EDITORIAL - CHEERS TO GOOD TIMES

At a recently held UB conclave in Bengaluru, Dr.Vijay Mallya addressed an audience of 4000 plus in his signature style. Almost 80 per cent of the same comprised of his staff, while the remaining included key suppliers, media, distributors, well wishers and dignitaries from all over India.

With the rapidly growing consumer base and GDP he urged his team to meet the target of 200 million cases from the current position of 113.8 million by 2015 with an increase in the turnover to US$ 7 billion and a market cap of US$ 20 billion.

On the same occassion Vijay Rekhi made a presentation on the success story of USL and heralded its number one status in volume sales. Kalyan Ganguly on the other hand drew a comparison between India’s success story and that of the beer division. His PowerPoint presentation was simple and thought provoking underlining the success story of Kingfisher and its road map for the future. We present a report on the conclave in this issue of the magazine.

The IWSR report on India released recently gives us a clear picture of how the Indian alcobev industry has fared over the last few years. Consumption figures and growth rates are just numbers until we put it into perspective and summarise the same. This month, we give you a round up of the report and understand consumption trends across wine, spirits and beer segments of the industry.

In an interesting move, taking forward its premiumisation plans, liquor giant Radico Khaitan Ltd. has announced its exclusive marketing and distribution tie-up with Suntory Liquors Ltd., one of the oldest Japanese distillers.

Like last year, the Indian Grape Processing Board is participating in London International Wine Fair (LIWF) & Distil this year where around 12 Indian wine companies are showcasing their wines. In a chat Dr. U. Venkateswarlu, Board’s Vice-Chairman highlights IGPB’s role in promoting Indian wines abroad and how it is geared up to establish Brand India. Once again Ambrosia will be the only Asian magazine participating at the LIWF 2011 for the third consecutive year.

From the wine world we bring details on this year’s new vintage of Bordeaux which made its first appearance to professionals flying in from all over the world for primeurs campaign. Like a young actor making his debut, a selection of wines shows off its talents in front of an attentive and curious audience, before being noted by critics and traders galore.

Our special feature of the month focuses on 7 bars which are located at the Mumbai Airport (domestic and International) and an exclusive interview with Shirish Kotmire, VP-Commercial, GVK, Mumbai International Airport Pvt. Ltd.

SOBIESKI VODKA ROLLED OUT IN INDIA

It’s finally rolling out. After months of preparation and fine-tuning, world-renowned Sobieski vodka is hitting the shelves in India, aiming at a big slice of the seven million cases Indian vodka market. The brand is being produced through a tie-up between NV Distilleries and the France-based Belvedere group. It is first being sold in Haryana, with plans for the NCR and other northern states following, before going pan-India. Amitabh Joshi reports.

Excerpts: For the Indian premium liquor consumer, times could not have been better. The world’s sixth largest selling vodka-Polandproduced Sobieski - has now rolled out and hit the shelves at retail outlets. The vodka is being produced at a distillery in Haryana through a tie-up between the NV Group and the France-based Belvedere Group.

KERALA TRULY THE TIPPLERS PARADISE

Mohan Menon, Chairman of SdF Industries Ltd and President of Kerala Chamber of Distilleries is of the opinion that Indian Liquor business is in a confused state of mind due to deliberate Excessive Regulatory Status. “This hypocrisy must be broken”. In an interview with Ambrosia he discusses the burgeoning alcobev market in Kerala and the role of the Kerala Chamber of Distilleries.

Excerpts: With a growth projection of 20% CAGR, expected revenue close to 8000 crores this fiscal followed by sales of 2 million per month by the end of the year, it’s a busy time for alcohol manufacturers as well as retailers in Kerala.

A PEG OF FORTUNE

From the popularity of the ‘Cointreauversial Lounge’ to creating awareness for Louis XIII Rare Cask, of which a single pour (30ml) is being sold at ` 1,25,000 plus taxes per peg, Rémy Cointreau India has constantly been in the news. Rukn Luthra, Managing Director - Indian Sub-Continent, Rémy Cointreau International shares the tricks of the trade with Ambrosia.

