Bottling Recession

Global economic power houses like the US, Japan and Europe including UK are reeling under the economic downturn. While the scramble is on for the necessities, trends suggest that people have not stopped enjoying their favourite tipple. Vincent Fernandes & Rojita Tiwari give an insight.

Excerpts: The message in the bottle is clear. People are scaling down their choice of drinks but quantity wise it is likely to continue. Diageo, the world's biggest player reckons that there is drop-off in sales at bars and restaurants but is being made up by retail purchases as people drink more at home to save money. Also, people are trading down within their brands by opting for a 10-year old rather than the 20-year-old whisky.

Sales trend reveal continued strong demand for vodka and whiskies. But there is also a growing interest in tequila. Scotch whiskies, especially single malts, continue to be in big demand, so much so that distilleries are making their first big investments to expand production and storage in 20 years. Scotch has a major advantage in that it is not really one but three categories of spirit -blends, super-premium blends such as Johnnie Walker Blue and Chivas Regal's Royal Salute, and single malts such as Glenfiddich and Highland Park -so even if one is in decline in a particular market, another might be growing. An example of this is the U.S. and Britain where sales of blended Scotch are flat or even declining while single malts are growing at double-digit rates. These countries both have a strong history of Scotch drinking and a knowledgeable consumer base that's receptive to the appeal of single malts. Even previously shuttered distilleries, like Ardbeg and Bruichladdich, have gained a new lease of life. Others that have lived mostly a back-stage life as an important ingredient in big brand blended whiskies, like Ardmore, are now marketing their own branded singe-malt to meet the demand. Meantime, some of the venerable mainstays of the top shelf, like Oban, are so popular they are on allocation in most countries.

The Draught Masters

InBev India is now literally turning on the tap with its draught beer entry in India, serving up the best of the best with Stella Artois and Hoegaarden Draught beer. Not content with its success with the bottled beers, the company wants to provide a whole new experience to the beer consumer. Amitabh Joshi looks into what's brewing.

Excerpts: Essentially what InBev India has done is to take Stella first of all as the mother brand. Hence the chalice glass and the whole ritual which comes along with it. "We've taken Stella as the leading brand in the draught category as far as imported brands are concerned. We've also thrown in Hoegaarden because we felt there is an opening up based on responses coming from the consumer to also give white beer on draught", says Raja Mukherji, CEO, InBev India International. That's also been the strategy as to why Hoegaarden and Stella have been saddled together in outlets. "We've got those draught taps which are pouring Stella and Hoegaarden in about seven or eight outlets in Gurgaon at this point. In Delhi we're waiting and whenever we get excise permissions, we'll be getting into draught.

Marc Jean's Cocktail on Mumbai Nitelife

Don't just serve a drink, serve it with France style says, Marc Jean Chief Barman of Hotel Normandy, who has been in the bar tending business since the past 25 years. He is also the Brand Ambassador for the premium rum brand Rhum Clement. During his recent trip to India, he answered some intriguing questions pertaining to mixology and latest trends in the international market put forward by Rojita Tiwari.

Excerpts: Having started his career as the barman in Grand Hotel of Cabourg. He then went on to work with Hotel Christiana. Marc Jean has been with Hotel Normandy since the past nineteen years now. Marc Jean sees bar tenders as the soldiers of the hospitality industry, he firmly believes that a bartender is a lot more than just an order taker. Having conducted several training sessions through the years, service with a smile and interaction with customers is his mantra. The word ‘mixologist' is today more fashionable, but before being a mixologist, you need to be a good bartender, said Marc. A mixologist is an ‘'artist'' and seeks inspiration from within his environment, culture etc. He has his own opinion about the mixology between the blending of different spirit or liquors or fresh fruits, this is what helps him create his signature drink as well.

Christian Drouin Calvados - The apple brand par excellence

French wines have become famous on account of terroir. We look at yet another segment, namely brandy, which will depend on terroir to make its mark on the Indian market. Only this brandy is not made from grape but from the apples of Normandy in France.

Excerpts: Normandy has cider apples that are very special. These apples are not the ones we eat, explains Christian Drouin. It is in this 17th-century Normandy farm, dedicated entirely to apples, that the finest cider, pommeau and calvados are produced. Cider production is attested here as early as 1638. In this setting with its architecture typical of the Auge region, the passion and taste for craftsmanship and the love of its products have earned more than 380 medals over three generations. The story of Drouin calvados began around 1960. There was nothing to indicate that Christian Drouin the elder, an industrialist from Rouen, was destined to make a career in spirits. Nothing, that is, apart from his taste for good food and good wines. When he bought a farm in Goneville he decided to use the cider-apple orchards to produce calvados. His aims were simple: produce a top-quality spirit, the best. Christian Drouin, has today given the family business a world-wide reputat on. The brand is now sold as far a field as the USA and Japan. The third generation is now hard at work. It maintains the tradition that have enabled the estate to become one of the 100 "sites of excellence in taste" selected by the Ministry of Culture. In 1995 the European Foundation awarded the estate its European Prestige Grand Prix for the whole of its production, which represents the quintessence of calvados.

Meghalayans highest tipplers?

Being in the record books for highest consumption of tobacco in the country, now the people of North-East, especially Meghalaya, are gaining ground to set the record of being addicted to highest consumption of liquor in the country. A report.

Excerpts: According to the "Alcohol Atlas of India," consumption of alcohol in Northeastern States is higher than many other parts of the country. Interestingly, women in the region drink more than their male counterparts the report reveals. The "Alcohol Atlas of India," prepared by Indian Alcohol Policy Alliance (IAPA), which was released by Union minister for health and family welfare Dr Anbumani Ramadoss, informs that the overall patterns of alcohol consumption vary throughout the country.

