Tag Archives: India

Sterren Beer bags coveted award in Malaysia

Sterren Beer with its authentic German recipe produced in India under the guidelines of German Standards has been selected as the Prestigious Rising Brands of Asia 2019-20.

Incorporated in 2012, by the Chairman and Managing director, Mr. Vasudevan S, who established Sterren under the entity KALS Breweries.

Triumph of Celebration:

The KALS Group of Companies has varied interest spanning liquor retailing, motor fuel and lube, transport and logistics as well as FMCG distribution. With a grand vision to be successful in building a professional team with focused endeavors in the vertical and horizontal expansion of the Group, KALS Distilleries, KALS Beverages and KALS Breweries were formed by the visionary. Their products have already made their imprint in the states of Tamil Nadu, Kerala, AP, Andaman, Karnataka, Chhattisgarh, UP, and Puducherry and with global presence in UAE, Singapore, Malaysia, and Central Africa. Mr. Vasudevan’s visionary thought of Going Global has enabled the Product Life-Cycle Excellence of this product.

L to R: Dr. Uppilliapan Gopalan, COO, Mr. Arulmani Sekaran – Director and Mr. Rajasekaran S – Director of KALS Group, Dr. A.T. Kumara Raja – Chief Economic Advisor to Malaysian Government, Mr. Amit Sengupta – Indian Economist – Cabinet of Parliament to Modi and Chief Editor of Deccan Herald

Brand Quotient

With the headquarters in Chennai, under the stewardship of Mr. Vasudevan S, the brand Sterren celebrates more than 20% market share in this segment in TN and KALS employs more than 3000 employees. Sterren is an entry into ultra-premium with proud variants that fits the choice of all.

• Sterren 6 – Premium Quality Beer (Wheat-base Beer)

• Sterren 7 – Premium Quality Strong Beer (Lager Beer)

• Sterren 8 – Premium Quality Extra Strong Beer (Extra Strong Beer)

Sterren- Authentic Sporty German Word-a Royal Blend of Excellence with Contemporised Brew which are available in three variants of ABV 6%, 7% and 8%. Its quality is simply stellar with an orange citrusy note and available in 650ml, 500 ml and 330 ml beverage grade cans.

Sterren 8 – Premium Strong Beer is enroute to ultra-premiumisation. Sterren -8 indeed is a mix that is consciously branded as a blend of contemporary touch with traditional pitch. Flavour and imported hops makes it a perfect top-notch that rollickingly touches the sentiments of millennials and youths. Sterren is manufactured under the aegis of an agreement through a Technology Transfer Programme from VLB (Berlin) with GMPs complying with the standards of Food Safety Management Systems (ISO 22001:2015), Environmental Management Systems (ISO 14001:2015), & QMS, & BRC AA Standards of International Food Safety Norms

Trailblazing

Practicing brand values like trust, respect, passion and commitment, they strive to create an organisation that delights customers and associates creating a higher recall in every market present. Using their unique German technology and German Recipe they have earned a turnover of 590 million USD. Their recipe is certified under the German Standards. In order to be part of the growing consumption of the beer business and also to be a full-spectrum alcoholic beverage company they strive to deliver integrity, quality and consistency with Sustainable Brand Augmentation for customer loyalty. Their brewery plant is a fully-automatic plant best-in-class in the country with end-to-end manufacturing. It is one of the few brewery plants in the country with Can Beer Line, which services the export market.

Cutting Edge

The German quality of Sterren Beer embarks the taste, flavour and texture on the taste-buds of the consumers. They have invested in research and surveys as they strongly believe in feedback resulting satisfaction and an opportunity of loyalty. The brand interacts and engages with their customers through influential marketing, participation in Oktober fest in Chennai (India), Beer fests and organising Sterren Nights. Their impeccable quality and product packaging also contribute to the high customer acceptance.

Budget sets a clear action plan for making India $5 trillion economy

Leave a reply

India is cruising towards becoming a $5 trillion economy. Indian alcobev industry stalwarts add credence to FICCI’s take on the budget.

Commenting on the Union Budget 2019-20 recently presented by the Finance Minister Ms Nirmala Sitharaman, Mr Sandip Somany, President, FICCI said, “Directionally the budget is good, and it takes forward the plan that was laid out by the government during the Interim budget. There are several positives in the budget, and it provides a set of benefits for most segments of the society. We see a clear action plan for realising the vision of making India a US$ 5 trillion economy over the next few years with a focus on ease of living.”

Anand Kripalu

“A balanced budget that draws from a long-term vision for the country! Through policy reforms to rejuvenate investment, ‘Make in India’ and Ease of Doing Business, as well as measures to tackle the country’s water shortage and climate change, the budget lives up to the government’s vison of a New India that aims at inclusive growth. The acknowledgement of India Inc’s role as the nation’s job and wealth creators is heartening. Operating with the high standards of compliance, in a sector that is in urgent need of regulatory reform, we are delighted at the Government’s vision of ‘Minimum Government Maximum Governance’, which we hope the Centre will encourage States to adopt towards the alcoholic beverages sector,” points out Anand Kripalu, Managing Director and CEO, Diageo India.

