Chief Blender Shinji Fukuyo recognized as ‘Master Blender of the Year’ for the first time
Suntory Spirits – Toki and Yamazaki Whisky’s recently have been recognized at the International Spirits Challenge 2024 Awards in London. Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category while the Suntory Single Malt Whisky Yamazaki 12 Years Old was awarded the Supreme Champion Spirit. Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards.
Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category
This esteemed recognition reaffirms yet another significant achievement among for these products. Toki Whisky has earned over 20 international awards while Yamazaki 12 Years Old award to the highest scoring Trophy winner of the competition, the top award in the Japanese Whisky category, and was also selected as the most outstanding product out of thousands of entries among all categories.
Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards
This marks the first time that Yamazaki 12 Years Old has been awarded as the Supreme Champion Spirit and the second consecutive year for a Suntory Whisky brand to achieve this accolade following Yamazaki 25 Years Old last year.
These recognitions are a testament for the company’s excellent blending skills and the pursuit of perfection in quality for its whisky making, further cementing the reputation of Japanese Whisky added the company.
Octaga Green introduced Master’s Imperial and Captain’s Select, two premium whiskies that embody the brand’s philosophy of blending sustainability with time-honoured craftsmanship. The Master’s Imperial whisky is priced at Rs. 1,815 for a 750 ml bottle, while Captain’s Select is available for Rs. 1,245 for a 750 ml. Both products are available for purchase throughout India and M.O.D. (Ministry of Defense) across 18 states and 5 countries.
Master’s Imperial is a premium blended Scotch whisky tailoured for discerning consumers who seek quality whiskey without a hefty price tag. This blend combines rare grain spirits with 6-year-aged, imported scotch malt delivering a smooth and unique taste. The aging process imparts a distinctive depth and complexity to the final product.
At the same time, Captain’s Select Whisky is a top-tier malt whisky that delivers a smooth and unique flavour. The blend features rare grain spirits and malts aged for 3 years, this classic whisky has been rewarded with a Silver Medal at the IWSC London in 2018.
“At Octaga Green, our vision is to shape a sustainable future while delivering world renowned spirits. True quality goes beyond the product; it’s about creating a positive environmental impact,” said Basab Paul, CEO and Managing Director, Octaga Green.
First Travel Retail Exclusive for Bengaluru Duty Free
Indri single malt launched its first travel retail exclusive ‘City Series’ with the debut Oloroso-Sherry cask expression exclusively crafted for Bengaluru Duty Free. The limited edition is solely available for travel retail and is also the first in a series of bespoke single cask expressions, where each release will embody the spirit and essence of a different Indian city, available solely through select duty-free outlets across India and the world.
This travel retail exclusive single malt whisky is specially made, designed, and bottled for Bengaluru Duty Free, celebrating the city in every bottle. The 750 ml bottle of the Indri Single Malt Bengaluru Duty Free Expression is Rs. 9,500 and will have an ABV of 58.8%. The exclusive edition is also available only in the Duty Free, Terminal 2 Departure, Kempegowda International Airport, Bengaluru.
David Grady, Country General Manager, Avolta with Surrinder Kumar, Master Distiller & Blender, Piccadily Agro Industries Ltd.,
The Bengaluru Duty Free Expression captures the spirit and essence of Bengaluru, paying homage to its blend of vibrant modernity and rich traditions. It showcases the intricate craftsmanship Indri is known for, presented with iconic Bengaluru landmarks incorporated into the bottle design.
The makers state that each sip of this Oloroso-Sherrysingle cask expression offers a taste of the city, combining complexity and warmth with layers of tradition and innovation. This expression boasts a rich and full-bodied nose, revealing sweet caramel, fresh red fruits, and gentle spices, all beautifully intertwined with nutty, caramelized notes and earthy undertones.
On the palate, it offers a warming and balanced experience, featuring fresh red berries, subtle toffee, vanilla, and nuttiness, complemented by soft spices and a gentle dryness. The finish is long and smooth, with lingering flavours of sweet vanilla, spice, and fruity undertones, creating a lasting impression of depth and complexity.
