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India Glycols Ltd forays into IMFL

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Glenmorangie Highland single malt Scotch whisky cocktails from Moët Hennessy

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This upcoming World Whisky Day, raise a glass and call in the celebration with Glenmorangie The Original 10 year old single malt scotch whisky. Have it by itself the old fashioned way or shake up some signature Glenmorangie cocktails as under.

Price (Delhi, Bombay, Bangalore) Glenmorangie The Original

Delhi – ` 4800

Bangalore – ` 7618

Mumbai – ` 7426

Glenmorangie Cocktail Recipes

ORANGE MINGLE

Glassware: Nick & Nora

Ingredients:

45 ml – Glenmorangie Original

2 ml – Orange Marmalade

10 ml – Aperol

15 ml – Lemon Juice

10 ml – Orange Juice

25 ml – Egg White

Orange Bitters

Garnish: Edible Flowers

Directions:

Add all ingredients to a shaker and reverse dry shake. Double strain into a Nick & Nora glass. Garnish with bitters and edible flowers.

THE ORANGE HIGHBALL

Glassware: Highball

Ingredients:

50 ml – Glenmorangie Original

50 ml – Soda Water

50 ml – Tonic Water

Orange Wedges

Garnish: Orange Wedge

Directions:

Fill a highball with ice and add Glenmorangie. Squeeze on wedge into the glass and then top with Soda and Tonic Water. Garnish with an Orange Wedge.

GLENMORANGIE GINGER LEMON

Glassware: Old Fashioned

Ingredients

50 ml – Glenmorangie Original

7.5 ml – Sweet Vermouth

7.5 ml – Ginger Syrup

2 Dashes – Angostura Bitters

1 Dash – Orange Bitters

Garnish: Lemon Twist, Crystallised Ginger

Directions

Add all ingredients to mixing glass filled with ice. Stir until well chilled, strain into an old fashioned glass with a block of ice. Garnish with a lemon twist and crystallised Ginger.

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.

How Asian drinks brands are targeting new markets

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Alcohol consumption patterns in India

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To start off, it has been assessed by the World Health Organisation that an individual consumes about 6.2 litres of alcohol per year. According to the World Health Organization (WHO), average alcohol consumption in India was 5.7 litres per person above the age of 15 per year in 2016, up from 4.3 litres in 2010. On per capita consumption, India is ranked 101 (with Moldova leading with 15.2 litres. In the immediate neighbourhood, the figure for Pakistan is 0.3 litres and China is 7.2 litres).

Moreover, about a third of India’s population consumes alcohol on a regular basis and 11% of the total number of Indians are moderate or heavy drinkers. One-third of males and one-fourth of females in India who have made it a part of their lives say, in surveys, that it causes problems to their physical health, finances and household responsibilities. But alcohol —the recent events have shown—is an intricate and essential part of the Indian economy.

Now let us evaluate state wise consumption of alcohol, measured in consumption per capita, per week in millilitres. For Toddy and country liquor, Andhra Pradesh and Telengana have the highest levels of consumption which drops to the lowest levels in states like Jammu and Kashmir, West Bengal, Maharashtra and Gujarat (for obvious reasons). The consumption in these states are as low as 100 ml per capita per week. Levels of Toddy consumption have seen a sharp decline in the northern state of Bihar as well, which still ranks in the medium to average range (101 – 500 ml. per capita per week).

Moving on to beer, imported wine and imported alcohol varieties, we see that Andhra Pradesh and Telangana still consume more than 300 ml. per capita, making those states the highest consumers in this category. Himachal Pradesh shows a sudden spike (101- 300 ml), and so do the north eastern states of Arunachal Pradesh and Mizoram and the islands of Andaman and Nicobar (>300 ml). Goa too, sees a high trend in this category, with the average between 101 and 300 ml per capita per week. The rest of the country remains quite conservative in their consumption trends of Indian Made Foreign Liquor (IMFL) varieties.

Overall, it has been observed that the Union Territories of Dadra and Nagar Haveli, Arunachal Pradesh, Andaman and Nicobar Islands, Andhra Pradesh, Telengana, Daman and Diu, Sikkim and Pondicherry are among the highest consumers of spirits and alcohol varieties in India.

