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Beam Suntory global sales up 11%, India and China key markets for future growth

Beam Suntory, a world leader in premium spirits, reported full-year 2021 results, with sales up 11% globally. These results also demonstrated strong growth versus the pre-pandemic year of 2019, with sales also up 11% over the past two years.

The company’s 2021 results were led by sustained strength in off-premise sales, and very strong performance in markets where bars and restaurants reopened faster than expected. Markets including Germany, Russia, Spain, emerging Asia and Global Travel Retail all grew at double-digit rates, as did China and India, key markets for Beam Suntory’s future growth ambitions. Sales in the U.S. grew high-single digits, bolstered by robust demand for premium brands. Sales in Japan, up mid-single-digits, benefitted from strong demand for convenient ready-to-drink beverages like -196x but were impacted by extended on-premise restrictions.

Premium brands to the fore

By brand, results underscore the strength of consumer interest in premium brands. Sales grew double digits for brands including Maker’s Mark, Basil Hayden, Knob Creek, Booker’s and Legent bourbons, Laphroaig, Bowmore and Auchentoshan scotches, Hibiki, Hakushu and Toki Japanese whiskies, Sipsmith and Suntory Roku gins, and El Tesoro and Hornitos tequilas, while On the Rocks (acquired in 2020) continued to show exceptional growth. Beam Suntory’s flagship Jim Beam also demonstrated solid growth despite glass supply constraints affecting certain bottle sizes.

“We’re immensely proud of the results our business has been able to deliver in the face of historical challenges related to the pandemic, including on-premise closures and supply chain constraints,” said Albert Baladi, president & CEO of Beam Suntory. “Our results underscore the strength of our premiumisation strategy that relies on exceptional quality, superior storytelling, and executional excellence across consumer touchpoints.”

Strategic moves with accelerated investments

“Our confidence in the future is reinforced by the strategic moves we’re making, with accelerated investment in our business — including capacity, capabilities and our sustainability agenda — the 2021 acquisition of our route to market in Spain, and our upcoming joint innovations with Boston Beer. The people of Beam Suntory look forward to delivering another year of outstanding performance in 2022.”

Beam Suntory launched Proof Positive in 2021, the company’s comprehensive sustainability strategy, representing a $1 billion+ commitment to making a positive impact on nature, consumers and communities.

The key Proof Positive developments during 2021 include renewable energy usage; water conservation; sustainable brands; consumer focus and DEI (diversity, equity and inclusion).

Renewable Energy Usage: All global manufacturing sites began purchasing renewable electricity (or renewable electricity certificates) in 2021, with the goal of 100% renewable electricity usage at across operations by the end of 2022. The Fred Booker Noe Distillery opened in 2021 in Clermont, KY powered by an electric boiler using renewable electricity. In 2022, a pilot project to generate “green” hydrogen will commence at the Ardmore distillery in Scotland. This work supports the company’s commitment to the Race to Zero initiative.

Water Conservation: Closed-Loop Cooling systems were installed in two of the company’s Kentucky distilleries, significantly reducing water usage. Through watershed sustainability collaborations, the company established the first Peatlands Water Sanctuary (Scotland) and the Charco Bendito Project (Mexico).

Sustainable Brands: Sipsmith Gin & Maker’s Mark both achieved B Corp certification in 2021. B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.

Consumer: Beam Suntory has increased options for low and no-ABV drinks with products like Sipsmith FreeGlider and the expansion of Lemon Sour Zero. The company is also applying nutrition labelling to key brands across Europe and the U.S. as part of its voluntary commitment to provide nutrition information and alcohol content information on packaging or online for all products by 2030.

Diversity, equity and inclusion (DEI): The percentage of female new hires increased 6% to 50% in 2021, with the US multicultural employee population increasing by 4% at both the mid- and senior-manager levels. New and expanded opportunities for internal multicultural talent also increased, accounting for 19% of US promotions and 21% for lateral promotions.

