INDSPIRIT IS CHANGING AND SO IS THE ALCOBEV INDUSTRY

Come September and the alcobev trade is buzzing with schemes for the coming festival season. While colour and song is the day, in the pubs and bars, the spirit is truly joyous. At Ambrosia too, the coming festival season is the time for INDSPIRIT 2009. As hectic preparations get underway it is time for the industry to meet under one roof and network among rivals in the market place but friends off it.

The conference provides for serious discussion to address both basic and burning issues. Ideas are tossed around and agendas are set for the next year. Excise commissioners and the industry sit across the table and trash out issues both pleasant and unpleasant. Every delegate at the conference gets to air his views.

The networking dinner should provide ample opportunity to mingle and share pleasantries while also discussing possible synergies and deals. The mood may be informal but the intentions are serious while everybody seeks to utilize their time fruitfully. By all means the crowning glory is the Awards Nite. While the top bosses move around in anticipation of receiving the rewards for a job well done during the year, the audience is eager to know if their favourite brand is a winner in the product category. While some may be disappointed, most are happy that their brands have not only done well in the market place but are also being appreciated in an industry forum.

For the allied industry, it is likely to be a busy time. Having just recovered from showcasing their wares at Drinktec 2009, they will be now giving their Indian counterparts a taste of the best technology. The industry has been fighting hard to cut costs in order to hedge spiraling cost of commodities. After two major wines shows the emphasis will now shift to the whiskies, the vodkas, the rums, the brandies and beers. Indspirit 2009 will provide plenty of tasting opportunities.

With appreciation for whisky, beer, and even liqueurs the time is right for both consumers and the trade to make the right choice of brands for the forthcoming festive season. The cocktail challenge will also see the participants mix and twist to curry the best flavour from their creations.

Many companies are also planning a number of product launches and what better way to test market their products at a trade show of this magnitude. It is indeed an apt time for them to get the feedback from the powers to be and gauge their success possibilities.

There has also been a churn in the industry with executives moving from struggling companies to greener pastures. Some have moved from the industry altogether and newer talent with fresher ideas have come in to give a fresh impetus to the industry. Ambrosia would like to track these changes and would like to invite companies to keep us informed about their new appointments, resignations, and even retirements.

With so many events likely to unfold the coming months should see a flurry of activity. For us at Ambrosia it is truly a path breaking effort to bring the industry together and create a powerful platform and unfurl a strategy that will see the industry through good and bad times.

We welcome your feedback, suggestions and queries. Do email us on writetoambrosia@gmail.com.

UB looks at new products to brew growth

The Kingfisher beer business is on a roll. UB Group is now getting ready to innovate with newer brands to create new momentum for sales. Ambrosia in an interview with Kalyan Ganguly discovers new initiatives taken by the company to stimulate sales.

UBL currently with its about 47% share in India's more than 12-billion-litre beer market, and its flagship brand Kingfisher alone commands nearly a 25% market share. However, it has focused mostly on its strong beer segment, which has helped it grow so far, as Indian consumers have traditionally preferred a stronger beer.

The company has grown 12.1% against industry average of 6.1%, powered by a 25% growth in strong beer, UBL's market share excluding Andhra Pradesh stood at 51%. In Andhra Pradesh UBL along with SABMiller restrained from supplying the market as the matter on price increase is currently pending decision from the AP High Court.

Kingfisher Premium & Kingfisher Strong also continued to dominate their respective categories with Kingfisher Strong now being the undisputed single largest selling beer brand in India.

Kingfisher Blue has been very successfully introduced in select markets and the company plans to roll out the brand in all other major markets. With the success of Kingfisher Bohemia Wine which has already become the leading player among premium consumers, the company is looking at niche products to spur their growth. Says Kalyan Ganguly, we are trying to create a buzz with niche products.

