January.
Junior Abhishek Herbals Pvt Ltd. is launching its first product range of liver supporting liquor brands in Odisha State. The Nagpur-based company is introducing Cordial Pride whisky and Cordial white rum, said to have a few health benefits – not affecting liver and kidney. It is also touted to have anti-aging properties and is guaranteed not to give one a hangover. Yes, that is what the company is claiming. Junior Abhishek Herbals has announced that these two products are ‘hepato and kidney protective’, besides having anti-anxiety oxidant strength.
Cordial Pride is a premium whisky blended with five-year-old malt and two different malts, along with a unique herbals formulation which provides it the taste of soil, smoke, saffron, peat and other natural aromas. It is mild on the palate, smooth to sip although the strength of alcohol is 42.8%.
Cordial white rum is said to be uniquely different, with the taste getting nuanced as per the effects of the different seasons. During the winters, the rum will keep the body warm from inside for around 7 to 8 hours and during summers, it will keep the body cool from inside. The company claims that one who consumes it is not likely to get a sun stroke or suffer from hypo thermia during cold seasons.
Protects liver
Further explaining the features, the company said the ingredients are so intelligently formulated that it controls aldehydes and neutalises its bad properties that may occur instantly or over a period of time due to regular alcohol consumption.
Protects kidney
The company stated that the products do not impact the kidney in any way. “Normally when we consume alcoholic drinks, it puts pressure on the kidneys. Alcohol forces the inner parts of the kidney which results in absorption of some blood particles, resulting in yellowish urine discharge. But Cordial products will not allow such effects and the discharge of urine will be colourless.”
Anti-Oxidants
The company further claimed that it controls aggression in the person during and after consumption. Cordial products are said to have a calming effect. The anti-anxiety oxidant property helps the consumer not to get aggressive, while it keeps the individual seemingly fresh. The drinker will not overeat, it claims, thus avoiding any acidic activity.
No hangover guaranteed
The Cordial labels are printed with. ‘No Hangover’ assurance. The company said that hangovers occur due to ‘worst kinds of ingredients added in alcoholic drinks’, but in Cordial there is no such ingredient. All ingredients, the company mentioned, had been selected after a research of nearly 20 years and the ‘under impression time’ of the drinker will be around 7 to 8 hours.
Anti-aging
The company also claimed that the products have anti-aging properties and that a person consuming a little quantity on a regular basis for around three months, the skin will start glowing, due to the herbal formulation. There will not be any side-effects, the company further stated.
The Chairman of Junior Abhishek Herbals Pvt Ltd. Anirudha Kapaley informed that the price of Cordial Pride would be in the range of `1,250 for 750 ml and the Cordial white rum will be `900 for 750 ml. It will launch the products in 375 ml and 180 ml sizes. We are planning to launch some more products with similar quality and priced reasonably, he said and expects good sales due to the unique features of the products.
The company which started in 2010 is led by Master of Master Blenders Anirudha Kapaley along with three other directors – Deepali Kapaley; Pawan Kumar Jha and Sandeep Raut. The Chief Operating Officer is Amit Awachate.