Heineken excited about ‘long-term growth opportunity’ UBL provides

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The Chief Executive Officer of Heineken NV, Dolf van den Brink said that, in India, beer volume grew in the thirties, outperforming the market, following a progressive recovery and returning back to pre-pandemic levels in the fourth quarter. Premium volume grew ahead of the total portfolio, led by Kingfisher Ultra, Heineken and Amstel.

Overall, he said the company “delivered a strong set of results in 2021 in a challenging and fast-changing environment. I am proud of how our colleagues, customers, and suppliers continued to adapt, support one another, and deliver these results.

We made a big step towards recovering to pre-pandemic levels, and in parts going beyond. I am pleased with the great momentum of the Heineken brand, the renewal of our brand and product portfolio, the acceleration of our digital transformation and how we are strengthening our footprint with the acquisition of UBL in India and our announced intentions for Southern Africa. We raised the bar on sustainability and responsibility and are making big strides in right-sizing our cost base.”

He said that operating profit grew by 476.2% mainly due to the exceptional gain this year from the remeasurement to fair value of the previously held equity interest in UBL in India, and the exceptional losses from last year’s impairments and restructuring provisions.

Looking ahead

“Although the speed of recovery remains uncertain and we face significant inflationary challenges, we are encouraged by the strong performance of our business and how EverGreen is taking shape. This gives me confidence we are on course to deliver superior and balanced growth to drive sustainable long-term value creation,” he said.

Net revenues up by 12%

Net revenue (beia) for the full year 2021 increased by 12.2% organically, with total consolidated volume growing by 3.6% and net revenue (beia) per hectolitre up 8.3%. The underlying price-mix on a constant geographic basis was up 7.1%, driven by assertive pricing and premiumisation, with the regions Americas and Africa, Middle East and Eastern Europe (AMEE) growing double-digits. Currency translation negatively impacted net revenue (beia) by €515 million or 2.6%, mainly driven by the Brazilian Real and the Nigerian Naira. The consolidation of United Breweries Limited (UBL) in India positively impacted net revenue (beia) by €280 million or 1.4%.

In the second half of the year, net revenue (beia) grew 10.6% organically. We took further pricing actions and accelerated net revenue (beia) per hectolitre growth to 11.0%. Underlying price-mix in the second half was up 8.8% primarily driven by Nigeria, Brazil, Mexico and Europe, the latter benefiting from an improved channel mix. Total consolidated volume declined slightly by 0.3%, mainly impacted by the restrictions in the Asia Pacific region.

Beer volumes grow nearly 5%

Beer volume grew 4.6% organically for the full year. In the fourth quarter, beer volume grew 6.2%, benefitting from fewer restrictions in Europe relative to last year, continued momentum in the Americas and AMEE, and a sequential recovery in Asia Pacific (APAC) relative to the third quarter.

Operating profit (beia) grew 43.8% organically with a strong recovery in Europe, AMEE and the Americas, partially offset by the impact of the pandemic in APAC. Currency translation negatively impacted operating profit (beia) by €98 million, or 4.0%, mainly driven by the Brazilian Real, the Surinamese Dollar, the Vietnamese Dong and the Ethiopian Birr.

Outlook

“We launched our EverGreen strategy in February 2021 to future-proof our business and deliver superior, balanced growth for sustainable, long-term value creation. It requires us to constantly navigate the long-term transformation with the short-term financial delivery under fast-changing external circumstances. We are encouraged by the progress made, witnessed by the strong performance of our business in 2021 and how EverGreen is taking shape.

In 2022, we will continue to navigate an uncertain environment and expect Covid-19 to still have an impact on revenues. Our plans assume markets in APAC to progressively bounce back during the year, yet full recovery of the on-trade in Europe may take longer.

We also expect to be significantly impacted by inflation and supply chain resilience pressures. More specifically, we expect our input cost per hectolitre (beia) to increase in the mid-teens given our hedged positions and the sharp increase in the prices of commodities, energy, and freight. We will offset these input cost increases through pricing in absolute terms, which may lead to softer beer consumption.