“We are thrilled to unveil the first expression of our ‘City Series’ with Bengaluru Duty Free. Each expression of this series is a celebration of India’s diverse cities, their unique essence, and cultural richness,” said Siddhartha Sharma, Promoter, Piccadily Agro Industries Limited. Piccadily plans to launch each expression of the ‘City Series’ that will be an ode to a city’s unique culture, essence, and personality. City specific expressions will be released at other exclusive duty-free outlets, allowing travellers to embark on a flavourful journey through India.
Campari Group has completed the acquisition from ODC (BidCo) Limited of a 14.6% minority stake in Capevin Holdings Proprietary Limited, the South African holding company indirectly owning, in particular, 100% of CVH Spirits Limited, a Scottish company operating in the production and commercialisation of renowned Single Malt Whiskies Bunnahabhain, Deanston, Tobermory and Ledaig, and Blended Whiskies Scottish Leader and Black Bottle.
Campari Group also holds distribution rights for brands from CVH Spirits Limited portfolio in France and South Korea. In accordance with Capevin Holdings Proprietary Limited’s memorandum of incorporation, Campari Group has exercised its right to appoint a board member and has additional governance rights to protect its minority position. The purchase price paid amounted to GBP 69.6 million (corresponding to €82.6 million at the exchange rate of the transaction date). The transaction was financed using available cash.
Export value of Scotch whisky in H1 2024 was £2.1bn, down £463.2m (-18%) compared with H1 2023
Export volume of Scotch whisky in H1 2024 was 566m 70cl bottles (equivalent), down 64.3m (-10.2%) 70cl bottles compared with H1 2023
H1 2024 is the 4th highest value export total since record began.
The Scotch Whisky Association (SWA) has released new figures revealing that exports of Scotch whisky in the first half of 2024 have fallen by 18% compared to the same period in 2023.
Data for H1 2024 shows that the value of Scotch whisky exports declined when compared with the first half of 2023 – a year in which the industry saw a reduction in exports after a record breaking 2022. Export value in H1 2024 was £2.1bn, down 18% on 2023. In the same period, the volume of exports fell by 10.2%, to the equivalent of 566m 70cl bottles – or 36 bottles of Scotch whisky exported each second, compared to 40 bottles per second in the first half of 2023.
UK Government backs producers
Publishing the figures, which are collated by HMRC, the SWA called on the new UK government to take action to ‘back Scotch producers to the hilt’, as Prime Minister Keir Starmer promised to do in the run up to the General Election. This includes reducing the tax burden on Scotch whisky at the Budget on 30 October following the damaging domestic impact of the 10.1% duty increase in August last year.
By value, the United States remains the largest global market in the first half of 2024. The industry continues to feel the impact of the 25% tariff on Single Malt Scotch whisky, levied between October 2019 and March 2021, which cost the industry £600m in lost exports and market share. The industry continues to press for a full resolution of the underlying trade dispute and ensure that Scotch whisky is removed from further harm in this critical global market.
By volume, India is the largest market, with growth of 17.3% in the first half of 2024 compared with the previous year. This is despite the current 150% tariff on imports remaining in place. The SWA has called on the new UK government to redouble efforts to conclude the UK-India Free Trade Agreement. The phased reduction of the tariff would benefit industries in both the UK and India and could see the value of Scotch whisky exports grow by £1bn over five years.
Commenting on export figures in the first half of 2024, SWA Chief Executive Mark Kent said, “The Prime Minister has promised to ‘back Scotch producers to the hilt’. These figures are a reminder that the success of Scotch whisky cannot be taken for granted and requires government support to ease the industry through short term volatility.
“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch whisky. But it is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.
Seeks Duty Cuts by New Government
“The UK Budget on 30 October is the first opportunity for the new Labour Government to show it truly supports Scotch. Last year’s double-digit tax hike on Scotch whisky in the UK, the largest in 40 years, has already lost HM Treasury almost £300 million in tax revenue. Beginning to reverse the damage by cutting duty on Scotch whisky will boost public finances and bolster the industry through this challenging period.
“In addition, the H1 figures clearly show that our biggest market, the US, has not fully stabilised following COVID and the damage caused by the 25% tariff on Single Malt in the US. The permanent elimination of this tariff, going beyond the current five-year suspension, would remove uncertainty, give the industry increased confidence and allow our full focus to be on growing in this highly competitive spirits market.
