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ISWAI propagates rationalisation of duties and policies

Ms. Nita Kapoor, CEO, International Spirits and Wines Association of India ( ISWAI, gives a holistic view and shares insights on various issues the industry faces on account of high taxes, inflation, and interstate duties. The way forward is E-commerce, low duties via the FTA route, Maharashtra State duty cuts, Delhi Excise Policy model and premiumisation of liquor.

What role has ISWAI played to boost the interest of its members?

ISWAI is an apex body of the premium alcobev sector, promoted by multinational alcoholic beverage companies having investments and business operations in India. Founded in 2004, ISWAI strives to transform the Indian spirits and wines industry, upholding the highest level of quality, responsibility and ethical business practices.

ISWAI is actively engaging with state government and policymakers and committed to a supportive, predictable, harmonised, and progressive policy environment that enables member companies to thrive in India and build economic value for the States where they operate. ISWAI and its members advocate for responsible alcohol consumption by creating conversations about the negative impact of misuse, spurious and counterfeit products, illicit products, drinking and driving, and underage drinking.

Members of ISWAI include global leaders in both the spirits and wine industries, like Bacardi, Beam Suntory, Brown Forman, Campari, Diageo-United Spirits, Moet Hennessy, Pernod Ricard, and William Grant & Sons. Taken together, ISWAI’s members account for a substantial part of the revenue generated from alcoholic beverages across the country.

How have the international beverage companies coped with the Covid phenomenon?

Covid-19 has affected almost all businesses across sectors. The alcobev brands manage disruptions caused by Covid by focussing on efficient supply to ensure stock availability. The service of outlets is in line with the lockdown timings and guidelines laid down by each state. The alcobev companies also urge the state governments to consider home delivery of alcobev products as a regular service. It will minimise the disruption of retail businesses and improve job opportunities at the last mile route to consumers.

What is the strategy being adopted by the international beverage companies post-Covid?

In addition to what we mentioned above, ISWAI and its members engage with the state governments through regular consultations, which are essential to forging a predictable and progressive policy framework.

We have also seen a trend of premiumisation in the alcobev sector, which has further accelerated during the pandemic. The alcoholic beverages consumers are opting for better and premium quality brands. At-home consumption is paving the way for home delivery, social acceptance, and a rise in women consumers on account of home delivery during the pandemic.

Besides this, we are already seeing trends play out with consumers experimenting with craft gin, red wine and ready-to-drink (RTDs), which are anchored on differentiated and low alcohol content.

Do you see other states following suit by cutting duties like Maharashtra did?

West Bengal has already reduced its duties, and yes, we would expect other states to rationalise the additional duties on Bottled In Origin (BIO) products as a 150% customs duty is already levied, and any additional tax is a ‘tax on tax’ that artificially inflates the price of BIO products making it unaffordable for the consumer and thereby creating economic leverage for the counterfeit and spurious products. The reduction of duty in Maharashtra will lead to curtailment of counterfeit products, improve state revenues on account of minimal cross border inflow of spurious products.

The alcobev industry in India is witnessing significant changes influenced by a global culture leading to a trend towards premiumisation. Indian consumers are increasingly opting for ‘Bottled in Origin’ (BIO), and geographical indication (GI) tagged niche products, which carry a stamp of premium quality. The Maharashtra government has taken cognizance of the emerging growth trends of BIO in the alcobev segment and the importance of GI-tagged products, which is commendable. The decision by the Maharashtra government to halve the duty on imported alcoholic products (from 300% to 150%) will bring price rationalisation, disincentivise, if not eliminate, inter-state product smuggling, and increase volume offtake, thereby boosting the state excise revenue.

How is the Delhi government’s new policy likely to impact the international alcoholic beverage companies?

ISWAI believes that extended hours for on-premise alcobev outlets, reduction in the number of dry days, super-premium vends, an overhaul of consumer experience by privatising retail, auctioning of retail outlets, are all steps in the right direction and in keeping with Delhi’s image of a modern and bustling city that caters to a large number of young residents and tourists. It would also provide relief to the hospitality industry that has been hit hard by the pandemic.

