Tag Archives: alcohol

Chivas Brothers appoints new Chief Executive

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

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

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

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.

India Glycols Ltd forays into IMFL

India Glycols is a leading company that manufactures green technology based bulk, specialty and performance chemicals and natural gums, spirits, industrial gases, sugar and nutraceuticals. After becoming a market leader in the Country Liquor segment with the famous brand Bunty and Bubly, the company is now ready to make their foray into the IMFL with their new launches, Amazing Vodka and Single Reserva Whisky. Ambrosia spoke to the Management Team of the brand in an exclusive interview.

With chemicals being the primary cornerstone of India Glycols Ltd business, the company continues to enjoy an undisputed leadership position in certain segments over two decades. And liquor being a by-product of the chemical distillation process, it was only natural to foray into this business.

While country liquor industry was the mainstay of the liquor division with their popular brand Bunty and Bubly selling 1.32 crore cases per month as against the next best-selling brand, which is less than 50%, the company will shortly launch their first 2 products in the Vodka and Semi Premium Whisky category, Amazing Vodka and Single Reserva Whisky.

The Chairmanof India Glycols Limited (IGL), Mr. U S Bhartia felt that IMFL Division should also be nurtured and brought up especially following the success of its country liquor. These sentiments are also echoed by Rupark Sarswat, CEO, India Glycols Ltd ‘the logical step for us when we started to explore consumer market was to look at country liquor and then much more market intensive areas like IMFL. We are looking to engage in the market, continue to take feedback but make sure that the way we build our business is slow, steady and solid.’

With the consumers constantly looking to upgrade and premiumisation being the focus for IGL ‘the vodka will be launched in three variants Amazing Plain Vodka, Amazing Green Apple Vodka and Amazing Orange Vodka for the time being while the Single Reserva Whisky will be launched in the semi-premium category with a unique blend and offering’ said Raju Vaziraney, Advising – President, IMFL for India Glycols Ltd.

Despite the flat growth in the vodka industry, the decision to foray into the vodka market stems from the fact that the consumer is moving towards flavours adds Vaziraney. “You will be happy to know the vodka market is 60% flavours and 40% plain and the consumer is looking to flirt. Flavours are the future of the vodka market and they will drive the growth of vodka.”

Although the precise price point for the Vodka isn’t known yet it is expected to be in the popular category where it will compete with the likes of the most popular brands by market share in the segment. However what’s interesting about the vodka is that it is five time distilled liquid which IGL feels will provide a very smooth and refined taste to the consumer.

When it comes to the Single Reserva Whisky, it will be a unique offering which is expected to be priced under Rs. 1000 depending on the State that you are in. The whisky is blended with Indian Single Malts making it a unique offering. This is a new concept of blending with Indian single malts which was done after doing extensive blend research with the help of the known blender Peter J. Warren.

Currently IGL plans to focus on these two brands and are looking to grow their portfolio stepwise following the success of these brands. ‘We are not going to take any shortcuts to success, put more money, gain volume and build stocks. We want the consumer to be delighted’ adds Vaziraney.

The IMFL brands are manufactured at the company’s Gorakhpur plant. S.K. Shukla, Head of Operations & Business Manager said that, “I have been at the Gorakhpur plant from where we started our IMFL journey since last year May 2020. Besides that global pandemic till date the achievement has been excellent and we hope that this new product Single Reserva Whisky and Amazing Vodka will be great success in the future with the help of Ambrosia’s support.”

B. P.Singhal, Procurement and Projects engineering, IGL adds that we have selected best of the packaging material, bottle design, which can create a stir in the market, mainly for the Vodka. We are looking to target the youth because vodka is typically consumed by the youth. Keeping these factors in mind we have selected the bottle and packaging for both the products.

With the overall market for Vodka estimated to be about 6 million cases, IGL is looking to grab 15% market share in the vodka segment. A success that T P Sharma, Sales Head(HOD), IGL is confident in replicating following their Bunty Vodka Green Apple Flavour Tetra Pack launch in UP, which has already cornered a market share of 42% in six months.

Both the products will be rolled out in the UP and Uttarakhand markets first with Delhi and few other States as the next options in four-five months time. By the festive period IGL is looking to have their products in more States. Both Amazing Vodka and Single Reserva Whisky will be sold via the on-trade channels with IGL looking at ATL and digital activities to promote them.

