Tag Archives: drink responsibly

Whisky industry calls on Chancellor to fulfil Manifesto Pledge to Scotch

The Scotch Whisky Association (SWA) which conducted a poll shows that a third of the voters are less likely to support the Conservatives if the Chancellor, Jeremy Hunt increases duty, while 72% support a freeze on Scotch whisky tax in the Spring budget.

Jeremy Hunt has been urged to freeze duty to fulfil the pledge made in 2019 to “ensure our tax system is supporting Scottish whisky”. The Chancellor will use his Budget to finalise a long-awaited review of the duty system, but reports suggest whisky drinkers and producers will get nothing – and even see tax rates increase.

Per unit of alcohol, duty paid on spirits is already significantly higher than the European average, with around £3 in every £4 spent on a bottle of Scotch whisky going to the treasury as tax. A further increase to spirits duty in the budget would further add to the cost of living and fuel inflation – which the UK government has pledged to halve this year.

The poll, conducted by Survation, also shows Scotch Whisky’s crucial role in supporting the wider supply chain, with 76% believing support for the Scotch Whisky industry will boost hospitality businesses. Spirits like Scotch whisky account for 34% of sales in the UK on-trade, but 99% of distillers do not have access to proposed tax breaks in pubs and bars, known as “draught relief”.

The Scotch whisky industry already contributes more than £5.5bn to the UK economy every year. The sector supports more than 42,000 UK jobs, employing 11,000 people directly, the majority of whom are in rural communities of Scotland. More than 90% of all UK spirits production is based in Scotland, and the SWA has argued that any increase to spirits duty would put Scotch whisky distillers at a further competitive disadvantage and disproportionately impact business north of the border.

Commenting on the results of the poll, Mark Kent, Chief Executive of the Scotch Whisky Association, said, “Distillers across Scotland are waiting for the pledge made in 2019 to be fulfilled. There has been a review of alcohol taxation, but still Scotch whisky is taxed more than beer, wine or cider and 99% of distillers do not have access to tax breaks available to sales in the on-trade. The competitive disadvantage faced by the industry could get worse if the Chancellor further raises tax on Scotch whisky and other spirits in the Budget this week. We urge him to listen to people across Scotland, make good on the commitment to support Scotch Whisky, and freeze duty.”

How Women are Disrupting India’s Alcobev Industry: Panel Discussion | INDSPIRIT 2023 |

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Join Anmol Gill, Nita Kapoor, Aditi Chauhan Mukherji and Varna Bhat in a captivating panel discussion on “How Women are Disrupting the Alcobev Industry” at INDSPIRIT 2023. The session was moderated by Dr. Arpita Mukherjee, this insightful conversation explores the influential role of women in shaping and empowering the alcobev industry. Gain valuable insights, discover inspiring stories, and be part of the conversation. Watch now! This session was powered by ISWAI (The International Spirits & Wines Association of India)

In the Panel (L-R): – Anmol Gill, Head of Customer Marketing, Bacardi India & Neighboring Countries – Varna Bhat, CEO, Blisswater Industries Ltd. – Dr. Arpita Mukherjee (Moderator) (Member of Indian Council for Research on International Economic Relations (ICRIER) – Aditi Chauhan Mukherji, National Head, Defence Sales (CSD&CPC), ABD Ltd. – Nita Kapoor, CEO, ISWAI

The Macallan reveals a new edition of The Harmony Collection celebrating the world of coffee

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The Macallan has recently unveiled the second edition of The Harmony Collection- Smooth Arabica. This limited annual release will be available exclusively at the Delhi, Mumbai and Hyderabad International Duty Free stores from March 2023.

Driven by the brand’s inherent curiosity and its innovative and creative mindset, each release features distinctive packaging that incorporates organic by-products and gives them new life.

This new Collection celebrates the world of coffee and is inspired by the Ethiopian Arabica coffee bean. Its hybrid packaging was created using repurposed and recycled materials including discarded coffee bean husks.

The Macallan Whisky Maker Steven Bremner has created the intensely flavoured whisky to pair with coffee. He immersed himself in the art of coffee by hosting a masterclass with world renowned coffee experts at The Macallan Estate.

