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The House of Suntory celebrates 100 Years of Pioneering Japanese Spirit

  • The Founding House of Japanese Whisky partners with film icons Sofia Coppola and Keanu Reeves
  • Introduces new limited-edition whiskies to toast its centennial

The House of Suntory, the Founding House of Japanese Whisky, celebrates its 100th anniversary of whisky innovation: a major milestone not only for Suntory’s history but for Japanese spirits culture. In honour of this centennial, the House releases a Suntory Anniversary Tribute as imagined by Academy Award-winning director Sofia Coppola and starring actor Keanu Reeves, as well as exclusive 100th anniversary editions of its world-renowned whiskies.

Twenty years after filming Lost in Translation, Sofia Coppola returned to Japan to create the Suntory Anniversary Tribute. Coppola brings her artistic genius and admiration for Suntory Whisky to life as the creative director of The Tribute that honours Suntory’s illustrious past, present and future. The Suntory Anniversary Tribute tells the remarkable story of the brand’s heritage and whisky-making legacy over the last 100 years, depicting the meaning of “Suntory Time” through the eyes of its creator. It features actor Keanu Reeves, a lover of Suntory Whisky and who previously appeared in a Suntory Reserve ad campaign in 1992, debuted yesterday during the Suntory Time 100th Anniversary Global Premiere event in New York City.

“As the pioneer of Japanese whisky, the House of Suntory played a significant role in shaping culture and leading craftsmanship in Japan over the last century,” said Jon Potter, Managing Director of House of Suntory. “To mark this historic milestone, partnering with Sofia and Keanu, who are Suntory Whisky fans, makes perfect sense. From our Fifth Generation Chief Blender Shinji Fukuyo’s striking blends to Sofia and Keanu’s unique cinematic creations, this commemoration has surpassed all expectations to celebrate our iconic Japanese whiskies.”

Later this summer, Reeves will star in another creative project in partnership with the House of Suntory: a series of documentary shorts from filmmaker Roman Coppola titled: “The Nature and Spirit of Japan.” The series explores Japanese whisky culture inspired by harmony with nature (Wa), elevated by Japanese craftsmanship (Monozukuri) and enjoyed as an authentic Japanese cultural experience (Omotenashi). The docuseries will strike a balance between education and entertainment, aiming to foster a deeper exploration of the House of Suntory and Japanese culture overall.

“I’m honored to partner with Suntory Whisky again thirty years after our Suntory Reserve campaign,” said Keanu Reeves. “I’m a huge fan of Suntory Whisky, so it’s very special to collaborate in honour of this milestone anniversary. My admiration for the whisky goes beyond tasting the whisky. It is the elevated Japanese craftsmanship and attention to every detail that makes Suntory Whisky so special. As an actor honing and perfecting my own craft, sharing this process in a docuseries is a thrill.”

In honour of the centennial, the House of Suntory is releasing several limited-edition whiskies that highlight the unique Japanese craftsmanship at Suntory’s whisky distilleries and their meticulous art of blending, including Yamazaki 18 Year Old Mizunara and Hakushu 18 Year Old Peated Malt whiskies. Limited 100th anniversary labels of the flagship Yamazaki 12-Year-Old and Hakushu 12-Year-Old will also be released for the centennial.

“Hakushu and Yamazaki whiskies are gifts from our past handed down by generations,” said Fifth Generation Chief Blender Shinji Fukuyo. “It is fitting to release limited editions as part of this incredible milestone, as they represent our relentless pursuit of quality and symbolise our promise to carry our philosophy on for the next one hundred years and beyond.”

The centennial of the House of Suntory began with the establishment of its Yamazaki Distillery in 1923 – the first and oldest malt whisky distillery in Japan’s history. The House of Suntory founder Shinjiro Torii’s 100-year legacy began with a dream to “create an original Japanese whisky blessed with the riches of Japanese nature and craftsmanship,” which his grandson Shingo Torii carries forth today at Yamazaki and its distilleries across the country. Since its founding, the House of Suntory has been crafting world-class spirits and is known for Yamazaki, Hakushu, Chita, Kakubin, Hibiki, Suntory Whisky Toki and Ao, as well as Roku Gin and Haku Vodka.

This landmark anniversary is a significant milestone for House of Suntory and for its home country of Japan. As a first step toward its promising future, the House of Suntory is investing 10 billion JPY ($77 million USD) to enhance its Yamazaki and Hakushu Distilleries which are currently closed for renovation and scheduled to reopen this fall. The House of Suntory has become synonymous with some of the best Japanese whiskies in the world today, and it has undoubtedly built a legacy worthy of celebration.

The House of Suntory has invited fans to join its new global membership programme. Members will be among the first to hear about House of Suntory new releases, receive priority consideration for invitations to consumer experiences, learn news from the distilleries, gain early access to content and more. The House of Suntory membership programme aims to bring Japanese whisky enthusiasts together around the world and provide a cultural journey through Japan.