As per the new policy, only private liquor shops will run in the city, and each municipal ward has 2-3 liquor vends. The Delhi government’s new policy is a welcome move. It is likely to curb illicit practices by equitably redistributing liquor shops, improving the consumer experience, and reducing corruption besides increasing government revenue. Every liquor outlet in the city will provide a unique walk-in experience to its customers, who will have multiple choices of brands. The entire selection and sale process will be completed within the vend premise.

Is all-around inflation likely to impact the industry?

Yes, inflation has affected the alcobev industry significantly. The triple whammy of suppressed volumes, runaway inflation, and reducing supplier share of the consumer rupee, makes it very hard for alcobev manufacturers to sustain their business operations.

The industry needs a predictable policy, a regulatory overhaul and an inflation-embedded approach to pricing. This would consider various factors such as differences in operating conditions between states, such as state levies, cost of materials, transportation, route-to-market, etc.

For example, the costs of a fast-moving brand in the value segment have increased by ₹60 per case compared to the previous year (A case is twelve bottles of 750ml each).

As per the estimates by the ISWAI, wet alcoholic ingredients, such as ENA and Scotch, are now 5% more expensive than last year, while the cost of packaging materials such as glass bottles rose by 8%, cartons by 37%, and labels and closures by 5% and 15% respectively, in just one year (FY21 and FY22 (est)). Additionally, transportation costs have shot up by 68% between FY18 and FY22.

With most states holding onto the historical lowest EDPs, no price increase leeway has been provided to the industry over the years, resulting in the Indian alcobev sector facing a sustainability crisis.

However, the need of the hour is to allow alcobev manufacturers to seek price increases recognising the supply chain and inflationary pressures. The excise policies of the states need to adjust for inflation.

Do online sales of alcobev products have a future in India?

In a pandemic-induced environment of social distancing, offering home delivery of liquor to curb counterfeit, spurious products, transparent pricing and simultaneously limiting crowding at shops is highly recommended. We believe that if the services are handled maturely by the retail trade and with all the necessary regulations in place, this could become a potential channel for the growth of revenue for states.

ISWAI urges state governments to consider ex-retail home delivery of liquor as a sustainable and long-term model. The state government can consider allowing home delivery to be included as a permanent feature of the excise policies of the states to cater to consumer demands and minimise industry disruptions during the Covid surge. It would enhance livelihood opportunities and unlock the potential of an alternative channel towards state revenues.

Has the premiumisation of liquor grown the sales of foreign liquor?

The premiumisation trend across beverage alcohol has been going on for some time. While Covid-19 has greatly impacted the alcohol industry in 2020, premiumisation appears to continue as consumers adopt new purchasing habits. Disposable income spent on going out to eat and drink before the pandemic was redirected to premium-and-above products for at-home consumption. As per IWSR Drinks Market Analysis data, total sales volume (all alcobev) declined about 29% to 474 million cases in 2020 from 668 million in 2019. Sales of spirits (which include whiskey, gin, vodka, rum and brandy) were down 20% to 277 million cases in 2020. The industry is yet to recover to pre-Covid levels and the jury is out there to confirm the growth of foreign liquor sales.

What is the possible outcome of the FTA between the UK and India?

We are encouraged by the forthcoming outlook shared by the Union Minister for Commerce and Industry, Piyush Goyal and the UK Secretary of State for International Trade, President of The Board of Trade, Anne-Marie Trevelyan, during the launch of the India- UK Free Trade Agreement (FTA) on January 13th,2022 in Delhi. The schedule to complete the early harvest agreement in the coming months is what we look forward to. Both ministers assured that the two nations would proactively and regularly engage with each other, deliberating on the trade deal’s scope and coverage.

Mr. Goyal said, “Atmanirbhar Bharat is about opening India’s doors wider so that India engages with the world from a position of strength, on equal, fair & reciprocal terms.” He calls for enhancing sectoral cooperation by addressing market access issues and removing trade restrictions.

Together with the Scotch Whisky Association (SWA), ISWAI has proposed a reduction in the customs duty, for products above a price threshold, from 150% to 75% immediately, and a final resting rate of 30% at the end of 5 years. Improved market access for Scotch would enable an increasing number of Indian consumers to enjoy these premium products. A similar reduction of duties on Bulk Spirit would also be good for our industry to step up the quality of its products by blending with aged Scotch, step up exports, and increase Indian government tax revenues – a win-win for all.