Among the coffee masters who shared their knowledge with Steven were Ethiopian coffee grower Kenean Asefa Dukamo, whose family works with the Arabica variety showcased by the whiskey; Scottish coffee roaster Lisa Lawson, a pioneer of speciality coffee in Scotland acclaimed for her roasting techniques; and award-winning American barista Andrea Allen, renowned for creating incredible coffee experiences. UK-based coffee artist Dhan Tamang crafted a range of coffee art, sharing his knowledge on the art of the perfect coffee serve and sensory perceptions, while leading coffee historian Professor Jonathan Morris provided an insight into the roots of coffee and how it has become the global phenomenon it is today.

Steven selected a combination of American and European oak casks to achieve the distinctive notes offered by this single malt. Smooth Arabica conveys the flavours of a gently spiced and soft americano which come through at an ABV of 40% which can be paired with coffee to provide a new way to savour The Macallan.

This expression is presented in a presentation box, which incorporates repurposed coffee bean husks, a by-product in the coffee-making process. Paper expert Michele Posocco from Italian paper mill Favini worked with The Macallan to create the innovative packaging. The vibrant green on the Smooth Arabica pack represents the unroasted coffee bean.

In Landmark Change – Tamil Nadu Govt allows serving alcohol at Stadiums, Conferences, Events & Celebrations

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The Tamil Nadu DMK government has issued a notification dated March 18, 2023 amending the Tamil Nadu Liquor (Licence and Permit) Rules of 1981 to allow the serving of Indian Made Foreign Liquor (IMFL) and Imported Foreign Liquor to guests, visitors and participants, at international and national summits and events like conferences, celebrations and festivals.

According to the amendment, a special licence would be granted annually by the Deputy Commissioner or Assistant Commissioner of the Excise Department to supply liquor in commercial premises like conference halls, convention centres, marriage halls, banquet halls, and sports stadiums. However, on April 24th, 2023 the Tamil Nadu government amended and removed marriage halls and banquet halls from the list of commercial premises where liquor was allowed to be supplied.

As per the amendment, the special license for possession and supply of liquor can be obtained by paying an annual registration fee of Rs. One lakh in corporation limits, Rs. 75,000 in municipality limits and Rs. 50,000 in other places. Subsequently, the fee per day for issue of permit for conducting one event, whenever conducted, is Rs. 11,000 in corporation limits, Rs. 7,500 in municipalities and Rs. 5,000 in other places respectively.

The amendment also said that special license for one time possession and supply of liquor in non-commercial premises during conduct of household celebrations, functions, parties etc is Rs. 11,000, Rs. 7,500 and Rs. 5,000 in corporations, municipalities and other places respectively.

The new rules state that the licensee shall obtain supplies from the Tamil Nadu State Marketing Corporation Limited (TASMAC) wholesale depot nearest to the place of events or from such other source as the Deputy Commissioner / Assistant Commissioner (Excise) may appoint or approve, subject to such conditions as he or she may stipulate and as per the quantity of the supplies approved by them. All such applications have to be made online, prior to seven working days from the date of conduct of the event to the Deputy Commissioner / Assistant Commissioner (Excise) in the districts in Form F.A.1.14, along with a copy of the challan of the fee remitted. Then these designated officers will grant a license in Form FL-12 with prior approval of the District Collector.

The issue of liquor under FL-12 special license may be in pegs / bottles for consumption, the Amendment said.

As per the amendment, the licensee has to transport the liquor after obtaining the transport permit in form FTP . 1 from the Deputy Commissioner / Assistant Commissioner (Excise) of the concerned district. The transport from the source of supply to the licensed premises shall be in accordance with the provisions of these rules. However, the amendment does not mention any fee for obtaining transport permit.

Further it said that a no-objection certificate from the Commissioner of Police, for events held within corporation limits and from the Superintendent of Police for events held in districts, should be obtained.

Meanwhile, the Minister for Electricity, Prohibition, and Excise V Senthil Balaji announced in the Tamil Nadu Assembly that the government would be deciding on the closure of 500 liquor shops across the state within this year. He mentioned that 96 shops run by TASMAC had violated norms. There are 5,329 retail liquor shops run by TASMAC.

“We are following the norms that other states are following. The IPL management had sought permission to serve liquor in the stadiums during the matches. Considering such international sports and events, we have decided to grant permission,” the minister said.

Opposition Condemns Move

Opposition parties condemned the move of allowing special liquor permits. The Tamil Nadu Bharatiya Janata Party (BJP) President K Annamalai said in a statement that this was an effort to increase the income of distilleries run by DMK leaders. “The DMK came to power by giving assurances that it would close liquor factories and retail shops, but Tasmac is trying to boost the sale of liquor each year by fixing a ceiling limit without bothering about the people. This move will lead to social disorder.”