Reflecting our confidence in the long-term, we intend to reverse the cost mitigation actions undertaken in 2021 and to further step up our investments in brand support and our digital and sustainability initiatives. This investment will be partially offset by further delivery of gross savings from our productivity programme. These changes are expected to have a greater impact in the first half of the year.

Overall, we expect a stable to modest sequential improvement in operating profit margin (beia) in 2022. Whilst continuing to target 17% operating margin (beia) in 2023 and operating leverage beyond, there is increased uncertainty given current and evolving economic and input cost circumstances. Therefore, we will update the 2023 guidance later in the year.”

It may be mentioned here that UBL was started nearly 73 years by the late Vittal Mallya, father of Vijay Mallya. Heineken took control of United Breweries, the erstwhile flagship brand of the UB Group. This follows Heineken’s acquisition of additional ordinary shares in UBL on June 23, 2021, taking its shareholding in UBL from 46.5 % to 61.5%.

UBL has a proud history

Dolf van den Brink had then said, “UBL has a proud history dating back more than a century as an influential shaper of the beer industry in India. It built its position as the undisputed market leader in India with a strong network of breweries across the country and a fantastic portfolio led by its iconic Kingfisher brand family, complemented more recently by a strong Heineken international brand portfolio. We are honoured to build on this legacy and look forward to working with our colleagues at UBL to continue to win in the market, delight consumers and customers and unlock future growth.”

India offers an exciting long-term growth opportunity as per capita beer consumption is low at 2 litres per annum. Its growing population of nearly 1.4 billion people includes a strong emerging middle class, enabling further premiumisation, Heineken said.

Uttar Pradesh increases license fee, sets excise revenue target at Rs. 40,000 for 2022-23

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Uttar Pradesh became the first state to announce its excise policy for the year 2022-23, setting an excise revenue target of Rs. 40,000 crore, up from Rs. 34,500 crore in the previous year. To achieve the target, one of the routes the UP government has taken is to increase the license fee across all categories. The increase ranges from 20% to a whopping 172%, depending upon the nature of license.

Revenue Target

The UP government collects 20% of its annual revenue from excise, however in the last two years, due to Covid, there has been a dip in the collection of excise from the set targets. In 2020 -21 targetted revenue was `37,500 crore which was reduced to Rs. 34,500 crore in the current financial year (21 -22) against which by this year end the expected revenue collection is Rs. 36,000 crore. Considering the positive trends and situation becoming normal the UP government has fixed an optimistic revenue of Rs. 40,000 crore. This is 16% more than the revenue target of 2021-22. The breakup of revenue planned for 22-23 is shown below :

Avenues for Revenue

Licence Fee

To achieve Rs. 40,000 crore, it has increased the licence fee and security amount across all categories of licences. Some of these licences are shown below:

Besides the above mentioned increase, the processing fee for these licences has been increased to `1.0 lac as against Rs. 55,000 for each application.

Brand & Label Registration Fee

Label registration is very tedious work which the entire beverages alcohol industry has to indulge in every year by compromising manufacturing and supplies till new labels are registered. Manufacturers spend a good amount of productivity of its people besides paying the stipulated fee. The industry feels it is difficult to understand the reason for this increase every year. Under the new excise policy, this fee has been increased from 33% to 90%.

Excise Duty

There is a very nominal increase in the Pratifal fee of IMFL. This increase will be between 0.75% – 1.50% maximum per case of 9 litre depending upon the Liquor category (Economy, Medium, Regular, Premium etc.). Similarly for beer the Pratifal fee has been increased by Rs. 1 per litre. At least this is a relief to the industry which has a direct impact on fixation on MRP.