John Distilleries bullish despite hiccups

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Covid has been challenging but John Distilleries is ready to bounce back thanks to the success of its Single Malt Brands. Being based in the South the company has also got its South strategy right. Paul John, Chairman and Managing Director, John Distilleries Pvt. Ltd., outlines the strategy to pave the way for the company’s bright future.

How has 2021 been for John Distilleries?

2021 was a challenging year, however we maintained resilience, built a growth in share points of our core brands in our stronger markets and expanded into new markets with our luxury portfolio.

What is the strategy for this year given Covid 3 and post Covid?

To stay positive and drive our internal strategy of prioritising channel mix and segment mix to deliver growth, this strategy has been working well for us over the past few years.

What has been the overall response to your premiumisation strategy?

The response has been very promising especially with our single malt portfolio garnering popularity across the country and the globe. In the domestic arena we’ve recently launched Roulette Premium Whisky – a peated whisky that stands apart from other whiskies in its segment/category, and expanded Fireball Cinnamon Flavoured Whisky into new markets, along with our BIO portfolio – Sazerac Rye and Buffalo Trace.

Are you looking at moving to the brandy segment given that the South is a strong market?

With Paul John XO we’ve already established a presence in the luxury brandy segment in the South as well, along with Roulette brandy which is popular across South markets.

What has been the impact of Covid on the company’s fortunes?

The impact has been tough as with most companies, and these past couple of years have been transformative in several ways for every industry with demands to adapt and evolve, but it has not deterred our zeal to deliver high quality products and maintain an innovativeness with consumer interest as priority.

Do you see a strong comeback for the company post Covid?

We believe in constantly and consistently delivering premium quality products for our consumers, and our efforts over the years have been recognised and appreciated. We will continue to dedicate our efforts to deliver the best and this gives us the impetus to keep moving forward.

How is the IMFL Division faring?

IMFL is a competitive segment, our core brands in this segment in the South are doing significantly well. We are now slowly expanding to newer markets with new brands and the initial feedback is very encouraging!

Has the success of the premium brands had an effect on the growth of regular brands?

Definitely. The success and popularity of our premium brands has had a positive rub-off on our new brands with the halo effect encouraging consumers to try our new offerings in the market.

What are your plans for sourcing raw materials for your single malts?

We’ve been producing single malt for the past 12 years, the major ingredient in the production of single malt is malted barley. We have annual contracts with different suppliers across India and we shall continue to source our raw material from these suppliers in future as well.

What are your expansion plans for 2022?

Our focus will be to build the footprint of our existing and recently launched brands especially our luxury portfolio, across markets.

Dewar’s Scotch Whisky Celebrates its 175th Anniversary

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Dewar’s Scotch whisky marked 175 years of Scotch-making recently. Over the course of these spectacular 175 years, Dewar’s has created some mighty fine products along the way and crafted an unparalleled experience for patrons. The whisky maker has a rich history with over 15 plus products which cater to the premium category. Dewar’s is also widely known for pioneering the double ageing process to serve its drinkers a refined and balanced taste.

Founded in 1846 by John Dewar, the journey of Dewar’s started from a small wine and spirits merchant shop in Perth, Scotland to become a global brand that it is today. John Dewar was so proud of the quality of his blended Scotches that he was one of the first Scotch blenders to put his name on a bottle as a guarantee of quality. In 1880’s, Alexander and Tommy Dewar inherited Scotch whisky business from their father. They divided the responsibility between themselves and embarked on a journey to make Dewar’s one of the fastest growing premium whiskies in the world. In 1890, Master Blender A.J. Cameron joined Dewar’s and pioneered the novel Double Ageing process for greater harmony and extra smoothness to all the Dewar’s blend.

Taking inspiration from Dewar’s first Master Blender- A.J. Cameron’s achieved notes, Master Blender Stephanie Macleod created the Dewar’s Double Double whisky range using an innovative four-step ageing process. The unique taste of this double blended scotch has enabled the brand in winning multiple/several prestigious titles and accolades like ‘World’s Best Blended’ and ‘Best in Class’ among others.

