Central Consumer Protection Authority monitoring surrogate advertising, brand extensions
17th edition of IPL, big ticket event begins, liquor companies looking at eyeballs
Advertising Standards Council of India too tracking
The Central Consumer Protection Authority (CCPA) has issued a directive to liquor companies to ensure that there is no violation of advertising norms and has sought a list of brand extension products sold under the same name as alcohol products in the last three years. Some examples of brand extension products include mineral water, soda, music CDs, playing cards etc.
The CCPA gave this directive on March 19 after it observed that some liquor brands had been violating regulations of surrogate advertising. Hence, it has sought details of revenue, turnover data related to the sale of alcobev as well as the brand extension products. It directed companies to provide details of expenses incurred in event sponsorship, payments to celebrities and influencers and television advertisements during the last three years, in its bid to correlate between actual sales of the brand extension product and the money spent on event promotion / advertising etc.
The CCPA Chief Commissioner, Rohit Kumar Singh said “This assessment is critical for determining whether promoting of brand extension products authentically represents the extended product or functions as a surrogate for alcoholic beverages under the same brand.”
He further said “The industry is advised to ensure that all brand extensions follow the broad principles of advertising only genuine extensions (that is, turnover and distribution in proportion to advertising spends), and ensure that advertisements contain no cues of restricted category such as tag lines and layouts and do not unduly suppress the category name and extension being advertised.”
Last edition of IPL fetches Rs. 10,120 crore from advertising
The CCPA order comes ahead of the 17th edition of Indian Premier League (IPL) which kicks off on March 22. It may be mentioned here that the 16th season of IPL saw the tournament pocketing a whopping Rs 10,120 crore from all forms of advertising revenue, a significant growth as per market research and analysis firm Redseer Strategy Consultants.
Cricket gets the maximum eyeballs in India and advertising during matches have helped in brand development. During the last ICC World Cup cricket held in the Indian sub-continent, brands spent about $240 million in advertisement spots on streaming platforms. A 10-second advertising slot during matches costs up to 3 million rupees, a 40% increase compared to the last World Cup.
One of the big sponsors is Bira91, fast growing craft beer brand, had entered into a major five-year deal with the International Cricket Council, becoming its Official Partner for the ICC Cricket World Cup 2023, ICC T20 World Cup, ICC World Test Championship, ICC U19 Cricket World Cup and the ICC Women’s Championship. This is Bira91’s first foray into sports and as an official partner, it integrates the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. And now in the IPL, Bira91 is also one of the sponsors for Royal Challengers Bengaluru and Sunrisers Hyderabad and Kolkata Knight Riders.
Laws in place
The Cable Television Network Act, 1995 envisages that, unless such advertising is in conformity with the advertising code prescribed in the Cable Television Networks (Amendment) Rules, 2006- no person shall send or transmit any Advertisement through a cable service. The above provision, however, does not apply to foreign satellite channel programs that can be received without any specialized gadgets or decoders being used.
With regard to alcohol (Beer, Wine, and Spirits), the law says “any advertising directly or indirectly promoting the manufacture, sale, or consumption of alcohol, liquor, or other intoxicants is prohibited by the Cable Television Network Regulations, 1994, the Advertising Codes of Doordarshan, and the All-India Radio and Guidelines for Journalist Conduct published by the Press Council of India. Some states, however, allow ads, albeit subject to several limitations, through billboards, signboards, etc.”
In June 2022, the CCPA banned surrogate advertising with the introduction of a new set of guidelines to curb misleading advertisements. Violators stand to face a penalty of Rs 10 lakh for the first offence and a Rs 50 lakh fine for subsequent offences. That is the stated position, but we need to see what action has been taken.
