Cheers to 2010

After a tumultuous 2009, the liquor industry is hoping for a great 2010. With the green shoots of recession being seen globally and especially in India, there is great optimism in the air. CIABC is organizing a conference to tackle some of the sticky issues that hopefully will give a stimulus to the liquor industry.

For Ambrosia, this is perhaps one of the most challenging times. As the liquor industry grows phenomenally, it is time to keep pace with the industry happenings more swiftly. While the rest of the world looks at the Indian market with great expectations, the Indian companies continue to consolidate their position. Perhaps there is a lesson to be learnt from the multinational companies already present.

The growing Indian young population is also providing much cheer to the industry. While the restrictions on advertising remain, promotions have been steadily taking the message across. The internet is also playing its part in growing the industry and with the advent of Facebook and Twitter as great marketing tools, it seems like marketers are finding the means to reach their target audience.

In this issue the story on Ponty Chadha wanting to quit the business could raise many eyebrows. Many will perhaps see this as an opportunity to increase their presence in the Northern markets. Perhaps it could be the dawn of a new beginning in this region.

There are also likely to be view points of the who's who of the industry as they air their views in their own indomitable style the happenings of the industry. While many may consider these view points to be their repetitive in nature it is our firm view that this is inside information which is a reflection of the true state of the industry.

This year could perhaps see a rejuvenated Diageo trying to gain lost ground. The much awaited Heineken beer should also hit the stands with gusto. This would perhaps complete the plethora of top beer brands in the Indian market.

On the imported spirits front, William Grant whiskies will be making a concerted effort to make its foray into the Indian market. While high duties continue to dog this segment it is unlikely that the budget will provide any succour.

The high price of molasses is also seeing a rising shift to grain based whiskies. Perhaps it is time for India to shed its tag of molasses based spirits. The world over is committed to grain based spirits and it is time we took a lesson from the French who use wine grape juice to distill into alcohol. This would take the quality of spirits from India up by a notch or two.

On a parting note, we need to cash in on Feni's GIO. There is a need for quality feni spirits, be it colourless, odourless, flavoured or like the true feni, imbibed by the forefathers of Goans. For starters perhaps the states in our country can recognize its true potential and refrain from calling it ‘country'.

Usl Moves Towards its Goal for 2011

USL enjoys strong market position in India. Its international quality brands, continuous brand building exercise without losing the focus on consumer needs and aspirations makes the company the market leader. With many new initiatives in pipeline, it's the scotch portfolio which is driving the growth of the company, says, Vijay Rekhi, President, United Spirits Limited. USL is looking at becoming the biggest global player in terms of number of cases by 2011. Given the consistent double digit growth, the milestone is not far away.

What are your growth plans for 2010 and which brands will be the growth drivers for your company?

In the current year, USL has grown ahead of the Industry and this growth has been led by its Millionaire Brands in the Premium, Prestige and Regular segments. Our scotch portfolio in particular, is finding increasing acceptance and is leading the growth trajectory.
 

We Want to Exit Liquor Trade - Ponty Chada

"We want to get out of the retail liquor business", says 49-year-old Ponty Chadha, head of one of India's fastest-growing private enterprises, the Chadha Group. After graduating from a long reign in the liquor vending business, the company is now set for a boom in the real estate sector. Rarely appearing before the media, the man at the helm of affairs speaks exclusively to Ambrosia in this candid interview.

Excerpts:  When Ponty Chadha, Managing Director of The Chadha Group, says he wants to exit from the liquor trade, it is big news. Even now referred to as a liquor baron, Chadha is quick to point out that the mainstay and direction of his group is towards an empire in real estate comprising commercial complexes, shopping malls and residential townships.
The group is strengthening its roots in real estate, power projects, sugar and paper mills.