“It is welcome that the UK government has picked up negotiations on a UK-India trade agreement. Exports to India have been a bright spot in the first half of 2024, despite the current 150% tariff being a brake on future growth. Securing a deal which reduces the tariff would be a major boost to the industry and help to mitigate the impact of a slowdown in other global markets.”
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John Distilleries Ltd has invested ₹100 crores in the expansion of its Goa distillery. With demand growing for Paul John Single Malt whisky in both domestic and international markets, the company has added capacity taking to 3 million litres annually from 1.5 million litres.
John Distilleries Ltd (JDL) is stepping up exports and exploring newer global markets for its Paul John Single Malt (PJSM) whiskey, the company said in a statement. Presently, Paul John is exported to over 50 countries. The company said it will be soon launching new variants of the whiskies starting October this year. The company which has distilleries across 12 locations with an overall production of 24 million cases annually, is firming up plans to roll out premium rums and vodka.
John Distilleries Chairman Paul P. John said, “We have almost tripled the capacity of our Goa distillery, from 1.3 million litres to 3 million litres annually. We invested around ₹100 crore in this expansion which will help us in meeting growing demand for PJSM whiskeys in global and domestic markets.”
According to industry estimates, in 2023-24, JDL exported close to 30,000 cases of PJSM whiskey to over 50 countries such as the US, France, UAE and Japan. In the domestic market, the spirits maker sold around 72,000 PJSM whiskey cases.
Prashant Kishor Pandey, political strategist and tactician, who has formed his own political outfit ‘Jan Suraaj’ on October 2, 2022 has promised to lift the ban on liquor in Bihar if his party came to power in the State Assembly elections to be held in 2025.
Prashant Kishor vowed to the lift the ban ‘within an hour’ if his party won the elections. “We have been preparing for the last two years. If the Jan Suraaj government is formed, we will end the liquor ban within one hour,” he told a news agency.
Prohibition in force since 2016
The present Chief Minister, Nitish Kumar first imposed total prohibition in 2016 and that really hasn’t helped the state of Bihar as the number of deaths due to illicit liquor crossed 200 and 30 cases have been filed without any conviction. And we have the infamous statement of Nitish Kumar who said ‘Jo sharab piyega, woh marega hi’ (one who drinks liquor, will surely die).
In 2015 before coming to power in his election rally he had promised to introduce prohibition. When he came to power he said, “My government is committed to fulfilling promises made to women during the election campaign. There was a surge of complaints from women about male members of the family resorting to drinking and creating nuisance, which also affected the education of their children. Though the excise department can earn ₹4,000 crore per year, we have to think in terms of public interest and take this decision.” However, there have been instances from states where prohibition has been in place that it really is counterproductive, giving rise to illegal trade and illicit liquor and the consequent deaths.
Undeterred by such opinion, the Bihar Government on December 21, 2015, issued a gazette notification, introducing a New Excise Policy to curb the menace of alcoholism and vices related to it. The notification provided for prohibition of country liquor within the State of Bihar from April 1, 2016. Accordingly in order to achieve the desired objectives of Prohibition, The Bihar Excise Act ,1915 was amended and Bihar Excise (Amendment) Act, 2016 was promulgated and from April 5, it imposed total prohibition.
Consequently, the Bihar Prohibition and Excise Act, 2016 was notified on 2nd of October 2016, the preamble of which provides thus: “To enforce, implement and promote complete Prohibition of liquor and intoxicants in the territory of the State of Bihar and for matters connected therewith or incidental thereto. Whereas it is expedient to provide for a uniform law relating to Prohibition and regulation of liquor and intoxicants, the levy of duties thereon and punishment for the violation of law in the State of Bihar.”
Prohibition has not helped State
However, prohibition has not helped the state which has lost over 200 lives, besides revenues that come from excise. The worst part is that there has not been a single conviction in any of the cases so far. Thirteen people who were convicted in March 2021 in the 2016 Gopalganj hooch tragedy by a lower court were acquitted by the Patna High Court.