Around the same time, the Pattali Makkal Katchi filed a public interest litigation at the Madras High Court and the spokesman of the party, Advocate K Balu, termed the move “highly condemnable”. He said the G.O. amending Tamil Nadu Liquor (Licence and Permit) Rules 1981 is illegal, unjust and against the public interest.

“The FL 12 special licence for serving liquor at conference halls, convention centres, marriage halls, banquet halls and sports stadium is contrary to the 2017 guidelines issued by Supreme Court to protect the life of citizens under Article 21 of the Constitution,” he said. Serving liquor in public event venues would cause nuisance to the public and deprive them of their right to peaceful life, the petition said.

AIADMK general secretary Edappadi K Palaniswami tweeted “The same DMK government, which says prohibition is the only goal, has kept liquor shops open for 12 hours. Now, it has allowed liquor in marriage halls and sports stadiums.”

DMK’s allies, MDMK general secretary Vaiko and CPM state secretary K Balakrishnan also urged the government to abandon the move. Other parties, including PMK, TMC(M), AMMK and VK Sasikala have condemned the notification.

Old Monk Amber Review

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Old Monk Rum is one of the highest selling rums in India and has been a fan favourite among rum drinkers for a longtime. And Old Monk Amber is a more refined expression from the same makers. This comes from Mohan Meakins and is priced tag of ₹950 in Uttar Pradesh. The company is also behind the production of Solan Gold whisky and Jamun Dry gin, both of which we have previously reviewed.

What’s Unique about Old Monk Amber?

There are two things that are unique about this Old Monk. First ii its name, called ‘Amber’. Now this word has a number of meanings. In Arabic it means ‘Jewel’, like the word ‘ambar’. In Sanskrit it means ‘the sky’. The second thing that sets Amber apart from its older sibling is the colour. While Old Monk is known for its distinctively dark colour, Amber is named for its more golden hue. The name has multiple meanings in different languages, but I suspect that the colour was the inspiration behind it.

But the real difference between Old Monk and Amber is the blend. Amber is a mix of the classic Old Monk rum alongwith a 20-year-old expression. It is a mellow and matured rum that is unlike anything else on the market. The box proudly proclaims that it is an XO, or Extra Ordinary, rum, thanks to the addition of the 20-year blend.

While there isn’t much information available about the making process of Amber, we suspect that it is not too different from that of Old Monk. Both are made by fermenting cane molasses until bottling. The only difference is that the 20-year blend must be mixed at some point during that time in order to create that matured spirit.

Unboxing and Packaging

the packaging of Amber is distinctive and different. The cartons come in a dark red-maroon colour with the words “20-year-old expression” clearly stated on the bottle. The box also bears the words “Pride of India” and “Mellow and Matured Rum.” It is worth noting that the packaging mentions that the product has added colours.

When it comes to the bottle, the first thing that catches the eye is its Amber colour, which is very clear and apparent. The label is slightly slanted, indicating that it was made by hand, much like the Old Monk bottles. The rum has an ABV of 42.8%, and it is priced at ₹950 in UP. It is made and bottled in the Ghaziabad plant of Mohan Meakins in UP.

Nosing

The rum has a potent scent, and the high alcohol content of 42.8% is definitely noticeable. There’s a subtle sweetness present due to the sugarcane, but no detectable spice notes on the nose.

Tasting

When sipping this rum, one can immediately notice its smooth and refined taste, which belies its potent aroma. The palate may detect a subtle dryness, followed by a long finish that leaves no unpleasant burning sensation in the throat. However, there is a noticeable bite and spiciness on the palate. Despite this, the overall sensation is one of warmth and smoothness, making for an overall enjoyable sipping experience, especially for old monk drinkers.

Conclusion

Old Monk Amber is a premium rum and boasts a smooth texture, thanks to the addition of a 20-year-old malt. Priced at ₹950 in UP, it’s a natural choice for those who appreciate a more refined drinking experience. While it may cost more than the regular version, it’s definitely worth trying at least once. For Old Monk fans, it’s worth giving it a try as they tend to be loyal to the brand. And when it comes to taste, Old Monk Amber rum delivers on all fronts, hitting all the right notes and satisfying the palate with every sip.

Ambrosia Awards 2023

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The Ambrosia Awards 2023, the most coveted accolades in the alcohol industry, are showcased in the video. They are presented by Ambrosia Magazine in conjunction with an esteemed international jury. It should be noted that the awards, host, or businesses featured in this episode do not encourage or endorse the consumption of alcohol.