Angus Dundee Recovers post Pandemic

While the past 2 years have been a challenge for many alcobev companies, Angus Dundee has survived the storm and is sailing smoothly thanks to its strong lineage and expertise. They celebrate theor 10th Anniversary in India, which is a 200 million case market. Trilok Desai speaks to Brian J Megson, Director, Angus Dundee Distillers Plc. in Scotland about its global operations and more. Excerpts:

Covid-19 pandemic and in-home consumption have encouraged premiumisation in the alcobev sector and companies are moving in to cash on it. India is one of the fastest growing alcoholic beverages market globally, the scotch segment here continues to be highly aspirational for whisky consumers, that’s why the Scotch whisky imports to India have exceptionally grown in the past decade. However, it merely constitutes a 2% share of the approx. 200 million case Indian whisky industry. This is primarily because of 150% import duty makes Scotch whisky expensive to buy.

With over 19 million new consumers coming of “legal drinking age” each year, India is definitely a prospective market for Scotch whisky in wake of the relaxation in import duty, which will not only make Scotch whisky more affordable to the Indian consumer while being perceived as premium, but also supports domestic producers in reducing their cost of production.

It’s been 10 years since Angus Dundee India started its operations in the Indian market, with a strong lineage and expertise to deliver consistent quality product. ADIPL has created a niche and made its presence felt over the years by not only offering Bulk Scotch, but specific customised solutions. This has been instrumental in sustaining and stabilising Angus Dundee’s position in the highly competitive Bulk Scotch Whisky market, says Brian.

Bulk Scotch sector is a very volatile and highly price sensitive in India he adds. As a result, Angus Dundee faces a lot of turbulence every now and then. But at the same time, the quality and consistency that the company offers their clients can’t be compromised by the fluctuations in prices.

Angus Dundee currently produces and exports ‘Tomintoul’ Speyside Single Malt Scotch whisky and ‘Glencadam’ Highland Single Malt Scotch whisky as their key brands along with ‘The Dundee’ and ‘Parkers’ Blended Scotch Whisky, says Brian.

Angus Dundee has seen a decade of steady growth and the company has now established itself in the bulk spirits space with aspirations to grow in the retail space now.

“Their bulk business is doing well following some logistical challenges caused largely by the pandemic. MacRoys whisky is on a soft roll out and we have three versions now including a peaty and a sherry version. The management is happy with our progress and the market for Scotch is very strong. You are likely to see more of our single malts and other ranges of Blended Scotch hit the market in the near future,” adds Brian.

He feels that Angus Dundee India’s strong suit comes in with the capability of supplying Scotch whisky in bulk for bottling locally along with offering a wide range of bulk options for their customers comprising Vatted Malt Spirit, Blended Scotch Whisky, Blended Malt Scotch Whisky and Blended Grain Scotch Whisky.

In addition to this their varied experienced and consistent liquid quality that provides the finest Scotch whisky, distilled, blended and bottled in Scotland is of particular importance to customers who are creating their own brand. The customers’ can create their own brand and label them which in many cases include value-for-money to exclusive premium brands.

Angus Dundee India has also introduced Bottled in India Blended Scotch Whisky in select markets under the Brand Name ‘MacRoys” at three different price points out of which two are new to segment, namely ‘Extra Peat’ and ‘Sherry Finish’.

Focussing on new to segment offerings like Extra Peat and Sherry finish in the Bottled in India Blended Scotch Whisky category and maintaining consistent best quality liquid, Angus Dundee is hopeful of creating their own niche in the Indian market. And as for the Bottled in Scotland portfolio, it is gradually increasing its width of distribution by entering select markets regardless of competition as their products are in standalone segments.

Talking about the Duty Free business, Brian says that it hasn’t been their top agenda in the past. However as they are investing more in the single malt brands, it is an area that they are looking closely with plans to to grow more into the key travel retail outlets around the world.

Radico Khaitan goes from Local to Global

It has been a long successful journey for Radico Khaitan which first produced supplied extra neutral alcohol ENA to production of their 15 brands, to creating five millionaire brands, operating 28 bottling units, going the premiumisation route, and creating world class brands in the luxury brands category. Dr. Lalit Khaitan looks back in retrospect at the journey and is confident that his son Abhishek Khaitan, who has worked alongside him will take the company to greater heights.

What effort does it take to make a company like Radico Khaitan? Can you share some insights into that?

Establishing a business from scratch requires perseverance and a clear vision. Nothing can be achieved within a few years. When my father, Mr GN Khaitan, bought the loss-making Rampur Distillery in 1972, we produced extra neutral alcohol (ENA) and supplied bulk alcohol for several liquor companies. We started production of our brands in 1999, and now have over 15 brands including five millionaire brands, and operate 28 bottling units across the country. The mantra for success is quite simple: understanding of market or segment, the audience’s taste, and taking decisions to narrow down market gaps.

What are the three key turning points that you attribute to the success of making Radico the biggest IMFL company today?

First turning point was when turned from a bottler to creating our own brands with – The launch and success of 8 PM whisky is the turning point as we started the branded IMFL business with it. We sold a record one million cases of 8 PM in the first year of its inception, a record that is yet to be broken by any other brand in India; in fact, it made it to the ‘Limca Book of Records 2001’ for the achievement. We utilised the best marketing brains and tools to popularise the product; even the commercials for the product won many accolades at that time.

