Alcohol Industry In India Indian Spirits Sector - Overview Indian Liquor Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years. The industry is estimated to have sold 115 mn cases of IMFL last year. The sector is expected to maintain its CAGR of ~1 5% while the premium segment Wine and Vodka is expected to grow at a higher rate. With consolidation and foreign acq uisitions gaining steam the sector is about to witness next phase with realization rising in line with that of their foreign counterparts. There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor. However, production rate is about 40% of total licensed capacity as total requirement of liquor stands at 1.3 billion liters. Major National Players United spirits with about 60 % of market share in IMFL is the undisputed leader. Radico Khaitan who entered the IMFL space some 8 years back has already cornered 12 % market share and gaining. Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc. International players The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits) Investment Rationale Inherent Potential, Deregulation, western cultural influence and high entry barriers has helped the industry in notching up higher sales growth. Alcohol sale is driven by the high GDP growth and more people entering the drinking club with newly obtained prosperity or from up trading from the existing brand. Inherent Potential: Since liberalization, the economy has been growing at steady pace with per capita income rising from INR 23,222 in 2005 to INR 6,012 in 1991. Shift from country liquor to IMFL is expected with rising per capita income and limiting the sale of country liquor by states due to hygiene factor. Industry has one of the lowest per capita consumption of both Liquor and Beer and also since the margins are amongst the lowest...
Alcohol and Emerging Markets (Patterns, Problems and Response). S. K. Ghosh
The second volume in the International Centre for Alcohol Policies series on Alcohol in Society explores in a unique way how a balance may be achieved between public health and commerce; giving a good indication how in practice different disciplines like governments, scientists, scholars and public health experts, non-governmental groups and bodies, as well as the beverage alcohol industry , all need to have a place at the table. The book indicates that any policy on the topic of alcohol dr ink ing should have a balance between governments' regulation, industry self-regulation, and individual responsibility. This book contains 14 chapters and is in two parts. In the first part, it discusses contemporary trends of the patterns and consequences of dr ink ing in developing areas like Africa, Asia, South East Asia, China, India, and also central and eastern Europe, Russia, Latin America, and Mexico. The second part discusses encouraging better practice. Different authors have contributed, thus giving various perspectives on alcohol -related issues in different countries. It has always been difficult to collect detailed and accurate information, and reliable data, to achieve a proper conclusion in most developing and Latin American countries. In the sub-Sahara and Africa, there is an enormous diversity of cultures in the whole continent, as well as rapid social changes. The influence of these, as well as other factors, on patterns of dr ink ing, which cannot easily be described in simple terms, like quantity and frequency are so diverse that a multidisciplinary approach towards understanding of alcohol dr ink ing would be the better proposal. The book also states that each country in Africa aims to develop policies on alcohol , to enable the inhabitants to enjoy the benefits and pleasures of dr ink ing, while also tak ing appropriate measures to protect against all the ill effects of alcohol . All Asian countries are experiencing an increase in the demand for alcohol . This is initiated by changing lifestyle, culture, and exposure to more sophisticated advertising in a context where people have the right to choose from different options. Alcohol policies need to be formulated in these countries tak ing into account the social, religious, cultural, economic, political,and public health dimensions of alcohol use and abuse. A more holistic approach, based on objective and long-term prospectives would be ideal, rather than ad-hoc policy-mak ing. Most Asian countries may be approaching alcohol use and abuse from a narrow, short-term perspective, without adequate consultation from different disciplines. The chapter on The Alcohol Dr ink ing Pattern in India is also interesting. The f indings and observations are very close to my own f indings from a similar research project in West Bengal and Punjab about a decade ago; the chapter compares the dr ink ing habits of Indians with Asians in the UK. The pattern of dr ink ing is def initely changing very fast, with major changes in economic policies, the liberational market, the steady introduction of a market economy, and growing consumerism in India. Other factors are also br inging about various changes, such as the break up of the traditional joint family system and changes in values and attitudes, including attitudes towards the consumption of alcohol. Cultural and religious controls, that prevented people from dr ink ing alcohol , are weakening steadily and alcohol dr ink ing has been spreading to all classes of people. Alcohol dr ink ing is also increasing amongst groups who were traditionally abstainers, such as women, teenagers, and the rural rich, and I agree thatthere is an
urgent need for the country to review its alcohol policies, especially in some parts of India where alcohol dr ink ing is becoming more prevalent. In central and eastern European countries, there has been along and rich tradition in the production, trade, and consumptionof alcohol ic beverages. In Russia, it is said that extreme political, social and economic changes, within a short time, and the fall of socialism, have created a difficult context in which to formulate and implement government policy, suggesting that the task that lies ahead, at least in the short term, is likely to prove very difficult.