Platinum Sponsor: SNJ Distilleries Pvt. Ltd.

Gold Sponsor: Beam Suntory

Silver Sponsor: KALS Group

Sustainability Partner: Pernod Ricard

Supporting Partner: ISWAI

Liquor and duty free sales look upbeat as the Covid threat recedes

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There is an air of optimism as the threat of Covid is on the wane. A report on the growth of the alcobev and duty free market.

The global alcoholic beverages market was estimated to be at USD 1.58 trillion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of around 3.5% between 2020 and 2023. India is one of the fastest growing alcoholic beverages markets globally, with an estimated market size of USD 52.5 billion in 2020 and the market is expected to grow at a CAGR of 6.8% between 2020 and 2023.

The alcoholic beverages industry contributes to around 1.5 million jobs in India and generated around USD 48.8 billion in sales revenue in 2019. The sector is open to foreign investments and many states offer subsidies for local manufacturing (for example, Maharashtra and Karnataka for wines). From the demand side, factors such as rapid urbanisation, changing consumer preferences and a sizeable and growing middle-class population with increased purchasing power have contributed towards growth in demand for alcoholic beverages.

According to industry estimates, the number of people consuming alcohol increased from approximately 219 million in 2005 to 293 million in 2018; it is projected to increase to 386 million by 2030. The share of the upper middle income group in alcohol consumption has increased steadily from 7% to 21% and is expected to increase to 44% by 2030.

The Global Duty-Free Retailing Market is projected to reach USD 127.83 billion by 2027 from USD 87.37 billion in 2021, at a CAGR 6.54% during the forecast period.

The Americas Duty-Free Retailing Market size was estimated at USD 21 billion in 2021, is expected to reach USD 22 billion in 2022, and is projected to grow at a CAGR of 7.37% to reach USD 32 billion by 2027.

The Asia-Pacific Duty-Free Retailing Market size was estimated at USD 36 billion in 2021, is expected to reach USD 38 billion in 2022, and is projected to grow at a CAGR of 6.75% to reach USD 53 billion by 2027.

The Europe, Middle East and Africa Duty-Free Retailing Market size was estimated at USD 31 billion in 2021, is expected to reach USD 31 billion in 2022, and is projected to grow at a CAGR of 5.71% to reach USD 43 billion by 2027.

The global duty-free and travel retail market is estimated to generate revenues of around $112 billion by 2023, growing at a CAGR of approximately 8% during 2018-2023.

The duty-free retail market in the Asia-Pacific, the largest market for duty-free retail products, is expected to cross pre-pandemic levels in 2023 as normalcy returns to the market and customer demand picks up, according to a report from GlobalData.

The rising number of middle-class population and rapid urbanisation is propelling the growth of the global duty-free and travel retail market. The increase in disposable income, improvement of standard living, and affordability and convenience of air travel are boosting the number of middle-class population travelling and purchasing products from these stores in the global market. The leading vendors are developing consumer-focussed businesses especially for this end-user segment to boost their travel retail industry size over the next few years.

In emerging countries such as India and China, middle-class consumers are the largest contributors to the economic development and have the spending capacity to promote the growth of the duty-free industry in the global market. With the surge in middle-class median income, their expenditure trend, travelling mode, and demand for premium brands will also rise, thereby, fuelling the travel retail sales. The rapid development and urbanisation will augment the development of infrastructure and offer access to better amenities in the global market. The building of new airports and ports will boost the revenues in the global duty-free and travel retail market.

The significant growth in the tourism industry is one of the key factors driving the market growth. In line with this, the increased time spent by passengers at airports due to security concerns and early check-in times is favouring the market growth. Additionally, the increasing preference for luxury and premium products, such as cosmetics, fragrances, and alcohol, is acting as another growth-inducing factor. Besides this, the rising air travel and proliferation of new international airports due to the rapidly expanding aviation industry is providing a considerable boost to market growth. Moreover, the introduction of touch screens and interactive retail kiosks, which offers seamless ordering and payment solutions, is providing an impetus to the market growth. Apart from this, the widespread adoption of new marketing strategies by brands, such as launching exclusive and limited products and partnerships with prominent distribution chains to gain a competitive edge, is propelling the market growth. Furthermore, the implementation of various government initiatives promoting international tourism is positively influencing the market growth. Other factors, including rising expenditure capacities of the consumers, emerging trends of digitalization in retailing processes, the rising consumer inclination for premium wines and spirits, and the introduction of pre-ordering applications, are anticipated to drive the market growth.