"Over the next five to six years, we will exit the liquor trade", says Ponty Chadha.
"With the next generation in the family coming into the business, the unorganized liquor vending business holds little attraction and interest", he says. Wanting to get into organized, efficient ventures, real estate projects especially, are a fertile ground for this
new generation, he added.

The group will however, still retain its place as a bulk producer and supplier of ENA, specifically grain-based. That section comes under AB Grain Spirits Pvt Ltd, a company which came into operation in early 2008 with its project spread over 100 acres of land and having a licensed capacity of 380 KLPD. The company setting up new mega-projects
in Punjab and Haryana and has visions of being one of the largest producers of best quality ENA in India under the stewardship of Mr. Hardeep Singh Chadha, the younger
brother of Ponty Chadha and Managing Director of that company.

India Grants Opportunities

For William Grant and Sons, India is a good enough market to first set up an office to review the playing field. Armed with iconic brands like the legendary single malt Glenfiddich; the handcrafted range of The Balvenie single malts; Grant's Blended Scotch whisky and world famous Hendrick's Gin, the company is signaling tough competition in the premium spirits segment.


Excerpts: A shift over the last few years of customer preferences in Indian cities has pulled in William Grant at a time when others have already set up shop but that's no hindrance to their plans. "India continues to be an exciting market for brands within the super premium category and we see this category growing most aggressively year-on-year with a CAGR of nearly 27 per cent in the 2004-08 period itself", said Aparna Batra, Marketing Director, Indian Subcontinent (Domestic), William Grant and Sons India.

The company is hopeful that in 2010 it will understand the changing landscape of the Indian premium market and review its roadmap for India accordingly; creating platforms will bring William Grant closer to understanding their consumers.

Masterstroke to be  Relaunched
Diageo-Radico JV in for boost

In an exclusive to Ambrosia, Radico Khaitan says it is preparing to relaunch Masterstroke whisky after reviving its JV with Diageo Highlands BV. This comes against the backdrop of speculation in the industry that Diageo was pulling the wrong strings after it achieved government approval for100 per cent FDI stake in the venture, Diageo Radico Distilleries. The Radico management has reiterated the terms of the JV, saying conditions remain the same and that both partners continue to have a 50:50 stake in the company. Amitabh Joshi reports.

Excerpts: Radico has put the record straight regarding its high profile partner Diageo Highlands BV. "We are going to strengthen our joint venture with Diageo. They are a very valuable business partner as the largest company in the world", said Raju Vaziraney, Chief Operating Officer at Radico Khaitan. "For whatever reasons there has been a lot of transition in Diageo in the last year with top management leaving the company and the shelved talks with USL etc. But now, things have settled.

So we want to now strengthen our relationship with Diageo and relaunch Masterstroke in a new pack with a total new blend", revealed Vaziraney.

The COO debunked media reports that Radico had put a spanner in the works of Diageo after the latter gained government approval for increasing FDI up to 100 per cent. "If a foreign company has to increase FDI in India they have to take FIPB (Foreign Investment Promotion Board) approval. That is what has happened and it's an enabling decision for Diageo to increase their participation in the JV and not in terms of increasing the 50per cent stake", explained Vaziraney.

John Distilleries chart new growth plans

Having successfully built the Original Choice brand, John Distilleries is planning the same kind of success with more brands. Paul John, Chairman, John Distilleries in an interview with Ambrosia throws more light on his plans.

Excerpts: It is perhaps a very satisfying year for John Distilleries judging by the performance of the company in 2009. The company which registered a turnover of Rs.370 crore in 2008-09 is looking forward to cross the Rs.470 crores in 2009-10. We outdid ourselves with growth at 25% on a volume basis and 30% on a value basis. We will cross 12 million cases in F.Y. 2009-10, says Paul John. The company has also chalked out a strategy for the next three years.

We have a bagful of plans to propel our company to greater heights in 2010, says Paul John. We hope to be Pan India with multiple brands. Original Choice will continue to be our flagship brand and I am hopeful of making two more brands to the millionaire club along with Original Choice.