Shriharsha Bandaluppi, EA (Executive Assistant) to CMD and General Manager Strategy, said, “we are coming up full throttle by using the social media channels like Facebook, Instagram. We are also identifying the key influencers, all sorts of new age trends etc. specially strengthening the brand position with shoots, signage, posts etc.”

Delhi new excise policy lowers drinking age to 21, only 3 dry days

The Delhi Government on March 22, 2021 came out with a new excise policy which is expected to bring about radical changes in the sale and consumption of liquor in the national capital. The headline grabbing announcement has been the government’s decision to lower the drinking age from 25 to 21; keeping bars and pubs open till 3 a.m and bringing down the number of dry days from 21 to 3, all of which are expected to shore up excise revenues from `5,068.7 crores to `7,651 crores.

The government’s decision to rework the policy was necessary as the 2009 excise policy seemed outdated and the rollout of the Goods and Services Tax (GST) had taken away a chunk from the state government’s excise kitty.

The Delhi Deputy Chief Minister, Manish Sisodia said another important decision taken is that the Delhi government will not run any liquor outlet. Presently, about 40% of the 850 odd outlets in the capital are privately run, the remaining by government. The state-run outlets were indulging in ‘brand pushing’ and there was pilferage in revenues, thus affecting the coffers. This year, the government will also not give licence for opening any new liquor retail outlets, while it will shut down those which are running without licence.

2,000 illegal outlets in the capital

The Deputy Chief Minister said the liquor mafia needed to be checked and mentioned that while the government had approved 850 liquor stores, the liquor mafia has been running about 2,000 illegal outlets and with impunity over the years. “In the last two years, over 7 lakh illegal liquor bottles have been seized, 1939 people arrested.” There was a skewed distribution network – 20% of the areas in the city are over-served, while 58% are under-served, giving room for the liquor mafia to rule.

Diageo welcomes progressive excise policy

The industry has welcomed the new policy. One of them to react first has been Diageo India’s Managing Director and CEO, Mr. Anand Kripalu, who said “Diageo India welcomes the progressive Excise Policy reforms announced by the Delhi Government yesterday. The new Excise Policy keeps the consumer at its heart, enabling their access to good quality brands in significantly safer and enhanced purchase and consumption environments. We welcome the many consumer-friendly measures including bringing the legal drinking age in Delhi at par with neighbouring states, introduction of “age-gating” at restaurant & bars, equitable geographic spread of retail outlets in the State and 100% private retail. The government’s mission to tackle the scourge of illicit liquor trade will ensure safety of citizens while minimising revenue losses of the government.”

New rules for liquor outlets

The new guidelines have factored in the size and location of liquor shops for equitable distribution in the city. The minimum space for an outlet now is 500 sq ft and that the windows of such stores should not face the road. “Most government-vend outlets had a jail-like environment and this would go.” It is the responsibility of the shop owner to ensure discipline and decorum in the premises of liquor shops, ensuring that no public drinking took place either inside or outside the liquor stores. Those below the age of 21 will not be allowed inside liquor stores.

The Delhi government had constituted a three-member panel led by the Deputy Chief Minister Manish Sisodia with Kailash Gehlot and Satyendra Jain as members to formulate the new excise policy. The panel had made several sweeping recommendations, all of which have been adopted by the government.

The Group of Ministers committee suggested allocation of liquor vends through a lottery system whereas the liquor mafia has been lobbying to keep e-auction system where they could use money and muscle power. The recommendations of the committee included:

Registration of Brands

Whiskey – The committee suggested that brands selling below the retail price of `601 per bottle would be registered in Delhi only if the brand and its variants have sold a minimum of 1,00,000 (one lakh) cases each in minimum of five states excluding Delhi which have IMFL industry (Indian Made Foreign Liquor) higher than Delhi and a minimum of 10 lakh cases volume including CSD (Canteen Stores Department) in the previous year all over India, excluding Delhi. For brands with retail price of over `601 per bottle, no sales figures will be required for registration of the brand.

Rum/Vodka – The committee suggested that brands selling below the retail price of `501 per bottle would be registered in Delhi only if the brand and its variants have sold a minimum of 10,000 (ten thousand) cases each in a minimum of five states excluding Delhi which have IMFL industry (Indian Made Foreign Liquor) higher than Delhi and a minimum of 1 lakh cases volume including CSD (Canteen Stores Department) in the previous year all over India, excluding Delhi. For brands with a retail price of more than `501 per bottle, no sales figures will be required for registration of the brand.