Well-defined guidelines for brand extension: ASCI
The CEO and Secretary General of the Advertising Standards Council of India, Manisha Kapoor, asked ahead of the World Cup had said “The Advertising Standards Council of India’s (ASCI) code clearly mentions that products whose advertising is restricted or prohibited by law or by the ASCI code must not circumvent such restrictions by posing to be advertisements of other products whose advertising is not prohibited by law or the code. To differentiate between surrogate ads and legitimate brand extensions ASCI has well defined guidelines for Brand Extension products with set criteria for brands to qualify as a valid extension of a liquor brand/brand whose advertising is prohibited. The ICC World Cup is one of the most popular sporting events in the world and garners record-breaking viewership numbers. Given the scale of the event and sponsorships involved, we are mindful that the issue of surrogate advertising could arise, hence we have intensified our monitoring efforts during the ICC World Cup 2023. At ASCI, we have shifted our monitoring from weekly to daily feeds for this period.”
To a question on whether people were aware of brand extensions or these brand extensions were just an excuse, Ms. Kapoor replied “It is true that under the CTNR, advertising of brand extensions of liquor and tobacco products is allowed, as long as the product being sold under the brand extension makes no direct or indirect references to the prohibited product. Since consumers do miss out on the nuances, ASCI clearly defines in its guidelines the criteria for what qualifies as a brand extension and what does not.”
She also clarified that “At ASCI, our chief concern is about the content of the advertising rather than monitoring the availability of products in the market. However, when it comes to brand extensions in order to verify that the advertised product is indeed a legitimate extension and not a surrogate, ASCI does ask for third party verified sales data of the advertised product from the advertiser. Our brand extension guidelines have a clear criterion for both old and new products in the market to qualify as a valid extension. Instances where advertisers fail to satisfy the criteria are treated as surrogate ads.”
However, the CCPA guidelines states that in case of any ambiguity or dispute in interpretation of the guidelines, the decision of the CCPA shall be final. Sure enough, there are going to be claims and counter-claims.
The 16th edition of the prestigious Ambrosia Awards 2024, organized by Ambrosia Magazine – the Wine and Spirits Magazine, celebrated the finest achievements in the Alcobev industry at a gala event. Recognizing excellence in products, packaging, and individual categories, the awards showcased the industry’s best and brightest talents.
Ambrosia magazine, now in its 32 nd year, continues to be a hallmark of excellence in the industry. With a focus on blind tastings for the product category, the awards ensure a fair and unbiased selection process, akin to top international standards.
Trilok Desai, MD and Publisher of SAP MEDIA WORLWIDE LTD, remarked, “The Ambrosia Awards stand for excellence, and our international jury ensures that only the best are honored. Each year, we witness remarkable advancements in product quality, packaging, and technology, setting global benchmarks.
Vijay Rekhi launching Cheers 3rd Edition Coffee Table Book with authors Trilok Desai & Bhavya Desai
Another highlight of the evening was the launch of the 3rd Edition of Cheers – Coffee Table Book, authored by Trilok and Bhavya Desai. The book, inaugurated by Vijay Rekhi, CMD of Vizanar Advisors, and Former President and MD of United Spirits Ltd (USL), commemorates the industry’s journey and milestones.
Shiv Kumar Reddy, MD, Seven Seas Distillery Private Limited accepting the AwardAmar Sinha, COO, Radico Khaitan accepting the AwardAbhishek Khaitan, MD, Radico Khaitan Limited acceppting the Award on behalf of Dr. Lalit KhaitanVijay Rekhi and Mr. Gandhi’s family member accepting the Award
Among the individuals recognized, Shiv Kumar Reddy, Managing Director of Seven Seas Distillery Private Limited, was awarded Entrepreneur of the Year. Amar Sinha, COO of Radico Khaitan Ltd, was named Business Leader of the Year. Dr. Lalit Khaitan, Chairman and MD of Radico Khaitan Ltd, received the Ambrosia’s Paramount Achievement Award for his outstanding contributions, achieving the status of India’s newest billionaire. The Lifetime Achievement Award (Posthumous) was presented to Mr. S.S Gandhi, Former President of United Spirits Ltd, honouring his significant impact and achievements in the industry.