HIS MASTER'S CHOICE
Teacher's Origin worldwide launch in India

It's only the third time in a hundred years that a new Teacher's Scotch whisky variant - Teacher's Origin- has been introduced and the launch is exclusively in India. In fact, it will be a year before other international markets see the brand which is being heralded as a ‘blended treasure' among Scotch whisky drinkers. Amitabh Joshi, speaks to Teacher's Master Blender & Brand Ambassador, Robert Hicks and Beam Global India chief, Harish Moolchandani, to savour the secrets behind Origin.

Excerpts: The launch of Teacher's Origin from India has raised the bar by a few notches in the premium Scotch whisky category. The heart of Origin is in its beginnings and the unique blending process from which it has come. Teacher's doesn't have many variations of whisky. Back in the 1860s and 70s, William Teacher put together Teacher's Highland Cream. "There was no other Teacher's up until the 1980s when I produced Teacher's Royal Highland which is a 12-year-old and we started selling that in India", says Robert Hicks, the Master Blender at Teacher's since 1986 and its Brand Ambassador and the man behind Origin.

The India bottling plant opened in 1994 and they started bottling Teacher's Royal Highland. In 1996, Hicks was asked whether he could do a special celebration bottle for India for the 50th anniversary of Independence and he developed Teacher's 50. "Because Teacher's 50 was so well liked, Teacher's Royal Highland just died. So we only had Highland Cream and 50 in India. The rest of the world only has Teacher's Highland Cream", he says.

Thereafter, the marketing team came to him over three years ago and said they need another variant. Not just for India but for the whole world. "The idea could have been to put out another age", says Hicks.

Energy Drinks raise spirits in gloomy times

As the world experienced a difficult times, it was the Energy drinks segment that brought much cheer to the beverage markets. A Canadean report provides more details.

Excerpts: The global energy drink market brushed off concerns over the worldwide economic downturn and is set to register an 11% increase in 2008. Leading beverage agency Canadean report that growth has come from across the globe and ranges from 4% in Asia to 39% in East Europe, taking the energy drink category to almost 5 billion litres. The category has enjoyed a prolonged period of spectacular growth and has trebled in size since 2001. Canadean expect that by 2012 each global consumer will drink 1 litre of energy drinks annually.

Energy drinks are however the most premium of all soft drink categories and are inevitably vulnerable to changes in the economic environment; Canadean forecasts for the category have been cutback significantly since the unfolding of the worst of the financial crisis.

Amendments were particularly pronounced in North America where the anticipated growth level has been reduced by more than 20% in 2008; despite this the market is still expected to have expanded by 8% in 2008. North America has been an important global driver, having made extraordinary progress in recent years; annual per capita consumption has soared from half a litre back in 2002 to well over 4 litres in 2008. By 2007 no one consumed more energy drinks than North Americans and by the end of 2010 North America will have overtaken the leading region for energy drinks, Asia, where in 2002 energy drinks sales were 6 times those of North America.

Budweiser brews dream run
Sales of 2.5 million cases predicted

It's here and makes no mistake; it's racing up the charts. Belgium-based brewing giant Anheuser-Busch InBev has announced the launch of the ‘Great American Lager' Budweiser in North India after an excellent start in the southern and western markets. Amitabh Joshi, reports.

Excerpts: Anheuser-Busch InBev India expects Budweiser, the largest selling beer in the world, to achieve a country-wide sale of around Rs 100 crores in the current year, according to the company's CEO, Raja Mukherji. "We expect our global flagship brand Budweiser to achieve a sale of around 2.5 million cases in the current year," he said at the August-end launch.

The North India launch will be carried out in two phases where Delhi NCR, Uttar Pradesh, Chandigarh, and Haryana are being targeted with immediate effect while Madhya Pradesh, Chhattisgarh and Punjab will be targeted in the next phase. The Indian beer segment has witnessed double digit growth year on year. The industry is growing at a robust rate of 13-14% with the 2009 figure projecting around 190 million cases compared to last year's of 174 million. "The country offers an important market with immense potential. The launch of Budweiser in North India will further enhance our influence in this crucial market", remarked Mukherji.