Beer – Strong Beer – For Beer brands above 5% alcoholic strength and MRP up to `150 per bottle, would be registered in Delhi only if the brand and its variants have sold a minimum of 10,00,000 (Ten Lakh) cases including CSD, but excluding Delhi, all over India, with registration in at least 5 states.

Lager Beer – For Beer brands up to 5 percent alcoholic strength and MRP up to `150 per bottle, would be registered in Delhi only if the brand and its variants have sold a minimum of 5,00,000 (Five Lakh) cases including CSD, but excluding Delhi, all over India, with registration in at least 5 states. For all Beer brands with a retail price of over `150 per bottle, no sales figures will be required for registration of the brand.

Brandy and Gin – For these two products, no sales figure shall be required for registration of brands in Delhi.

This recommendation has been made keeping in view of the cheap brands being manufactured in Delhi’s neighbourhood, which are owned and supplied into Delhi by persons who are already having a number of liquor vends in the capital. Such cheap brands are sold to hapless consumers over the counter by the staff of the liquor vends, denying them quality products as the owner of the liquor vend earns more by selling his self-made product as compared to other quality products.

Steep hike in Licence Fee

The committee proposed raise of licence fee from `8,00,000 (Eight Lakhs) per year to `75,00,000 (Seventy-Five Lakhs) per year. On the other hand, to ensure that the vend owner does not suffer losses due to the steep hike in licence fee, the committee made another recommendation. Till now, the liquor vend owner used to get a profit of `50 to `100 per bottle but the committee has proposed a profit of 8% from the MRP of the product for the vend owner, which will ensure that the hike in licence fee, will compensate the vend owner.

Vend allocation system to be changed

The committee recommended discontinuation of the practise of auto-renewal of licences. Now vends are to be allotted by lottery and no individual would be allotted more than two vends. This has been done to do away with the existing monopoly and cartelisation in the system as at present, there are individuals holding as many as even twenty vends in Delhi

The committee recommended to raise the number of existing 720 liquor vends in Delhi to 916 for its population of about 2 crores. Mumbai has 1190 vends against a population of 1.23 crores and Bangalore has 1794 vends across a population of 1.93 crores.

Opportunities for beer in 2021 & beyond

Beer suffered quite heavily during 2020, primarily due to its reliance on the on-premise. Beer markets in Italy, the UK and Colombia were amongst those particularly hard hit due to lockdown restrictions. Traditional inbound tourism hubs continue to hurt. Some brewers also faced legislative issues, notably full bans on the sale of alcohol in South Africa and India, and a ban on domestic brewing in Mexico. Changes in consumer purchasing behaviour in the off-premise, such as a tendency to purchase multi-packs and less time spent browsing, meant some players had to adapt to new packaging offerings and/or new distribution channels as well. Overall, the industry will likely see an approximate 9% decline in beer consumption across 19 key markets (2019 to 2020). Amidst the challenges, however, there are bright spots:

Market recovery

IWSR research shows that some beer markets will emerge from 2020 relatively unscathed: beer proved remarkably resilient in Japan, for example, especially in the face of a strongly-advancing ready-to-drink (RTD) category. Although beer in China will see an approximately 7% loss in volume in 2020, the decline is not as bad as many feared it could be, primarily as restrictions had largely been lifted by the key summer months. Looking forward, developing markets will continue to provide growth opportunities for brewers. Even before Covid-19, many developed beer markets had stagnated in recent years. Key players have invested heavily in increasing their brewing capability and distribution networks across developing markets. Africa has been a particular focal point for investment, with new breweries opened in countries including Mozambique, Kenya and Ethiopia. In Asia, Heineken and Carlsberg have been very active in Vietnam and Cambodia. In 2019, Heineken enjoyed success with the launch of Heineken Silver in Vietnam, while Carlsberg’s relaunch of Huda was also well received. Of the leading markets, IWSR projects these two countries to be in the top ten growth markets between 2019 and 2024. The potential for beer growth in India is strong as well. AB InBev, for example, began brewing Budweiser in the market back in 2010. In January 2021, Kirin Holdings announced an investment of $30 million in New Delhi-based B9 Beverages, the maker of the Indian craft beer Bira. IWSR anticipates beer consumption in India to return to pre-Covid-19 levels by the end of 2023, continuing on its growth path from there.