Now one of the reasons why there has been greater number of calls for bans on alcohol in certain areas is due to the fact that these regions suffer from chronic alcoholism and resultant poverty. The regular consumption of any variety of alcohol and especially country made liquor has also been found to be inversely proportional to family income, thus providing further evidence for this trend.

Consumption of local brews and toddy is one of the major reasons for deaths in alcohol related incidents. In recent years, about 136 people were killed in one single incident. In January 2015, in a village in eastern Maharashtra, 94 people lost their lives due to hooch liquor contamination and resulting toxicity. The states that have prohibition in place presently are: Nagaland (since 1989), Manipur (since 1991, except the hill districts), Kerala (2014), Gujarat and Lakshadweep (on all islands except Bangaram).

India is one of the fastest growing alcohol markets in the world. Rapid increase in urban population, sizable middle class population with rising spending power, and a sound economy are certain significant reasons behind increase in consumption of alcohol in India.

Indian Alcohol Consumption – The Changing Behavior provides a comprehensive analysis of the market size of alcohol industry on the basis of type of products, consumption in different states, retail channel and imported and domestic. The Indian alcohol industry is segmented into IMFL (Indian made foreign liquor), IMIL (Indian made Indian liquor), wine, beer and imported alcohol. Imported alcohol has a meager share of around 0.8% in the Indian market. The heavy import duty and taxes levied raise the price of imported alcohol to a large extent. Alcohol is exempted from the taxation scheme of GST.

The Indian alcohol market is growing at a CAGR of 8.8% and it is expected to reach 16.8 billion liters of consumption by the year 2022. The popularity of wine and vodka is increasing at a remarkable CAGR of 21.8% and 22.8% respectively. India is the largest consumer of whiskey in the world and it constitutes about 60% of the IMFL market.

Though India is one of the largest consumers of alcohol in the world owing to its huge population, the per capita alcohol consumption of India is very low as compared to the Western countries. The per capita consumption of alcohol per week for the year 2016 was estimated at 147.3 ml and it is expected to grow at a CAGR of 7.5% to 227.1 ml according to estimates.

The states of Andhra Pradesh, Telangana, Kerala, Karnataka, Sikkim, Haryana and Himachal Pradesh are amongst the largest consumers of alcohol in India. The most popular channel of alcohol sale in India is liquor stores as alcohol consumption is primarily an outdoor activity and supermarkets and malls are present only in the tier I and tier II cities of India.

The trends and pattern of alcohol consumption are changing in the country. With the increasing acceptance of women consuming alcohol, growing popularity of wine and high demand for expensive liquor, the market scenario seems to be very optimistic in the near future.

The study reflected changing pattern of the consumer’s mindset towards alcohol consumption in India. 3% of the respondents who consumed alcohol favoured wine for its health benefits. Though the popularity of whisky is highest in the Indian market, its market share is expected to decrease in future.

Alcohol consumption in high-income countries witnessed constant growth, but it has been growing in low and middle-income countries as well. Before 1990, Europe had recorded the highest level of alcohol use. However, the study forecasts that Europe will not hold that title for long.

Going ahead, the world will drink more, and more people will drink as well. The research also suggests that almost half the adults across the world will consume alcohol by 2030, whereas a quarter of them will become binge drinkers.

Binge drinkers are those people who drink 60 grammes or more pure alcohol in one or more sittings, in a month.

Starting Young

Indians are not just drinking more, they are drinking dangerously as well. As many as 57 million people are facing the after-effects of alcohol addiction. A survey by the Community Against Drunken Driving (CADD) revealed that over 88% of youth below 25, consume or purchase alcohol though it’s illegal. Punjab, Goa, Tripura, Chhattisgarh and Arunachal Pradesh rank high on alcohol consumption. However, Uttar Pradesh has the highest number of alcohol drinkers in India.

Regulating alcohol

A few state governments like Bihar, Gujarat, Mizoram and Nagaland, have prohibited the sale of alcohol. States like Kerala, Bihar, Tamil Nadu have imposed variety prohibition since 2016. The state government of Rajasthan allows sale of liquor only until 8.30 in the evening. India has also witnessed an increase in the number of drunken driving cases. According to reports, fines from drunk driving in India in 2018 alone, was at around `6 crore.