The global duty-free and travel retail market by product is segmented into fragrance and cosmetics, liquor, fashion and accessories, tobacco goods, electronics, watches, and confectionery.

However, some countries impose duty on goods brought into the country, though they had been bought duty-free in another country, or when the value or quantity of such goods exceed an allowed limit. Duty-free shops are often found in the international zone of international airports, sea ports, and train stations but goods can also be bought duty-free on board airplanes and passenger ships.

The competitive landscape of the industry has also been examined along with the profiles of the key players being Aer Rianta International, China Duty Free Group Co. Ltd., Dubai Duty Free, Dufry, Duty Free Americas Inc., Gebr. Heinemann SE & Co. KG, James Richardson Group, King Power International, Lagardère Travel Retail, Lotte Duty Free, Sinsegae Duty Free and The Shilla Duty Free.

Erik Juul‑Mortensen, President of the Tax Free World Association (TFWA), was also positive, an outlook largely based on the latest available travel data. Noting that, with the exception of China, every major market in the Asia‑Pacific region has partially or completely reopened to vaccinated travellers, he added, “Many markets have seen a strong recovery in March and April, and with pent‑up demand or ‘revenge travel’, two markets have just exceeded their 2019 duty‑free revenues for the same period, namely Australia and Singapore.

“This has happened despite the total number of travellers remaining relatively low. Duty‑free members have been reporting higher basket value, driven in part by pent‑up demand and less store congestion, and, therefore, more attentive service by store personnel. The pandemic has forced the industry to consider and adapt to a still‑changing environment. Our priority in duty free and travel retail is to keep pace with, even to anticipate, those new expectations. They will continue to evolve, and so must we.”

On duty‑free spending trends, Sunil Tuli, President of the Asia-Pacific Travel Retail Association and Group CEO of King Power Group, agreed, saying, “Around the region, we have reports of increased spending per passenger. Every day there are more people travelling – for instance, here in Singapore, Changi Airport passenger traffic more than doubled in April from March, approaching 40% of pre‑pandemic levels, just one month from when borders were fully re‑opened to vaccinated travellers. However, across the board, significant pain points exist in terms of stock shortages, security delays in product screening, partial retail space re‑openings, low staff levels, a reduction in routes, recession fears, and the Russia‑Ukraine crisis driving inflation.”

The likelihood of impending recovery in the duty‑free industry was championed by Pedro Castro, Chief Operations Officer Asia‑Pacific of travel retailer Dufry, who said, “Markets such as the US, the Caribbean, Central America and Europe have already seen a return to about 60% of 2019 levels, with only Asia‑Pacific still lagging behind at about 10%. Domestic travellers in some markets around the world are already slightly higher than 2019 levels, and business travellers are close to 2019 levels. The Asia‑Pacific region is ready to support a rapid return to normalcy.”

Ashish Chopra, CEO of Delhi Duty Free Services, provided a deep dive into the Indian market, an analysis likely reflective of the air‑travel and duty‑free industries across Asia‑Pacific markets – if not now, then in the near future, saying, “In the past two months, we have seen sales reach 90% of pre‑pandemic levels on the back of 70% of passenger traffic. There is definitely pent‑up demand, and we expect Delhi to reach 2020 levels by this year.” For now, the passengers were business and high‑middle‑income travellers, and therefore were willing to spend more, with mass‑market travellers expected later in the year.

According to a new report published by Allied Market Research, titled, “Airport Duty-free Liquor Market by Type: Opportunity Analysis and Industry Forecast, 2021-2027”, the airport duty-free liquor market size was valued at $8.9 billion in 2019, and is projected to reach $10.4 billion in 2027, registering a CAGR of 22.22% from 2021 to 2027. The airport duty-free liquor at airport shops have become a favourite destination for travellers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies.

The key players operating in the global airport duty-free liquor industry are Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc., Remy Cointreau, Pernod, and Ricard.

The airport duty-free shops have become a favourite destination for travellers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops.

Due to Covid-19 crisis, there is a decrease in international travel, which has affected airport duty-free sales in large proportion. As the lockdown continues in major parts of the world, airport duty-free retailers have unsold stock, while some retailers are finding imaginative ways to keep trading. As the travel retail sector market is temporarily on hold, airport duty-free liquor has experienced crucial sales channel cutoff. Airport duty-free liquor sales declined to large proportion due to the closure of international flight operations.