Besides the North-East including Sikkim, women also tend to drink more in Madhya Pradesh, Chhattisgarh, Orissa and Andhra Pradesh. Punjab and Goa are other states which have recorded high alcohol consumption in the country. For the Northeastern States, the Union health ministry provides an annual recurring grant of Rs 2 lakh to each Drug De-addiction Centers.

Know your Wine Quotient (Wine Quiz)

Wine is a constantly growing phenomenon across the globe. Last few years have seen increasing awareness and consumption (fortunately for us!) of wines in India. Would you believe that we have over 3,000 wine labels currently available in India and the total wine consumption for last year (2007-08) stands at about a million cases. Yes, it does not quite match up to the amount of spirits we consume or the beer we guzzle – but, we are catching up! So let's put this knowledge and understanding of wines to test and in turn aide consumption as well – that is, if you win the wine hamper! I hope you will enjoy reading and responding to this column as much as I have enjoyed creating this for you.

Subscribe to the print edition and answer all the questions in the QUIZ section to win exciting prizes.

Side Effects of 2008… on the Hospitality and the Imported Beverage Industry

While majority of the Business institutions might try to cover up the serious problems that the industry is facing currently, the fact still remains that the Hospitality as well as Imported Beverage industry in India has suffered severely during the last quarter.

Excerpts: For the Beverage Industry, the 2nd and 3rd quarter of 2008-09 were not very healthy with many states in India further revising their excise policies. As a result, state levies and label registration charges on the imported beverages, especially wines, were further increased. Major changes happened in Mumbai and the lead was followed by Goa, where the State government, in a bid to be more protective towards the domestic beverage Industry, has been over zealous. This has resulted in the sales of the imported segment, and more so of the premium segment, increasingly difficult.

In Maharashtra excise policy with the application of 200% excise duty on the CIF value at the beginning of this year, the prices were anyway one and half times more than other key markets like Delhi or Bangalore.

With the introduction of new MRP calculation system in Maharashtra, the already expensive imported beverages, especially wines, became almost 30 to 50% more expensive. As a result, the end consumer price for premium wine label in Mumbai has become almost two times more than Delhi and even more than that of Haryana. As a result of this, the Mumbai market which was once known as the biggest market for the Premium and Ultra Premium beverage segment is losing its shine and I will not be surprised if Delhi & Delhi NCR soon takes over from Mumbai in their consumption of the premium beverages.

Mannekin – New Watering Hole

The N block market, Greater Kailash, has a decided advantage over other areas nearby. Parking is almost never a problem here. Located on the second floor, approached by a speedy lift, it is all of 2,400 sq ft area with 80 covers but has floor space for a much larger crowd as their opening night proved. Setting is heavy with the colour red and a spattering of black. To prove the name Mannekin as a well selected thematic choice there is a series of bronze mannequins draped around long poles on one wall in different postures. Girls visiting alone might decide to be offended by the postures or styles but then you could always select a seating away from this display of the exotic. Interiors have been handled by Michael Jansen, an American married to an Indian and living here in Delhi, running his own BPO business; doing interiors as a hobby that he indulges in. Michael understood the requirements rather well as he has done the other eateries in the same vicinity, owned by the same group. He had a lot of help from Shahram Waziri, an Iranian based in USA.

Drink Technology India show goes on despite terrorist attacks

‘The show must go on' was the message Managing Director of Munich International Trade Fairs, Norbert Bargmann tried to communicate when he indicated: "drink technology India will take place again in 2010!"

Excerpts: Drink Technology India, international convention for the beverage, liquid food and PET industry, was overshadowed by the terrorist attacks in Mumbai, India. Nevertheless, the event took place as planned in the Grand Hyatt Hotel on 27 and 28 November. When the congress began on the morning of 27 November, Mumbai had seen a night of terror – a crisis that took both Munich International Trade Fairs as well as the event organiser totally by surprise. "There have been a few attacks in India and also in Mumbai in this year, but terrorist attacks to that extent could simply not be expected", said Managing Director of Munich International Trade Fairs, Norbert Bargmann.

As a reaction to the attacks, the opening ceremony was cancelled, but the congress took place as planned – also with regards to the participants who had come to Mumbai from all over the world. 45 companies from the beverage and liquid food industry had booked stand spaces at the accompanying exhibition. Being situated near the airport in the North of Mumbai, the Grand Hyatt seemed to offer safety, as the attacks appeared to be concentrated in the South of the city. However, when the situation in Mumbai got more and more precarious and unclear in the afternoon of 27 November, the congress management decided to leave it up to the concerned whether they wanted to participate on the second day or not.

Turning fruit wine into Brandy

Some historians credit the Chinese with discovering the art of turning fruit wine or grain-based mash into a higher alcohol, purer beverage. Others claim the Egyptians were the creators of distillation. It's possible that both cultures were both experimenting with distillation in roughly the same period.

Excerpts: It is known for sure that the Moors first established distillation in Europe during their occupation of southern Spain from the 8th century to the late 15th century. The Spaniards of the period were skilled winemakers and started using the pot stills that were left behind by the Moors. Within a century, bandies made from fermented grapes and other fruits spread across continental Europe. "Brandy" is derived from Brandywine, a word of Dutch origin for "burnt". Created in a still to leave the water and remove the alcoholic vapour which condenses back into liquid form as it cools. In other languages too, it is the burning that is the essential feature. In theory distillation is the simplest of physical processes. It is based on the fact that alcohol and water boil at different temperatures, water at 100°C, alcohol at 78.3°C. If a fermented liquid is heated, the vapour containing the alcoholic constituents is released first. It can then be trapped and cooled, then condensed to an alcoholic liquid.