Country Liquor – The Milking Cow

Due to high sales, massive production stakes with minimal import allowed from outside state, country liquor (CL) has always been top priority for various state excise departments. CL’s contribution in overall excise revenue ranges between 45% – 50% every year and therefore a lot of effort is made to safeguard this major chunk of revenue. The UP excise has therefore initiated following steps to ensure its revenue of Rs. 19,140 cr. for the fiscal 2022 -23;

Reducing MRP by Rs. 5 per unit of 200 ML
Removal of Covid cess
a) Not increasing the excise duty
Removing 42.8% v/v MASALA CL . Now there will be only two types of MASALA CL i.e. 36% & 25% v/v
However 42.8% v/v UPML shall continue to sell at reduced MRP

It is very interesting to note that the same UP Govt and state excise department which had become very strict on changing the packaging norms of country liquor last year has changed its decision in just a couple of months . After two subsequent hooch tragedies in western UP in early 2021, the alternatives of the CL in PET bottle were being discussed at high levels of government and in the months of July – August 21 pressure was mounted on the industry to source aseptic brick carton filling machines aka Tetra Pack machine since this kind of packing is considered as 100% tamper proof. In fact few circulars were issued to industry to start supplying at least 20% of CL in Tetra Pack immediately. There was much hue & cry in UP’s distillery sector because there is hardly any manufacturer of this type of filling machine in India and import of this machine can take minimum 90 – 120 days’ time. In the new excise policy this condition has been replaced from Tetra pack to glass bottle packing having a shrink wrap on the cap. This will certainly give a boost to Firozabad (UP) glass industry which has been requesting the government to provide a platform for its revival.

Wine: Still a Mirage

The total excise revenue generated through wine sales in 20 -21 was only Rs. 9.68 crore out of total revenue generated of approx. Rs. 30,000 crore. Wine’s revenue contribution increased to Rs. 29.54 crore in 2021-22 of Rs. 34,500 crore. The growth in wine sales in UP has phenomenally increased by 200% in just one year which clearly shows the scope and opportunities for wines. The increase of revenue is directly proportional to consumption.

At the moment there is not a single winery in UP and to boost the wine industry the government is continuing with its endeavour as provided in its last years excise policy by :

Exempting wines produced in UP from all types of excise duty & levy for a period of another four years
Allowing vintner to sell wine in a store inside the winery by paying a small annual fee of `50,000 for a year
Allowing wine taverns inside the winery.
A licence fee of Rs. 57,500 for establishing a winery in UP

The new excise policy also indicates towards a separate new wine policy being prepared. It is suggested that the UP government establish a wine promotion board on the lines of the Karnataka Wine Board which is headed by a knowledgeable and senior IAS officer and other administrative officers who closely work with wine industry to find our more and more avenues for increasing wine production and consumption. Associations and federations like the Indian Wine Academy should also come forward to tap this potential.

Ease of Doing Business

We can see some steps the U.P. government is taking for ease of doing business in the excise policy. Some of these initiatives are:

Annual licence fee for home/personal possession of liquor licence has been reduced to Rs. 11,000 from Rs. 12,000 from last year and the refundable security amount has also been reduced to Rs. 25,000 from earlier Rs. 51,000.
Wine manufacturing and selling soaps as mentioned.
No increase in bar licence fee.
Microbrewery can sell/supply craft beer in 50 litre kegs.
Wholesale licence can store stocks w. e. f. 15th Feb.22 meant for next excise year.
Renewal of retail shops is permitted.
No increase in any licence fee and excise duty for defense forces establishments in UP.
Rs. 50,000 will be given as discount on the licence fee if bar & microbrewery both licences are applied simultaneously.
Track & Trace system to be extended to the retail sales.

Analysis By: Gopal Joshi

Strategist & Consultant

Beverages Alcohol Industry

linkedin.com/in/gopal-joshi-78a2a33

Château Fleur Haut Gaussens looking to launch in India

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

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

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

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

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

Oaksmith launched in Delhi

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

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

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

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

India Travel Retail Market

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GROWTH, TRENDS, COVID 19 IMPACT AND FORECASTS (2021-2026)

Travel Retail is the next great frontier of the Indian Retail Sector, and as people’s incomes rise, India’s position as a business powerhouse and tourist destination will also continue to solidify, leading to the growth and prosperity of this industry.