Second was when we started premiumisation – with the launch of Magic Moments Vodka in 2006, followed by six versions under the brand Magic Moments Remix within two years of its release also helped us gain a strong footing in the industry. The brand established itself as the industry’s undisputed leader and category driver by capturing more than half of the category’s market share. Our decision to enter the vodka business paid off as Magic Moments rose to become the world’s seventh-largest vodka brand. I would also like to talk about the decision to go premium in 2009 with the launch of Morpheus XO Brandy as the game-changer for us and a successful PAN India brand.

Third was when we entered into Luxury segment -Then the launch of Jaisalmer Indian Craft Gin and Rampur Indian Single malt in 2018, not only mesmerised the Indian consumers, but brought a delightful experience to the connoisseurs’ world by endorsing Indian brands in the international markets. We have successfully built our brand equity in international markets and currently export products to over 85 countries.

Looking back do you feel that there are some things that you would’ve liked to do differently than today?

The way things have turned out for us, I would not change a single thing. The Branded story of Radico, which we started with in year 2006 is a perfect example of growth and scaling up.

A success of the company is directly attributed to its leaders. But how important is it to have the right team and processes in place to achieve that success?

If the team doesn’t resonate well with the vision and the mission set by the management, the whole idea of an efficient leader can fall apart. No success is assured without having employees who are focussed on accomplishing the unified business objective. In my view, anybody can copy machines, but it is manpower who makes all the difference in success and not so success.

What do you think Radico took such a long time to diversify into premium brands?

As I have always maintained, the decision to enhance the brand portfolio has to be taken after taking stock of the overall market dynamics. We entered the premium category in 2006 and that was the time when the liquor market was witnessing a shift from just social acceptance to the development of a society that enjoys drinks. The success of our premium brands attests to the right timing. Besides market leaders including Magic Moments Vodka with over 60% of the market share and Morpheus XO Brandy which has a market share of over 60% in the premium brandy segment- 1965 Rum has achieved a 10% market share in defence, Magic Moments Verve has achieved a 20% market share amongst all premium vodka brands and Rampur Indian Single Malt and Jaisalmer Indian Craft Gin are a rage not only in India but world over. This testament is proof of our timings being right and the strategy being robust.

In the last two years, the company has been churning out some great products in the gin and whisky category like Jaisalmer and Rampur? Moving forward do we expect to see more products like those?

Product innovation is of the utmost importance for us. Our latest offerings including Royal Ranthambore Heritage Collection Whisky and Magic Moments Dazzle have been yielding encouraging responses. We are also working on scaling up the existing brands like Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, 1965 Spirit Of Victory Rum, Morpheus Brandy, and 8 PM Premium Black Whisky. Going forward, you will see a host of products in the premium range from the House of Radico Khaitan.

With its premium products, Radico is focussing a lot on exports as well. But slowly these products are now available in India as well. What was the reason why this strategy was adopted? Was it to replicate the success that some of the other manufacturers have achieved using this route?

We had this strategy for two of our luxury products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin and it worked wonders for us. Both the products are a rage world over. The primary reason was that the single malt and the craft gin categories were already established abroad. In India, these categories are now emerging. Hence, we launched the product first in the international market before bringing them to the domestic market.

What was your vision for the company a decade back and how has it changed considering where Radico is today?

My vision is to work constantly to improve quality standards and enhance customer satisfaction. And it has always been that. Be it last decade or two decades ago. I do not feel that we have to change it as it ultimately gets converted into revenue growth and increased market share. The Customer is the King for us.

The dynamics of the industry and also the way it operates is constantly changing. What are your thoughts on those? Is there anything that you would like to see differently about the industry or any suggestions you would like to make that can improve things?

Right from advertising to marketing, liquor industry operates in a very challenging business environment. For instance, alcohol companies are not allowed to advertise directly so we have to strategise differently to make our brands more visible, rope in more brand ambassadors, and create creative campaigns with infotainment. Since the market is also growing, we have to be on our toes to offer the best products to our consumers and devise marketing strategies that will ensure that our products reach them.

One of the major challenges that has emerged in the recent past is around our surrogate brands. According to the existing rules, companies need to have a separate revenue model for the surrogate brands with a certain amount of turnover and this creates an additional challenge for us.

However, we find solutions to all of these obstacles within the purview of law because we are a responsible company. We have a legacy to maintain. Non-compliance with state regulations is not an option for us. Since we have over 75 years of experience in liquor manufacturing and 25 years in the IMFL business, the company knows about the law across states and knows how to adhere to it.

In Abhishek, you have a son that has led from the front along with a great team. How does that make you feel as a father?

As I worked hard to help improvise and enhance my father’s vision, I am seeing the same zeal in him. He was instrumental in taking the call towards launching our own brands and premiumisation drive which turned the fortunes around for the company. He is a new-age leader who people look up to and that makes me an extremely proud father.

How difficult is it to compete against multinationals as an Indian brand? Your thoughts?

Once a company has a sound understanding of the market, and back that knowledge with its quality products then competition doesn’t pinch much – be it from domestic or multinational brands. Within two decades of launching our brands, we have expanded our reach to over 85 countries, which is an indication of the capability of Indian brands. I would like to give an example of our latest products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin here; when we took the product to the international market, people were surprised by the fine quality leading to immediate acceptance. The idea behind giving this example was that once you have quality products according to the tastes of the people, competition becomes secondary.