In such a scenario, Nitish Kumar has made several amendments to the anti-liquor law but that really has not helped the illegal activities. On March 30, 2022, the Bihar Prohibition and Excise (Amendment) Bill, 2022 was passed by the legislature, and the bill amended the 2016 Act. The Bill was introduced to expedite trial in the courts and to focus on punishing illegal suppliers and traders of liquor, instead of persons consuming it. The government decided to allow the release of vehicles impounded for transporting liquor after the payment of only 10% of its insurance cover, instead of the 50% required earlier, the rationale for this is inexplicable.
Penalty for consuming liquor
As per the amendment it introduced penalty for consuming liquor. The Act specifies the following as offences: (i) consuming liquor or intoxicant in any place, (ii) being found drunk, (iii) drinking and creating nuisance or violence, and (iv) facilitating drunkenness or allowing assembly of drunk persons in a house. The first two offences are punishable with a minimum fine of ₹50,000 for first-time offenders, or three months imprisonment in lieu of such fine. Repeat offenders are punishable with fine up to one lakh rupees, and imprisonment ranging from one to five years. The other two offences may be punished with fine of one lakh rupees to five lakh rupees, and five to ten years of imprisonment. The Bill only penalises persons who consume any intoxicant, or are found drunk or under the influence of an intoxicant. These offences are punishable with: (i) a fine in the first instance, and one month imprisonment in case of failure to pay fine, and (ii) additional fine or imprisonment, or both, in case of repeat offences. The state government will prescribe fines for the first instance of offence, and fines and imprisonment for repeat offenders.
Trial by Executive Magistrate
The Act said persons consuming alcohol, or found intoxicated, will be arrested and produced before the nearest Executive Magistrate (to be appointed by the state government in consultation with the High Court). The Magistrate will conduct a summary trial of such persons. The Executive Magistrate will exercise the powers of a Judicial Magistrate of the second class in such cases.
Consumption of liquor in a chemist shop
The Act provides separate punishment for persons consuming liquor in a chemist or druggist shop or dispensary. The Bill removes this provision.
Special Courts
Under the Act, all offences are tried either by a Sessions Court or a Special Court. Special Courts may be appointed or designated by the state government. The Bill provides that all offences (except for consumption of liquor) will be tried by a Special Court. It requires every district to have at least one Special Court. Special Courts will only try offences under the Act, and must endeavour to complete the trial within one year from the date of submission of the charge sheet. Judges in these Courts must be appointed by the state government in consultation with the Chief Justice of the High Court.
Timeline for investigation
The Act requires the excise officer or police officer to file the investigation report within 60 days of registration of the case. The Bill relaxes this timeline to 90 days in case of offences punishable with a minimum of ten years imprisonment or death.
Offences made compoundable
At present, all offences under the Act are non-compoundable. The Bill omits this provision, implying that offences under the Act may now be compounded. Compoundable offences are those which may be settled between parties.
Confiscation of items
If an offence has been committed under the Act, certain items (such as intoxicants, vehicles, and premises) may be confiscated in such a manner as prescribed. The Bill provides that such items may be confiscated by the Collector (District Magistrate) or any officer authorised by him, based on the report of the investigating officer.
Destruction of items
Under the Act, the Collector may order the sale or destruction of articles before their confiscation. This may be done if: (i) the article is subject to speedy and natural decay, is of nominal value, or can be put to misuse, or (ii) the sale would be in the public interest or for the benefit of the owner. As per the Bill, the Collector or an officer authorised by him may destroy items either without or after confiscation. Items may be destroyed if they: (i) may be misused, or (ii) are likely to endanger public safety.
Release of seized items
The Act empowers excise officers and police officers to enter, inspect, and search any place, and seize any document, intoxicant or other items of concern, when investigating offences. The Bill adds that items or premises used for committing an offence under the Act, which have been seized by such officers, will be released (except for reasons to be recorded in writing) on payment of a penalty notified by the state government. In case of non-payment of penalty, the seized items will be confiscated.
Production of arrested persons
The Act requires arrested persons to be produced before court within 24 hours. The Bill permits arrested persons to be produced before the Special Court, or the nearest Judicial Magistrate, either in person or through electronic video.The law has been criticised by the Supreme Court too. The former Chief Justice of India N.V. Ramana said that the Bihar Prohibition and Excise Act, 2016 was made with a lack of foresight, and had led to clogging of the state’s courts. He said that 14-15 judges of the Patna High Court were kept busy each day with bail hearings in liquor cases.