The budget maintained its focus on infrastructure development. While the government would continue with its existing major national programmes like Bharatmala, Sagarmala, Rural roads, Udan and Inland waterways scheme, the vision of taking connectivity to the next level through ‘One Nation One Grid’ for electricity and a similar plan for gas grids, water grids, i-ways and regional airports is indeed ambitious and would be transformational in its impact. “FICCI has been advocating the need for such networks and would work with the government on realising this vision. We are also encouraged by the Minister’s focus on promoting public-private partnership for modernisation and upgradation of the nation’s railway infrastructure,” added Mr Somany.

The MSME sector also got its due focus in the budget. Availability of finance and delay in payments are the two key issues faced by MSMEs. The government has attempted to address these through allocation of `350 crore for interest subvention scheme for GST registered MSMEs and creation of a payments platform to enable filing of bills and payment thereof on the platform itself. Also noteworthy is the suggestion to set up a social stock exchange for listing of social enterprises and voluntary organisations. This is expected to open up new avenues for funding for entities working in the social sectors.

Neeraj Kumar

With the Indian economy poised to become a $3 trillion economy in 2019, the Union Budget balanced prudently between focus on enablers for near term growth with a visionary 10 year road map to sustain and scale this growth.

Closer to our category, the announcement to develop 17 iconic world-class tourist sites is good news. We continue to expect greater transparency and ease of doing business in states and central regulatory framework to enable sustainable and compliant growth for our sector, says Neeraj Kumar, MD Beam Global Spirits & Wine India.

Abhishek Khaitan

The industry sees a confident and clear articulation to boost growth by reduction in corporate tax and sops to housing sector and startups. The focus on sustainability with electric vehicles and water is visionary but enabling infrastructure needs to be implemented.

“The budget is focussed on vision and inclusive growth,” believes Mr Abhishek Khaitan, Managing Director, Radico Khaitan Limited. The new government till date has pursued pro-growth initiatives and, I believe, this budget will continue the impetus to further boost economic growth and investor confidence. The government is well positioned for a swift and efficient execution of progressive initiatives. Smt Nirmala Sitharaman’s maiden Budget – the first to be presented by a female Finance Minister — emphasises on infrastructure development, freeing up liquidity to troubled NBFCs, generating jobs in the MSME sector, and generally enhancing the ease of doing business. As a listed corporate, we believe that having a 35% public float is positive in terms of better corporate governance standards and valuations and carries a potential of increasing India’s weight in the global indices.

The budget is equally focused on welfare, health, sanitation, water, transformation, standard of living and support to farmers.

Nirmala Sitharaman ji stressing on the ‘Gaon, Garib and Kisan’ aims at enabling the rural economy through multiple schemes. With the aim of boosting the agricultural sector in the country, the government’s plan to reassess the implementation of zero budget farming has the potential of nearly doubling farmers’ income. Additionally, 10 thousand new farmer producer organisations will be set up for ensuring market reach for the farmers. The other schemes announced in the budget such as Pradhan Mantri Matsya Sampada Yojana, cluster-based rural industrialisation for promoting 50,000 artisans, 75000 skilled agri entrepreneurs and overall focus on dairy sector are all very laudable.

The vision of each house having water, electricity and cooking gas by 2022 is commendable and there is a very close interdependence between water, sanitation, health, nutrition, and human well-being. We view water as a central resource for a sustainable India and the thrust to provide piped water to all rural households by 2024 is what inclusive growth is all about.

To conclude I commend Ms Sitharaman for appreciating the contribution of India’s private sector in the fantastic rise of the country’s economy. While the fiscal balance has been managed well with the deficit aimed at just over 3%, the overall, the budget is pro-poor, pro-rural and pro-ease of doing business. The simplification of the GST, the simplification of tax reforms and indirect taxes and the support to startups not only will help in bringing in more capital and employment, it will significantly benefit society at large and help achieve aspirations of millions of Indians.

“I would emphasise that the government has taken due cognisance of the funding needs of a growing economy and this is reflected in a series of measures announced to deepen the country’s capital markets as well as help increase inflows both through the institutional investment and direct investment route. In our pre-budget consultation, FICCI had suggested the need to look at FDI norms in sectors such as insurance, animation, gaming etc. and we are glad this found a mention in the budget,” said Mr Somany. Additionally, to attract cross border investments, the statutory limit of FPI in a company is proposed to be increased from the current 24% to the sector foreign investment limit.

The announcement to further provide `70,000 crore for capital infusion into public sector banks along with measures to strengthen the governance processes within the banks should help in improving the credit flow to the industry. “The NBFC sector has been in focus on account of the stress being faced due to liquidity crunch in the last few months. Acknowledging the important role played by NBFCs, some key measures have been taken which should help ease the liquidity situation for the fundamentally sound NBFCs going ahead. As this happens, we hope to see greater amounts being sanctioned and disbursed by the para-banks particularly in the MSME and retail segment,” said Mr Somany.