Expanding beyond beer

As consumers moved to the at-home occasion, the trend for convenience has helped to shape purchasing behaviours. In markets such as the US, the ready-to-drink (RTD) category, which includes hard seltzers, has been taking share from beer. RTDs provide a growing opportunity for brewers to diversify their product portfolios. Indeed, Heineken entered the hard seltzer category in September 2020, with the launch of Pure Piraña in Mexico and New Zealand. In the US, Heineken partnered with AriZona to launch the AriZona SunRise Hard Seltzer in October 2020. AB InBev states that Bud Light Seltzer is their leading innovation in the US market, with over 75% of volume being incremental to their portfolio. In fact, 2021 was the first year in which a hard seltzer commercial (Bud Light Seltzer) aired during the Super Bowl. Malt-based RTDs are currently dominant in the US owing to their taxation base, and brewers there are in prime position to take advantage. Elsewhere, the alcohol base of choice varies by country, driven by consumer preference and local alcohol tax structures.

Changes in purchasing behaviour propel e-commerce

As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel. Heineken, for example, reported that Beerwulf, its direct-to-consumer platform in Europe, nearly doubled its revenues in 2020, while in the UK, its revenues tripled. Online sales of its home-draught systems grew as well. Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However, this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel. Online beer sales hold the greatest market share in countries including Japan, the UK and the US. From a lower base, online beer sales will also grow rapidly over the next five years in markets such as Israel and Nigeria.

The entrepreneurial spirit of small-batch players

Craft breweries, which tend to be more dependent on the on-premise, have propelled interest in the global beer category and revitalised its fortunes in many markets. IWSR believes that the entrepreneurial spirit of the sector will mean that craft brewery regeneration will be quick. In the US, for example, IWSR has seen the pandemic lead to a “buy local” approach amongst some consumers, which will benefit small-batch players.

Innovation in the no/low space reignites the category

No- and low-alcohol beer is a bright spot for the category, as moderation and wellness trends continue to resonate with consumers. IWSR data shows that, to date, most volume has come from no-alcohol rather than low-alcohol beer across 10 key markets. Broadly, low-alcohol beer is giving way to no-alcohol offerings particularly in markets such as Australia, France and the UK. Spain, for example, is seeing a shift from low- to no-alcohol beers, as consumers seek healthier choices and view the newer 0.0% brands as more modern. In South Africa, investment from Heineken and the emergence of a craft segment has helped to generate interest in the no-alcohol category. While no-alcohol beer has existed for decades, in markets like the US, no-alcohol beer has premiumised through the release of no-alcohol versions of non-lager styles, long the domain of no-alcohol beer. More recent no-alcohol styles, such as IPAs, stouts or porters, are starting to make a real impression, driven particularly by new challenger brands, many of which are not linked to traditional brewing. The recent no-alcohol extension of Guinness – despite some teething issues – will help to underline that no-alcohol beers are no longer the sole domain of lagers. While several key beer players continue to steer the no/low beer category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space. The segment is likely to become even more of a focus for smaller craft producers who are able to bring a diverse range of products to the market in future.

How Asian drinks brands are targeting new markets

Most Asian drinks brands sell the majority of their volumes domestically, where brand awareness is high and drinking cultures are long established. For example, IWSR data shows that approximately 97% of Japanese beer, wines, spirits and RTDs are consumed in the local market. When looking at just the premium-and-above price segment, over 60% of Japanese wines and spirits are consumed locally. But as competition from international brands mounts, local distillers, brewers and winemakers are dedicating more time and resources to developing their presence in overseas markets.

“There are lot of local champions that have a very strong position within their own market but little presence outside,” explains Tommy Keeling, Research Director at IWSR. “As Asian populations grow richer, consumers are trading up to imported drinks brands and the position of local champions suddenly looks less secure, so many are looking to diversify abroad.”

Keeling adds that for many brands, the real benefit of international expansion is the resulting uptick in interest in their domestic markets. In the case of Chinese spirit baijiu, for example, exports are unlikely to ever be more than a fraction of local sales, but distillers are hoping growing interest in the category abroad will boost its popularity at home.

Baijiu is a wealthy category, so brands are able to invest in high profile display advertising, such as Wuliangye’s billboard in Times Square. One of the main aims of this strategy would be to target relatively wealthy Chinese tourists who are already familiar with the brand. Luzhou Laojiao, another large baijiu producer, sponsored the 2019 Australian Open with its high-end Guojiao 1573 brand, again, principally targeting Chinese viewers.