Assam is the highest alcohol consuming state in India

In the 15-54 age group, with 59.4%, men from Assam were found to be the highest consumer of alcohol in the country. In the latest Health and Family Welfare Statistics (HFWS) in India, it has been reported that 26.3% of women and 59.4% of men between 15-54 years of age consume alcohol in Assam. This is the highest in the country and the national percentages for the same age group are respectively 1.2 and 29.5. However, in terms of percentage of the population for both men and women in the age group 15-49 years who drink alcohol about once a week out of a total population (men and women) who drink alcohol, Assam women scored 44.8% and men scored 51.9% Meanwhile, in the 15-54 age group for women, Nagaland, Himachal Pradesh, Goa, and Karnataka recorded the lowest alcohol consumption with 0.1%. In the same category for women, Jammu & Kashmir occupies the second position with 23% women found to be consuming alcohol. In the 15-49 age group, with 59%, men from Arunachal Pradesh were found to be the highest consumer of alcohol in the country. The HFWS report further revealed that percentage of the population of men and women in the 15-49 years who drink alcohol about once a week was found to be 45.2% and 55.1% respectively for women and men of Arunachal Pradesh. For women and men in Nagaland, the percentage of the population who drink alcohol about once a week in the 15-49 age group was found to be 65.5% and 46.4% respectively. As for the other states from the northeast, the percentage of the population of men and women in the 15-49 years who drink alcohol about once a week are – Manipur 21.3% and 40.1%; 25.1% and 42.4%; Mizoram 20.3% and 41.2%; Nagaland 65.5% and 46.4%; Sikkim 33.9% and 43.5% and Tripura 50.8% and 47.1%. The five southern states of Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Kerala together consume as much as 45% of all liquor sold in the country. The financial position of these states is precarious as the Coronavirus lockdown completely dried up this crucial liquidity tap for them in April. Although these states consume as much as 45% of all liquor sold in the country annually. Not a drop was sold in April, and given the dire state of their revenues, these states have been anxious to make good the losses by opening up the vends, said the survey. While Tamil Nadu and Kerala top the list in revenue percentage terms at 15% each, for Kerala the tax on liquor is its single largest revenue source. The revenue share is 11% each for Karnataka and Andhra Pradesh and 10% for Telangana, shows the report. Delhi is at number three when it comes to liquor revenue share with 12% of tax revenue, but its citizens swig only 4% of the national intake. Tamil Nadu has another distinction – it is the single largest consumer of liquor in the country, guzzling as much 13% of national sales, closely followed by Karnataka with 12%. Andhra quaffs 7% of the national intake, followed by Telangana (6%) and Kerala (5%). While all other states have high population, when it comes to Kerala, despite being home to only 3.3 crore people, it draws the highest revenue because among the five states it charges the highest tax rate on liquor. However nationally, Maharashtra charges the highest rate, but draws only 8% of its tax revenue from liquor – primarily because it is the most industrialised state and has many other sources of income – and also consumes only 8% of the national intake despite being the second most populous state. Twelve states – the five southern ones, Delhi, Punjab, Uttar Pradesh, West Bengal, Madhya Pradesh and Rajasthan – account for 75% of liquor consumption in the country. But uncorking the bottled spirit will also be a problem for these 12 states as they contribute to more than 85% of all Covid-19 infections/deaths as well. Among these 12 states, Kerala has the lowest national average in this at under-1%, the report said. You might associate Goa with booze and partying, but a higher proportion of people in Telangana consume alcohol than in the former. And a larger percentage of men drink in Bihar, a state under prohibition, than in Maharashtra. Gujarat and Jammu & Kashmir, in that order, have the least consumption of alcohol among men. When it comes to women’s consumption of alcohol, Sikkim and Assam, with 16.2% and 7.3%, respectively, top the charts. But here, too, Telangana comes next, topping Goa. Barring Telangana and Goa, most of the states at the top are in the northeast. The consumption among rural women is significantly higher than in urban areas in most states, which could also be due to less hesitation in admitting to alcohol consumption compared to urban women. This difference in prevalence of alcohol consumption exists between rural and urban men too, but the difference is not as high as among women. Covid-19 may change many aspects of work, life and the economy, but India’s relationship with alcohol will likely remain intact. If anything, the linkages might get stronger. When the pandemic-induced lockdown was first announced, the Centre excluded liquor shops in the category of establishments that would stay open. It was not deemed to be “essential”. States backed the Centre’s stance. But as the days under the lockdown accumulated, and as the economy and tax collections slumped (with more money from the Centre not forthcoming), states started clamouring with the Centre to allow liquor vends to reopen.