Covid-19 has all but wiped out the travel industry in India and the passenger numbers continue to be affected in India even in 2021 owing to existing lockdowns and restrictions in the wake of the second wave of the pandemic. In 2020, less than 3 million foreign tourists visited India with a dip of around 75% when compared to 2019 due to travel restrictions imposed. The Covid-19 outbreak is impacting duty-free shopping behaviour, spend, and browsing likelihood on a category level, with this being particularly the case with luxury items in India. As a result of the pandemic, shoppers have moved to online shopping in greater swathes than before, and several travel retail operators, including Delhi Duty-Free, have introduced new online retail services facilitating home delivery of travel retail exclusive and duty-absorbed products.

A combination of a large and growing population, increasing air connectivity, inbound tourism, and the growing disposable incomes and propensity to travel internationally by India’s middle class are some of the major factors fuelling the growth of India’s travel retail market.

As per a research, it is estimated that nearly 80% of the country’s duty-free shoppers are Indians which is quite unlike other markets in the region, such as Korea or Thailand, where most duty-free sales are from international travellers rather than local travellers. However, this is likely to change with the growth in international tourism in the country. While India accounts for only 4.8% of the Asia Pacific region’s total international tourist arrivals, its year-on-year growth rate has been well above the region’s average in recent years and as of 2019, India attracted nearly 17.9 million international tourists. The changes by the Indian Government to its e-visa regime are simplifying procedures, making it friendlier to international tourists and these developments will further help in the growth of India’s travel retail market.

The growth of e-commerce can be seen as part of a broader digitalisation of the travel industry in India and especially airports. This is in part due to younger profiles of travellers, growth of low-cost airlines, and airport privatisation. The introduction of Goods and Service Tax (GST) has decreased the cost and time of logistics and interstate transport which has made the Indian retail market more lucrative for foreign investors who can invest in single brands, multi brands, wholesale/ cash and carry, e-commerce and duty free.

Travel Retail is commonly used to describe the duty-free retail industry, in addition to all retail activities dedicated to travellers and tourists. A complete background analysis of the Indian Travel Retail Market which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report. The Indian Travel Retail Market is segmented by Product Type into Fashion and Accessories, Wine & Spirits, Tobacco, Food & Confectionary, Fragrances and Cosmetics, Others (Stationery, Electronics, Watches, Jewelry, etc.) and by Distribution Channel into Airports, Airlines, Ferries and Other Distribution Channels. The report offers market size and forecasts for the Indian Travel Retail Market in terms of value (USD Billion) for all the above segments.

Airports Constitute the Major Retail Channels in India’s Travel Retail Market

Nearly 50% of an international airport’s revenue is generated from duty-free and travel retail activities and in terms of sheer size and range offered, the duty-free retail areas at Indira Gandhi International Airport in Delhi, Chhatrapati Shivaji International Airport in Mumbai are nothing less than high-end malls. The largest duty-free area in India is currently operated by Mumbai Duty-Free at Mumbai International Airport Limited (MIAL) followed by New Delhi International Airport Limited (DIAL) which is operated by New Delhi Duty-Free Services (DDFS). The duty-free revenue per passenger for New Delhi and Mumbai was the highest in India at USD 11 and 10 per passenger for FY2019.

The future of airport retail is defined by data, omnichannel, and personalisation. Online pre-purchase orders for airport pickup are more popular in the Indian market than anywhere else in the Asia Pacific region and there is a growing response by duty-free operators to the increasing flexible payment, ordering pickup, and delivery needs of customers. Delhi Duty-Free’s ‘Shop and Collect’ plan for instance offers an extra 10% discount to those who pre-book orders at the airport on their outbound journey and pick them upon return.