China has experienced tremendous social and economic changes,from the 1980s onwards, and the prevalence of dr ink ing alcohol and of alcohol -related problems has also increased significantly, which is posing a challenge to medical workers, particularly in the mental health field. In Mexico and other Latin American countries, the culture doesnot limit the dr ink ing of alcohol and so the habit is quite widespread. Another real danger is the production and sale of nondr inkable alcohol , which is 96% proof alcohol , or the consumption of home-made beverages which have been produced with no healthcontrols, as a possible result of restrictions on availability. I found a similar picture in India when I carried out an alcohol-dr ink ing survey. There is def initely an urgent need for research designed to support the national programme and to answer questions about different aspects of alcohol dr ink ing and alcohol production. In a later chapter, quite a few important points are made in identifying the most appropriate role for the beverage alcohol industry , mentioning the industry structure as a whole, improving the data on patterns and level of consumption, responsible promotionaland advertising practices, alcohol education, and also suggesting a framework for responsibility and a checklist for related activities.
The concluding chapter by Marcus Grant is well written. On thewhole this book is well presented and gives a new dimensionto the pattern of alcohol dr ink ing in many countries of the world. I am sure that it will be very useful for research workers, health visitors and other health professionals, and also for alcohol producers and policy-makers on alcohol dr ink ing in many countries.
FOOTNOTES Edited by Marcus Grant. Taylor and Francis, London. 1998, 384 pp., £33.00. ISBN: 0 87630 978 3.
Column : Whiskey, not whisky
Reghu Balakrishnan Posted: Saturday, Jan 31, 2009 at 0002 hrs IST Updated: Saturday, Jan 31, 2009 at 0002 hrs IST
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: Of course pubs routinely spring surprises on you, but sometimes these are of the instructive sort. This was the kind of experience I had during a recent visit to a pub in the western suburbs of Mumbai, thanks to an encounter with a sophisticated bartender. First, he strongly suggested that I try Jameson or Bushmills, the Irish masterpieces. Next, he brought me up-to-date with how the demand for these Irish brands has been increasing nowadays. I crosschecked his insights with the International Wine and Spirit Record d ata, finding myself surprised at the compound annual growth rate (CAGR) of Irish Whiskeys (spelt with an ‘e’) in India. It was 133%, while Scotch whisky showed just a 9% CAGR. Irish brands sold about 3,500 cases last year, up from a mere 1,500 cases in 2005.
There is a history behind the ‘e’ in Irish Whiskeys. Two cen turies ago, the poor reputation of Scotch whisky forced the Irish and American distilleries to adopt the spelling “whiskey”, to distinguish their higher product quality. Today, the brands distilled in Scotland, Wales, Canada
and Japan go by the sobriquet ‘whisky’, while ‘whiskey’ is what we call the spirits distilled in Ireland and America. Historically, Indian liquor manufacturers have a love-hate relationship with their foreign counterparts. Foreigners have never recognised Indian-made whisky or brandy, arguing that it doesn’t rise up to their standards. This has led to a peculiar situation, wherein Indian manufacturers call themselves “Indian made foreign liquor” makers. Just acquiring a high-end historical single malt brand and turning it into a low-cost blended brand will not suffice for Indian manufacturers to get the coveted, extra ‘e’. This will only result in the invasion of more Irish and Canadian brands. Wikipedia currently defines Indian whisky as “an alcoholic beverag e that is labelled as ‘whiskey’ in India, which is distilled from fermented molasses, and as such wou ld be considered a sort of rum outside of the Indian subcontinent”. An unflattering decription for sure, but it is unlikely that we will see this condescension subside any time soon.
'The malt whisky market has huge potential'.
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Byline: Dhiman Chattopadhyay
Summary: Glenmorangie, one of the oldest malt whisky brands in the world, now owned by Louis Vuitton Moet Hennessy, is yet to crack the Indian market despite India consuming 92 million cases of whisky annually. Glenmorangie, one of the oldest malt whisky brands in the world, now owned by Louis Vuitton Mo & euml;t Hennessy, is yet to crack the Indian market despite India consuming 92 million cases of whisky annually. Its Global Business Development Director David Ridley talks about the problems and business plans. Excerpts: Indians consume more whisky than most other nations. Yet the malt whisky market is negligible. Why is this? Globally, too, malt whisky has only an 8 per cent market share, with 92 per cent preferring blended whisky. Malt whisky targets only the high-end consumer who craves exclusivity. After LVMH LVMH Moët Hennessy-Louis Vuitton (upscale retailer) bought Glenmorangie, we have been steadily increasing our presence in India. However, the country is yet to wake up to malt whisky. While 92 million cases of whisky were sold in India in 2008, a mere 35,000 cases of this was malt. The bright side of this is that it means there is huge potential for growth. What is the major hurdle for growth? The taxation system on spirits is a major cause for concern at present. Foreign spirits are taxed between 200 and 500 per cent more than domestic counterparts here, differing from state-to-state. This is acting as a deterrent for buyers, who prefer to buy single malt abroad where it's far cheaper.