Commenting on the wins, Vijay Dev, Consumer Marketing Lead, Whiskies at Bacardi India said, “This is a significant milestone for Dewar’s! We are elated to be a part of one of the world’s most awarded Scotch whisky, after all double is better. With our commitment to serve the smoothest blend to our consumers, we will be bringing multiple variants like Japanese Smooth and Ultra-Premium Double Double Series 21, 27 and 32 year old to India in the near future.”

Currently at the historical achieve of Dewar’s in Glasgow, Jacqui Seargeant, Global Heritage Manager & Whiskies Archivist, Bacardi has been preserving more than 10,000 items from the rich heritage of the DEWAR’S family including bottles from the 19th century, documenting family photos from company founders, curating museum collections, and fact finding the origin stories of classic cocktails. The archive has inspired bottle designs, brand campaigns, and recipes. While going through the archives, Jacqui came across Tommy Dewar’s Original Highball recipe, which is today whisky drinkers’ favourite cocktail across the globe.

Indri – The Indian Single Malt

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Indri – Trini is the first Single Malt expression to be launched from the house of Piccadily, which will be available to select customers in India, the US and Europe by Christmas this year. Trini has been created by its Master Blender, Mr Surrinder Kumar, who has a rich experience of more than 40 years in the Single Malt Industry. This malt manufacturing powerhouse is also set to bring to us soon some new variants of the exotic Indian Single Malt ‘Indri’.

Indri: A Taste through the Five Senses

Indri is a single malt whisky that is aptly named after the area in which it is situated. It is also synonymous with ‘Indriya’ or the five Indris responsible for Touch, Taste, Smell, Sight, Sound. Indri professes to pleasantly evoke all your five senses and make you enjoy the smooth golden liquid on the palate and the burst of flavours that soon follow. Indri – Trini is the first Indian whisky to be launched using the three-wood expression, ex-bourbon, ex-French wine and PX Sherry casks.

Indri single malt has a tropical good taste and it is not harsh. The name Indri is used very thoughtfully because it reflects the senses used in whisky-making at a distillery. Graeme Bowie, who is the Master Distiller and has 32 years of rich experience in the Scottish Malt Industry.

Flavour Profile of the Whisky

Nose: Hints of black tea, caramelised pineapple with a whiff of oak from the barrel comes forward, followed by vanilla and honey from the bourbon oak and traces of spiced tannins from the European oak, finally topped up with vinous raisin and sweet sherry notes. Gentle and mellow on the nose.

Taste: Elegant richness, smooth and warm on the sides of the mouth. Gentle spice and wood characters come through, followed by nutty flavours and hints of burnt pineapple, citrus and raisins.

Finish: A subtle and balanced finish where each flavour compliments one another without dominating. A smooth and long after taste with sweet fruity flavours coming up from the warmth of the throat, lingering long after.

The All-New Royal Challenge: A Smooth & Rich New Blend

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Royal Challenge Whisky, India’s most aspirational whisky brand that’s known to challenge the norms, recently unveiled its brand-new renovation. The new Royal Challenge Whisky has a completely new liquid and a striking new pack that will stand out on the shelf.

Diageo India has created a truly unique blended whisky dedicated to the spirit of Delhi. The all-new Royal Challenge whisky is a perfect fusion of select imported scotch blended with perfection to deliver a sweet profile and subtle notes of vanilla, that will give the consumers a richer and smoother drinking experience.

With the vision to be an iconic millennial brand, Royal Challenge’s new pack has been re-designed for a premium look-and-feel and an elevated experience – the Lion sigil and red and black colours represent the bold and fearless spirit that the brand exemplifies. Further, with this renewed blend, Royal Challenge has evolved to be the most accessible and preferred brand for the younger generation.

Speaking about the renovation, Ruchira Jaitly, VP of Marketing and Prestige portfolio head said, “Royal Challenge is a brand which has always believed that, to build a better tomorrow, we must challenge the stereotypes of today and reinvent the rules. With the vision to become the first whisky of choice that appeals to the people of Delhi, there was a need to reinvent and offer an experience that perfectly blends into the changing consumer palettes and choices. I am excited with what is in store and look forward to the people of Delhi embracing an all-new refreshed Royal Challenge as they have always done.”