Asif Adil gears up for new innings
At John distilleries ltd

After his stint at Diageo, Asif Adil, Vice Chairman & CEO of John Distilleries Ltd., is now raring to go. He is already getting ready to move into a new office, and make his mark in his new assignment. In an interview with Ambrosia, he gives insights of his vision for his new company.

Excerpts: From Diageo to John Distilleries; the transition from a Multinational to Indian company is an easy one, says Asif Adil in response to our question. Every business is different. Each has its own challenges and opportunities and it is up to an individual to build their rose garden - namely how can you take a good business and make it great. From what he terms as a job at Diageo, Asif Adil is now playing the role of an investor in a company and steering it to greater heights. Here I have a vested equity and an opportunity to build something which will last, he says.

After having played hard in the premium drinks space for Diageo brands, Mr Adil, who is at the helm as Vice Chairman and CEO of John Distillers (JDL), is now charting a new course in the IMFL segment. He is looking to take the company from a 450 crore company to a Rs 1,000-crore company by 2012. To achieve this end he is targeting the mass market.

His strategy is clear. As the government phases out country liquor like they did in Karnataka it will bring in new opportunities in this market. MNC's cannot operate in this market. Although the margins are low in this segment, the volumes are huge. Here one makes a platform and builds new businesses. To achieve this end, John Distilleries which sold close to 10 million cases mainly through its flagship brand Original Choice Whisky last year, will now launch a regular whisky, Grand Duke priced slightly above USL's mega volume brand Bagpiper. Grand Duke Whisky will hit Andhra Pradesh initially, which happens to be the largest market for Bagpiper.

After Swiss chocolates Xellent vodka takes A bow

Known for its chocolates, Switzerland now offers world class vodka, using the best ingredients, water and precise technology that the country is so well known for.

Excerpts: Switzerland now has first class vodka. The story of Xellent Swiss Vodka began as early as 1999. However, it was required to repeal a law dating back to the First World War that, had forbidden the distillation of grain in Switzerland and it is now possible to produce new spirits from grain and potatoes. The lifting of the tax barriers on foreign spirits, on the other hand, required a change of strategy.

The company now thought the time had come to establish and develop brand names at home and abroad. As Switzerland has an image of being an agricultural country with first class agricultural products, it would also give the company's products the typically Swiss attributes of clean water, technology and the highest level of precision. DIWISA decided the best course of action was the production of an ultra premium distillate from grain. Vodka, was the preferred choice as the sector has been steadily growing internationally, said Andreas Affentranger, owner of the family company "As there were already 4,000 vodkas on the world market, we knew that success would only be possible through first-class products".

The godfather of beers

"Making a good brewery is like building and furnishing a new house". That's the way Ajay Dewan, CEO, DeVans Modern Breweries, describes his company's passion to make quality beer. Makers of the famed Godfather beer, DeVans is now upping the tempo having come out with successful variants of the super strong scion in the form of, among other, Godfather Lite and Godfather Premium Super Strong. Amitabh Joshi finds out more.

Godfather beer actually needs no introduction. It's been a sort of legend among die-hard beer guzzlers who have long turned to it for a strong and sturdy, good-tasting beer. And it's been on the shelves for years the country over, a dominant player with a minimum of hype, especially in non-metro markets.

Yet having come a long way, it stood upon the doorstep of the changing times of India's alcobev industry and decided to not only take on the competition, but in many spheres step ahead of it.

With presence in over 20 states, this year the company has already done 3 million cases so far. It expects to reach 8-8.5 million cases by year end. "In strong beer, we are leading in Haryana, Himachal, Jammu, Uttaranchal and Jharkhand", says CEO, Ajay Dewan. The surge began when in 2006 they completed a new state of the art brewery in Rajasthan's Jaipur district which is now the backbone of their business. The brewery was engineered and custom built by UK-based Briggs of Burton and counts among one of the most modern breweries in the country.

VALEE DE VIN ADDS A SPARKLE WITH NEW WINE VARITALS

A new sparkling wine has been introduced in the Indian market. Zampagne - a premium range of Indian Sparkling wines by Valee de Vin is here to entice the Indian wine lovers. Paul Bailey the man of Mission at Valley de Vin speaks to Lopamudra Ganguly.