The story of Godawan, The Bird, and the artisanal Single Malt Whisky it inspires

Diageo launches Godawan, its artisanal single malty whisky, set to redefine the world of sustainable, modern and conscious Indian luxury.

Godawan, the Great Indian Bustard, a regal, majestic avian… once found all over India, is now nearing extinction, and finds its last refuge in Rajasthan.

Rajasthan, a land of stark contrasts… an arid land of extremes which envelops within it some of the harshest weather conditions. However, culturally, it also preserves and conserves with delicate care and passion everything that exists on its land – whether it is the fauna such as Godawan, its flora such as barley, its innovation in the form of step wells, or its people – known across the world for their thriving, colourful and intricate arts & craft.

The flourishing and world-renowned arts and craft of Rajasthan, such as sandstone and marble art, are a testament to “beauty in scarcity” and crafting exceptional things of beauty from what nature provides.

Godawan, Diageo India’s artisanal Single Malt Whisky, is crafted in, its provenance inspired by, and dedicated wholeheartedly to this Rajasthani ethos – of beauty in scarcity, and sustainability. The heat of over 100°F combined with six-row barley, that requires lesser water, helps create a whisky with an incredible depth of flavour, and a rich and complex character. The aridity means the “Angel’s share” is higher than average in Godawan – leaving behind a whisky with stunning taste profiles, which are finished in special casks selectively curated with Indian botanicals.

Diageo proudly call themselves “The Spirit of the Desert” – the spirit of Rajasthan with its culture, people and ecology which permeates in the character and flavour of their liquid. With Godawan, they doff their hats to the artisans and the innovators who are defining modern Indian luxury that is sustainable, that is ecologically conscious, and truly nurturing of the land it comes from.

Speaking about Godawan, a Single Malt which will change the way world perceives Indian whiskies, Shweta Jain, Chief Business Development Officer, Diageo, says, “When it comes to premiumisation, we, at Diageo India, believe in constant disruptions to up the ante. We believe that our consumers deserve better. We also know that modern affluent Indians are looking for luxury that makes them feel rooted and enriched. Godawan is a product borne out of this belief. It will help our consumers discover an Indianness hitherto unknown – rich and meaningful. Godawan – the spirit of the desert – will redefine the way Indian single malts are perceived globally with its truly world-class story and flavour.

Vikram Damodaran, Chief Innovation Officer, Diageo India, says, “Godawan, Diageo India’s innovation in artisanal single malt whisky, is proof that India is the next emerging destination for quality single malts as well as artisanal craft spirits. Each bottle of Godawan can be traced back to a cluster of barley farms in Rajasthan, ensuring transparency and authenticity of the product and gets its provenance from extreme temperatures which lend it a rare & subtle complexity, and a unique taste. The whisky is not just a testament to the region’s craftsmanship and ingenuity, but also commitment to sustainability and preservation of the land it comes from – and it begins with the Great Indian Bustard.”

Godawan is a labour of love, for our roots, for our heritage, for our land. And it is the embodiment of our commitment – to the conservation of the Great Indian Bustard, and to our communities of artisans and craftspeople. With only a few Great Indian Bustards left in the world, every bottle we make contributes to the conservation of this exquisite bird.

Godawan, The Spirit of the Desert. A story waiting to be told.

The unique whisky-making process involves: Slow-trickle distillation from locally sourced six-row barley; Uniquely matured at temperatures reaching 100°F; Finished in special casks selectively curated with Indian botanicals Godavan will be available in Rajasthan and Delhi to begin with and will then be subsequently available in the rest of India. It will also be available in Dubai from April onwards.

Kerala Government allows pubs, wine parlours in IT parks, tweaks policy

The Kerala Government has approved setting up pubs and wine parlours in IT parks across the state. The State Cabinet which met recently announced a new liquor policy for the financial year 2022-23 which aims to increase the number of retail outlets in the state to bolster its exchequer. In the last five years, God’s Own Country received `46,546.13 crores through the taxation on liquor.

The government revealed to a RTI that it had collected Rs. 766 crores monthly as tax on liquor which meant that tipplers paid as much as Rs. 25.53 crore as tax on liquor. The highest revenue from the tax on liquor was collected during the period of 2018-19 and 2019-20. A total of Rs. 9,615.54 crore was collected in 2018-19 and Rs. 10,332.39 crore in 2019-20. There was dip in sales of liquor due to the pandemic in 2020-21. The Kerala State Beverages Corporation (BEVCO) posted a loss of Rs. 1,608.17 crore in revenue during 2020-21.

Hence, the government which was toying with the idea of opening up retail vends at different places has tweaked the policy. Now, BEVCO and Consumerfed outlets will be started in those areas which are safely away from populated and residential areas. The demand for allowing pubs in the IT sector has been a subject of debate for some time.

The IT sector in the state was demanding to change its policy on the matter. It is learned that the pubs will have facilities of five-star luxury hotel. The Pinarayi Vijayan government tweaked the liquor policy enabling the opening of more retail outlets and the biggest gainer appears to be the IT parks in Kerala, where special earmarked areas will be provided where IT buffs can have a drink.

Incidentally, the liquor policy of the Kerala government is an annual ritual, when the rules are made for the new fiscal and become applicable from April 1 every year.

The biggest gainer appeared to be the three IT parks in the state, where over one lakh professionals are employed at Technopark, Kochi Infopark and the Kozhikode IT park.