The launch of the all-new pack will look to explore an integrated communication strategy in Delhi that builds on this new positioning.

The phased launch will see the refreshed pack on shelves across the city this Festive season.

Château Fleur Haut Gaussens looking to launch in India

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Château Fleur Haut Gaussens, located in Vérac, not far from Saint-Emilion, is the result of the heritage of a family of winegrowers. It was in 1996 that Hervé Lhuilier created it. Over the years, he has managed to keep a dynamic company, by carrying out work to improve the technical tool. The winemaker now cultivates the 40ha of vines on the property, spread over 27 plots, combining tradition and innovation. Concerned about the environment and the ecosystem have adopted a reasoned management of the vines and are certified Hight Environmental Value level 3.

The wines, recognised throughout the world with numerous distinctions, are worked according to the criteria of the PDO Bordeaux Supérieur. They distinguish themselves by the production of atypical wines. Indeed, offer a modern approach to Bordeaux wine through the production in 400L barrels of varietals wines with an access profile on the fruit such as La Bergeronette a 100% Cabernet Franc, its annual production is around 14,000 bottles.

They obviously offer blended wines. Château Fleur Haut Gaussens produces around 165,000 bottles per year and has been the bestseller for 20 years now. It results from a blend of a majority of Merlot with a hint of Cabernet Franc, Cabernet Sauvignon and Malbec. This is aged at 50% in French oak barrels for 6 months. This is a modern Bordeaux wine that knows how to (re) discover the wines of the region.

Their inventory management allows them to offer you ready-to-drink vintages. Their wines offer a very interesting quality-price ratio, and many partners already trust them in more than 20 countries.

In parallel to their wine activity linked to Château Fleur Haut Gaussens, in 2018 they created “Le Couturier du Terroir”, a trading company attached to their family-run wine estate. They developed a range of wines from different horizons. Thanks to their various hats, they can thus offer their red Bordeaux Supérieur wines Château Fleur Haut Gaussens ranked in the top 5 of the PDO but also entry-level Bordeaux and other products according to your needs.

Oaksmith launched in Delhi

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Oaksmith, India’s First Truly International Blended Whisky, crafted by Suntory’s Chief Blender Shinji Fukuyo, creator of iconic Japanese whiskies Hibiki and Yamazaki – combines the finest Scotch Malts with the smoothest American Bourbons using world class Japanese blending techniques, bringing the best of East and West to Indian consumers

Beam Suntory, a world leader in premium spirits, has launched Oaksmith, India’s first International Blended Whisky in Delhi. After a successful launch in December 2019 in Maharashtra and Telangana followed by rapid expansion in West Bengal, Goa, Assam, Chandigarh, UP and Karnataka, the iconic brand is now available in Delhi with both blend variants – ‘Oaksmith Gold’ and ‘Oaksmith International’. The brand has delivered 300,000 cases since its launch in India.

Oaksmith has been created by world-renowned Shinji Fukuyo, Chief Blender, Suntory, the founding house of Japanese Whiskies – with world-class Japanese craftsmanship, blending high quality Scotch Malt whiskies and smoothest American Bourbons to build a recipe that is unique and designed taking inspiration from the Indian palate. From seed to sip, the whisky is meticulously crafted to achieve a blend like no other resulting in a bold spirit that is rich on the nose yet approachable and well balanced with a bright, smooth and unexpectedly long finish. Launch of Oaksmith Gold and Oaksmith International whisky in Delhi is key to Beam Suntory’s growth strategy, and this expansion signifies the importance of India to the global spirits company.

“We are delighted with the response that the blends of Oaksmithhave received from consumers since it’s launch. The growing premiumisation of the Indian market and the appreciation for finely crafted spirits made this the right time to expand the brand across various markets in India, finally bringing it to the nation’s capital – New Delhi. Delhi’s rich history blended with modernity adorned with touches of its traditional heritage attracts people from across the country and the world. We see a growing opportunity for high quality, world class spirit brands and look forward to receiving the same overwhelming appreciation for Oaksmith Gold and Oaksmith International here,” says Neeraj Kumar, Managing Director of Beam Suntory India.