Plan to launch exceptional Single Malt from India, date not finalised yet
The Ian MacLeod family, known for their unwavering commitment to excellence, is on the brink of launching a Single Malt from India. Although the launch date remains undecided, the legacy that has driven four generations of the Russell family—the principle that there can be “no compromise on quality”—continues to guide the company. This dedication has positioned Ian MacLeod as the 10th largest Scotch whisky company globally, boasting some of the world’s most renowned brands.
During a recent visit to their distillery in Scotland, I had the opportunity to sit down with Leonard Russell, Managing Director of Ian MacLeod. Our conversation revealed the company’s ambitious plans for India, highlighting the country’s rapidly evolving market, the impressive talent pool, sustainable practices and the exciting new distillery in Una, nestled in the Himalayas.
Trilok Desai in Edinburgh
A Glance Back: The History of Ian MacLeod
Before diving into our conversation, it’s essential to understand the history of Ian MacLeod. Founded on October 1st, 1933, the company traces its roots to Leonard Russell Senior, who established his whisky brokerage in 1936. Three decades later, the Russell family acquired Ian MacLeod & Co Ltd, with Peter Russell taking the helm as Chairman and Leonard Russell as Managing Director. The Russell family’s pursuit of perfection soon earned Ian MacLeod a reputation for producing whisky of exacting standards — because great whisky doesn’t come easily.
Today, after more than 80 years, Ian MacLeod has expanded its footprint to include five distilleries in Scotland, with a sixth under construction in Una, Himachal Pradesh, India. Under Leonard Russell’s leadership, the company has charted a meticulous roadmap for global expansion, focusing on carving a niche rather than pursuing mass production.
Peter Russell, the company’s visionary Chairman, passed away last year, leaving behind an enviable portfolio of 34 products, including Glengoyne, Tamdhu, Smokehead and Edinburgh Gin to name a few. Each of these award-winning brands, though distinct in flavour and character, is crafted with the same passion and commitment to quality.
Passion and Precision
Leonard Russell, who joined the family business in 1989, exudes passion and an unwavering commitment to quality. Under his stewardship, Ian MacLeod has transformed from a spirit blender and whisky broker into a fully integrated distiller, blender, and bottler, acquiring three distilleries—Glengoyne in 2003, Tamdhu in 2011, and Edinburgh Gin in 2016.
So, why is Ian MacLeod venturing into India, especially when they’re already thriving? Russell’s vision is clear: to create a Single Malt brand that will make India proud on the world stage. This venture is not about capturing the mass market but about delighting the discerning Indian consumer who appreciates the unique offerings that India can bring to the table.
Tamdhu Single Malt
India’s Growing Thirst for Single Malt
“India has a large population that favours branded spirits, unlike the Chinese and other Asians who prefer white spirits,” Russell explains. “As the Indian economy develops, so does the taste for Single Malts. India is crying out for the very best single malt whisky, and with our expertise from Scotland, we are poised to meet that demand.”
Although it may seem that Ian MacLeod is a newcomer to India, the company has actually been present in the country for two decades. Now, Russell believes, the timing is perfect. “The demand for the very best is there, and it’s our intention to deliver just that. We’re committed to creating a Single Malt whisky in India, using local ingredients, to satisfy the growing number of consumers who are genuinely interested in quality.”
Russell’s confidence in their India plans is palpable. “We’ve begun distilling some of the finest Single Malts in India, leveraging our expertise in oak casks and warehouse design to ensure that the maturation process is perfect.”
The Road Ahead: Quality Over Speed
When asked about the timeline for launching the new malt, Russell is clear: “We have no plans to reveal a brand launch date just yet. Our priority is to perfect the quality of the whisky. We’re sampling different casks, monitoring the maturation process, and comparing it to our Scotch maturation in Scotland. We’re not in a rush — we’ll launch when the whisky is at its peak.”
While the focus on quality is understandable, there’s no denying the market potential waiting to be tapped. Russell notes, “It’s incredible to see the growth of Indian Single Malts. There are some very good brands emerging from India, and it’s encouraging to see the market develop both domestically and internationally.”