The State Excise Minister MV Govindan pointed out that there has been a long-standing demand from IT professionals for a lack of facilities for recreation. “It has been decided to allow sanction for special licenses to these parks where specially marked areas will be there in the park and facilities will be available for consumption of liquor under strict norms,” said a statement from the Minister.

The government also is giving permission to produce liquor with low alcoholic content or wine from the cashew apple, pineapple, jackfruit and nutmeg. Similar to what Delhi did, Kerala intends to allow buying of foreign liquor from the outlets without queues. The decision to increase the production of liquor in the existing units and launch new units has been taken to address the issues in the production of Indian-made foreign liquor and beer.

The government said that it was taking measures to escalate the production of Jawan rum of Travancore Sugars and start manufacturing at the Malabar distillery.

Highlights of the policy:

• No hike in brand registration fees for liquor selling in cans and glass bottles
• The government proposes to ban sale of liquor in plastic bottles from 2023-24
• The closed outlets will be reopened as premium shops to reduce the rush in existing outlets
• Grant of bar licenses will be only to three-star hotels and above
• Kerala Toddy Industry Development Board will be revived and soon licenses will be issued to operate toddy shops from 2022-23
• Track and trace systems will be introduced for production of liquor and inter-district/intra-range transport
• Beverages corporation will launch liquor-related industries in the state
• All services provided by the Excise department will be made available online from April 1
• Computerisation of foreign liquor outlets
• More vehicles and 100 pistols will be delivered to the excise circle offices of eight taluks
• Mobile app titled ‘Peoples Eye’ to lodge complaints about the trade, stocking and consumption of illicit liquor
• Increase the posts of women civil excise officers
• Appoint 100 youth from scheduled tribes as civil excise officers

Rise of Premium vodka spritz RTDs

As the RTD trend continues, a number of premium vodka brands are launching their first canned products focussing on the spritz serve.

Spritz itself has become a malleable term in recent years. Once referring to a combination of soda or sparkling water to wine or vodka, it has more recently been adopted by brands such as Aperol for their popular soda water, prosecco and bitter aperitif serve. In the wake of its success over recent years, other brands, and indeed bars, have adopted the name for their own wine, water, and spirit serves.

In the US, the world’s leading RTD market, RTD innovation is picking up pace as consumers continue to demand lighter but flavourful serves like hard seltzers. Demand is especially growing for spirit-based RTDs in the US, which are expected to grow at a volume CAGR of 33% by 2025. Within this segment, vodka and tequila bases are dominant, together accounting for more than 50% of new spirit-based RTD launches between 2019 and the first half of 2021.

As sales of hard seltzers continue to show double-digit growth in the US, growth is picking up in other markets as well, as the hard seltzer category becomes more globally recognised. To capitalise on this trend, some of the largest vodka brands have chosen the ‘spritz’ name for their sparkling water, spirit, and fruit flavour combinations.

Ketel One was one of the first to offer an RTD spritz with the launch of its canned range of Botanical Vodka Spritzes in September 2020. They were aimed at variety of occasions – from moments of relaxation with family, to spending a safe and socially-distanced day at the pool or park, stated Bob Nolet, Ketel One’s master distiller.

The new raft of launches, led by brands including Cîroc, Grey Goose, and Svedka, have a similar aim; of providing guilt-free, portable, easy summer refreshment, as large-scale outdoor events return, and consumers look to make the most of their first summer of significantly reduced restrictions.

In a notable shift from what has gone before however, all of the new wave of products put flavour first, offering trending tropical, tea, and fruit combinations, still at a lower ABV. With them, brands are hoping to capitalise on the mood of cautious hedonism – alongside the ongoing health and wellness trends – that look to define the summer.

Diageo and brand partner Sean ‘Diddy’ Combs, for example, have launched the brand’s first RTD line, Ciroc Vodka Spritz, as a permanent addition to the brand. The line offers four premium spritz flavours – Watermelon Kiwi, Sunset Citrus, Pineapple Passion and Colada.

Constellation Brands has launched a vodka and tea-based canned line under the Svedka brand. The Tea Spritz line is described as a spirit-based hard seltzer and combines real tea, sparkling water, and natural tropical fruit flavours, and includes three variants; Orange Mango, Pineapple Guava – both of which include turmeric – and Raspberry Kiwi.

Others will likely join in on this new twist on existing RTD trends, as more brands look to claim a part of the market unique from hard seltzers, but that share their many selling points, for themselves.

Two years on from the onset of Covid-19, the global beverage alcohol marketplace continues to exhibit subtle regional variations, characterised by shifts across beer, spirits and RTDs.

It’s a highly detailed picture that defies easy generalisations, as the IWSR’s recent analysis of global beverage alcohol category share 2010-21 shows, with beer demonstrating good resilience in volume terms across many markets – but losing ground steadily to spirits when it comes to value. However, the scene has been disrupted by the remarkably rapid growth of RTDs since 2019, stealing share from all rival categories, but especially from beer.

Volume trends

Beer was severely impacted by the pandemic due to its relatively high on-trade exposure, but has still managed to grow volume share since 2016 in most regions. On a servings-adjusted basis, global beer volumes moved up at a CAGR of +0.2% between 2016 and 2019. However, this was mostly driven by large-scale volume declines for low-priced baijiu in China and vodka in Russia.