Parksons Packaging Ltd. acquires Manohar Packaging, new entity to have presence across India

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Manohar Packaging, a leading player in the alcobev industry with a pan India presence has now been sold to Parksons. This gives Parksons a major presence in the alcobev industry. Aditya Patwardhan, Board Member, unveils details of the new entity and the way forward.

What is the nature of the sale of Manohar Packaging to Parksons? Can you share some details?

As widely published in leading newspapers and media, Manohar Packaging (“MPPL”) has been acquired in entirely, by Parksons Packaging Ltd., a Warburg Pincus owned company, and the industry leader in paper based packaging. Post the deal, the Board of Directors of MPPL has been reconstituted strengthening the company’s management team.

The newly constituted board includes Rameshji, Siddharth, and Chaitanya Kejriwal, from Parksons, and Hemant Mundra, from Warburg Pincus. I continue as a board member. All of us will work as a professional management team and continue to encourage an entrepreneurial mindset.

Till the time the integration is complete, MPPL will continue as a subsidiary, however all back end operations, reporting and data management will be merged and streamlined with immediate effect, to offer our clients a seamless experience with a newer and larger network of plants, with clubbed and standardised materials management. We hope to broadly convert around 300,000 tons of sustainable and renewable paperboard in the near future in toto.

What are the strategic benefits to both companies arising out of the transactions?

What this effectively means is, that our clients now have a network of eight mega plants spanning the length and breadth of India, with state-of-the-art technology, standardised inputs, systems, quality parameters, and methods of operations.

The care and detail with which we have been working with our partners and clients – be it in terms of packaging design, development, validation, to market supplies, will only improve. The combined strengths of Parksons scale, and MPPL’s domain expertise in alcobev, will be evident in the work we do going forward.

Our Design Park is unparalleled, and equipped with the best software and digital technology. The combined team of creative pre-press, technical packaging developers, coupled with production experience, will soon be deployed on new projects and will bear testimony to this.

MPPL’s plants located in Goa (West) and Punjab (North), will be part of the total network including Pantnagar (North – 2 units), Sri City (South), Daman & Chakan (West).

What I am most excited about is our increased ground presence with a state-of-the-art plant in Guwahati (North East), with which we can serve our clients in the east of India with speed and efficiency.

Will there be any changes to the way Manohar Packaging continues to work?

As in the case of most mergers & acquisitions, the aim is to grow the new entity and improve our overall ability to serve our clients. Given we’re a ‘B2B’ industry, it is extremely important to ensure we are moving in the same direction and journey as our valued partners.

The Kejriwal family and us share a common vision, the same mind set, goals, and growth plans. There was a meeting of minds, which ticked off all the boxes. The industry and our clients will be the biggest beneficiary of this deal.

Delineation and segregation between shareholding and professional management is important and we all are in it to grow as India’s most preferred supply partner for paper based packaging. Both our companies are held by Warburg Pincus and we’re glad to have them as we will continue to think like entrepreneurs, work in a professional environment, and deploy our knowledge and strength to drive more power to the company.

What is the status of the liquor packaging industry?

Currently, like the liquor industry, the supporting packaging industry is equally fragmented. There are a great number of players in the game, and we are happy to co-exist.

Clients decide whom they wish to partner with, and they have several criteria to choose from in terms of a holistic approach to supply chain, or purely price based on any given month.

We, at Parksons, run highly regulated and governed companies, with sustainability, social compliance, ESG taking high priority in the way we operate and run our facilities.

Hence we’re more focussed on long term client partners who value the need for transparency, professionalism, fair governance, and sustainable practices. We are extremely fortunate and honoured to partner with them, and I’m sure more beverage companies will value this long term approach eventually.

Alcobev is an exciting place to be, and is the gold standard for premium packaging. So likewise, most players in this field, need to be on top of their game with technology upgradation, technical knowledge, and downstream supply chain security given that commodity markets are in their most turbulent phase at the moment. This is where the long term approach wins for most.

How has the pandemic affected the company?