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What sort of growth are you looking at and how do you propose to achieve this? We hope to see India reach this take-off stage by 2012. The company is not interested in ad blitzkriegs since the target audience is rather niche. Instead, the business plan is simple: to conduct several rounds of tasting sessions with both trade experts as well as connoisseurs across key metros to create awareness and spread the word about Glenmorangie. NUMBERS OF NOTE
50%: The likely-increase in demand for diamond jewellery (Rs 29,300 crore n. 1. Ten millions; as, a crore of rupees (which is nearly $5,000,000) s>. Noun 1. crore - the number that is represented as a one followed by 7 zeros; ten million ) in India in 2010-11, compared to the current Rs 20,200-crore sales. The domestic jewellery market is pegged at Rs 76,800 crore, which includes gold, diamond, platinum and others.
6,800 tonnes: The amount of municipal solid waste produced by Delhi per day, while Mumbai generates 6,500 tonnes. These cities mostly dump the wastes in landfill sites, according to a survey carried out by FICCI FICCI Federation of Indian Chambers of Commerce and Industry in 22 cities. Rs 22 cr: The amount of compensation paid to Britannia Industries by Danone Group for IPR IPR Intellectual Property Rights IPR Inprocess/Inprogress Review IPR Industrial Property Rights IPR Institute for Policy Research (Northwestern University and University of Cincinnati) IPR Institute of Public Relations infringement of the "Tiger brand. 2.5 mn: The number of "affluent households in India, according to a survey by AC Nielsen. Out of this, 2.2 million belong to the upper middle class segment. The rich has 0.2 million and the superrich su·per·rich adj. 1. Of, relating to, or being the wealthiest. 2. Containing the richest ingredients: superrich chocolate ice cream. n. (used with a pl. 0.1 million households.
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India consolidates position as number one whisky market 25-Mar-2003
Related topics: Consumer Trends When you think of major whisky markets, India is unlikely to spring to mind, but the subcontinent was the largest global market for whisky, in all its variants, last year, according to a new report from Canadean . The report said that whisky, or whiskey, consumption in India reached around 52 million cases in 2002, some 20 per cent higher than that of the US, the second-largest market. Furthermore, Canadean predicts that India will again strengthen its position in 2003, with consumption likely to rise to 55 million cases. This market is fuelled almost entirely by Indian whisky which accounts for over 99 per cent of total consumption. In the same period, consumption is likely to fall in the US and Thailand, the second and third largest markets respectively. But India is not the only country showing good growth in whisky sales. The market - led by premium blends - in South Korea has mirrored the country's recent economic fortunes. The strong recovery since the Asian financial crisis has coincided with whisky consumption more than doubling in the last four years, Canadean said, and South Korea is now the fourth fastest growing national market. More significantly, of the 10 markets increasing most rapidly, South Korea is second only to India in volume. Elsewhere, whisk(e)y consumption in many South American countries continues to recede with Bolivia, Venezuela, Paraguay and Argentina among the five markets showing the largest downturns. Despite its size, the US market also showed a downturn in 2002, with Bourbon and other American whiskeys, Canadian whisky and blended Scotch all showing steep declines. Canadean's report also analyses sales by whisky category, and shows that blended Scotch whisky is by far the most popular. The biggest consumers of blended Scotch are the Spanish, who drank 9.8 million cases in 2002, but France is expected to overtake the US as the number two country this year. Scotch's 'home' market, the UK, is the fourth largest in the world for the blended drink. Although the US remains an important market for blended Scotch, Americans consumed twice as much Bourbon and American whiskey, with consumption dominated by two brands: Jack Daniel's Old No 7 and Jim Beam. However, the fastest growing overall brand with significant consumption volume in the US is in fact Diageo's Crown Royal, a Canadian whisky, the report said. Consumption in Thailand, the third largest whisk(e)y market in the world, remains high - around 29 million cases in 2002, more than double its nearest rival - but global brands have still to make much of an impact there. The five best selling products there are so-called secondary whiskies products such as Mehkong and Black Cat. Diageo's Johnnie Walker does have some presence in Thailand, however, although its sales are still dwarfed by the local products. For further details of Canadean's 2002 Whisk(e)y International Product Watch Report, con tact Andy Bryce .
Shaw Wallace From Wikipedia, the free encyclopedia Jump to: navigation, search Shaw Wallace & Company Limited is a liquor manufacturer in India. It is involved in the production and sales of Indian Made Foreign Liquor . The two biggest brands of SWC are Royal Challenge Whisky and Director's Special Whisky.
It was acquired by United Spirits, a part of United Breweries, in mid-2005 for around Rs.1300 crore. Before 1999, SWC was into diversified businesses, which it shed as part of a restructuring plan. Most notable were the sale of Calcutta Chemicals and Detergents India Ltd to Henkel-SPIC