A Distillery in the Himalayas: The Perfect Location
Though tight-lipped about investment figures, Russell expresses his satisfaction with the company’s investment in India. “It went over budget, but if you’re going to do it, you have to do it right.” The distillery in Pandoga, Una, Himachal Pradesh, is nearing completion, and as for the malt, no brand name has been chosen yet. Russell reiterates that their focus is on creating a Single Malt that will make India proud on the world stage.
The distillery’s location aligns perfectly with Ian MacLeod’s sustainable practices as well. “Though small, it’s perfectly formed,” says Russell. “We’re using hydropower from the Sutlej River, and we have access to excellent water sources. My dream is to open the distillery to visitors so they can see how we create exceptional brands.”
Glengoyne Single Malt – Aged 30 Years
A Niche Strategy: Quality Over Quantity
When pressed about the distillery’s capacity and market ambitions, Russell draws an analogy: “Our capacity will be similar to our distilleries in Scotland, like Glengoyne and Rosebank — enough to supply the discerning market, but not too large. We’re not aiming to be mass producers; we’re focused on creating a premium, luxury Single Malt for India that can compete on the world stage.”
Ian MacLeod’s strategy in India is clear and measured. “We’re not going to produce a million cases. If we reach 100,000 or 200,000 cases, we’ll be very happy. For us, it’s not about volume — it’s about ensuring the product is exceptional and winning the confidence of consumers, step by step.”
The Whisky and Scottish Lobsters Analogy
Russell offers a fascinating comparison between whisky maturation and the growth of Scottish lobsters. “A Scottish lobster from the cold northern waters, weighing one kilo, is likely 7 or 8 years old. In contrast, a lobster from warmer southern European waters will be only 1.5 years old at the same weight. Scottish lobsters, like well-matured whisky, develop a deeper, more complex flavour over time. Similarly, our distillery’s location in the cooler Himalayan climate is ideal for slower maturation, which results in a more rounded and complex whisky.”
When I mentioned Pernod Ricard’s construction of Asia’s largest distillery in Nagpur and Diageo’s two Single Malt brands in India, Russell was emphatic: “We’re not looking to be that big. We’re not interested in competing in the IMFL (Indian Made Foreign Liquor) market. We’re focused on creating the best Single Malt, and we have the expertise to do just that.”
Exports and Three Year Maturation
Ian MacLeod has clear plans to export their Indian Single Malt. “Indians love to travel, and there’s a large expatriate community around the world. We certainly have plans to export.”
Russell also emphasizes the importance of adhering to the three-year maturation requirement. “We won’t launch by this Christmas. We’re committed to the legal requirement of three years of maturation, which is standard worldwide. I can wait three years — after all, we wait 12 years for Single Malts in Scotland.”
Russell praises the talent in India, noting that the company is recruiting the best local distillers from Himachal Pradesh. “We’re excited to share our knowledge from Scotland with the team in India, and we’re eager to learn from each other.”
Copper Pot Stills at the Ian MacLeod distillery
Craftsmanship from Scotland, Tailoured for India
Regarding production equipment, Russell mentions that the stills, which are crucial for creating the flavour in the new spirit, are being precisely crafted in Scotland and shipped to India. “The rest of the production equipment is being made by craftsmen in India to our exact specifications,” he adds.
Russell also stresses the importance of the three-year maturation rule, which is universally accepted in the Scotch Whisky Act and in the US. He expresses a desire to see similar standards applied in India to protect consumers and maintain the integrity of the whisky industry.
Looking ahead, Russell is hopeful that Indian Single Malt distillers will form an association and establish a voluntary code to safeguard consumer trust and the quality of the product.
As our conversation wrapped up, Russell reflected on the challenges and opportunities ahead. “We’re here to create something special—something that will make India proud. And I’m confident that with our experience and commitment to quality, we’ll do just that.”This journey from Scotland to India, steeped in tradition and driven by innovation, is set to bring the world a new Single Malt that reflects the best of both worlds.