State controls

India has had a conflicting history with prohibition. States have been torn between the need for revenues and the broader problems its abuse created. As a result, they have been imposing dry days, and some form of control. Some states have gone the full hog in imposing prohibition: Gujarat (since 1960), Nagaland (since 1989), Bihar (since 2016), Mizoram (since 2019), and in most parts of Lakshadweep. In most parts, states control liquor distribution. Take, for example, TASMAC (Tamil Nadu State Marketing Corporation), set up in 1983 by then-chief minister M.G. Ramachandran as the monopoly liquor wholesaler for better control over distribution. For retail, it auctioned licences to the private sector. This, in turn, led to problems, including cartelisation and customer complaints – and lower revenues to the state. Twenty years later, the J. Jayalalithaa government claimed monopoly over retailing too. It has served the state well. Its revenues jumped from `2,828 crore in 2002-03 to `31,157 crore in 2018-19. It’s also a reason why Tamil Nadu has been pushing the Centre to reopen liquor shops. Unlike the purchase of a car or a computer, lost liquor sale is lost forever. Thus, for TASMAC, which was selling 160,000 cases of Indian-made foreign liquor and 90,000 cases of beer every day, the sales might not necessarily return, reducing the ability of Tamil Nadu to fund even ongoing schemes. The time has come to ‘de-criminalise’ liquor as the state of Goa has done successfully. Considering that 50% or more of the price of every bottle finds its way to the coffers of state governments, it is preposterous that tipplers are treated with such scant respect.

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

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

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

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

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

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

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

Japan’s Kirin Holdings to buy under 10% stake in Indian craft beer brand Bira

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According to Bira’s CEO, Ankur Jain, and a spokesperson of Kirin Holdings, the Japan-based company is buying under 10% stake in Bira, an Indian craft beer brand by investing 30 million (nearly INR 220 crore). Bira is owned by B9 Beverages, a company based in New Delhi. No further details about the financials of this deal have been released to the press yet. However, Jain mentioned that he expects the deal to be closed over the next few days.

Ankur Jain added that this investment will enable Bira to break even in the 2022 fiscal year after having reported losses in the recent years as well as in the pandemic. Furthermore, it will facilitate the plans ofthe Indian craft beer brand to launch its product in Japan in the later part of 2021.

In August, Reuters had reported that Bira was in talks with international brewing companies to sell 20%stake. Valued at $210 million in 2018 by Data Provider Pitchbook, 30% of the company is owned by theCEO Ankur Jain and his family while Sequoia Capital, the U.S. based venture capital firm, owns around 45% stake.

The craft beer products offered by the company have gained popularity recently. According to Bira, the company has a 5-10% market share of the beer market in the metropolitan cities of New Delhi, Bangalore and Mumbai although it was launched in 2015.

On the other hand, due to falling sales in its home country, Kirin Holdings has been showing interest in investing in independent breweries. It owns a minor stake in New York-based Brooklyn brewery. But all international dealings have not gone well for Kirin. In the year 2015, its operations in Myanmar came under investigation as its local partner had military connections and in 2017, the company sold its loss-generating Brazilian unit to Heinken after losing market share.

Binge drinking is cool for Indian women

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“More women are drinking and women are drinking more,” a new survey made eye-opening claims — and not for the reasons you’d think.

Men had succumbed to alcohol long back, but women had held back. Not long ago women didn’t dare to damage their image by showing the world that she in fact drinks and enjoys it too. Now women pour and fill their glasses with more than just lemon water and juice. Wine, beer, whiskey, vodka or a cocktail; women have come to love their drinks and how!

Alcohol consumption among women is rapidly increasing, not only because she wants to relax and have fun but there’s a bigger picture here.

Nearly half of adult women report drinking alcohol in the past 30 days. Approximately 13% of adult women report binge drinking and on average do so four times a month, consuming five drinks per binge. About 18% of women of child-bearing age (i.e., ages 18–44 years) binge drink.