For smaller brands such as Fenjiu, the main goal in international markets is education. “We would like to continue educating the UK market on baijiu and increase both trade and consumer awareness and understanding of this category,” says Qiqi Chen, managing director of Cheng International, the UK distributor of Fenjiu.

The brand takes a more intimate approach to marketing through meetings, masterclasses and tasting sessions, all supported through a strong social media drive. “There are two main baijiu education themes for us,” says Chen. “One is introducing Chinese food and drink culture, and the other is showing how Chinese baijiu can blend well with the western lifestyle.”

In order to offer a “more direct experience” of its brand, Fenjiu will increase its work with bars, restaurants, hotels and retailers, as well as brands outside of the food and drink industry.

Keeling adds that once brands start to expand internationally, it is crucial for them to tailor their approach to the market in which they are selling. For example, in South Korea, soju consumption is widespread, so brands mostly compete on price. However, due to shipping costs, import duties and excise taxes, the product becomes more expensive in overseas markets. As such, brands would be better to promote a different set of values.

For Asian beer brands, giving consumers an authentic taste of their respective cultures is an important way to expand their foreign fan base. The UK in particular gives brands the opportunity to grow their reach through the restaurant channel. Indian beer brand Kingfisher, for instance, has 5,000 distribution points in Indian and Bangladeshi restaurants in the UK.

John Price, head of marketing at KBE Drinks, the UK distributor of Kingfisher, notes that the brand “can be found in every type of eatery”, from high street curry houses to Michelin starred restaurants. “The restaurant channel will always remain the beating heart of our business, but it is sometimes hard to break out of this into wider consumption occasions,” he adds.

This is where sports sponsorships come in. Through commercial partnerships such as these, brands become visible in a new context. Kingfisher is currently a partner of Southampton FC, Leeds United FC, Sussex County Cricket and Wigan Warriors Rugby League Club. “We don’t take on a partnership unless we get pouring rights and this gives consumers the chance to re-evaluate the brand in a fun and exciting environment,” adds Price.

Thailand’s Chang Beer, which is the official beer of Leicester City Football Club, has an international marketing strategy centred around provenance and heritage. “Growing internationally is a journey that is carefully curated with the right partners, the right channels and the right marketing mix,” says Ronnie Teo, head of group marketing at Chang.

“It is important to ensure that we work with partners who share the same long-term convictions as us. Our partners understand what our Chang brand stands for – its provenance and values – and collaborate with us to market the brand in the right sales channels with the right messaging.”

For a number of years, Chang has hosted the Chang Sensory Trails event in London, which celebrates Thai cuisine in a contemporary setting filled with music and street art. Events such as these allow Asian brands to become an essential part of the cultural experiences and representations of their respective nations.

Ultimately, says Teo, to grow internationally, brands must first have a strong domestic business. “To that end, we have seen our marketing efforts in Thailand pay dividends, with our market share growing by more than 15% share points between 2014 and 2019. This strong growth has made Chang an iconic local champion, appealing to Thais, as well as the millions of tourists that visit Thailand annually. With a solid domestic foundation, we were then able to springboard our international marketing efforts.”

Beam Suntory Reports 2020 Results

Beam Suntory, a leading global premium spirits company, reported full-year results for 2020.

Global net sales were flat for the year, as a return to growth in the second half offset lower sales in the first half of the year. Full-year sales grew 4% in the United States, as restaurant and bar activity improved in the second half and spirits continued to gain share from beer and wine. Sales were essentially flat in Japan, up at a single-digit rate in the UK and Russia, up high-single digits in Australia and Canada, and up double digits in Germany and South Korea. The impact of the pandemic led to lower sales in markets including Spain, India, China, South Africa and the Global Travel Retail channel.

Global sales for Jim Beam grew to surpass 11 million 9-litre equivalent cases for the first time, extending the brand’s leadership as the world’s number one Bourbon whiskey. Reflecting sustained consumer demand for premium brands, sales for Basil Hayden’s bourbon, Hornitos tequila, Toki whisky and Roku gin increased at double-digit rates. Sales were also exceptionally strong for Japanese ready-to-drink products and On The Rocks Premium Cocktails (acquired in September 2020), as consumer demand for convenience, refreshment and quality cocktails expanded.