Bacardi Sets a New Pace
Company hits high notes with Eristoff, Bacardi O

This year, Bacardi-Martini India is taking forward its successful launch of Eristoff vodka and their orange flavoured rum Bacardi O. The company has managed to grow double digit in the current financial year, largely on the back of its flavours, having launched Apple and Razz in 2008, both of which are doing extremely well. Backing its successful performance is a continuing splash of promotional activity. Bacardi-Martini India President & CEO, Mahesh Madhavan speaks about all this and more to Ambrosia's Amitabh Joshi.

Excerpts:  It's been a great entry into India for Bacardi's recently launched Eristoff premium vodka. The company had earlier priced the legendary vodka on par with Smirnoff, but has now taken it 10per cent below that. The product is now doing extremely well having been launched in Maharashtra and Delhi to good response. They will be going national with Eristoff up ahead after building distribution and this year will extend it to new markets. "The idea is to continue piggy backing on this whole wave of vodka", said Bacardi-Martini India chief, Mahesh Madhavan.

It's with this brand power that Bacardi hopes to hit the Indian market. Eristoff is one of the most popular vodkas in Europe. It is Number 1 in France, Spain, Portugal, and even in faraway Chile. "The idea is to capitalize on this popularity. We have a strong hold over our vodka bouquet. Along with Eristoff, 42 Below and Grey Goose are well placed, with Grey Goose leading the pack in the super-premium segment. It's been positioned as the world's best tasting vodka", said Madhavan.

The Indian Liquor Industry a decade in retrospect

While industries like IT, steel and Auto might get all the attention from the government, the liquor industry continues to chug on. While the negative aspects are well documented it is the commercial side that makes interesting reading. A report.

Ever since the days of prohibition, alcohol has been frowned upon. Despite some of the negative aspects attributed to the industry there are many positive ones associated with the industry. In the past decade (2000-2010) there has been an upheaval of sorts for the industry. Although the government instills many an impediment to act as a deterrent for the growth, the alcohol industry is very important for the government. The industry is said to be Rs.55, 000 crores at retail value and generates revenues to the tune of Rs.30, 000 crores in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. IMFL accounts for only a third of the total liquor consumption in India. Most IMFLs are cheap and 85 per cent of the brands are priced below Rs. 200 per bottle.

An Exciting Time Ahead for the Indian Alcobev Industry

Easing of concerns over global recession, a strengthening domestic economy and firm market conditions will keep the mood cheerful in the year Twenty Ten says Dr. Mohan Krishna

Now that the recession is nearly two years old, it could end simply because we decide it's
time to bottoms up! After all, most recessions last about two years, and the whole psychology of a recession is that it's part of a normal cycle that has a beginning, middle and an end. India is the fastest growing alcoholic beverage market in the world and is set to reach "One Billion cases mark by year 2015". The Indian alcoholic beverages industry is expected to witness accelerating growth in coming years with the consumer base likely to expand fast. The domestic alcoholic drinks market has been growing at an astounding rate in the past few years. The growth rate is higher than other major Asian markets like China and South Korea.

The Indian alcoholic drinks market is undergoing fundamental changes that are redefining the way companies develop, produce and market their products. Consumers are choosing to trade up to better quality products, whilst moderating consumption. At the same time, changes in demographics are creating new opportunities for alcoholic drinks companies.

Bagga Wines: Biggest Selling Liquor Store in India!

Bagga wine store makes biggest splash by winning the "Retailer of the Year" award and set for Guinness honors!

Bagga wines situated at Kothi, Hyderabad in Andhra Pradesh is touted to be the No. one Liquor store in India in terms of volume. The success mantra is focused on most affordable of pricing coupled with customer satisfaction. The customers, who visit the store once, get shocked at the price at which the store sell products and the ones who visit often bring more and more along with them. Their pricing is so low that the customers do not feel the need to bargain.