Another novel feature of the budget is to marry the benefits of rural infrastructure development with sustainable livelihood opportunities. Having achieved tremendous success over the last five years in terms of promoting connectivity, housing, provision of electricity and clean energy in rural areas, the focus now is to promote traditional resource-based industries and create avenues for self-employment and entrepreneurship. “From the point of view of the farm community, the decisions to set up 10,000 farmer producer organisations and fully leverage the benefits of e-NAM for getting fair and remunerative price are welcome. In FICCI’s Agenda for the New Government, both these points were highlighted, and we had urged the government that these are essential components of any strategy aimed towards doubling income of our farmers over the next few years,” said Mr Somany. To strengthen the education system in the country, FICCI had suggested that the government finalises and implements the National Education Policy, sets up a National Science, Technology and Human Research Foundation; and hasten the setting up of Higher Education Commission of India. FICCI would like to thank the government for having incorporated these suggestions in the budget proposals.

On the disinvestment front, FICCI welcomes the government’s decision to enhance the target for the current year to `1.05 lakh crore. We had of course suggested that given the demands on exchequer, government should look at a target of `1.5 lakh crore. Additionally, the government’s decision to consider divesting its stake in select public sector units to below 51% is interesting and we look forward to details on this subject. “On the taxation front, while we are happy to note the decision to raise the turnover limit from `250 crore to `400 crore for companies that would attract a corporate tax rate of 25%, we had hoped that this rate will be applicable to all firms. Given the way tax policies are evolving globally, we need to be competitive if we are to attract and retain investments at a high level. With the Economic Survey also highlighting the critical role played by private investments in addressing concerns related to growth and employment, a bigger boost to the corporate sector was expected,” said Mr Somany.

Enhanced deduction for interest payments on loan taken for affordable housing, clarification on Angel Tax and the thrust on speedier resolution of legacy tax disputes in the indirect tax segment are some of the other important announcements on the tax side.

Finally, government has remained focussed on making India a ‘cash-lite economy’ and once again we saw in this budget a couple of suggestions that would help the country move ahead on this track.

Worldwide Alcohol Consumption Declines -1.6%

Leave a reply

IWSR 2018 Global Beverage Alcohol Data shows growth in spirits, but beer and wine volume is down; market expected to grow by 3% over next five years.

Beverage alcohol drinkers across the globe consumed a total of 27.6bn nine-litre cases of alcohol in 2018, but while that number represents a decrease of -1.6% from the year prior, new data from the IWSR forecasts that total alcohol consumption will steadily increase over the next five years, to 28.5bn cases in 2023. In terms of retail value, the global market for beverage alcohol in 2018 was just over $1tn, a number which the IWSR expects to grow 7% by 2023 as consumers continue to trade up to higher-quality products. These figures – and more than 1.5m other points of data – are included in the just-released IWSR Drinks Market Analysis Global Database, which also shows:

Gin was the Leading Global Growth Category in 2018, and Forecasted to Reach 88m Cases by 2023

The largest gain in global beverage alcohol consumption in 2018 was in the gin category, which posted total growth of 8.3% versus 2017. Pink gin was a key growth driver, helping the category sell more than 72m nine-litre cases globally last year. In the UK alone, gin was up 32.5% in 2018, and the Philippines (the world’s large

st gin market) posted growth of 8%, fueled by a booming cocktail scene and premiumisation of the market. By 2023, the gin category is expected to reach 88.4m cases globally, with particular strong growth in key markets such as the UK, Philippines, South Africa, Brazil, Uganda, Germany, Australia, Italy, Canada and France. Notably, Brazil has emerged as a new hotspot for the categ ory, with volumes there more than doubling last year and forecasted to grow at 27.5% CAGR 2018-2023, as the gin-and-tonic trend has increased in upmarket bars of São Paulo and Rio de Janeiro.

Consumption of Whisky and Agave-Based Spirits Continues to Increase

Spurred by innovation in whisky cocktails and highballs, the global whisky category increased by 7% last year, driven in large part by a strong Indian economy (whisky grew by 10.5% in India, as consumers continue to trade up in the category). The US and Japan posted 5% and 8% growth, respectively. The IWSR forecasts whisky to grow by 5.7% CAGR from 2018 to 2023, to almost 581m nine-litre cases. Also, continued interest in tequila and mezcal (especially in the US), and innovation in more premium variants and cocktails, drove the agave-based spirits category to 5.5% global growth in 2018 – and is expected to post 4% growth over the next five years (2018-2023 CAGR).

Mixed Drinks and Cider Grow

The mixed drinks category (which includes premixed cocktails, long drinks, and flavoured alcoholic beverages) grew 5% globally in 2018. By 2023, it is projected that more than 597m nine-litre cases of mixed drinks will be consumed across the world. The growth is backed by continued strong gains in ready-to-drink (RTD) cans in the US an

d Japan, the category’s two largest markets. In Japan, most RTDs are locally made and almost exclusive to Japan. Their popularity is partly due to the fact that they are relatively dry, which makes them more food-friendly and sessionable. In the US, the popularity of alcohol seltzers has been a tremendous engine for growth in the RTD market. In the cider category, as investment levels in those products continue to rise, almost 270m cases are expected by 2023, a 2.0% CAGR 2018-2023. Both of those categories (mixed drinks and cider) are taking share from beer as perceived accessibility increases (less bitter, easier to drink).