Questions like ‘Are women more prone to absorb bigger drinks?’ ‘Do women have higher alcohol levels in their blood than men?’ are being asked and studied. Though women have had historically lower drinking rates than men, the negative effects of alcohol abuse are typically worse and more pronounced for women. The problem is exacerbated by the special dangers that alcohol poses for women. In general, alcohol affects women more strongly than men. This is both because women’s unique body chemistry interacts with alcohol differently from men and because women are on average significantly smaller than men, meaning the same amount of alcohol will have a greater impact.

Why women drink

The survey by the Community Against Drunken Driving (CADD) studied the alcohol consumption pattern in Delhi and has revealed some major reasons behind alcohol consumption among women. Rising affluence, aspirations, societal pressure and exposure to a different lifestyle is driving women to experiment with alcohol, stated the survey. The results were found among 5,000 women aged between 18 to 70 in Delhi.

Among the reasons why women drink, the survey says “mostly all social activities are centred around alcohol, and alcohol is seen as a quick and easy social lubricant, and when everyone is doing the same thing, it does not seem like a problem. It is just the norm.”

Alcohol consumption in India increased by nearly 40% and women’s alcohol market is expected to grow by 25% over the next five years.

In Delhi itself, 40% of men and 20% of women (almost 15 lakh women) are alcohol consumers; the survey quotes a report by AIIMS as saying.

The survey reveals that 43.7% women in the age group of 18-30 years consumed alcohol out of habit or desire to do so, 41.7% women in the age group of 31-45 years consumed alcohol as an occupational requirement or because of social norm.

Over 53% women above 60 years and 39.1% women in 46-60 years had alcohol for emotional reasons.

“Driven by the market forces where cocktail and berry drinks are being promoted as feel good and relaxing drinks for women, women are enticed into drinking more with a promise of good time that awaits them,” it says.

The CADD survey lists out more reasons why women drink, it says, “At times just to fit in or as a way to unwind, more spending capacity/affluence, another way of equal opportunity or pursuit at work place/profession, alcohol as a coping mechanism to stress, depression, loneliness anxiety, pain, mental and physical traumas and to cope with the needs and pressures of fast paced life.”

India has witnessed a steady rise in its consumption of alcohol in the last decade. A 2019 study by researchers from TU Dresden in Germany, concluded that between 2010 and 2017, alcohol consumption in India increased by 38% – from 4.3 to 5.9 litres per adult per year. The decade also witnessed a boom in home grown whisky and gin labels, and saw both men and women significantly altering their tipple choices and consumption patterns.

According to this survey, women in Assam consume much more alcohol than their counterparts in other states and union territories in the country. The ministry’s 2019-20 data showed that 26.3% of women in Assam who are in the 15-49 years’ age category consume alcohol, which is the highest among all states and union territories (UTs).

Notably, in 2019, another survey, conducted by Community Against Drunken Driving (CADD), took stock of the men and women in Delhi and their drinking habits, and concluded that “More women are drinking – and women are drinking more.”

Women are also not just taking up important roles in breweries, but also leading alcohol brands in various capacities. In fact, Dewar’s master blender Stephanie Macleod, who created the world’s best whisky, as per the 2020 edition of International Whisky Competition, was recently awarded the “Master Blender of the Year” award.

New research has found that despite the potential health risks of exceeding national drinking guidelines, many middle-aged and young-old women who consume alcohol at high risk levels tend to perceive their drinking as normal and acceptable, so long as they appear respectable and in control.

Accord steps up premium push with high-end Cognac

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With brandy being the favourite tipple of the South, little wonder Accord is moving into the Cognac space as the shift to premium becomes the norm of the industry.

Chennai based, Accord Distillers & Brewers Private Limited, with two distilleries in Goa and Chennai, and a manufacturing capacity of 1 million cases per month, and one of the largest beer producer in South India is making its presence felt across the Indian States and is exporting to South East Asia, West Asia, Africa and other countries. They also import Scotch and Cognac to sell across the Indian subcontinent and to export to other countries and are now venturing in production of high-end Cognacs.

They have allied with Carlsberg to produce and market their commodities in Tamil Nadu and throughout the country.

Henry X special reserve Brandy XO is the latest offering from Accord Distilleries. It is the world’s first XO brandy and is currently available at select outlets in Tamil Nadu, Puducherry and Goa.