This Product Jury included:
Jury Members at the Tasting Session
Bernhard Schafer – A Whisky Expert, Spirit Consulting and A Master of Quaich
Stephen Beal – Senior Master of Whisky, Chairman of The Council of Whisky Master 2024
Dr. Binod. K. Maitin (PhD) – Technical Expert & Former SVP and Head of Technical Centre USL
Eddie Nara – CSE & Spirits Expert
Ajoy Shaw – DipWSET Winemaker, Consultant and International Wine & Spirits Judge
Julie Lee – Industry Expert and Entrepreneur
This Packaging Jury included:
Jury Members at the Packaging Session
Prof. K Munshi – Industrial Design Centre, IIT Powai
Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre
Pratish Mepani – Founder of SMBD Group
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Taking over the reins of one of the biggest companies in the market, can never be an easy task, especially when the daunting objective is to ensure double-digit growth, drive revenue and increase profits. Add to that, the first woman to lead the business, but Hina Nagarajan, Managing Director and CEO, Diageo India has not only successfully achieved this, but also surpassed many other feats. She speaks to Bhavya Desai about her journey, future objectives and more. Excerpts:
Since you took over, you’ve made incredible strides towards ensuring that the company becomes net debt free. How have you managed that?
The task ahead of me when I took charge in 2021 was to bring our Diageo India business on a sustained double-digit growth path, especially driving revenue and profitable share in the premium and prestige segments of the Indian alcohol market. Together with my leadership team, we made some strategic choices to win in this decade and beyond.
I led the execution of our portfolio reshape with the objective of accelerating premiumisation-led growth while delivering our guidance of mid to high teens margin. We completed the strategic review of our Popular brand portfolio, resulting in the sale of 32 mass brands and franchising of 11 brands in September 2022.
Our commitment to premiumisation is evident in our investments over the past years. We’ve introduced new products and innovations such as Royal Challenge American Pride, Epitome Reserve’s second limited edition of Peated Indian Single Malt in Goa, and Godawan, a unique single malt from Rajasthan. Additionally, our minority stake in Nao Spirits, the makers of Hapusa and Greater Than, underscores our strategy to grow in the luxury and premium segments, particularly in scotch, where we lead the market.
We also redefined our offerings in the Upper Prestige segment with unique products that resonate with new consumer trends. Furthermore, our efforts to premiumise and reposition brands in the Lower & Mid Prestige segments, such as McDowell’s No.1 Whisky and Royal Challenge Whisky, are part of our strategy to respond to evolving consumer needs.
With the consumer at the heart of our business, the strength of our reshaped portfolio, and the investments we are making to accelerate our strategic priorities, we have been able to deliver our mission of profitable double-digit growth for our business and in the process, wiped out our cumulative losses and declared dividend for the first time since acquisition a decade ago.
Having set on this path, what is Diageo’s next objective – in the coming years?
We feel extremely positive and excited about the future of the alcobev industry in India. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. India is in the middle of deep societal change led by women, youth and boom towns. This along with a massive growing need to ‘drink better, not more’ across all segments, is in line with our vision for the category.
The premiumisation trend will continue to stay strong with rising affluence. By 2030, 45% of Indian households (approx. 175 million households) will be in the upper mid and high-income groups. We see a big opportunity, not only to leverage this trend through our incredible portfolio of global and IMFL brands, but also to position Indian whisky as a characterful, distinct, high-quality offering by bringing the best of people, processes, and ingredients together to create bespoke liquids that are ‘Made in India’ for the world.
Our mission is to be a top CPG (Consumer Packaged Goods) company in India delivering sustained double digit topline growth with mid to high teen margins and long-term value to all our stakeholders. With this new strategy, we aim to deliver our Mission through 3 pillars that form the essence of our mission:
Reshaping our portfolio with a focus on accelerating premiumisation-led growth, while delivering our guidance of mid to high teens margins.
Creating an Organisation of the Future – We are building a future-ready organisation by investing in our talent, introducing market-leading policies and driving digital capabilities.
Defining and executing an ambitious role for Diageo in Society 2030 focusing on promoting responsible consumption, championing inclusion & diversity, and pioneering grain-to-glass sustainability which includes preserving water for life, accelerating to a low-carbon world and lastly, becoming sustainable by nature.