India's fascination with wine is spreading far and fast more than just an indulgence, wine is quickly becoming a necessity when it comes to leading a stylish life, Valley de Vin has introduced two more premium brands to its premium segment. The first is a sparkling Brut which is a rich sparkling wine with a luminous pale gold colour crowned by persistent mousse with hints of fresh lemon, its creamy structure delights and finishes on dry note. The sparkling brut is exquisitely balanced and perfectly blended. The other is Brut rose a romantic sparkling wine with a delicate pink hue wooed by light mousse. The nose is elusive yet seductive with a hint of strawberry and lingering aromas of plum and bright red cherry fruits.

In signature Zampagne style the wine is perfectly blended, light and creamy, with a strong character and length of flavour. Earlier Valley de Vin had floated three varietals of wine, Zampa Chenin Blanc, Zampa Rose and Zampa Syrah .For Zampa the Indian made wine the grapes are grown around Nashik. The seeds are brought from France and the man behind Zampa is Paul Bailey. He is a veteran from Australia, with a passion of wine making. Paul is certainly one of the great master winemaker. He has studied oenology at Adelaide University in South Australia. And has a rich work experience at famed Borossa Valley, Mildura and Sydney, for ten years, before moving to Orlando Winery, makers of Jacobs Creek. His mission with Valley de Vin started in 2006 and has great plans for Valley de Vin.

Diageo results reveal pliability of business

In a year of global economic downturn Diageo delivered organic net sales in line with the prior year; 4per cent organic growth in operating profit and 10per cent growth in reported earnings per share (EPS).

Excerpts: Diageo, the full line global liquor supplier, has reported a 15% rise in net sales in the Q2 ending June 30, 2009. In a year of global recession, Diageo has delivered organic net sales in line with the previous year, 4% organic growth in operating profit and a 10% increase in reported earnings per share (EPS).

Says Paul Walsh, Chief Executive Officer of Diageo, "This has been a very challenging year. Overall however our results demonstrate the resilience of our business. Our brand range and our geographic reach enabled us to deliver 4% organic operating profit growth and 10% EPS growth. While the economic downturn has affected all markets, the response of customers and consumers has not been uniform and therefore the impact on our business has been varied. By region, International, North America and Asia Pacific have been stronger than Europe. By category, we have delivered growth in categories which account for over 50% of our sales, primarily vodka, rum, tequila and beer. The gin and wine categories have been weaker and scotch and liqueurs have been most impacted by de-stocking."

FIGHTING THE FAKES
Spirits companies unite AGAINST counterfeiting

There has been a rise in counterfeiting of alcoholic spirits worldwide and the estimated loss annually now stands at an astounding US$1 billion.

Excerpts: In India itself, up to 20 people die every week because of spurious, home made liquor and since 2000, 1,155 deaths have been directly attributed to counterfeit alcohol. This figure does not include deaths from "spurious," "bootleg" or "country liquor."

With a host of multinational spirits majors now doing serious business in India, the alarm bells are sounding to prevent the already thriving counterfeit trade in the country from damaging their interests and harming consumers. In this exclusive story, Ambrosia reports from a special international meet on counterfeiting held in India and also speaks to top experts from global sprits majors.

If the numbers in counterfeiting of goods in India is anything to go by, then spirits companies are a justifiably worried lot. Reason enough for the International Federation of Spirits Producers (IFSP) to organise a one-day seminar in Delhi recently on Counterfeit Products and their Impact on Consumer Safety. The event was cosponsored by the United States Patent and Trademarks Office (USPTO) and supported by the British High Commission and European Commission, among other agencies. The IFSP itself has opened an India Regional Office this year in an attempt to meet the counterfeiting ‘industry', if indeed it may be so called, head on.

Hong Kong on Fair Trade Wines' Map

Have you ever thought about protecting Earth together with Fair Trade while enjoying great wines? The phrase, "Gifts that give thrice" is a very impressive slogan to draw the attention of wine lovers and consumers towards a environment friendly world.