Henry X special reserve Brandy XO – a brandy with floral notes, with an opening nose of vanilla, honey and prune that evolves to mellow wine, sweet oak accents and finishes with a satin-smooth, languid fade. Bestowed with a revered lineage and backed by an equally legendary status, the House of Bardinet has set the benchmark in creating the perfect French grape brandy.

Right from handpicking the choicest of grapes from the finest vineyards in France to distilling the spirits and maturing them for 5 years in fine oak casks, Henry X special reserve Brandy XO weaves its lingering magic on the discerning palate, says P. K. Das, CEO, The Accord Group.

Sure enough, Henry X special reserve Brandy XO promises to be a Connoisseur’s Delight and is priced at `2,400 the most highly priced Cognac in Tamil Nadu, he adds. XO brandy is India’s only 100% pure french grape brandy. It is being sold in mono cartons and the packaging is done in India by Manohar Packaging. The Cognac bottles are imported from China. As it is a high-end brand the target for Hobson’s is 2,000 cases per month, says R Kumar, Director, Operations. The premium market growth is 33%.

Total sales in Tamil Nadu in the premium segment for the period April to August 2019 is 6.8 million cases as compared to 5.1 million cases during the same period in August 2018.

The company’s other brands include Age de Oak (Premium), Holandas Spanish VSOP Brandy, Missionary Monk, Royal Accord Gold, Blender Magic, King Nap, Accord French, Wonderland, Accord No. 1, and Evening Walker.

Age De Oak is an exquisite blend with imported matured french grape brandy, which is produced by double distilling the wine made from selected variety of ugni blanc french grapes in a copper pot still and superiorly Aged in Limousin Oakwood cask to give a brilliant amber colour, mellow, full-bodied, long warming and silky soft mouthfeel. Total growth in this premium segment is 2% with sales of 4,500 cases during April to August 2019.

The Holandas Spanish VSOP brandy blended with imported grape spirit from Spain, that is fine distilled in a copper still and traditionally aged in oak wood casks to excellence to give you rich colour, overpowering aroma, fuller and smoother mouthfeel.

A rare blended with selected grape spirit to give it brilliant colour, a pleasing aroma, strong body and mellow. Holandas Spanish retails between `201 to `280 and sales for five months is 52,000 cases. Their other brands are Missionary and Royal Accord Blue.

Beam Suntory Sets High Ambitions for India

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After the lull comes the storm as Beam Suntory launches it first Truly International Indian Whisky Oaksmith and the The House of Suntory portfolio including Yamazaki, Hibiki and Roku Gin.

Oaksmith is a premium Indian whisky, crafted by Suntory’s Chief Blender, Shinji Fukuyo, the creator of iconic Japanese whiskies Hibiki and Yamazaki, marks Beam Suntory’s entry into the Indian whisky segment and combines the finest Scotch Malts and American Bourbon using Japanese blending craft to bring the best of East and West for Indian consumers.

The global premium spirits company brings its finest and the most popular Japanese whiskies – Yamazaki and Hibiki – and Japanese craft gin – Roku – to India with the launch of The House of Suntory portfolio.

Beam Suntory, the global premium spirits company, has launched a range of four premium spirits in India, signaling its commitment and strategy to grow in India in line with its ambition to reach USD 1 billion in revenue by 2030. The highlight of the launch is the introduction of Oaksmith Indian whisky – created by world-renowned blender Shinji Fukuyo, Chief Blender, Suntory – using traditional Japanese craftsmanship, blended with the finest Scotch Malt whiskies and American Bourbons to make a whisky unique and authentic to Indian taste. In addition, the iconic Japanese whiskies Yamazaki Distiller’s Reserve and Hibiki Japanese Harmony, along with Roku® Japanese Craft gin have also been launched from The House of Suntory portfolio.

The launch of Oaksmith and Oaksmith Gold whisky in India is key to Beam Suntory’s growth strategy and signifies the importance of India to the company. Along with the introduction of Yamazaki, Hibiki and Roku, it reinforces the company’s commitment to lead the growth and premiumisation of the Indian spirits market.