Keeping our customers as our main focus, along with the reshaped portfolio of our products and the investments we’re making to accelatate our strategic goals forward, we are confident of growing our business in a steady and sustainable way.
How has the consumer landscape changed over the years in the industry?
India is in the middle of deep societal change led by rising affluence, women, youth and boom towns. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. This trend expands to middle India and boom towns which are undergoing a remarkable transformation, fuelled by high aspirations and digital revolution where consumers are looking for premium brands, products, and experiences. The new consumer cohorts are driven by values of authenticity, individuality, local pride and collaboration with women building a more inclusive consumption narrative.
Digital has also been a big game changer. Most consumer journeys begin on digital with discovery, information, inspiration – informing them of their choices and behaviour and most of all aspiration and desire for what they want. If we look at the alcobev category, consumers are choosing different products for different occasions and need.
This means that repertoires are expanding from whisky to gin, vodka, rum, aperitifs, cocktails, etc. Consumers today choose to drink better, not more, leading to premiumisation of the alcobev category. At Diageo , we are responding to these structural shifts in consumer choices and behaviour, pivoted around premiumisation, wellbeing and sustainability. This new, changing, and vibrant India presents a huge opportunity for us.
You are the first woman to lead the business at the company. How do you think this encourages and inspires others across industries?
My appointment sparked interest and garnered positive attention, which reflects the breaking of traditional barriers especially in the alcohol beverage sector. As a woman CEO in alcobev, traditionally a male dominated industry, I see this as an opportunity to change the paradigm of this industry to make it more inclusive and normalise the narrative.
Our efforts are making a difference, leading to an environment where joining our sector feels no different from any other industry for women. At Diageo India, our commitment lies in building a workplace where everyone feels included. 50% of our Executive Committee and 35% of our senior leadership team comprises of women. We believe that a diverse leadership helps create a more balanced and well represented workforce. We’re making this happen by welcoming women into various leadership positions, ensuring we drive change right from the top.
Seeing more women in our company is truly encouraging. Their presence brings fresh ideas and perspectives on how we approach our products, market them, and innovate. This enriches our connection with customers and broadens our talent base, helping us to stand out and succeed in a competitive market. And hopefully, this encourages and inspires others to do more.
With sustainability being a rising factor amongst consumers today, how is Diageo moving towards a more sustainable tomorrow?
We at Diageo strongly believe that social and environmental impact and profitability are not two separate goals but rather interlinked. As one of the world’s largest beverage alcohol producers, we believe that we are ambassadors of our industry and aim to be the best we can – at work, at home, with friends, and in the communities we serve.
Sustainability is at the heart of our business strategy and is outlined in our Society 2030: Spirit of Progress ESG action plan. Our Society 2030 agenda is focussed on pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting responsible consumption.
Pioneering grain-to-glass sustainability plays a pivotal role in our Society 2030 goals and is embedded throughout the process and focusses on three key aspects; preserving water, lowering carbon emissions, and becoming sustainable by design.
In terms of preserving water we have overachieved our water replenishment target by 25% and three years ahead of our 2026 goals. We have improved our water use efficiency by 44% in our distilleries and 30% in our packaging processes, against the 2030 goal of 40%.
Women and girls are disproportionately affected when communities don’t have access to clean Water, Sanitation and Hygiene (WASH) facilities. We’re investing in such projects to empower women by providing sustainable water access and rebalancing their societal roles in more than 30 villages.
At the state level, we have partnered with Forest Department in Rajasthan and Maharashtra for mass plantation projects to improve green cover, protect soil, improve percolation and support biodiversity. In Alwar we have initiated efforts for desilting ponds, constructing check dams, improving drainage systems, to name a few. Measures like maintaining Zero Liquid Discharge status, rainwater harvesting pits, and others were adopted. We have also launched an afforestation drive to plant 2 lakh trees to offset residual greenhouse gas emissions.