Central Consumer Protection Authority monitoring surrogate advertising, brand extensions
17th edition of IPL, big ticket event begins, liquor companies looking at eyeballs
Advertising Standards Council of India too tracking
The Central Consumer Protection Authority (CCPA) has issued a directive to liquor companies to ensure that there is no violation of advertising norms and has sought a list of brand extension products sold under the same name as alcohol products in the last three years. Some examples of brand extension products include mineral water, soda, music CDs, playing cards etc.
The CCPA gave this directive on March 19 after it observed that some liquor brands had been violating regulations of surrogate advertising. Hence, it has sought details of revenue, turnover data related to the sale of alcobev as well as the brand extension products. It directed companies to provide details of expenses incurred in event sponsorship, payments to celebrities and influencers and television advertisements during the last three years, in its bid to correlate between actual sales of the brand extension product and the money spent on event promotion / advertising etc.
The CCPA Chief Commissioner, Rohit Kumar Singh said “This assessment is critical for determining whether promoting of brand extension products authentically represents the extended product or functions as a surrogate for alcoholic beverages under the same brand.”
He further said “The industry is advised to ensure that all brand extensions follow the broad principles of advertising only genuine extensions (that is, turnover and distribution in proportion to advertising spends), and ensure that advertisements contain no cues of restricted category such as tag lines and layouts and do not unduly suppress the category name and extension being advertised.”
Last edition of IPL fetches Rs. 10,120 crore from advertising
The CCPA order comes ahead of the 17th edition of Indian Premier League (IPL) which kicks off on March 22. It may be mentioned here that the 16th season of IPL saw the tournament pocketing a whopping Rs 10,120 crore from all forms of advertising revenue, a significant growth as per market research and analysis firm Redseer Strategy Consultants.
Cricket gets the maximum eyeballs in India and advertising during matches have helped in brand development. During the last ICC World Cup cricket held in the Indian sub-continent, brands spent about $240 million in advertisement spots on streaming platforms. A 10-second advertising slot during matches costs up to 3 million rupees, a 40% increase compared to the last World Cup.
One of the big sponsors is Bira91, fast growing craft beer brand, had entered into a major five-year deal with the International Cricket Council, becoming its Official Partner for the ICC Cricket World Cup 2023, ICC T20 World Cup, ICC World Test Championship, ICC U19 Cricket World Cup and the ICC Women’s Championship. This is Bira91’s first foray into sports and as an official partner, it integrates the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. And now in the IPL, Bira91 is also one of the sponsors for Royal Challengers Bengaluru and Sunrisers Hyderabad and Kolkata Knight Riders.
Laws in place
The Cable Television Network Act, 1995 envisages that, unless such advertising is in conformity with the advertising code prescribed in the Cable Television Networks (Amendment) Rules, 2006- no person shall send or transmit any Advertisement through a cable service. The above provision, however, does not apply to foreign satellite channel programs that can be received without any specialized gadgets or decoders being used.
With regard to alcohol (Beer, Wine, and Spirits), the law says “any advertising directly or indirectly promoting the manufacture, sale, or consumption of alcohol, liquor, or other intoxicants is prohibited by the Cable Television Network Regulations, 1994, the Advertising Codes of Doordarshan, and the All-India Radio and Guidelines for Journalist Conduct published by the Press Council of India. Some states, however, allow ads, albeit subject to several limitations, through billboards, signboards, etc.”
In June 2022, the CCPA banned surrogate advertising with the introduction of a new set of guidelines to curb misleading advertisements. Violators stand to face a penalty of Rs 10 lakh for the first offence and a Rs 50 lakh fine for subsequent offences. That is the stated position, but we need to see what action has been taken.
Well-defined guidelines for brand extension: ASCI
The CEO and Secretary General of the Advertising Standards Council of India, Manisha Kapoor, asked ahead of the World Cup had said “The Advertising Standards Council of India’s (ASCI) code clearly mentions that products whose advertising is restricted or prohibited by law or by the ASCI code must not circumvent such restrictions by posing to be advertisements of other products whose advertising is not prohibited by law or the code. To differentiate between surrogate ads and legitimate brand extensions ASCI has well defined guidelines for Brand Extension products with set criteria for brands to qualify as a valid extension of a liquor brand/brand whose advertising is prohibited. The ICC World Cup is one of the most popular sporting events in the world and garners record-breaking viewership numbers. Given the scale of the event and sponsorships involved, we are mindful that the issue of surrogate advertising could arise, hence we have intensified our monitoring efforts during the ICC World Cup 2023. At ASCI, we have shifted our monitoring from weekly to daily feeds for this period.”