By type, the whiskey segment accounted for the second maximum share in 2019, owing to increase in demand for whiskey across the globe.

For the past few years cognac has gained universal recognition as one of the finest spirit, which is distilled from grapes. Cognac is also getting popular in the airport duty-free liquor market due to the recent surge in demand for premium liquor.

By region, Europe accounted for the highest revenue in 2019 owing to the tourists from the Middle East, China, the U.S., and Russia contributing a significant part in the market. Also, love for travel is experiencing an upward airport duty-free liquor market trends among Germans, which significantly contributes toward the growth of the market.

Delhi extends Old Excise Policy by 6 Months

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The Kejriwal led Delhi Government made an announcement today that the old excise policy for Delhi is being extended for further six months. In the interim the government is working on the new excise policy that has been in the news in recent times, following the recommendations made by LG VK Saxena after the CBI probe into the alleged irregularities in its implementation.

The extension also marks as a blow to the Delhi private players who were looking to keep their shops open having invested heavily in procuring licenses. For the consumer this also means that the offers made by private players have also disappeared since the old policy uses government-run liquor vendors.

The former Deputy Chief Minister of Delhi was recently arrested alleging the irregularities in the new policy, which was believed to be favouring certain players. The ED in their case also stated that kickbacks were provided by the players to the government, which lead to the dismissal of 11 excise officials as well following the probe.

It is believed that Delhi was looking to compete with Haryana with its new policy offering lucrative discounts to the consumers, who often prefer liquor shops in Gurugram, since they offer massive discounts as opposed to most states in India.

CaSa de Spirits launches Fentiro in Goa

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CaSa de Spirits Pvt. Ltd, launches its first ever range of spirits under the ‘Fentiro’ brand on December 1st, 2022 in Goa.

Its initial launch in Goa will see its two variants of party shots – “Fentiro Dusk” and “Fentiro Dawn”. They are the newest and coolest entrant to the party shots category. Fentiro Dusk unleashes the wilder side along with the setting of the Sun and Fentiro Dawn is just the perfect shot as the first light of the rising sun appears in the dawn sky.

Fentiro prides itself as a lifestyle brand, whose priority is to bring exceptional quality, priced competitively, that appeals to the tastes and preferences world over.

CaSa de Spirits Pvt Ltd. is founded by former Divtone Group Country Manager & former WWE Director, Marketing – Carl Sequeira along with founder of Go Fish Entertainment, Sajay Moolankodan. Both industry veterans have rich industry experience, throughout their career of 20+ years of marketing some of India’s largest consumer and alcobev brands. The founders have also brought on board alcobev stalwarts, Shatbhi Basu and Binaisha Sundaram. Together these industry stalwarts bring their 60+ years of combined alcobev industry experience to this new venture.

Shatbhi Basu, celebrated mixologist and founder of STIR academy, who has been honoured by the President of India, for being India’s first female bartender, has spent her career working closely with trade and consumers to educate them on the art and science of mixology. She will drive product research and development for the brand. Binaisha Sundaram, who was part of the team that recently launched Copter 7, has also been associated with the launch of various other leading alcobev brands in India, will drive sales and business development for CaSa de Spirits

Commenting on the launch of Fentiro, Carl Sequeira, Managing Director said, “We were inspired and motivated by our homeland Goa with its unique culture and wanted to create a product that is truly made in Goa from cashew apple along with our proprietary blend, for the world to enjoy. The party shot category has remained stagnant over the past few years, however with Fentiro, we plan to change that! By establishing a new product range, we intend to upend the entire category and build a lasting impact on the minds of consumers over the years.”

Speaking on the occasion, Sajay Moolankodan, Director said, “Over the years, we’ve noticed that the consumer has started to experiment with new tastes and experiences in the alcobev space. With that in mind, we embarked on creating a product that looked and tasted distinctly unique from others in the same category. Fentiro Dusk and Fentiro Dawn are the perfect shots for your parties from dusk to dawn.

Fentiro Dusk and Fentiro Dawn are available in selective outlets and restaurants in Goa, so when in Goa – “Party with Fentiro!”.

Consumers are slowly moving towards Eco-Conscious Choices

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With the industry and consumer moving towards a more eco-friendly and sustainable future, alcobev manufacturers have also initiated their move towards reducing their footprint. As one of the biggest stake holders in the industry, Pernod Ricard also recently announced its move towards the removal of mono cartons from its brands. But how does the company intend achieving this? Bhavya Desai spoke to Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India about it and more. Excerpts:

What are the current trends in the Indian Alcobev market?