Excerpts: According to the latest IWSR report, brandy consists of around 18.5 per cent of the total spirits market. The number is definitely encouraging considering it’s a 46.84 million cases market. Though Remy’s cognacs are in a super premium category, the brandy market figures are good enough to show there is a demand for expensive cognacs in India. It’s never been better, especially when one considers the rough patch of 2008, says Rukn Luthra. The consumer segment itself is growing with an expanding affluent class. People are discerning and want to associate in an emotional way with luxury brands such as Louis XIII. They think and learn more now about what they drink. With Louis XIII, a 100 year old Cognac, and over 130yrs old, it has been perceived highly with the HNIs that we’ve interacted with, and we’re quite encouraged by the initial feedback. Even from a trade standpoint, consider the signs – The Leela Palace, New Delhi, just imported Louis XIII Rare Cask, of which a single pour (30ml) is being sold at ` 1,25,000 plus taxes per peg.

RAISING THE BAR WITH DIAGEO WORLD CLASS INDIA WINNER

Bar mixologist, Hemant Kumar Pathak from Blue Bar, Taj Palace Hotel, New Delhi was awarded the title of Indian Bartender of the Year 2011 at the national final of Diageo Reserve World Class, recognized as the Oscars of the bartending world. He shares his experience and a few special cocktail recipes with Ambrosia.

Excerpts: During the competition, Hemant dazzled the judges by showcasing his exceptional mixology skills as he triumphed over competition from 11 of the country’s top bartenders, with his impressive and innovative cocktail, Summer Sazerac made with the exquisite Guatemalan rum - Ron Zacapa.

“WINE IN INDIA NEEDS TO BE DELINKED FROM SPIRITS”

Four Seasons has recently appointed an importer in UK and apart from making its mark abroad, the company intends to become the second largest wine producer in India by end of this year. Abhay Kewadkar, Business Head (Wines) & Chief Wine Maker, United Spirits Limited speaks to Ambrosia about the present status of the Indian wine market and Four Seasons wines.

Excerpts: How has been the performance of Four Seasons wines in the last financial year? Four Seasons Wines have truly established itself as a quality wine and we have achieved a national footprint in the last financial year. This is a good achievement for a company in its second year of full operation..

DOM PERIGNON UNVEULS MANIFESTO

Excerpts: Imported for the first time in India, Dom Perignon of 2002 vintage is here to make a statement. A declaration of the esthetic vision inherent in Dom Perignon since its origins, these strong, simple principles testify to Dom Perignon’s commitment to creation and to carrying on the visionary work of Dom Perignon, the monk, who became the cellar master of Hautvillers Abbey in 1668. While he was determined to create “the best wine in the world”, his work was destined to make him the spiritual father of champagne and the Champagne region.

ZAMPA’s CLAIM TO FAME

In the midst of strong rumour of a deal between Zampa wines owned by Valle de Vin and Grover vineyards, Ravi Jain, Chairman Valle de Vin wines talks to Ambrosia about the success of Zampa wines and merger possibilities.

Excerpts: Zampa wines have been in news off late. Talking about the wine brand Zampa and his new importer- Thierry’s-in UK, Ravi Jain says, “The process of appointing an importer in UK has been going on for a year. During the course of this time many senior executives of Thierry’s have visited us in Mumbai and our facilities in Nashik. They have also explored other Indian wine producers and finally selected our company as partner for import of Indian wine into United Kingdom.”

BEER: IT’s HEAT VS. TAX HIKES IN N.INDIA

As summer hits its peak, beer companies in north India are looking once again at what the harvest will bring. Varying hikes in excise and other duties in most states have cast a dampener, but that’s doubtful to hamper the quench of premium beer guzzlers. At worst, they will simply browse different brands. It’s the regular segment where sales may be impacted, with tax hikes in the region putting a squeeze on some pockets.

