Wheeling the Brand Wagon

Just what is it that makes a new brand tick? Liquor companies may have volumes of information about succeeding with a new product or introducing a foreign label into the Indian market but what appears on paper is often quite different from what appears, or often disappears, from the shelves. According to studies, two out of three new products will not last beyond three years on the market. Amitabh Joshi takes a bird's eye view. There is a twilight zone between selling and marketing which is to say, they are not the same. While selling is linked to the needs of the seller, marketing is about addressing the needs of the buyer. At the meeting point of these two variables lies the success of a new product. The basic tenet when introducing a new brand is to give up the idea of getting rich quickly and getting out. There is no getting out as such, because it takes a long time for a new brand to be established and catch the loyalty of a consumer. As the saying goes, it’s a marathon and not a sprint.

John Distilleries seeks strategic partner and cash infusion to fuel growth

The liquor industry which has been seeing double digit growth until recently is now looking at inorganic growth to consolidate their positions in the Indian alcobev market. While the Diageo-USL deal was proved to be the biggest game changer, John Distilleries Private Limited – maker of Original Choice whisky, have been planning to sell a stake and rope in a foreign partner in the business for quite some time. Recently it has mandated Morgan Stanley to scout for the potential suitors. For John Distilleries whose flagship brand, Original Choice which is said to be the world’s seventh largest whisky brand and 12th largest spirit brand overall with more than 10.7 million 9-cases sold a year, this is a big move in the global arena. In recent times owing to the rising cost of molasses, more and more companies have been using grain spirit. This has also led to premiumisation of brands for better margins. The low volumes of premium brands underlines the need for companies like John Distilleries to change gears and improve their bottom line. Recently it launched Paul John single cask/single malt whisky at the Capital Hotel near Harrods in London’s exclusive Knightsbridge.

Celebrating Luxury With Passion

Tigre Blanc luxury french vodka brand from the renowned Cognac region recently entered into the Indian market. Renaud Dutreil, Chairman, Tigre Blanc speaks to Lopamudra Ganguly about luxury, passion and the company’s expansion plans in India. First started as a family enterprise in the Cognac region in early 20th century by master winemaker and distiller Francois Belleville, the distinctive vodka, Tigre Blanc was produced for the local community and for sale to select liquor merchants in the region. Taking forward his family’s long standing tradition of cultivating exceptional wines and spirits, Renaud Dutreil (former chairman of LVMH North America), great grandson of Belleville, established the brand, Tigre Blanc with a re-launch in Paris in 2012 to expand the reach of the family distillery and distributions to the major markets globally. Since he believes that, "Luxury industry will be growing at high rates in next 20 years and the industry needs to give back and allow new innovative brands to evolve."

Sainov Spirits strikes gold

Sainov Spirits Pvt Ltd has literally struck gold. The company, which also celebrated its fifth year, picked up nine gold and two silver medals, a total of 12, at the Monde Selection, Belgium.

This is the third year in a row that Sainov Spirits has received honours. In 2012 it picked up six gold and one silver and in the year before that, two gold and one silver. 130 countries participate in a gruelling process of assessing various products from their markets. In the Gold category, the following of Sainov’s products were awarded: Maya Silky Triple Distilled Vodka; Maya Natural Mango Triple Distilled Vodka; Maya Natural Orange Triple Distilled Vodka; Ninja Gold Rum; First Ginger Whisky; Old McDonald Blended Scotch Whisky; President House Brandy; First Coffee Rum and Ninja Mineral Vodka. The two silver medal winners were Maya Natural Green Apple Triple Distilled Vodka and President House Whisky. "We are extremely happy that our brands have won gold awards for a third year in a row and got international recognition too. This gives us a moral boost and reinforces our commitment to the quality, packaging and overall brand value," said Sanjay Lamba, Managing Director at Sainov Spirits. The company’s Maya Silky Vodka and Maya Mango Vodka, apart from the gold medals, have also won the International High Quality Trophy for winning Gold Medals for three consecutive years.