Excerpts: Organic plantation is getting more popular in vineyards of Bordeaux, France and Rioja, Spain etc. This upcoming trend is further explained by Ms Leung Pui Fung the founder of Fair Taste, Hong Kong.

Sharing his views, Pui Fung explains, "Fair Trade Wines contribute three main aspects as gifts to producers, the earth and the recipients. Nowadays, it is encouraging to see more and more consumers eager to protect earth and promote fair trade in terms of utilising the best of natural manure to produce healthy wines and products instead of artificial constituents that damage environment continuously. Wine lovers consider producing great wines and being aware of social responsibilities by farmers and producers alike make this world a better place to live in."

The silent Revolution

How good are organic wines? There are far more of them out there than the normal person may expect to find. And forget the thinking that they are in some fringe niche as well. Membership in this club is not to be scoffed at either.

Excerpts: With wines as prestigious as Chateau Margaux from Bordeaux; the ethereal wines of the amazing Domaine Leroy of the Cotes du Nuits in Burgundy, or be they from within Fine Wines and More family of wines like legendary Rhone Valley producer Maison M.Chapoutier, or the pintsize producer Costaflores Vineyards from the extraordinary landscape of Argentina's Mendoza region, the forward momentum of this often maligned underground movement, is showing no signs of slowing down.

So my question then would seem to be an answer in itself. Yet wines of this calibre, and countless others from varying parts of the globe, rarely display the word ‘ORGANIC' anywhere on any label. Sometimes it is to avoid having the wine thought of or classified as ‘funky," or the producer being locked away on the assumption that he belongs to some mystical doomsday cult hell bent on world domination , or god forbid, being bought for the wrong reason. I would suggest that countless winemakers don't want people to first judge the wine by the way they have cultivated the grapes, rather than the wine itself. The guiding mantra being quality is the point of the wine, and that organic cultivation is simply a technique. This point withstanding, you will still find an ever increasing number of producers of wine from organically grown grapes, keeping their collective mouths shut about the subject to leave their options open in the vineyard.

The governances on being certified organic compliant, most often than not imposes parameters based upon philosophically wholesome principles rather than the practical needs of viticulture. Most wine makers baulk at the concept of some suit clad boffin ruling from the leaves of a book rather than from those of the grapevine.

C'est Chine - A new Gem in Agra

A true connoisseur considers a good restaurant nothing short of a culinary temple. I refer to, here, outlets like The Fat Duck in London and El Buli in Spain. The latter is a long mountainous drive through scenic beauty and as it is only open for 6 months of the year it is highly advisable to book well in advance. Rarely could you walk into a Michelin star restaurant and expect a table. They tend to frown upon such guests who have no respect for these courtesies.

C'est Chine is not being compared to any of the above overseas restaurants as this is India and last minute dining destination decisions are common in families. It is neither that far in the back of beyond like some restaurants who cater only for the advance booking because it is ‘customised to your taste'.

C'est Chine is in Agra a beautiful place we often find ourselves in either accompanying an overseas visitor or maybe even business in marble or leather. The Jaypee hotel in Delhi have already proven they can do extremely authentic Chinese cooking but to replicate that, even improve to a large extent in Agra, must have been a daunting task.

The Décor
I begin with the décor as that is the first impression - jaw dropping Chinese glamour yet not so opulent that it distracts from background Chinese piped music or indeed from the delights of good food. There is an impressive open kitchen with everything - all ingredients - cut and covered. The air-conditioning is able to take the full Chinese cooking and that is a marvel. Don't want carrots? Want more beans or mushrooms? Just step up and oversee ingredients of your dish. The table linen is thick and beautiful damask runners of white on white complete the picture. A discreet query from the Manager about cost of this luxurious layout and the response was a cool fifteen grand. Now that speaks luxury at a new level.

Being a large property Jaypee also has an advantage of view. In the evenings the water bodies shimmer with reflections of the sky, as a result even if you dine alone you are never bored.

For other articles subscribe to the online or the print edition of Ambrosia magazine.