IndSpirit 2021 Awards underline quality of brands and packaging: Judges

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

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

Eminent jury panel

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

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

Scope for new entrants

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

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

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

What the judges have to say about the range

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

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

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

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

Sensory evaluation

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

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

Technology driving change

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

Analytics is beneficial

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

Quality of brands improving every year

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

Packaging market to touch nearly $39 billion by 2026

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

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

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

Metal packaging growing market

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

Judging parameters

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

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

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

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

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

Beam Suntory moves towards 2030 goal, launches Oaksmith in North India

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Following a massive success in various markets since its launch, Oaksmith, a premium Indian whisky and the Iconic portfolio from The House of Suntory – Yamazaki, Hibiki, Toki – and Japanese craft gin – Roku – are all set to expand presence in North Indian states including UP, Haryana, Chandigarh, Rajasthan, Punjab and Delhi.

Beam Suntory, the global premium spirits company, has introduced a range of five premium spirits in markets of North India, signaling its commitment and strategy to grow in India in line with its ambition to reach USD 1 billion in revenue by 2030. Continuing the momentum after launching successfully in pilot markets in 2019, the entry of five premium brands in North Indian market is a huge stride for the company to tread strongly towards its 2030 ambition. The launch of Oaksmith in North India is key to Beam Suntory’s growth strategy in India.

“India is a strategic market for Beam Suntory, and we are thrilled by the appreciation that Oaksmith, Toki, Hibiki and The Yamazaki have received from consumers in India. The growing premiumization of the Indian market and the appreciation for finely crafted spirits make this an exciting time to expand the launch of these brand in India. Indians today are exposed to global trends, which inspired the creation of Oaksmith for whisky lovers in India,” says Neeraj Kumar, Managing Director of Beam Suntory India. On Oaksmith and Oaksmith Gold, he said, “The beautiful blend incorporates our East Meets west competitive advantage and incorporates years of tradition that the Beam Suntory family upholds while showcasing Shinji-san’s award-winning blending capabilities making it a whisky that, quite simply, no one else could possibly create. We are excited to launch our brands across North India with its diverse offerings in terms of culture, people and places. We see a growing opportunity for premium quality spirits across these states”

Lotus Family Trust to pick up 7.13% stake in Tilaknagar Industries

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Alcoholic beverage manufacturer, Tilaknagar Industries Limited (TI) in an intimation to the stock exchange has said that its Board of Directors has approved issuing over one crore eighteen lakh equity shares on preferential basis to Barclays Wealth Trustees (India) Pvt. Ltd. acting as a Trustee of Lotus Family Trust.

TI said that the preferential issuance of equity shares would be done for cash at a price of `53 per share, including a premium of `43 per share. After the issue of the aforesaid equity, the Lotus Family Trust would hold 7.13% whereas the promoters would continue to hold nearly 49% equity in TI. The company has got shareholders’ approval for the same at an Extra-Ordinary General Meeting on November 27, 2021.

Recently, TI had reported having completed its debt-restructuring process which included one-time settlements (OTS) with banks, resulting in a financial turnaround. As part of the process, the company had entered into a long restructuring agreement with Edelweiss Asset Reconstruction Company (EARC) wherein total loans of `523 crore have been restructured at `344 crore at an interest rate of 9%.

Earlier, TI had issued approximately 1.39 cr shares to Edelweiss Asset Reconstruction Company Limited (EARC) at a price of `24.36 per equity share (including premium of `14.36 per equity share). The allotment of shares on preferential basis to EARC was done in respect of conversion of part of the debt owed to EARC by the company amounting to approximately `33.86 cr.

The company has also said that the Board of Directors has approved issuing over Twenty Seven Lakh Equity Shares to Edelweiss Asset Reconstruction Company Limited (“EARC”), an asset at a price of `53 per share (including a premium of `43 per share), fully paid-up towards restructuring of debt by way of conversion of part of the debt owed to it by the Company amounting to over Fourteen Crores into Equity Shares of the Company on preferential basis.

Led by strong growth and sharp decline in finance costs, TI, maker of the famous Mansion House brandy, registered profit in the April-June quarter of the current financial, after a series of quarters. The company also reported a 140% increase in net sales to `135.30 crore in the quarter ended June 2021 as against `56.38 crore in the same period a year ago.