To a question on whether people were aware of brand extensions or these brand extensions were just an excuse, Ms. Kapoor replied “It is true that under the CTNR, advertising of brand extensions of liquor and tobacco products is allowed, as long as the product being sold under the brand extension makes no direct or indirect references to the prohibited product. Since consumers do miss out on the nuances, ASCI clearly defines in its guidelines the criteria for what qualifies as a brand extension and what does not.”
She also clarified that “At ASCI, our chief concern is about the content of the advertising rather than monitoring the availability of products in the market. However, when it comes to brand extensions in order to verify that the advertised product is indeed a legitimate extension and not a surrogate, ASCI does ask for third party verified sales data of the advertised product from the advertiser. Our brand extension guidelines have a clear criterion for both old and new products in the market to qualify as a valid extension. Instances where advertisers fail to satisfy the criteria are treated as surrogate ads.”
However, the CCPA guidelines states that in case of any ambiguity or dispute in interpretation of the guidelines, the decision of the CCPA shall be final. Sure enough, there are going to be claims and counter-claims.
The 16th edition of the prestigious Ambrosia Awards 2024, organized by Ambrosia Magazine – the Wine and Spirits Magazine, celebrated the finest achievements in the Alcobev industry at a gala event. Recognizing excellence in products, packaging, and individual categories, the awards showcased the industry’s best and brightest talents.
Ambrosia magazine, now in its 32 nd year, continues to be a hallmark of excellence in the industry. With a focus on blind tastings for the product category, the awards ensure a fair and unbiased selection process, akin to top international standards.
Trilok Desai, MD and Publisher of SAP MEDIA WORLWIDE LTD, remarked, “The Ambrosia Awards stand for excellence, and our international jury ensures that only the best are honored. Each year, we witness remarkable advancements in product quality, packaging, and technology, setting global benchmarks.
Vijay Rekhi launching Cheers 3rd Edition Coffee Table Book with authors Trilok Desai & Bhavya Desai
Another highlight of the evening was the launch of the 3rd Edition of Cheers – Coffee Table Book, authored by Trilok and Bhavya Desai. The book, inaugurated by Vijay Rekhi, CMD of Vizanar Advisors, and Former President and MD of United Spirits Ltd (USL), commemorates the industry’s journey and milestones.
Shiv Kumar Reddy, MD, Seven Seas Distillery Private Limited accepting the AwardAmar Sinha, COO, Radico Khaitan accepting the AwardAbhishek Khaitan, MD, Radico Khaitan Limited acceppting the Award on behalf of Dr. Lalit KhaitanVijay Rekhi and Mr. Gandhi’s family member accepting the Award
Among the individuals recognized, Shiv Kumar Reddy, Managing Director of Seven Seas Distillery Private Limited, was awarded Entrepreneur of the Year. Amar Sinha, COO of Radico Khaitan Ltd, was named Business Leader of the Year. Dr. Lalit Khaitan, Chairman and MD of Radico Khaitan Ltd, received the Ambrosia’s Paramount Achievement Award for his outstanding contributions, achieving the status of India’s newest billionaire. The Lifetime Achievement Award (Posthumous) was presented to Mr. S.S Gandhi, Former President of United Spirits Ltd, honouring his significant impact and achievements in the industry.
This Product Jury included:
Jury Members at the Tasting Session
Bernhard Schafer – A Whisky Expert, Spirit Consulting and A Master of Quaich
Stephen Beal – Senior Master of Whisky, Chairman of The Council of Whisky Master 2024
Dr. Binod. K. Maitin (PhD) – Technical Expert & Former SVP and Head of Technical Centre USL
Eddie Nara – CSE & Spirits Expert
Ajoy Shaw – DipWSET Winemaker, Consultant and International Wine & Spirits Judge
Julie Lee – Industry Expert and Entrepreneur
This Packaging Jury included:
Jury Members at the Packaging Session
Prof. K Munshi – Industrial Design Centre, IIT Powai
Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre
Pratish Mepani – Founder of SMBD Group
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