Despite low rates, they do variety of promotions, offers to satisfy customers. They deal with all kinds of liquor brands at the most affordable prices; they are lowest in the entire State of Andhra Pradesh. Apart from this, they continuously do variety of sales promotions every day to make customers happy and satisfied.

John Distilleries Launches Mônt Castlé Brandy in Karnataka
Other markets to be followed

John Distilleries, the company that produces Original Choice whisky has recently launched an exclusive French Brandy Mônt Castlé. This brand will cater to the prestige and premium consumers especially for the Gentlemen as states the official release.

The company aims to make Mônt a leader of the finest Brandy brands manufactured in India. Made of French grape, Mônt Castlé Brandy is crafted to perfection using specially chosen grapes in the time honoured pot-still production method. It delivers real flavour enhanced with ageing in imported oak casks. Brandy lovers will enjoy its full-bodied smoothness and keep coming to it. Mônt Castlé will be launched in Karnataka as part of first phase and will be followed by other states across India.

Asif Adil, Vice Chairman and CEO, John Distilleries said "Mônt Castlé raises a toast to the fine art of relaxation for Gentlemen. A magnificent character and a mature spirit make Mônt the perfect accompaniment for the Gentlemen who relax in style.

Bamberg: Beer Capital of the World

Ashish Jasuja charts a beer trail through the brewery taverns of Bamberg and ends up delightfully addicted to the wonderland of beer.

I was speechless as I trundled out of Bamberg railway station. Within minutes my neck was turning sore, endlessly strained by the efforts of staring in awe of the frescoed architecture of the city.

After all Bamberg (pronounced as "Baambaerg") has been bestowed upon as a world heritage city by none other than the UNESCO.This thousand year old city in the Upper Franconian area of Bavaria boasts of pristine, archaic buildings that grace the cityscape, unperturbed by the collisions of human wrath of the millennium gone by. Various architectural and artistic influences emerge from the facades of buildings, all of which have evolved over the last millennium.

Bamberg guards its relics profoundly; so also its beer culture. This city of 70000 inhabitants is also home to no less than 9 marvelous breweries. Remember Franconia as an area is also renowned for having the highest density of breweries in the world. Bamberg is a beer lover's paradise and so not surprising it's also known as the Beer Capital of the world. It doesn't have the famous beer brands or the specialty beer restaurant with a mile long beer list but like the city the breweries and the beer are of bespoke tradition.

Bamberg is comprised of sevens hills and the river Regnitz flows through the city, which supplements quaint little bridges and brooks to the city's already conspicuous charm.

Apple Flavour Cocktails Popular this Month

Cocktails are not just the drink of the summer. Apple being the fruit of the season could be used as base for some interesting cocktails. Chef Arindam from Rodas Ecotel shares recipes with Ambrosia.

Apple Cocktail Recipes

WINTER WARMER
Ingredients – 45ml Brandy, 140ml Hot Apple
Juice, 40 ml Cranberry Juice, 3 to 4 Cloves, Cinamon, Crushed Black Papper
Method- Put crushed cloves and Cinnamon in Warm Apple Juice & Cranberry Juice, Add ½ tea spoon of Honey & Crushed Black Papper, Dash of lime, Add 60 ml Brandy. Stir it well and served in Old fashion glass/Big Brandy balloon Glass, Garnish with Cinnamon stick.

Wine And Dine at the Banyan Tree Bangkok

With its spectacular view of the city skyline, the Banyan Tree Bangkok offers more than breathtaking sights, first-class accommodation and friendly and efficient service within the heart of Bangkok.

Launched on 1 January 2002 after a massive refurbishment programme, the hotel boasts 12 food and beverage establishments divided into eight restaurants and four bars that promise to leave an excellent impression on the palate and delight the senses. With such an exciting mix of high quality food and beverage options, Banyan Tree Bangkok definitely leaves an unforgettable impression in the gourmet world.