Brand Tuborg wins prestigious accolades Unique consumer survey lands dividends

It’s been six years since Carlsberg India began operations and today it is the third largest brewer in the country. Much of the company’s success has been attributed to its innovative marketing and that strategy has paid off for it not just commercially but by recently winning two prestigious awards for Brand Tuborg in the Alcohol/Beer category and for Tuborg Zero in the Non Alcoholic Beverage category in the ‘Product of the Year’ Consumer Survey 2013. For Carlsberg India, which is increasing its India footprint, the awards for their Tuborg brand could not have come at a better time. The Product of the Year survey, done by Nielsen, was spread across 18,000 respondents in 23 markets in India and is the largest survey of its kind. Carlsberg India will hold the title for a period of one year starting 1st April 2013 till 31st March 2014. "We are in our sixth year of operations and within a short span we have witnessed significant growth, becoming the third largest brewer of India. Innovation is the DNA of our brand Tuborg – from the unique pull off cap to the easy to grip bottle, lending it an aspirational and sociable appeal," said Subodh Marwah, Marketing Director, Carlsberg India.

Scaling Up: Delhi Duty Free Shop On A Growth Path

Arun Barathi, COO, Delhi Duty Free speaks to Ambrosia about the strategy, dedication and also about meeting aspirations and marketing needs. Excerpts from the interview.

Delhi Duty Free Services Pvt. Ltd. (DDFS) is the single largest duty free retail operator in India and is spread across 40,000 square feet of duty free space at departures and arrivals at the Delhi airport with exclusive rights to retail product categories liquor, tobacco, perfumes and cosmetics, confectionery and fashion. DDFS is a joint venture company between DIAL (Delhi International Airport Limited), IDFS (P) Tradings and Yalorvin Limited. Yalorvin Limited is a subsidiary of Aer Rianta International Cpt. (ARI). The company was awarded the concession to manage and operate the Duty Free Shops at Terminal 3, Indira Gandhi International Airport in Delhi in 2010.

Excise hikes hit the consumer once again

Alcohol and tobacco are some of the highest taxed goods all across the globe. However, in India, liquor is the cow to milch. Once again, and not surprisingly, various states have announced their new excise policies on liquor with consumers having to pay more for their fare.

Being a state subject, excise on liquor is the source of huge revenues, and relies largely on the fact that those who drink will drink one way or another. Up north, in the drink-loving union territory of Chandigarh, excise duties are set to grow between 35% to an astounding 400%. The maximum hike comes on high-end Scotch. Beer too will be costlier, looking at an increase of at least `20 a bottle. Overall, across liquor brands an increase of 20% in prices is envisaged by the UT, bringing prices more or less at par with those in Punjab. One of the reasons given by the administration is that it will discourage inter-state smuggling of liquor. There are also plans to restrict the allocation of bar licences.

Scotch whisky industry on a record high

Thanks to the increasing demand for Scotch whisky in new and emerging markets, the Scotch Whisky Association (SWA) has recorded exports of £4.3 billion in 2012, an increase of 87% in the last 10 years.

It’s interesting to see that despite trade barriers, Scotch whisky export to India has increased by 17% to £62m in 2012. As per report, rising demand for Scotch whisky from both mature and emerging markets contributed to the growth for the eighth consecutive year. The total value of exports grew by 1% last year to reach £4.27 billion. While the falling sales in Southern Europe were more than matched by growing exports everywhere else, the French market was distorted by excise tax increases in 2012 which led to a "stocking up" of Scotch whisky in 2011 before their introduction. With increasing consumer knowledge of Scotch whisky around the world, demand grew for Single Malt and premium Blended Scotch whisky. Single Malt exports have risen over the last 10 years by 190% from £268 million to £778 million.