Here again, the fact that our organisations are well managed and governed helped a lot. Both MPPL and Parksons’ plants were up and running shortly into lockdown 1, with the highest safety protocols and were operating when our clients needed us most.

In unprecedented times, I am proud that the human ‘can do’ spirit and agility took precedence and we managed the show when many could not. I earnestly would like to thank our clients and mill partners for supporting us, so we in turn could deliver whatever was needed out of us in short notice with great agility and flexibility.

I would say, looking back, it has been the toughest learning curve for all of us, and we have come out of it stronger. I say this with certainty and hope, that the worst is truly behind us.

How can the premiumisation trend boost the industry?

Premium products are seeing higher salience and acceptance, maybe owing to increase in home consumption due to lockdowns, modernisation of retail outlets (Delhi), and clearing of red tape for home delivery / app enabled ordering of brands as an added convenience to the consumer.

The dark market woes of the alcohol industry still remain, and hence the pack is the first impression that the consumer takes home with them. Most marketeers understand this very well, and we’re beginning to see less ‘me-toos’ and more bespoke work in the recent few quarters.

With premiumisation and better margins, alcobev companies are able to experiment with new innovations, and can justify higher packaging budgets. This brings in a lot of excitement to the consumer as well as the retail shelves, leading to growth and diversification in the industry.

Improvements in the overall consumption experience that the leading premium brands offer, viz.; design cues, primary & secondary packaging upgrades, closure, to pour and palate should lead to better and wider social acceptance of responsible and repeat consumption in the near future. Premium outlets will need premium looking brands, and going by the Delhi market example, there should be tremendous headroom for growth here.

Cheers to that!

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.

India’s Most Expensive Unknown Vodkas

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In this video we take a look at India’s Most Expensive Unknown Vodka’s. Usually consumers always tend to pick vodkas that are more affordable or known to them. But did you know that there are Vodkas in a Super Premium Category as well which are more expensive?

So in this video we take a look at some of these Vodka’s and see how they taste. The ABV % of the Vodkas are 40% and they are available online select states.

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

Jack Daniel’s Tennessee Apple introduced in India

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Consolidating its leadership position in the flavoured whiskey segment, Jack Daniel’s recently announced the introduction of Tennessee Apple in India. It will be the third flavoured whiskey to be introduced in India after Jack Daniel’s Tennessee Honey and Jack Daniel’s Tennessee Fire. The company would like to add more consumers to the whiskey category.

Jack Daniel’s Tennessee Apple is crafted from the iconic Jack Daniel’s Tennessee Whiskey, charcoal mellowed and matured in new American oak barrels, and apple liqueur made from the highest quality ingredients to deliver a delicious Jack Daniel’s experience. Jack Apple is a deliciously smooth and refreshing apple-flavoured whiskey that’s uniquely Jack.

The initial launch has taken place in Mumbai, Goa, Pune and Gurugram and will soon be rolled-out in other parts of the country.

“Mr. Jack was known for being an innovator and always exploring how to do things differently, including adding different flavours and ingredients,” said Jack Daniel’s Master Distiller, Chris Fletcher. “Tennessee Apple is a perfect blend of crisp, green apples enhanced by the sweet bold notes of Jack. It is like a freshly picked apple in a glass of Jack.” Currently, they have no plans to launch another flavour in the near future, he points.

Says Siddharth Wadia, General Manager – India, Middle East and North Africa, Brown-Forman Worldwide LLC, “After a great response to our other flavoured whiskey brands, we are excited about our latest offering to our consumers in India and I am sure will help us expand the Jack Daniel’s consumer franchise in the country. With in-home consumption on a rise and consumers looking for varied options, Jack Daniel’s Tennessee Apple will surely connect with not only existing friends of Jack, but also enable us to make new friends.”

It’s available in retail stores (at 70 proof, 750 ml bottle) with a starting price of `2300 and it is recommended to serve Jack Daniel’s Tennessee Apple chilled – neat, on the rocks or with tonic water for people who love cocktails.