Vodka, Liqueurs, and Cane Spirits are in Decline

Vodka lost volume in 2018 (-2.6%) as the market for lower-priced brands continued its decline in Russia and the Ukraine (two of the largest markets for this spirit). Higher-priced vodkas, however, showed a more positive trend last year. Nonetheless, the outlook for total vodka over the next five years remains sluggish as the category is forecasted at -1.7% CAGR 2018-2023. Also in decline is the flavoured spirits category (liqueurs), which dropped by -1.5% globally in 2018, and is expected to continue to slip in 2019 before rebounding slightly in 2020. Cane spirits (primarily Brazilian cachaça) was down -1.6% last year, and is forecasted to lose another 4.5m cases by 2023.

Beer Continued to Lose Volume in 2018, but is Expected to Rebound

Global beer declined -2.2% in 2018, impacted greatly from volume decreases in China (-13%). Other large markets such as the US and Brazil also fell (-1.6% and -2.3%, respectively), while Mexico and Germany saw growth (6.6% and 1%, respectively). The future outlook for beer, however, paints a more positive picture, as the category is expected to show a slight increase in 2019 and post a 0.7% CAGR 2018-2023.

Wine Volume Declines, but Value Increases

Wine, which had posted strong global growth in 2017, lost -1.6% in volume in 2018 as wine consumption declined in major markets such as China, Italy, France, Germany and Spain (the US market was flat). However, though consumers are drinking less wine, they’re increasingly drinking better – pushing wine value to increase. Globally, the retail value of wine is projected at $224.5bn by 2023, up from $215.8bn in 2018. The one bright spot in wine volume is the sparkling wine category, which is expected to show a five-year CAGR of 1.17% 2018-2023, driven in large part by prosecco.

Low- and No-Alcohol Products on the Rise

Low- and no-alcohol brands are showing significant growth in key markets as consumers increasingly seek better-for-you products, and explore ways to reduce their alcohol intake. Growth of no-alcohol beer is expected at 8.8%, and low-alcohol beer at 2.8%. No-alcohol still wine is forecasted at 13.5%, and low-alcohol still wine at 5.6%. Growth of no-alcohol mixed drinks is predicted at 8.6%. (Above figures are all CAGR 2018-2023.)

Top Ten Performing Global Markets, 2018-2023

A look at the world’s fastest-growing beverage alcohol markets shows an emergence across a variety of developing countries. A combination of growing legal-drinking-age populations and healthy economies is driving some of this growth, which is expected to continue over the next five years. “Every year our analysts spend months traveling the world to speak with suppliers, wholesalers, retailers, and other beverage alcohol professionals to assess what is happening market by market in this fast-changing business,” says Mark Meek, the IWSR’s CEO. “The raw data we collect is enormously valuable, but equally important is what that data tells us in terms of trends, challenges, and opportunities facing the industry.”

Thibault Cuny appointed as the new CEO for Pernod Ricard India

Leave a reply

Thibault Cuny has been appointed as the new CEO for Pernod Ricard India. He has held the position of CEO and President of Pernod Ricard, Brasil since 2012. He has also previously worked at Pernod Ricard Holding in Paris as Audit and Development Manager and as Executive Vice President – Finance at Pernod Ricard South Asia since 2006.

Cuny has been under the Pernod Ricard umbrella since 2003 and has held various job titles in the company. Pernod Ricard is the world’s co-leader in wines and spirits with consolidated sales of € 8,558 million in 2014/15 and the fastest growing multinational beverage alcohol company in India with a business spanning the entire length and breadth of the country delivering quality products to its discerning consumers.

With leading brands in each segment, Pernod Ricard India holds one of the most comprehensive and Premium portfolios in the industry led by Indian whiskies such as Royal Stag, Blenders’ Pride and Imperial Blue, along with the home grown Wine sold under the brand name Nine Hill and Indian vodka – Fuel. The company also distributes some of the leading international brands including Chivas Regal, Seagram’s 100 Pipers, Ballantine’s, The Glenlivet and Royal Salute Scotch whiskies, Jameson Irish whiskey ABSOLUT Vodka, Havana Club rum, Beefeater gin among white spirits category, Martell cognac, Jacob Creek wine, Kahlúa and Malibu liqueurs and G.H. Mumm champagne.

When to bottle craft beer?

1 Reply

Craft beer which is available mostly in kegs is now moving to the retail shelf. A look at some of the compelling reasons.

As the craft beer demand continues to grow, the more successful craft beer produces have a happy dilemma when growing organically, is moving on from the first phase when the start-up microbrewery only kegs the beer to bottling beers.

The margins created by retailing your beer instead of selling it wholesale have sustained the growth of microbreweries. This successful approach has succeeded in generating phenomenal growth in the industry.

Wholesaling only has downsides, mainly for those micro breweries that do not have their own direct chain of distribution. Those without direct distribution have struggled in the past and are the micro breweries most likely to disappear. Microbreweries without their own direct outlets are those that have tended to fail first over the years. The need to have a substantial distribution network was recognised immediately for example by BrewDog in Scotland, and Whitewater Brewery in Northern Ireland.

The important initial capital outlay required to open a microbrewery needs a rapid growth of sales and margins to sustain the business. You have to have a guaranteed high margin from your own distribution from the very start, or you will need deep pockets to sustain the start up from zero.

