Tag Archives: Ambrosia

Amrut Spectrum 004 Review

Amrut Spectrum 004 is a single malt whiskey from India that has been making waves in the international whiskey market. Amrut Spectrum 004 is also a limited edition single malt launched for Rs. 12,999. In this article, we will be reviewing the Amrut Spectrum 004. We will explore its flavour profile and discuss its unique characteristics that make it stand out among other whiskeys.

We have received the Spectrum 004 in a unique launch package and stands out as the world’s first single malt whisky aged in a multi-wood barrel. Unlike traditional single malt whiskies that are matured in casks made from a single type of oak, Spectrum was matured in a barrel made from staves of four different types of oak, earning it the name “004”.

Adding to the exclusivity of Spectrum is its limited release, with only 6600 bottles produced. Out of these, only 600 will be available in Bengaluru, with the remaining 6000 bottles set for sale across Europe, the USA, and the Asia-Pacific region. This rare availability only enhances the prestige of this one-of-a-kind single malt whisky.

Spectrum underwent a unique two-step maturation process. First, the new make spirit was matured in an ex-bourbon cask, then the aged spirit was transferred to a Spectrum cask, made from a combination of different types of oak: new American oak with char level 3, lightly toasted new French limousine oak, ex-oloroso sherry cask staves, and ex-PX sherry cask staves. This carefully crafted process results in a complex and layered whisky with a depth of flavour like no other.

We are thrilled with the recent experimentation and innovation in Indian whisky-making, and it is exciting to see brands like Amrut pushing the boundaries of what is possible. This marks an important moment in the industry, where there is a growing need for more ambitious and innovative brands to emerge. We believe that this will lead to a vibrant and diverse landscape of exceptional Indian whiskies, one that truly showcases the passion, creativity, and expertise of India’s distillers.

On the nose, Spectrum 004 exhibits a delicate blend of vanilla and coconut, with a subtle hint of toffee. On the palate, the whisky showcases a distinctive coconut flavour, with a bold hit of spice and a touch of sweet vanilla and toffee notes. The finish is smooth and long-lasting, with a lingering spice that lingers on the throat. This unique combination of flavours and aromas make Spectrum 004 a truly one-of-a-kind experience.

Conclusion

So what’s our take on Spectrum 004? We believe it’s truly unique, with a delicious blend of dried fruit, coconut, sweetness, and spiciness. It’s a prime example of the new wave of premium malts being produced in India, and with a limited edition of only 6,600 bottles, it’s definitely worth adding to your collection. Don’t miss out on this exceptional and rare whisky experience.

Ambrosia Awards 2021

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The 14th edition of INDSPIRIT 2021, organized by Ambrosia, the wine and spirit magazine, held on December 17th 2021 in New Delhi, came as a much needed breather to the alcobev industry. Industry leaders and other stakeholders descended upon Hotel Andaz for IndSpirit 2021, primarily to ‘reconnect’ with the alcobev community.

INDSPIRIT 2021, a mix of conference, exhibition and awards, was a runaway success, not just because ofthe huge number of attendees, but because it set a ‘positive tone’ for the industry.

The Managing Director of SAP Media Worldwide, Mr. Trilok Desai, set the tone for INDSPIRIT 2021 by talking about how the alcobev sector was bouncing back with a positive outlook, after a lull of almost two years adversely affected by the pandemic.

Braving the Delhi winter, industry stakeholders turned out in good number, endorsing the spirit of Ambrosia to move on, overcome the challenges and grab the opportunities. The coming together of the industry was heartening to note for a sector which has so much to offer, thanks to quality enhancements, innovation and camaraderie. Cheers to the Alcobev sector, INDSPIRIT and Ambrosia for saying ‘goodbye to 2021’ and welcoming 2022 with a lot of hope.