The alcobev industry is dynamic in nature and new trends emerge every six months, but 2022 witnessed disruption and innovation in more ways than one.

While premiumisation has consistently been a key trend over the past few years, it will continue in the coming years, but not in isolation. Consumers are slowly moving towards eco-conscious choices and are seeking brands and products that bolster a sustainable impact on the environment and planet. This has nudged the industry at large to evaluate its impact on the environment and integrate sustainable practices into their businesses.

Low-calorie drinks and lower alcohol by volume (ABV) spirits are likely to see a surge in demand, as we see this trend currently growing. To cater to the growing demand for low alcohol drinks, especially for our health-conscious consumers, we recently introduced a non-alcoholic wine ‘Jacob’s Creek UNVINED’ in two variants to further build the category. There is a palpable consumer attraction across India for these categories and Tier 2 cities represent an additional robust source of growth.

Digital disruption backed by new-age technological innovation will continue to enable and enhance consumer engagement. On-ground consumer experiences today have become more immersive, which enable brands to curate personalised and customised opportunities for consumer engagement. In the years to come, the metaverse will also dominate as a key trend for consumer engagement.

What is Pernod’s outlook for India in 2023? Any plans to expand product offerings etc.?

India is a winning market for Pernod Ricard, globally. Innovation is at the core of Pernod Ricard – across all functions and initiatives and we will continue to invest in insight-led innovation to enhance consumer experiences.

As part of an industry wide initiative, Pernod has also announced its sustainable approach recently. However there haven’t been specifics on the details. Can you tell us more about this initiative?

At Pernod Ricard India, we continue to strive towards a circular future, with people, planet, and community at the core of our business. Resources are finite and over the years, we have taken so much from the planet. We feel now it’s time for us to give back to the environment.

Keeping this in mind, we are aiming to lead by example in the industry with #OneForOurPlanet, which is a significant step in achieving our commitment towards zero waste to landfill contribution for permanent mono cartons by 2030. With this, we commit to remove 100% permanent mono cartons from our packaging across our brand portfolio.

We strive to be sustainable and responsible at every step, from grain to glass and are responding with agility to global ecological challenges with this major environment-first initiative.

We have introduced innovative ways to offer convenience to consumers as well as build awareness through recycled and recyclable neck tags along with QR codes in several markets, that will redirect consumers to a micro-site solely created around #OneForOurPlanet. Using an integrated approach through new-age channels of communication, we aim to raise awareness around the positive impact of this initiative.

We believe in ‘responsible hosting’ which entails ‘responsible retailing’ and ‘responsible consumption’ practices. Our customers are receptive to change and are helping us amplify this further. Together we can make a significant difference and we trust that our partners and customers will help us pave the way for a better future!

Are there specific products/category that will be focussed on initially? Could you give us a phased timeline on the same?

Since 2020, we have been working on pilot projects to test consumer acceptance on the removal of permanent mono cartons. In May 2022, we finally decided to integrate this into our business in a phased manner, starting with IMFL brands. The key challenge now is how to address the assumptions that exist with respect to packaging in the alcobev industry. Consumers typically would associate mono cartons with luxury and premiumness, which becomes a critical factor when deciding what alcohol to buy.

#OneForOurPlanet was a bold move for us, especially with regard to taking that extra effort in changing consumers’ mindsets towards responsible consumption. And, with the way and the kind of agility we are moving ahead, we are confident to complete the removal of mono cartons by June 2023 or before.

What is the current market share for your Strategic Local Brands? Could you give the percentage of growth in 2022 for the Strategic Local Brands and forecast for 2023?

Royal Stag is Pernod Ricard India’s leading brand and the group’s largest by volume. It has the largest market share in the deluxe whisky category with volumes sales of 25 million cases in 2022. Imperial Blue, one of the world’s best-selling whiskies, is our leading brand in the value segment at 24 million cases sold during the period Jul’21-Jun’22 (Market share: 34%, YTD Jun’22).

Could you share details of import of your international brands into India?

We are globally strong and locally relevant. Our focus has been on developing world-class whiskies, gins, vodka, rum and engrossing wine culture in India, by successfully bringing global products to India and catering to the evolved preferences of the new-age Indian consumer. New innovations for us cater to the market in terms of products and experiences that tap into key category trends. Some of the recent premium innovations that we’ve launched in India include Havana Club 7, a super-premium rum and Jacob’s Creek UNVINED range which is non-alcoholic range introduced in two varietals – Riesling and Shiraz, with 50% less calories than regular wine of the same varietal. We also introduced super-premium Japanese and Italian gins – KiNoBi and Malfy respectively. Another recent addition was the launch of Ballentine’s 7YO Bourbon Barrel Finish Scotch whisky.