Many of your clients will also want to enjoy their favourite beer at home or on a picnic. And you need to serve them, or they will buy their tipple from the competition. Therefore you need to satisfy this type of consumption by offering bottled beer, pretty soon after starting your brewery. Initially the quantities to be bottled are relatively modest – maybe only 500 or 1000 bottles at a time for each of your various recipes. Initially, therefore, the easy way, although an expensive way, is to contract bottle outside the premises. This seems the way to go. Contract bottling has many disadvantages and could eat into your margins because of extra logistics cost and scheduling. In-house bottling could be the solution. Bottling in-house requires generally more money than anticipated.

More and more fancy craft beer is also showing up in aluminum cans. Five years ago, just a few dozen craft brewers in the U.S. were canning, while today there are more than 500. The beer in a can cools faster. The can protects from beer-degrading light. Beer cans are portable and take up less space, advantages both for retailers and for consumers who want to take them camping, hiking or fishing. There’s also more space on a can for wraparound design and decoration.

While glass bottles take longer to cool down, they also stay cold longer once they come out of the cooler. Plus, glass producers and plenty of brewers will tell you translucent amber glass has been working fine to protect beer from light and air. The biggest selling point for the bottle, though, is flavour. There’s at least a perception that cans impart a metallic taste, whereas liquid stored in a bottle comes out tasting pure.

The metal touching your lips is still a factor in terms of flavour, but most craft brewers suggest pouring out beer into a glass before sipping, whatever package it comes in. It may be coolness, or it may be convenience, but the bottom line is, cans are getting cheaper. Bottling in-house remains a simpler, cheaper process. The Brewers Association estimates just 3% of craft beer on the shelves is in a can. Sixty percent still goes out in bottles, and the rest is sold in kegs. Glass has been a very reliable package and tradition will prove itself well that glass is not going anywhere.

In India quite a few microbreweries plan to launch bottled beer brands to cash in on rising demand for India’s craft beer. So far, India has seen just a few craft beer brands such as Bira, White Owl and Simba, sold off shelves despite nearly 170 microbreweries that opened over the past decade. Karnataka government does not allow brewpubs to distribute in-house beer and are permitted to produce a maximum of just 1000 litres a day. Windmills Craftworks will start producing cans of craft beer from their newly-acquired 2000-litre production brewery in Goa.

India’s craft beer industry accounts for 2-3% of the country’s beer market which is largely skewed towards the stronger version. The surge of interest in craft beer has been driven by millennials, many particularly interested in this form of beer that is more authentic, premium and has a complex flavour compared to regular lager sold by MNCs.

But making and selling craft beer at a larger scale isn’t easy. Besides licenses and distribution, brewpubs have to wrestle with cold chain supply infrastructure, short shelf-life of craft beer and smaller budgets compared to United Breweries, Ab InBev and and Carlsberg that together control 90% of the market. As a result, many are planning to roll out variants such as hefeweizen, stout and light golden ale – that can survive better in these tough conditions. And some are opting for pricier cans to package their products instead of glass bottles. Cans are lighter, unbreakable, carry more branding information, have little oxygen uptake and do not allow light to enter easily, unlike bottles. International craft beer brands can collaborate and set up bottling plants in India to retail now. Big commercial beer brands are also waiting, and will hop on the craft brewery segment in the next two-three years. Perhaps herein lies the opportunity for Praj, Krones, Alfa Laval and KHS.

Scotch Whisky makes strong Economic Impact

1 Reply

With the Brexit debate dominating British politics, the fate of Scotch, the money spinner for Scotland will be closely watched.

The Scotch Whisky industry is strategically important to the economies of Scotland and the United Kingdom. This report – building on work by the Centre for Economics and Business Research (CEBR) – explores Scotch Whisky’s direct contribution to GVA, international trade, employment, supply chain and revenue through excise duty. The contribution of the Scotch Whisky industry to the UK economy has grown by 10% since 2016 to £5.5bn.

A new report by the Scotch Whisky Association, building on research carried out by the Centre for Economic and Business Research (CEBR), also reveals Scotland’s national drink generates two-thirds of all spirits Gross Value Added (GVA) in the UK. The industry has been buoyed in recent years by record exports, reaching £4.7bn in 2018, and several new distilleries beginning production and opening their doors to tourists.

This success comes despite the industry continuing to pay the fourth highest duty rates in the EU, and one of the highest of spirit producing nations globally. Recent freezes to UK duty have helped the industry to reinforce its vital importance to the UK economy. Karen Betts, Chief Executive of the SWA, said:“This research shows the huge contribution that our industry plays to both the Scottish and UK economies.

“Significantly, the research shows that our industry’s GVA increased by 10% to £5.5bn between 2016 and 2018, as a result of Scotch Whisky companies’ continued export success and the industry’s consistent investment – over £500 million in the last 5 years – in production, distribution, marketing and tourism.

“Despite the challenges of Brexit, this is investment that continues to flow, with more projects planned and more distilleries set to open – a

sign that the Scotch Whisky industry remains confident about the future. This is great news for our many employees, our investors, supply chain and, of course, for our consumers all over the world, who love Scotch. “This report also highlights the high rate of domestic tax that Scotch Whisky faces in the UK. In the US, Scotch and other whiskies are taxed at just 27% of the rate that HM Treasury taxes us here at home. We will continue to press the Chancellor for fairer treatment of Scotch Whisky in our domestic market, which reflects the vital economic contribution the thousands of people who work in whisky make to the UK economy every day.”