Ambrosia Awards 2021 Winners

Category – Beer

BEST MILD BEER

Tag Premium Lager Beer

BEST BEER – STRONG CATEGORY

Bira 91 Gold Wheat Strong Beer

BEST BEER – STRONG CATEGORY

Sterren 8 Premium Strong Beer

Category – Wine

BEST POPULAR WHITE WINE

Fumé Blanc

BEST PREMIUM WHITE WINE

Soma Chardonnay Reserve

BEST PREMIUM INDIAN RED WINE

Reveilo Reserve Syrah

BEST POPULAR IMPORTED RED WINE

Born West Cabernet Sauvignon

BEST SUPER PREMIUM IMPORTED RED WINE

Robert Mondavi Private Selection Cabernet Sauvignon

BEST SPARKLING WINE

Casablanca Spumante Sparkling Wine

Category – Vodka

BEST POPULAR VODKA

One More Pure Craft Vodka

BEST PREMIUM VODKA

Smoke Classic Vodka

BEST SUPER PREMIUM VODKA

Stolichnaya Premium Vodka

BEST SUPER PREMIUM VODKA

Juno Premium Pink Flavoured Vodka

BEST PREMIUM FLAVOURED VODKA

Magic Moments Verve Cranberry Tease Premium Flavoured Vodka

BEST SUPER PREMIUM FLAVOURED VODKA

Absolut Grapefruit Vodka

Category – Gin

BEST PREMIUM GIN

Beefeater London Dry Gin

BEST SUPER PREMIUM GIN

Roku Japanese Craft Gin

BEST FLAVOURED GIN

Edinburgh Gin Rhubarb And Ginger

Category – Rum

BEST POPULAR BLACK RUM

Commander N Chief Caribbean Gold XXX Rum

BEST PREMUIM BLACK RUM

1965 Spirit Of Victory Premium XXX Rum

BEST PREMIUM RUM

Amrut Two Indies Rum

BEST WHITE RUM

Aspira Lemon Twist Rum

Category – Brandy

BEST POPULAR BRANDY

British Empire Brandy

BEST PREMIUM BRANDY

Courrier Napoleon Finest French Brandy

Category – Whisky

BEST IMFL REGULAR WHISKY

Royal Green Whisky

BEST IMFL POPULAR WHISKY

Oaksmith International Blended Whisky

BEST IMFL SEMI PREMIUM WHISKY

Single Reserva Premium Whisky

BEST IMFL SEMI PREMIUM WHISKY

Whistler Blended Malt Whisky

Best IMFL PREMIUM WHISKY

Signature Premier Grain Whisky

BEST FLAVOURED WHISKY

Jack Daniel’s Tennessee Apple Flavoured Whisky

BEST BLENDED SCOTCH BII

Grant’s Distinction Blended Scotch Whisky

BEST SCOTCH (BIO) ABOVE 12 YRS WHISKY

Dewar’s 15 Year Old Blended Scotch Whisky

BEST INDIAN SINGLE MALT

The Three Monkeys Indian Single Malt Whisky

BEST SINGLE MALT

Bowmore Islay Single Malt Scotch Whisky – Aged 12 Years

PACKAGING AWARDS INDSPIRIT 2021

BEST PACKAGING AWARD (UNIT PACK)

United’s Epitome Reserve Rare Grain Whisky

BEST PACKAGING AWARD (UNIT PACK)

Glenfiddich Limited Edition Gift Pack

BEST PACKAGING AWARD (GRAPHICS)

8 PM Premium Black Whisky Cricksaw and Howzat

BEST PACKAGING AWARD (IDEA)

Monkey 47 Schwarzwald Dry Gin

BEST PACKAGING AWARD (BEER CANISTER)

Bira 91 Gold Wheat Strong Beer

BEST PACKAGING AWARD (CANNISTER)

Morpheus Blue XO Premium Brandy

BEST PACKAGING AWARD (BEER BOTTLE)

Sterren 8 Premium Strong Beer

BEST PACKAGING AWARD (BOTTLE SHAPE)

Roku Japanese Craft Gin

BEST PACKAGING AWARD (BOTTLE SHAPE)

Bacardi Reserva Ocho Aged 8 Years

INDIVIDUAL AWARDS INDSPIRIT 2021

FASTEST GROWING BRAND

Rockford Reserve Whisky & Rockford Classic Whisky

EXCELLENCE IN BRAND PROMOTION AND MARKETING

1965 Spirit Of Victory Premium XXX Rum

EXCELLENCE IN BRAND PROMOTION AND MARKETING

Oaksmith God International Blended Whisky

EXCELLENCE IN RETAIL AND DISTRIBUTION

STAR Agencies

NEW PRODUCT OF THE YEAR

United’s Epitome Reserve Rare Grain Whisky

SPECIAL FELICITATION FOR COMPLETEING 11 YEARS

Hospitality Purchasing Managers & Forum (HPMF)