The launch event of The House of Suntory was graced by Shinji Fukuyo, world-renowned Chief Blender at Suntory, the creator of the luxury and iconic blends of Hibiki and Yamazaki whiskies, and Neeraj Kumar, Managing Director of Beam Suntory India, along with George Kumekawa, Representative, The House of Suntory. The event highlighted the exceptional legacy of The House of Suntory, the art of making delicate whiskies, and the importance of India for Beam Suntory globally. The House of Suntory brands are being launched across all major cities including Delhi, Mumbai, Pune, Hyderabad and Bangalore. Yamazaki Distiller’s Reserve will be available in the range of INR 10,900 to INR 20,000 across different states; Hibiki Japanese Harmony for INR 10,900 to INR 20,000 and Roku® gin for INR 5,500 to INR 7,100.

“We are thrilled by the appreciation that Hibiki and Yamazaki have received from consumers worldwide, and their popularity among spirits aficionados in India. The growing premiumisation of the Indian market and the appreciation for finely crafted spirits made this the right time to launch these brands, along with Roku gin. Indians today are well-travelled and exposed to global trends, which inspired the creation of Oaksmith for whisky lovers in India,” says Neeraj Kumar, Managing Director of Beam Suntory India. On Oaksmith and Oaksmith Gold, he said, “The beautiful blend incorporates years of tradition that the Beam Suntory family upholds while showcasing Shinji-san’s award-winning blending capabilities making it a whisky that, quite simply, no one else could possibly create.”

Oaksmith is a celebration of mastery and global collaboration, combining the best of East and West in a bottle. Blended by Shinji Fukuyo himself, Oaksmith is a harmonious blend of matured Scotch Malts that adds a strong flavour profile and American Bourbon whiskey, aged for at least four years in American Oak barrels which lends it an unmatched smoothness. That gives the brand its unique name and also inspires the round bottle labels celebrating its distinctive craftsmanship. Befitting the unique and distinct flavour palate, the exquisite six-sided bottle with beveled edges and a tall neck has an equally unique and ergonomic design that is an ode to the finest Japanese craftsmanship and makes it stand tall in this category. The company is celebrating its international pedigree with the use of the world map in all its creative expressions.

Much like The House of Suntory, Oaksmith blend is made using the finest ingredients and sincerity of process that is a hallmark of Beam Suntory’s Japanese heritage which is unique to this brand in the entire Indian whisky category. 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 on one’s palate with a bright, smooth and unexpectedly long finish. The unique offering will be available at the price of an Indian whisky and the flavourful palate will be well suited to both beginners and connoisseurs alike. There will be two variants of the product – Oaksmith and Oaksmith Gold – which will launch on 19th December 2019 in the state of Maharashtra, followed by the rest of the country in due course. Oaksmith Gold will be priced in the range of INR 800 to INR 1,300, while Oaksmith will be priced in the range of INR 600 to INR 900 depending upon the state of launch. Both the variants will be premium in their respective categories due to the international quality of blend and craftsmanship they offer.

A relentless quest for perfection and commitment to using only the highest- quality ingredients encapsulates Suntory’s philosophy to create the finest spirit possible. Shinji Fukuyo, Chief Blender at Suntory, said, “My travels across the world have helped me understand and appreciate sophisticated flavour profiles. Blending spirits is about creating a harmonious flavour by weaving culture and tradition along with one’s own form of self-expression. This is an art in itself and I am very grateful that people globally have appreciated the quality and artistry of Hibiki and Yamazaki, and hopefully now, Oaksmith.” On Oaksmith®, he added, “While making this blend, I wanted to ensure that it resonates specifically well with the Indian audience while being truly international in its spirit. I travelled across the country to understand the different food cultures and flavours. Eventually what I saw, heard and tasted, helped me explore a variety of flavour profiles and finalize this harmonious blend which has the best of America, Scotland and Japanese craftsmanship. I am extremely proud as the final product completely reimagines what the future of Indian whisky can be.”

On the rising popularity of gin in India, George Kumekawa, Representative, The House of Suntory, said, “In recent years, we have noticed a strong trend among Indians to opt for premium and craft gin as their spirit of choice as it has a softer flavour profile which is easier on the throat and refreshing in its appeal – perfect for brunches and refreshment occasions. With the introduction of Roku gin in India, we are looking to further build the market for both gin as well as craft spirits to help enthusiasts discover new tastes and experiences.”