Scotch Whisky provides £3.8bn in direct in GVA to Scotland – helped by regulations in place that requires all Scotch Whisky to be distilled and matured for at least three years in Scotland. This means Scotch Whisky

contributes more than double than life sciences (£1.5bn) to the Scottish economy, supporting more than 42,000 jobs across the UK, including 10,500 people directly in Scotland, and 7,000 in rural communities.

The sector was found to perform a crucial role in driving productivity across Scotland. The manufacturer of beverages in Scotland – dominated by Scotch – produces £210,505 GVA per employee. Comparatively, the industry is more productive than the energy sector (including renewables) at £173,511 per head, life sciences at £93,735 per head, and creative industries at £60,712 per head.

Exchequer Secretary to the Treasury Robert Jenrick MP said: “I’m delighted to see how this important sector is thriving. “We are supporting the Scotch whisky success story by freezing duty on spirits again this year. “Our record of reductions and freezes to alcohol duties have provided more than £4bn of support to the drinks sector here in the UK.” Rural Economy Secretary Fergus Ewing MSP said: “I welcome the contribution that the Scotch Whisky industry makes to the Scottish Economy. “The industry’s performance is testament to the hard work of those who work in this important sector, making Scotch Whisky one of Scotland’s greatest global exports.”

The Way Forward For India And The Alcobev Industry

Leave a reply

While captains of industry welcome the new government and are hopeful of industry friendly policies, they are also looking at sustainable growth for the future. The alcobev industry has sputtered along in spurts and jerks. With a new government in place, the industry is hopeful of new impetus for growth.

“A stable government is indeed welcome for the nation and economy. We hope that the new government will reinforce its progressive policies towards the industry, and usher in the next phase of reforms to promote ease of doing business and ‘Making in India’. We also look towards the Federal government to encourage states to urgently bring comprehensive regulatory reform into key state- GDP contributing sectors such as alcoholic beverages,” says, Anand Kripalu, Managing Director and CEO, Diageo India.

The beer industry has its fair share of challenges. And with the competition heating up and input prices rising it is becoming difficult to invest in growth. “With a strong mandate that the government has received, we look forward to sustained reforms that will spur further growth in the economy. We also look forward to continued emphasis on ease of doing business,” says Shekhar Ramamurthy, Managing Director, United Breweries Ltd.

ABD in its new avatar, has discovered growth in volumes and is now translating it in to value by creating millionaire brands of its premium brands. The elections and the policies will be closely watched. Will Bihar lift prohibition under the new government? That is perhaps the question on the lips of all marketers.

“It is indeed a blessing that India has elected a strong and stable Goverment and I look forward to more structural reforms so that India can continue on a strong growth trajectory with gainful employment for all its citizens. I also expect the federal goverment to build consensus amongst all states to include potable alcohol in GST,” said Deepak Roy, ABD Vice Chairman.

Plagued by high taxes, both Central and State, the Indian alcobev industry is struggling to find the way forward. Some years ago it was the number game and companies like USL managed to cross the 100 million cases mark and brands like Officer’s Choice crossed the 30 million cases mark. But those numbers did not translate into profits and only companies like Pernod Ricard consistently remained in the black.

But now companies are scaling down their volumes where the margins are thinner, introducing premium brands and focussing on profits. Diageo is working to get consumers to ‘premiumise’. The company is working to taking a long term view and creating business value. The history associated with Diageo’s iconic brands, too, bears testimony to such far-sightedness.

However, despite all the challenges in the Indian alcobev industry, Radico has managed to do well, particularly after the opening of the UP market. They have also successfully launched 8 PM Premium Black followed by a big media blitz. Even Magic Moments is maintaining its leadership position backed by heavy advertising on TV channels.

While congratulating on the grand come back of PM Narendra Modi, Dr. Lalit Khaitan, Chairman of Radico Khaitan Ltd. says, “The voters have endorsed Modi’s decisive leadership, his ability to take the country from red tape to red carpet, his government’s multiple schemes to pull out millions from abject poverty and provide them essential services like electricity, cooking gas, bank accounts and free health services.”

Whereas down South KALS Group has been growing very fast particularly after acquiring Imperial and introducing more products like Sparta and so on. It is aspiring to expand to other markets beyond South and has chalked out long term plans.

KALS CMD Mr.S Vasudevan says on the historic victory of the NDA government, “I wish our Honourable Prime Minister Mr. Modi for his impeccable victory. This is a well-deserved victory for transforming our nation in terms of controls, governance, and GDP growth. I personally look forward to having reforms in the IMFL Industry as well that contributes significant revenue to the respective states. I wish the new government all the very best and I’m confident under the leadership of our Honourable PM, India will get into the strides of excellence.”

In India Diageo is taking a long term view well emphasised by the purchase of USL for over US$ 3 billion which could create tremendous opportunities for the next 20 to 30 years.

USL added about 5,000 employees to Diageo’s global workforce, and it wasn’t just about gaining access to a strategically important market. The company’s Indian talent pool and its investments in IT and service centres in India serve not just the Indian market, but the group globally.

And having overcome the legacy issues associated with the USL acquisition, Diageo claims to have set itself the ambitious target of “changing the alcohol industry in India”. Much of that effort revolves around a campaign to inculcate the spirit of ‘responsible drinking’, which translates into reinforcing moderation, and in promoting road safety in collaboration with State governments.