START-UP OF THE YEAR

Kimaya Himalayan Beverages

ENTREPRENEUR OF THE YEAR

Ankur Jain

Founder & CEO

Bira 91

BUSINESS LEADER OF THE YEAR

Abhishek Khaitan

Managing Director

Radico Khaitan Limited

LIFETIME ACHIEVEMENT OF THE YEAR

Shobhan Roy

Epitome Reserve Whisky Review

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In this video we review the limited edition Epitome Reserve Rare Grain Whisky that was launched recently by United Spirits, a Diageo Company. With only 2000 bottles made yet this is India’s first 100% Rice Grain whisky which celebrates India’s iconic people that have shaped the various landscapes and industries that they’ve been in.

The ABV percentage is 46% of this whisky and check out our Exclusive First Review of what we thought.

This video is for entertainment purpose only and the magazine, channel and the host do not promote alcohol consumption.

Canned alcoholic beverages market size worth $13.4 billion by 2028

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

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

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

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

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

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

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

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

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

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

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

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

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

St. Agrestis Spritz

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

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

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

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

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

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

India Glycols Ltd forays into IMFL

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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.”

Opportunities for beer in 2021 & beyond

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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.

Beam Suntory Reports 2020 Results

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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.

Diageo posts Interim Results

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Encouraging return to growth, good cash generation and increased dividend

Diageo posted its Interim Results, half year ended on the 31^st December 2020 showing encouraging results, both in India and Globally which has prompted a rationalization of their portfolio and paring of debt. The Interim Results stated that the net sales (£6.9 billion) were down by 4.5%, as the organic growth of 1% was more than offset by unfavourable exchange. The operating profit (£2.2 billion) also declined by 8.3% due to the unfavourable exchange and a decline in organic operating profit.

However the organic net sales were up by 1%, despite a significant impact from Travel Retail and on-trade restrictions. The net sales in North America were also up by 12.3%, offsetting declines in other regions, except for Africa which was broadly flat. The growth in North America was driven by resilient consumer demand, share growth of total beverage alcohol, positive category mix and the replenishment of stock levels by distributors and retailers.

The report also stated that the organic operating profit was down by 3.4%, driven by the channel and category mix. The productivity benefits from everyday cost efficiencies largely offset cost of goods sold inflation. The Net Cash from the operating activities was up by £0.7 billion to £2 billion, and free cash flow was also up from £0.8 billion to £1.8 billion.

This primarily reflected a lower tax payment and working capital benefit driven by reduced creditor balances at the end of fiscal 2020, as a result of reduced sales demand and cost control measures triggered in response to the Covid-19 pandemic. The Creditor balances also recovered to more normalised levels.

The Basic eps of 67.6 pence decreased 14.6%. Pre-exceptional eps declined 12.8% to 69.9 pence, driven primarily by unfavourable exchange and lower operating profit. However the interim dividend increased 2% to 27.96 pence per share.

The improvement comes from the strong sequential performance in all regions compared to the second half of fiscal 2020. However, the manufacturer expects continued impact in the second half of fiscal 21 from on-trade restrictions and disruption to Travel Retail.

Speaking about the results Ivan Menezes, Chief Executive, Diageo said, “We delivered a strong performance in a challenging operating environment, returning to top line organic sales growth during the half. North America, our largest market, performed particularly strongly and ahead of our expectations. Consumer demand has been resilient and the spirits category continues to gain share of total beverage alcohol. Across other regions we delivered strong sequential improvement compared to the second half of fiscal 20. This reflects improved market share performance through excellent execution in the off-trade channel, and the partial re-opening of the on-trade channel in certain markets.”

Menezes expects the ongoing volatility and disruption in the second half of the year, particularly in the on-trade channel, which will make performance more challenging. However the medium and long-term growth drivers and opportunities for the business remain intact and he is confident in the strategy, the resilience of the business and Diageo’s ability to emerge stronger. The organic operating margin improved compared to the second half of fiscal 2020 increased driven by the operating leverage and tight control of discretionary expenditure. The decline compared to the first half of fiscal 2020 reflected an adverse channel and portfolio mix. Menezes expects the margins to improve as the on-trade and Travel Retail recover and with the continued benefit of everyday efficiency.