There seems to be an uptake in consumption of international brands in India, despite high import duties. Thoughts?

The uptake in the Indian economy combined with a strong propensity towards drinking less, but better brands leads to a belief that FY23 will also be another positive year for both our IMFL (Indian Made Foreign Liquor/BII) and imported brands portfolio, which are well-positioned towards the premium end of their segments, in keeping with our long-standing focus on premiumisation. This trend has been further amplified by a few states adopting a progressive policy towards imported products leading to greater consumer affordability.

India is a ‘structured’ premiumisation story. The kind of and the quality of growth we are witnessing, is unlike anything we have seen before and it’s happening differently for different categories. We are focussing on deepening and enhancing consumer experience through our premium portfolio of products and initiatives.

What are the major challenges of operating in India, apart from taxation? What can the government do to ensure that ‘ease of business’ is a reality?

The alcobev industry is one of the biggest contributors to the government exchequer and requires policy and regulatory support to the same extent as other industries in the country. The industry operates under stringent regulations and arduous licensing process, which impacts the ease of doing business. Single-window clearance for all documents relating to alcobev production, updating IT infrastructure and streamlining various state-level bureaucratic processes are, therefore, the need of the hour. Furthermore, it would help if annual registration processes were further streamlined. For instance, if there are no changes in labels and pricing, they should be deemed approved after successful payment of fee. Further, a deeper and wider expansion of the retail universe to cater to emerging cities will lead to greater efficiencies and revenue growth for the state exchequer.

What products do you export out of India and to which countries? What is the growth like and the reasons for growth (besides Indian diaspora)? Also, could you let us know the markets that you are planning to enter?

Globally, our products are relished in over 50 countries with a volume of more than 2 million cases annually. We are looking to grow at a CAGR of 15% over the next three years. Strong growth is projected from Sub Saharan Africa and the South East Asia region. Our vision is to establish Pernod Ricard India’s Seagram’s portfolio as a world leader by creating the best brands and experiences for the middle-class and affluent consumers. The growth levers for our strategy are scaling up consumer base in existing markets, expanding portfolio via innovation, and targetting strategic whitespace expansion.

Our strong portfolio of Seagram’s brands includes Royal Stag, Blenders Pride and Imperial Blue.

There seems to be an emphasis on premiumisation, could you substantiate in the Indian context what that would mean?

The last few years have seen premiumisation as a dominant trend in the alcobev industry. Consumers today are seeking ‘value’ and ‘convenience’ more than ‘volume’ and this defines the shift in consumer behaviour as well as their enhanced expectation from brands. Besides this, the pandemic led to a rapid transformation in consumer behaviour by breaking down societal barriers and taboos. Today, consumers have gravitated towards self-indulgence leading to premiumisation and a boom for our higher end brands like Chivas Regal, The Glenlivet and Royal Salute. In fact, with house parties becoming the norm and the cocktail culture further gaining popularity during at-home consumption, our premium offerings such as Absolut and our Gin portfolio led by Monkey 47 and Beefeater have truly become at-home bar staples.

Premiumisation will continue to be a key trend as consumer preferences evolve in line with growing disposable incomes of the millennials and as they adopt global trends.

Tell us about your sustainability journey in India? Specifically, the W.A.L initiative on how it has impacted lives and your company?

Sustainability isn’t new to Pernod Ricard’s operations in India. As a responsible corporate citizen present in India for over 25 years, sustainability is the key to Pernod Ricard India’s operations. The company continuously works towards an enriched value chain that is committed to supporting the UN Sustainable Development Goals, ensuring that our business is aligned with the ‘World’s to-do list’ to help reach prosperity for the planet and its people.

The four pillars of our roadmap – Nurturing Terroir, Valuing People, Circular Making, and Responsible Hosting – address all aspects of our business from grain to glass. We are consistently working towards water stewardship to save, store and replenish water, especially in our plant locations, with a stakeholder inclusive approach. We are water positive in our operations with replenishment strategies at extremely high-water risk sites.

With our CSR Programmes on W.A.L (Water, Agriculture, Livelihoods) vertical, communities in water-stressed areas have adopted a circular approach and eventually have become more resilient in their approach to water use while increasing their disposable income.