And the way Diageo hopes to make the transformation in India is to “premiumise” the business by inducing consumers not to “drink more”, but to “drink better”, by moving to up-scale brands. That has also seen it franchise out some of the lower-end brands it acquired along with USL, and renovate its brands.

Companies like Pernod Ricard has had a sound strategy in place as well. Not only most of its brands are millionaire brands but they enjoy good margins and the company has consistently delivered profits over the years.

But the company too has suffered from disruptions and would like more business friendly policies. Says Guillaume Girard-Reydet, Managing Director, Pernod Ricard India, “The people of India have exhibited with full clarity, their confidence in stability and progress in current reforms. I encourage this government to continue the momentum on reforms in the economy, to increase ease of doing business and comprehensive regulations enabling best growth for India.”

Pernod Ricard launched recently its 2030 ‘Sustainability & Responsibility’ roadmap as part of the Group’s strategic plan to ‘Transform & Accelerate’. This roadmap sets out 8 ambitious and concrete 2030 targets supporting the United Nations Sustainable Development Goals (SDGs) which was unveiled at the Martell Cognac distillery in France. The Group is taking bold next steps in addressing both environmental topics, to preserve the terroirs its products come from, and social responsibility, in particular by accelerating the fight against alcohol misuse.

Scotch Whisky Association is also looking at a long term boost to its business value. It has drawn up plans till 2050.

Mumbaikars appear to be more discerning about their alcohol now than they were seven years ago. Consumption of hard, and, at times, spurious, country liquor has barely increased, but the tribe of wine-drinkers has risen by over 67% in the seven-year period.

Consumption of country liquor (CL) increased only 5.7% in this period, prompting experts to say that people with lower income who opt for it have controlled their drinking habit. However, those preferring the costlier IMFLs have increased by almost 30%, show the seven-year data. The consumption of the ‘safe’ option – beer – has only increased by 6% in this period. Beer and wine have less chemical spirit (up to 17%) content than IMFL and CL (which have up to 44%).

“People go for IMFL and CL or may be a mix for a better and quicker kick. But since the chemical spirit is higher in both of them, there are chances of them adversely affecting a patron’s health. It’s hence a worrying sign that Mumbaikars are increasingly drinking more IMFL than beer,” said an expert who works for the de-addiction campaign.

Excise duty on beer has made prices similar to that of IMFL. This, experts say, comes as a major discouragement for those who want to switch over to liquors with lesser pure spirits. On the contrary, countries in the West and a few in Asia like China encourage beer to ensure minimal damage to the health of regular drinkers, by offering cheaper pricing.

Between 2010 and 2017, alcohol consumption in India increased by 38% from 4.3 to 5.9 litre per adult per year, said the researchers. In the same time, consumption in the US (9.3-9.8 litres) and in China (7.1-7.4 litres) increased marginally.

Sula Vineyards crushes over 50% more Grapes in Harvest 2019 compared to 2018

Leave a reply

Sula Vineyards crushed a total of over 9,000 tonnes of wine grapes in FY 2019-20, which is about 50% more than what was crushed by the company in FY 2018-19. According to the company, this was possible due to a decent monsoon and following conducive weather conditions for cultivating wine grapes. These figures are expected to help Sula cross its own record-breaking 2018 sales, over 1 million cases world-wide.

Chief Winemaker, Senior Vice President – Vineyard and Winery Operations Karan Vasani elaborated on the Harvest events: “This year, the distribution amongst the varietals was around 55% of red variety grapes and 45% of white grapes crushed. Most of the grapes are crushed and processed in Nashik and Southern parts of Maharashtra although some harvesting and crushing are also done in Karnataka for the wines to be made and sold in Karnataka by Sula Vineyards under its brand Kadu.”

While 2019 was positive for grape-growing conditions, the weather may be indicative of the impacts of climate change. The harvest was slightly delayed this year, starting in mid-December and went on till the first week of April.

“Wine-making is such an old process, the challenges will alw

ays be the weather,” explains Founder and CEO of Sula Vineyards Rajeev Samant. “Our planet is in danger and our priority needs to be our impact on the environment. There is lots of waste generated by the traditional production and crushing process. Instead, we use every part of the grape, from seed to skin. After the grape juice is extracted the seeds are used to make grapeseed oil and the remaining mulch becomes compost for our vines,” he explains. Sula Vineyards is committed to protecting India for the future by planting more and more trees.

Sula is also cultivating additional land across Maharashtra and Karnataka, giving a boost to the agri sector. Sula planted 360 acres in 2018 and will plant an additional 340 in 2019. This will take their total area under wine grape plantations to about 3000 acres which will also add to the rural employment numbers. Today, almost 510 farmers from Maharashtra and Karnataka are working with Sula with assured buy back contracts.

In general, Maharashtra saw a bumper grape harvest this season with figures from Nashik district, the heart of India’s grape region, crossing 1.43 lakh tonnes of grapes. About 2% of these grapes are wine grapes. However, except for 2017 when the highway liquor ban was put in motion, the Indian wine industry has recorded a steady growth in CAGR, which means that more and more Indians are drinking wine, in many cases switching away from hard liquor.