Scotch Malt Whisky Society

Are you one of those who would do anything to find a bottle of rare scotch and enjoy it at any cost? If yes, here is the good news. The well-known Scotch Malt Whisky Society(SMWS) recently entered India in a partnership with Ashwin Deo’s company Trinity Vintners Pvt Ltd. At the launch event, Ambrosia team had a chance to taste some rare cask whiskies available now only for the SMWS members. The Scotch Whisky Association’s recently released report 17% growth in scotch exports to India last year, so it seems only natural that an elite club like Scotch Malt Whisky Society (SMWS) would want to have presence in India. Georgina Bell, Ambassador of the society who was here for the launch and to interact with members and press seemed excited with the response. With only 26,000 members across 19 countries and a production of around 300 casks a year, SMWS is exclusive. If you want to become a member, in India the annual membership costs `21, 910. This comes with a tasting kit, a member’s handbook and discounts on every peg of rare whisky that you order every time you visit the select restaurants or order through the one retailer. But first you have to become a member of the society. At present, the whiskies are only available in three locations in India, JW Marriott Mumbai, Pune and Indigo Colaba. The membership forms are available and in the second year the fee is `10, 000.

Montepulciano The 'Noble' red wine grape of Italy

It’s not just the scenic beauty and mesmerising surroundings with a long history engraved in each and every corner of Montepulciano that makes this small, sleepy Tuscan town so special. The vines and wine from the region have much more to say. Rojita Tiwari went on a tasting tour of Vino Nobile di Montepulciano 2013 and fell in love with the wine. Here is a report.

Montepulciano, situated in the Sienese Val di Chiana municipality is located on 605 metres above sea level. It has just 14,000 inhabitants covering an area of 165 sq km. Due to its geographical location, the city in the past has been the cause of conflict between Siena and Florence where both the powerful towns wanted to gain control of Montepulciano and the surrounding areas. Florence and Siena clashed several times for possession of Montepulciano, and in 1232 the Sienese were able to take over the city after having razed the walls. During the 15th century Florence gained control over the city with regard to the political-administrative aspect, but also in the more specifically architectural-urban. Throughout the 19th century, however Montepulciano was defined with increasing relevance as the agricultural market and place of processing of agricultural products, and this is confirmed in the realisation of Sericultural Plant (1869) located in the fortress, and in the Practical School of Agriculture (1882).

Tasting of Brunello di Montalcino 2013

One of Italy’s finest and most prestigious wines Brunello di Montalcino comes from the region, Montalcino, around 120 km south of Florence, Tuscany. During the Tuscan Anteprima this year, after Chianti Classico and Vino Nobile di Montepulciano, Rojita Tiwari headed to the preview of Brunello di Montalcino 2013. Here is an insight.

Montalcino has a surface area of about 24,000 hectares, of which only 15% is occupied by vineyards. The production area is squarish, with its sides bounded and washed by the most important rivers found in the province of Siena; the Ombrone, Asso, Arbia and Orcia. Mount Amiata in the south protects the Brunello territory from natural calamities like cloudbursts and hailstorms. Apart from being a famous tourist destination, Montalcino has a history of producing its world renowned red wines since early 14th century. But only one man can be attributed for the success of the 100% Sangiovese Brunello di Montalcino style; Ferruccio Biondi Santi, grandfather of Franco Biondi Santi, who produced this style alone in the region in 1888. His grandson, Franco Biondi Santi, who died recently at the age of 91, was the man who gave Montalcino wines the status that they have today. Sangiovese, which is locally called Brunello, is a dry and strong red wine. Identifying its potential the Biondi Santi family popularised the Brunello di Montalcino wines by producing them for years at the family estate, Tenuta Il Greppo.

The Big Bang Bar and Café

Bandra’s hippest new hangout - The Big Bang Bar and Café which opened recently offers an open and spacious dining and drinking experience and boasts of being Bandra’s largest roof top Al-Fresco dining resto-bar.

Spanning across a whopping 5000 sq ft, The Big Bang Bar and Café is a breath of fresh air for all those who love their space and who enjoy having a good time. The newest offering from the owners of Masala Zone, Lemon Grass Phoenix-Mills and Monza, The Big Bang Bar is a rare sight in the ever crowded, hustling bustling suburb of Bandra – with a huge inimitable space, a great groovy chilled out vibe, and refreshing cocktails and mocktails to make your evening an enjoyable one. Kick back with your favourite drink or choose your own mocktail as The Big Bang has to offer an exhaustive collection of drinks, cocktails and mocktails amidst the choicest collection of quick bites, salads, pastas, pizzas, finger food, sandwiches and burgers in the city.