Diageo India Results

In India, United Spirits reported strong numbers for the third quarter of 2020-21, even though the recovery was not as strong as expected. Despite the current operational challenges, the company was able to report Quarter-On-Quarter (QOQ) volume and revenue growth of 7% and 16% respectively and bring its third quarter revenues close to that of the same period last year. Though more than 85% of trade channels like bars, pubs, and clubs are now operational, they are operating at a low capacity which has impacted the results. Due to Covid protocols and muted celebrations, small gatherings are replacing large events. On the other hand, off trade channels like home consumption are in the upswing and home delivery is also gathering pace.

The third quarter Net Profit also zoomed 79% QOQ, mostly because of the reduction in debt and fall in interest rates. There was a QOQ increase in margin and once volume recovers fully, margin is expected to improve further due to stable input costs and expected price hikes. Price hikes are muted currently due to tough market environments. There was a demand impact in Bengal, where United Spirits was forced to increase prices for its popular brands due to increase in excise rates by the state government.

Despite small improvement in the Covid situation, large celebrations and full capacity in trade channels are still a few quarters away and that explains why liquor companies have not been able to participate in the recent market rally. However, analysts say that these are short to medium term challenges and the long term story on liquor consumption in India is still intact. To increase its market share during these difficult times, United Spirits is focusing on off-trade channels. Home delivery is already showing good traction in states like Bengal and Maharashtra and similar trend is expected from other key states as well.

Diageo strategic Review of Selected Popular Brands

United Spirits Ltd. (“USL”) is also initiating a strategic review of selected Popular brands, continuing the strategy towards long-term profitable growth through premiumising the company’s portfolio. USL’s Popular portfolio comprises around 30 brands and the strategic review will focus on approximately half of this portfolio by volume. This review will not include the McDowell’s or Director’s Special trademarks.

The strategic review is expected to be completed by the end of the 2021 calendar year. Anand Kripalu, Managing Director & CEO, United Spirits Ltd commented, “This review reinforces USL’s and Diageo’s commitment to deliver sustainable long-term growth and improved profitability, through a sharpened focus on core Popular, Prestige and above brands, including international brands.

United Spirits management is also taking steps to reduce its debt further by selling non-core assets and by improving its working capital cycle. United Spirits is a company with strong free cash flows which will contribute towards its plans to become a debt-free company by 2022-23 he added.

UP Govt approves New Excise Policy

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The Yogi Adityanath-led government has approved its new excise policy which is set to reduce the excise duty on the alcobev products in the state. The new policy includes number of updates that reduce excise duty in certain categories including a slew of measures as part of its new excise policy.

The most notable change is the reduction in duty to 200% on beer from the erstwhile 280%. The shelf life of the product has also been extended to nine months. The government has also done away with the rule of needing collector’s permissions for opening liquor shops within five kms of neighbouring border/district.

One of the other key notable change in the policy is also to move to complete digitisation of the department in the 2021-22 year, a move that is welcomed by many manufacturers. Needless to say that the since the lockdown most states have adopted digitisation, which has been working well for them. Efforts would be made to computerise all the processes and procedures of the excise department under the Integrated Excise Supply Chain Management System (IESCMS).

The new policy will also allow sale of IMFL and imported liquor in the scotch category, with a maximum retail price of ₹ 2,000 or more, to be permissible in mono-cartons. The government is also looking at encouraging more manufacturers to invest in production of wine within the State.

Special incentives for Wines has also been added into the policy

As an incentive the wines that are made out of locally produced fruits shall be exempted from excise duty for a period of five years. However there is no clarity on how much percentage of local fruits needs to be used yet, something that will become clear in time. The local wine merchants will also be allowed to retail wine with wine taverns also allowed on its premises.

It is also now mandatory to obtain a license to keep liquor more than the prescribed limit at home now. In a statement released by the government they said, “to provide good quality liquor at economic prices, UP Made Liquor (in Tetra-pack and of 42.8% strength only) made from Grain ENA, shall be sold at an MRP of ₹ 85 through country liquor shops”.