The same factors led to a volume decline for spirits at a CAGR of -3.1% between 2016 and 2019 – magnified by public health policies in China and Russia aimed at reducing consumption of low-end spirits. In Russia, for example, this has led many consumers to switch to lower-ABV products such as beer or wine.

Look beyond these trends and it’s apparent that beer is tending to expand its market share in emerging markets, but is declining in mature markets, where spirits and RTDs are generally faring better.

As such, in North America, spirits volumes (on a servings-adjusted basis) rose at a CAGR of +3% between 2016 and 2021, but beer volumes fell at a CAGR of -1.7%. Meanwhile, RTDs surged forward, recording a CAGR of +33.3%.

In Europe, another mature market, the picture is more nuanced: while beer declined at a CAGR of -0.8% between 2016 and 2021, spirits fell too, by -0.6%; however, RTDs rose by +2.9%.

Figures for the emerging region of Africa are skewed by the impact of Covid-19. Pre-pandemic growth for beer, however, was positive, with a CAGR of +3.6%, but was outstripped by the performances of spirits (+4.7%) and RTDs (+7%), 2010 to 2019.

Value trends

The contrast between beer and spirits is more pronounced in value terms, with beer losing share to spirits in every region, thanks largely to premiumisation trends in spirits from 2016.

Beer’s global value share declined from 46% to 39% between 2010 and 2019, and fell further to 37% in 2021. Meanwhile, the value share of spirits has increased from 29% to 38%, and then to 40%, over the same timescale.

Here too there are local exceptions, such as beer gaining share in some emerging APAC markets, and the structural decline in low-end vodka in Russia, leading to migration into beer, wine and RTDs. Beer also staged a recovery in South America in 2021, following lockdowns and enforced on-trade closures in 2020.

The premiumisation trend – “less but better” – for spirits is reflected in a marked increase in price per serve for spirits, particularly from 2016, at a time when beer prices remained largely flat. In terms of average price per serving, spirits moved up at a CAGR of +7.3% between 2016 and 2021. While this value surge is partly explained by volume declines in low-end spirits (baijiu, vodka), it also stems from large-scale investments from brand owners to premiumise their portfolios across mature and emerging markets.

Regional value trends

The latter phenomenon is also apparent from an analysis of category value pools by region: as value per serve has grown rapidly, the value pool commanded by spirits has expanded around the world.

This is especially evident in Asia Pacific, where remarkable growth for spirits has taken share from all other categories except RTDs and, on a regional basis, has led to an erosion of Europe’s value share of the global spirits category. While beer’s value share in APAC declined from 40% to 30% between 2010 and 2019 (and fell further to 28% in 2021), spirits increased its share from 45% to 59% – and reached 62% by the end of 2021.

Category value pool analysis also highlights the astonishingly rapid rise of RTDs, especially in North America, where RTDs more than doubled in value between 2010 and 2019, reaching a 5% value share figure in the region – and then doubled again between 2019 and 2021, reaching 11%.

The rise and rise of RTDs

This remarkable momentum is only partly explained by Covid-19 magnifying pre-existing trends, and there are clear signs that the phenomenon is not merely confined to the US.

On a global basis, RTDs have been growing at around 10% per year (+10% CAGR for the top 20 markets, 2010 to 2021), with a rapid acceleration just before and during the pandemic virtually everywhere. While this shift has been most evident in the US, which recorded a volume CAGR of +34% between 2016 and 2021, consumption is rising fast in a number of other countries, including Canada (+26.1% CAGR, 2016 to 2021) and Japan (+10.6%) – and the majority of the top 20 beverage alcohol markets have witnessed accelerating growth for RTDs between 2016 and 2021.

‘Nolo’ is soon going to froth in Asia

Specific to Asia, Carlsberg has five brands brewed in China and one in Malaysia, while it has made its presence felt in Hong Kong and Singapore markets, it is now keen on expanding to other markets in the region. Alcohol free segment accounted for the largest revenue size of USD 2 billion in 2017 owing to the increasing adoption of healthier lifestyles coupled with the benefits of non-alcoholic beer in China, India, and Japan.

Growing at over 7.5% CAGR

According to a Graphical Research report, the Asia Pacific non-alcoholic beer market size was valued at USD 4.3 billion in 2017 and is expected to grow at over 7.5% CAGR from 2018 to 2024. As of now, China is leading in this segment in Asia and the drivers are the adoption of a healthy lifestyle along with shifting consumer preferences towards ‘Nolo’. The report said that increasing awareness for negative health effects of alcohol consumption is among major factors boosting market penetration.

China holds nearly 30% market share in ‘Nolo’

China holds nearly 30% share in launching new non-alcoholic beer products. As mentioned earlier, Carlsberg has four brands – WuSu Fresh Orange & C; WuSu Pineapple & C; Xixia Fresh Orange & C; Xixia Pineapple & C, and Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong while in Malaysia it vends Nutrimalt which is said to be nonalcoholic malt beverage that is nourishing and packed with vitamins and nutrients such as Vitamin C & B complex. It is said to be a great energy booster after a workout.