Neeraj Kumar named Beam Suntory’s Managing Director, India

Leave a reply

Beam Suntory has appointed Neeraj Kumar to serve as Managing Director, India, effective May 2019. With leading brands like Teacher’s and Jim Beam, the company has an ambitious goal of reaching $1 billion in sales by 2030.

“Neeraj is the ideal leader to guide the next wave of growth in our India business unit,” said Pryce Greenow, Beam Suntory’s President, International. “Since joining Beam Suntory, Neeraj has demonstrated exceptional leadership skills and brings a wealth of marketing and sales experience to the role. We’re always looking to provide greater leadership opportunities for our top talent, and Neeraj has the leadership capabilities, character and determination to help us achieve our ambitions to grow India into one of our biggest markets.”

Beam Suntory in India has offices in Gurgaon, New Delhi, Mumbai, Bangalore, Hyderabad, Kolkata and a primary bottling facility in Rajasthan.

Kumar is a veteran marketing and strategy leader with more than 25 years of marketing, sales, and strategy experience. Kumar joined Beam Suntory in 2008 as Marketing Director, India helping build the leadership position for Teacher’s Scotch in India while expanding Jim Beam. In 2016, he assumed the position of Marketing Director, Emerging Asia, helping establish new routes-to-market in China and South Korea. Kumar has been a key leader in helping deliver sustained performance in India, a priority emerging market for Beam Suntory.

“India is a strategic priority for Beam Suntory, and I couldn’t be more energized to be charged with our ambitious growth agenda and leading our passionate India team,” said Kumar. “Our growth plans reflect a strong commitment from Beam Suntory to the Indian market and our vision of Growing for Good, protecting water and the environment, giving back to our communities, and promoting responsible consumption of our products.”

Prior to Beam Suntory, Kumar served in roles of increasing responsibility at PepsiCo Nepal and Electrolux India, where he rose to the position of Vice President Marketing & Strategy at Electrolux Major Appliances.

Sparta – VSOP French brandy is the next need-to-have bottle for your home bar!

Leave a reply

KALS Group, Southern India’s alcobev company announced the launch of Sparta – India’s most admired premium grape brandy.

Sparta is an authentic French VSOP brandy that has native elements of authentic French grapes from Cognac Region, which is matured to the tune of 3+ years.

The high-spirited growth of KALS

Deriving its name from ancient Greece – A city in the southern Peloponnese in Greece, capital of the department of Laconia; population 14,400 (est. 2009). It was a powerful city state in the 5th century BC, defeating its rival Athens in the Peloponnesian War to become the leading city of Greece, Sparta embodies the exceptional French style of making heritage and the expertise. Sparta is known for its winning spirit and Sparta of KALS is expected to be the curtain raiser for well-informed connoisseurs!

Sparta is made from carefully selected grapes from the best Indian vineyards which are then double distilled in small batches using traditional French alembic pot stills, to produce a liquor of exceptional smoothness and character.

Sparta is a modern take on a French classic using some of the best southern French grapes, copper pot stills for distillation, and French oak barrels for maturation, all under the direction of Master Distiller. The result is a very special blend with honey blended caramel notes of fresh fruit, vanilla, and a hint of the oak. The brandy can be enjoyed on the rocks or to add some flavour to a signature cocktail.

SPARTA- UNIQUE VALUE PROPOSITION

Sparta is the first authentic french-style brandy to be 100% made from grapes of Cognac region. Nothing else and nothing less then the timeless savoir faire of french double distillation making. since it uses grapes only from the best vineyards of France, Sparta is the first to reveal such an aromatic intensity. Unlike others, it relies on the time-honoured savoir faire of brandy making in small alembic copper pot stills. It is then aged in oak barrels and carefully blended by the cellar master. with its subtle gold colour, Sparta is the perfect harmony of mature and intense aromas. Discover its delicate notes of summer fruits and vanilla coming from the oak barrels. On the palate, its texture is as smooth as silk.

Enjoy it neat, on ice or with your favourite mixer.

Sparta is aged in small French oak barrels under the supervision of French Master Blender imparting a smooth and distinctive taste, exceptional aromas and a complex character of a cognac – style brandy with a long finish. Keeping up with the tradition of French Cognac making, the master blender has developed a unique recipe guaranteeing excellence in every drop.

Chairman & Managing Director Mr. Vasudevan S of KALS Group said, “With this launch KALS takes its aggressive step into the world of spirits with a superbly crafted high end offering. We are confident that Sparta will win accolades and significantly raise the bar for brandy making in India. Sparta is India‘s first handcrafted cognac derivative – style brandy for connoisseurs – from the House of KALS.”

Sparta comes in premium packaging and bottle design inspired from the Mid-19th century with a transparent gold labels that shines & scintillates to captivate the eyes of consumer- Sparta a style known as ‘standard fifth’ or ‘lettered brandy’ with embossing. Sparta will be available initially in three SKUs of 750 ml, 375 ml and 180 ml.

According to Uppiliappan G, CEO, KAL, Sparta is priced at `640 in the Tamil Nadu market. For KALs MGM Brandy is the closest in comparison. However, Sparta is rolled-out in all southern states and expected volumes will be 30,000 cases per month initially, says Uppiliappan.