It is now mandatory to have a PoS Machine at retail stores

It is also now mandatory for the retail shops to install card machines for selling the liquor. Also a select premium retail vendors will also be permitted at airports. Wine-tasting facilities and sale of drinking accessories shall be allowed at premium retail vends.

SCAM: Be Honest. Drink it. Don’t do it.

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Launched in Chandigarh, the promoters of SCAM Beer are confident of its success.

Trying to create its own path, SCAM would like to create an unique beer brand and would like to achieve its ultimate goal of spreading excitement and positivity around the brand. In an industry dominated by major multinationals brands, SCAM seeks to create a niche for itself.

The vision of this refreshingly modern brand is backed up by the team behind it. Sugliq Global Pvt. Ltd. is promoted by Chairman Sanjay Lamba with other three Directors Paramjit Singh, Amardeep Singh and Baljinder Kashyap, who are trailblazers in their fields and form the backbone of SCAM, bringing forward a breathtaking new experience through it.

The promoters also shared some interesting figures related to beer consumption in North Indian states. While Punjab has 40 lac cases consumption per annum, Haryana consumes 100 lac cases every year. Chandigarh with 12 lac cases per annum is growing . Delhi has a consumption of 150 Lac Cases every year and HP 12 lac cases per annum. These states are growing at around 15% per annum.

We spoke to the management in detail. Excerpts of the interview.

What is the rationale behind the launch of SCAM?

Sanjay Lamba: Through the creation and launch of SCAM we are bringing something to the market which hasn’t been done before. We wanted to break the generic and monotonous ideas. And by thinking outside the box, the concept behind SCAM was born. The product is refreshing modern and unique in its content, in terms of taste and design. It holds so much character and depth which caters to the consumer who wants something more than a run-of-the-mill. SCAM does just that and raises the bar with its brilliant concept, proving the consumer with a stellar product.

How do you plan to leverage the positives behind the name, the all caps and the can design?

Sanjay Lamba: Every single design motif was carefully curated for SCAM. Every element represents and voices something about what the brand stands for and what it brings to the table. The name, SCAM in itself is multilayered. We wanted to reappropriate the term and make it unique to ourselves and redefine what it stands for. We extracted the rebellious and curious elements from it and showcased it through SCAM. It’s is now symbolic for rebellious side that exists in all of us along with honesty, creating the perfect balance and harmony.

The designs on the can echo that sentiment and ideology. It features the logo written in graffiti spray-painted font, an act of rebellion. The raising of the hands are symbolic of the youth generation uniting together for a single cause, their strength in numbers and unique personalities. Above all, by having SCAM in all caps, we want this message to reach the masses loud and clear for all to hear.

Do you own your brewery? What is your production capacity? Do you plan to have bottle packaging in 650ml and 330ml size?

Amardeep Singh: We have outsourced the production capacity and availability of capacity shall not be an issue. We shall be launching bottles in the sizes of 330ml and 650ml very soon. What is your pricing strategy for SCAM beer? Paramjit Singh: We are pricing SCAM in the premium segment. Our priority shall be to build consumer franchise through aspirational marketing and build volume on a strong foundation.

Which states do you plan to launch SCAM and is there a timeframe for an All India launch?

Baljinder Kashya: We have already launched in the states of Punjab and Haryana and shall be launching in Chandigarh, UP and Delhi very soon. Our plans are to have a national presence in 2 years time.

What is your impressions of the Indian beer market and what kind of market share are you targetting?

Paramjit Singh: The states, we are targetting in the beginning, are short of supplies and always demand driven. There is always a consumer for quality product. Our first priority is to connect with our target audience and bridge the gap between demand and supply. Market share is just a number. We believe in chasing value and not volume alone.

What is your target audience? Have you plans to broad base your target audience?

Sanjay Lamba : Our target audience are the ones who don’t believe in doing scam but drinking it. They are the ones who don’t want to follow the status quo and aren’t afraid of make their own paths and journeys. They are the trendsetters and influencers, wanting to make a positive impact on the world around them. They radiate exuberance everywhere they go, which makes SCAM, curious and bubbly the perfect companion.