Manufacturers are launching new beverage brands with different flavours to expand consumer base as it is estimated that there is a sizable market which is looking at healthy brews. An increased attention on both physical and mental health has been cited as a cause of the growth of nolo products, which are increasingly popular among younger consumers.

However, in India the trend is not that perceptible, though non alcoholic brews are making the rounds, mostly propped by young beer drinkers who are either switching from standard beers to non-alcoholic variants or they are willing to taste new beers, both with alcohol or no or low alcohol content ones.

India sees slow but steady growth

Some of the ‘Nolo’ in India include Budweiser 0.0%; Heineken 0.0% non alcoholic lager beer; Kingfisher Ultra non-alcoholic beer; Hoegaarden 0.0% non-alcoholic beer; Kingfisher Radler – non-alcoholic malt drink; Coolberg Cranberry non-alcoholic beer; Crofters non-alcoholic beer; and Barbican. Carlsberg is said to be exploring the market opportunity in India with regard to ‘Nolo’. But it has been steadfast in its commitment to creating a culture of responsible drinking by promoting moderate consumption of products and addressing alcohol-related harm in society. “We therefore aim to celebrate the positive aspects of moderate beer consumption and to position beer as a relevant and responsible choice with a role to play in the ‘good life’ to which modern consumers aspire.”

Young beer drinkers call the shots

As per a survey by Mintel about 40% of young beer drinkers in India are interested in switching from standard-strength beer to low calorie or non alcoholic variants of the brew. The survey pointed out that internet users who were contacted and who had consumed beer in the past six months were interested in exploring alternatives to beer.

Carlsberg’s ‘Sail’ strategy

Carlsberg has set sail for the next five-year journey with its 2016 ‘Sail’ strategy. Since its launch, ‘Sail’ 27 has been providing a clear overall direction for Carlsberg resulting in a healthy and strong company. The company said that “In developing Sail 27, we have aimed at keeping and sharpening our strong strategic, organisational and financial dynamics while ensuring that our direction-setting was refreshed and that our new strategy reflects expected consumer, customer, societal, regulatory, economic and geopolitical trends.”


The Chief Executive Officer Cees ‘t Hart said, “SAIL’27 is the exciting next step in the evolution of Carlsberg. Co-created by a large group of employees and leaders, and built around our purpose, SAIL’27 has clear choices for brands, categories, markets and capabilities, and steps up our ambitions for top- and bottom-line growth.” In essence, SAIL’27 focusses on five strategic levers – portfolio, geographies, execution, culture and funding the journey – for which the company has made distinct strategic choices, defining the focus of our efforts and resource allocation.


Our strategic levers and choices should be viewed as an integrated set of activities that together will drive value for all stakeholders. “SAIL’27 is built around our purpose of brewing for a better today and tomorrow, and our ambition of being the most successful, professional, and attractive brewer in our markets,” Cees ‘t Hart adds.

Collaborative effort 


SAIL’27 is a collaborative, company-wide effort, co-created by over 200 Carlsberg employees from more than 30 different markets. “Talents, experts and leaders from all over Carlsberg Group have brought their day-to-day knowledge and fresh ideas into this new strategy. They have assessed the impact of the current strategy on their local business or function, shared learnings and trends they see impacting the business and challenged our thinking on the future strategy. By bringing such a diverse set of voices the process we have created an even stronger strategic path for Carlsberg,” says Marcela Linke, Director, Group Strategy. 

Carlsberg said that the beer category continues to offer attractive long-term volume and value growth opportunities, though with different growth dynamics between categories and markets. Our portfolio choices target these growth opportunities. In addition, the company sees further attractive growth opportunities for selected categories beyond beer. Today, the Group has attractive widespread geographical presence and no. 1 or 2 positions in 22 markets across Western Europe, Asia and Central & Eastern Europe. While market dynamics are different in the three regions, they all offer appealing long-term revenue and earnings growth opportunities.

Carlsberg ‘Nolo’ brands grow by 11%


Carlsberg’s recent financial statement revealed its ‘Nolo’ brands grew by 11%, making it one of the most successful areas of the business for the brewing giant. While sales of other household names owned by Carlsberg shrunk (namely Tuborg and the Carlsberg brand itself), the ‘nolo’ range demonstrated quite a sizeable growth, which is perhaps indicative of a shift in consumer habits towards alcohol-free beverages.


Carlsberg said it saw good results for its recent launches in the category, including Baltika Zero Grapefruit and Raspberry, Brooklyn Special Effects and Somersby 0.0. In addition, the brewing group entered the Asian market with similar ‘nolo’ products in 2020 too, with the launch of Chongqing Beer AFB in China and Carlsberg Alcohol Free in Singapore and Hong Kong.

What’s driving ‘nolo’ growth?


“Brewers have had to adapt to unprecedented market conditions and one area of success is Carlsberg’s low-ABV or alcohol-free ‘nolo’ brands, which are notable for 11% growth as consumers continue to moderate their alcohol intake,” said Ryan Whittaker, Consumer Analyst at GlobalData.

“Increased health consciousness, which includes both physical and mental health concerns, is causing many to reduce their alcohol intake, and the pandemic has brought all of this to the fore.”