“As we expected, consumer demand increased in the second half of 2020, even as the global pandemic continued to impact markets around the world,” said Albert Baladi, president & CEO of Beam Suntory. “I couldn’t be more proud of how our people adapted to confront the challenges of 2020 – from our frontline distillery workers to our sales teams, from our brand builders to every company function. As a result, we were able to meet consumers digitally in the emerging ‘home premise’ to support at-home cocktail-making and satisfy their expectations for convenience through increased investments in e-commerce and ready-to-drink products. At the same time, we supported our on-trade partners with innovations like cocktails to go, and guided by our vision of Growing for Good, we provided vital assistance to hard-hit restaurant and bar workers in markets around the world.”

“Looking ahead, the pace of recovery from the ongoing pandemic remains uncertain. In this environment, we expect to drive continued improvement in sales as we benefit from the strategic investments we made in 2020, the exciting brand plans we have in place, and our commitment to delivering quality to consumers at every step of the value chain up to the moment of consumption.”

Baladi also noted that Beam Suntory made substantial progress reducing its environmental impacts in 2020, and will soon announce a new global sustainability strategy featuring ambitious targets focussed on making a positive difference for nature, consumers and communities.

Update on Beam Suntory Growing for Good Initiatives

Environmental Sustainability

Carbon Reduction: Through the purchase of renewable electricity and the completion of multiple energy efficiency projects (Kentucky, Mexico and Scotland), Beam Suntory reduced its total Scope 1&2 carbon emissions by 25% compared to the 2015 baseline.

Water Efficiency: The company has reduced water use per unit of production by 29% (versus 2015 baseline) by optimising existing cooling systems and investing in more efficient cooling technologies at the Jim Beam distilleries in Kentucky.

Watershed Protection: The company has established Natural Water Sanctuary programmes at Maker’s Mark and adjacent to the Jim Beam distillery. The company continues to expand watershed protection activities to global manufacturing sites in India, Mexico, Spain, the US Virgin Islands and Ireland. Future activities are planned in Scotland, France and Canada. 

Sanitizer: To support hospital systems and first responders in the fight against Covid-19, the company’s facilities in Kentucky, Japan, Spain, Scotland, Ireland, Canada and Mexico produced sanitizer sufficient to clean more than 50 million pairs of hands.

Hospitality industry: The company provided more than $3 million to support restaurant and bar workers and their families across numerous markets. Initiatives included Maker’s Mark’s partnership with the LEE Initiative Restaurant Reboot Relief Programme and Restaurant Workers Relief Programme, which donated more than 1 million meals to restaurant workers in the US, the company’s Shift-Meals To-Go programme supporting US hospitality workers and their families, and support programmes for on-trade workers in markets including Canada, the UK, Germany, Spain, Brazil and India.  

Women in the Dry State of Gujarat are Jumping on the Alcohol Consumption Bandwagon!

Earlier, we reported that binge drinking among women has been increasing steadily over the past few years. Thirteen percent of adult women have reported binge drinking four times a month on an average while consuming five drinks per binge. A 2019 survey conducted by TU Dresden in Germany found that Assam led alcohol consumption among women in India. However, the North-eastern state is not the only Indian state where alcohol consumption has increased drastically. Gujarat, the Dry State, is climbing up the charts steadily too.

According to the National Family Health Survey (NFHS-5) released recently for the year 2019-20, it was discovered that the number of women consuming alcohol in the Dry State has doubled in the last four years. The survey studied a total of 33,343 women and 5,351 men from Gujarat. 200 women (0.6 percent) and 310 (5.8 percent) reported that they consumed liquor. 

Previously, in the NFHS-4 Survey (2015-16), the sample under study in the state included 22,932 women and 5,574 men amongst whom 618 men (11.1 percent) claimed they drank liquor while only 68 women (0.3 percent) claimed the same.

A comparison between both the surveys shows that while the number of women consuming alcohol in Gujarat has doubled, the number of men doing the same has nearly halved.

Gaurang Jani, a sociologist, said “The middle class and upper middle class have embraced the party culture in recent times. As a result, women in families have also started consuming liquor. Earlier, men used to go out to drink. Now, a new culture of consuming liquor in family parties has emerged. People are throwing family parties to celebrate even small events. Moreover, kitty parties have also contributed to higher liquor consumption among women, NRIs are also bringing liquor with them and enjoying it during house parties here with relatives.”

Jani thus pointed out that the rise in party culture as well as the growing acceptability of drinking in society has contributed to the rise in the number of women drinkers.