Excerpts: Excise department sources say that some amount of sales has been affected in north India - but this could also be due to beer manufacturers holding back stocks while figuring out new pricing. While in Haryana, Punjab and Chandigarh, excise hike on beer has been marginal, in UP there has been a significant increase in wholesale price. But there are different rates for strong and imported beer. In Delhi, meanwhile, there is an average hike of ` 5 to10 per bottle.

MICROBREWERISE IN INDIA: CHALLENGES AND OPPORTUNITIES

India is a bullish market for all beer majors globally. The country’s growing economic stature is one of the prime reasons for the growth

Excerpts: India with close to 1.23 billion population is undergoing an “Economic Boom”. The “Strong Consuming Class” in India with disposable incomes has resulted in “World Attention” and international brands are looking at opportunities to establish base in India.

LIQUEURS vs. SYRUPS

If you step into any good bar today you will find a vast array of liqueurs of different flavours, styles and base materials littering the back bar amongst the most well known vodka’s, whiskies, gins and rums.

Excerpts: Look closely and you are likely to find some of the bottles with withered old labels, looking like they’ve been sitting there since the dawn of time, not exactly screaming at you to drink them.

CHINESE CUISINE & ALCOHOLIC BEVERAGE

For many Indians the first international cuisine they are introduced to is Chinese. While today most five star hotel properties have authentic Chinese preparations and many of them can rightfully boast of Chinese chefs; they are even promoting regional foods of China where ingredients and dishes can vary tremendously, representing different regions of China.

Excerpts: Many of the stand alone restaurants have over the years adapted the Chinese food to suit the Punjabi taste buds that a whole new bastardized cuisine often called Chinjabi. Even chaat outlets in Delhi have a smattering of vegetarian Chinese mainly noodles, rice (both with vegetables) sweet and sour paneer and Manchurian dumplings which no person of Chinese origin even recognize it to be Chinese.

CANVAS: PAINT A PALATE

On the fourth floor of Palladium at at High Street Pheonix in Mumbai is a sprawling lounge that invites you to a night of the hippest music, good food and an extensive alcohol menu – just what we like. Ambrosia decided to put it to the ‘taste’ and see how it fared as a great city nightspot.

Excerpts: All about composition The first thing that strikes you when you walk into Canvas is how spacious it is, quite a luxury in the maximum city of Mumbai. Even the atrium-like design with the high ceiling adds to the perception of space. Diners on the second-level have an almost balcony style view of the DJ console below and the visuals on large screen ‘canvases’ behind him. The colourful lighting illuminating the sprawling lounge gives it a distinctly luxurious look.

RC BAR UNVEILED AT MUMBAI CSIA

New sports-themed bar to draw in international passengers Last month Ambrosia visited seven of the best bars at the Mumbai airports and this month another upscale bar and lounge was unveiled at the Chhatrapati Shivaji International Airport (CSIA)..

Excerpts: Mumbai International Airport Private Ltd. (MIAL) and Travel Food Services (TFS) celebrated the opening of the RC Bar within the departure area at Terminal 1A at the International Airport with players from the Royal Challengers Bangalore IPL cricket team Virat Kohli, Zaheer Khan, Chris Gayle, Daniel Vettori, S Aravind and Ab De Villers along with team owner Sidhartha Mallya.

STEPPING UP THE GAME

Excerpts: Aurangabad is where much of the production in the alco-bev industry takes place. A visit to the industrial estates will take you to the breweries and distilleries that supply a huge proportion of alcobev products to the state. In fact, much of the city’s industrial estates located about 25-30 kms from the city are the base for many of the country’s largest distilleries and breweries. Excellent connectivity and access to ports, raw materials and modern infrastructure have meant that the region has grown into a veritable stronghold of the alco-bev industry, having transformed the region into a manufacturing and packaging hub.