According to GlobalData, 28% of global consumers claim to be buying less beer during the pandemic and approximately 27% of consumers say that they are extremely concerned about their physical health. What’s interesting is that these trends correlate with age, with millennials being both the most extremely concerned about their health and most likely to be buying less beer than before the pandemic. Even otherwise, the millennials are known to experiment, try out new products and that is driving manufacturers to innovate.

Celebrating 200 years of the Johnnie Walker story from Diageo Archive

Archive Manager Christine McCafferty speaks on what documents dating back to the 1820s can tell us about the Johnnie Walker story so far.

Johnnie Walker is such an iconic brand, with a truly special story, and it’s an honour to be celebrating 200 years since it all began. A big anniversary is of course a great opportunity to tell our brand story, but who needs that excuse. It’s something that I have been privileged enough to do on a daily basis since becoming the Archive Manager for Diageo 23 years ago – to everybody and anybody who will listen. And it’s a great story to tell, so who wouldn’t want to hear it. And we learn so much from understanding the origins of a brand and its journey, what makes the brand unique and what makes it tick.

Christine McCafferty

There’s so much wealth in the Johnnie Walker brand story. It all goes back to John and the grocery shop that was opened in 1820 in Kilmarnock. This is where John started selling and blending his own whiskies for his customers. This is the beginning of an amazing story of three generations of the Walker family that we have continued through to today. It’s a story of an obsession with quality, the Walker’s would never compromise on this and neither would we, and, it’s a story of the pursuit of flavour, all to give consumer’s the best scotch whisky. It’s a story of being distinctive, always wanting to stand out from the crowd, of introducing a slanted label, moving to a square bottle, and, creating one of the most famous whisky icons in the Striding Man figure. It’s a story about taking our product around the world, making it not just the number one selling scotch whisky, but the one enjoyed in every part of the globe. It’s a story about perseverance, surviving the bad times and coming back stronger again each time. And it’s a story of forward momentum, always looking forward and what comes next, with Keep Walking as the perfect mantra. I could add words like pioneering, experimental, innovative, confident, bold, brave, ambitious – all perfect to describe Johnnie Walker and those that have created it and worked on the brand. It’s unique, it has a special place in culture, in people’s lives – and everyone has a story to tell.

And my story is all about the amazing content we have in our industry leading archive and how I share this to not only to build the brand story, but to bring it to life. It is a real privilege to be able to access original documentation right back to the time of John Walker and to see what insights they can give us into the brand story and DNA. Here’s a couple of my favourite items from the archive:

Jhonnie Walker Grocery Shop Inventory list from 1825

John Walker’s grocery shop stock inventory, 1825. This inventory is the earliest record from the shop. It lists household products; wines and spirits, including whisky of course; and exotic products such as tea from China and pepper from Jamaica. It’s fascinating to see what John was selling in those initial times and the impact they no doubt had on how he felt about flavour as he started his blending journey.

John Walker & Sons annual balance book, 1857-1886 – John’s son Alexander took over the business in 1857, evolving it from a small, local shop to a thriving commercial enterprise. This stock book documents the widening range of products, including many more whiskies and different types of tea, dried fruits, and spices. These aromas and flavours inspired Alexander to create the company’s first commercial blend, `Old Highland Whisky’ and it’s a time I would love to travel to. Imagine wandering around the aisles of the shop, soaking up the atmosphere.

A pic from the `John Walker & Sons’ book by Alfred Barnard, 1893 and their Sampling Room. This book is only one of the two such copies known to exist today

`John Walker & Sons’ book by Alfred Barnard, 1893 – In 1879 John Walker & Sons opened what were considered the most advanced warehouses in Scotland. When renowned whisky writer Alfred Barnard visited the imposing new premises on Kilmarnock’s Strand Street, he noted the Walkers’ focus on innovation and craftsmanship throughout their whisky-making, bottling, and distribution processes. A true snapshot of the business at that time, this book is one of only two copies known to exist today, and gives us a truly special window into the remarkable business being ran by that time.

The Jhonnie Walker Still Going Strong image

John Walker & Sons `Around the World’ book, 1920s – By 1920 Johnnie Walker was being sold in over 120 markets. To celebrate 100 years of the business and the global reach of their brands, John Walker & Sons produced their Around the World book, which essentially is an early travelogue. The book features all the markets in which Johnnie Walker was being sold and was a thank you to their agents around the world for their contribution to the success of the business. I love how important relationships were to the Walker’s as they established their global business, just as it is for us today.

I could, of course, go on and pick examples of beautiful historical packaging, ground-breaking advertising, photographs from all around the world, and all these items have a role to play in piecing the brand story together. The items themselves are fascinating, and I love seeing how people react to seeing the original documentation that takes us back in time. But the insights that these items give us are equally as important. I like to think of myself as a bit of a detective or journalist, pulling snippets of information and materials together from various sources, to create a really rich and vibrant story relevant for any audience. There’s certainly no shortage of materials and stories.

And we continue to add to these collections by collating materials created for the brand today so we can continue to tell the brand story as it evolves for future generations. Just as we look back with pride on the legacy we have inherited from our founders and all those who have worked on the brand, we too will leave our stories in the history books for those that come next to be inspired by. It’s fascinating to think what a brand like Johnnie Walker has lived through, 200 years of world events, and, it’s exciting to think about where our journey we take us in the next 2, 20 and 200 years. I can’t wait to see, bring it on!