We are making good progress in reducing our carbon emissions, and have committed to becoming Net Zero by F26 in our direct operations by mitigating our Scope 1 & 2 emissions and reduce 50% of our Scope 3 emissions by 2030. Our sustained efforts have resulted in industry-recognitions by Sustainalytics recognising the company as a “Top-Rated ESG Performer for 2022 and 2023” and our Alwar unit in Rajasthan,
has achieved the Alliance for Water Stewardship (AWS) certification, making it the first distillery in Asia to attain this certification.
In our efforts to becoming sustainable by design, we have removed mono cartons from 90% of our portfolio. In addition, we have introduced biodegradable packs as well as recyclable PETs in some of our brands and continue to expand it to others. This is aligned to our global mission to ensure 100% of our packaging is widely recyclable or reusable/compostable by 2030. Over 99% of materials used are recyclable. On glass, we have initiated light weighting of our bottles.
Our brands like ‘Signature by Nature’ uses 40% recycled glass for the glass bottle and is associated with Mangrove Plantation in Puri, Orissa where 30,000 Mangroves seedlings are being planted in five villages. These mangroves can sequester carbon up to 2-4 times faster than a mature tropical forest.
Our ESG agenda is owned by senior leadership levels including the board, which monitors the same through a CSR and ESG Committee. The ESG Index report we release annually highlights our progress mapped against each of the three pillars and we have witnessed remarkable achievements.
Our ambition is to be the forerunner in the Indian Consumer Product Goods (CPG) industry on ESG and create enterprise value.
What is Diageo’s roadmap for India with most companies betting big on the Indian markets? What is the next big product category that Diageo is focussing on for the coming years?
Diageo India is responding to structural shifts in consumer choices and behaviour, pivoted around growing affluence, premiumisation across categories, and quest for experiential and experimentation, through its refreshed business strategy focussed on premiumisation and focus on transformational innovation and renovation. We have a future back approach to our innovation pipeline and use a proprietory framework called Foresightto determine where trends will go few years from now.
It is for this reason that we have launched Royal Challenge American Pride which caters to the growing consumer preference for bourbon, renovated Signature to be the most sustainable brand in its segment , developed the Naya Sher campaign encouraging youth to take bold , confident steps forward for our Royal Challenge packaged drinking water as well as launched Walkers & Co – a platform to celebrate bold boundary pushers. We launched Don Julio tequila in the country in response to the growing traction for Tequila consumption in the country. We are also scaling up Baileys given the affinity for desserts in India.
We will continue to use Foresight to guide us on innovations for the future and bring the best of both our global, as well as Made in India portfolio, to cater to the evolving needs of Indian consumers.
While your association ISWAI has been representing centre and states for rationalisation of taxes including GST/Excise etc., do you expect centre to bring reform in the alcobev sector? How do you think this move will be beneficial?
ISWAI has been in talks with State Governments to rationalise high excise duties. It has made representations to the authorities time and again as manufacturers of alcohol beverages (Alco-Bev) continue to face shrinking margins due to high taxes, along with soaring inflation and import tariffs. The biggest barrier faced by the industry is freedom to price its brands. ISWAI continues to advocate for pricing freedom, especially for premium brands, as this will help the industry to overcome inflationary pressures. There are also several other regulatory and operational barriers which hamper ease of doing business for the industry. We have seen positive steps from the government on resolving some of these issues. ISWAI will continue to work proactively with various government bodies on these matters and is hopeful that the state governments will consider a harmonised tax structure as well as an acceptable annual pricing mechanism for the sector and continue to support ease of doing business for our industry.
Jim Murray stands as a prominent figure and key player in the global whiskey scene, having held the title of the world’s first full-time whisky writer for over three decades. The 2024 release of his widely successful “The Whiskey Bible” marks the 20th anniversary of the publication. Maintaining a staunch commitment to independence, Jim fearlessly critiques those deserving of scrutiny and advocates for whiskies that were once overlooked or unfamiliar.
In the present day, the likes of Ardbeg, Pure Irish Pot Still, and Canadian and Japanese whiskies such as Yoichi and Yamazaki have gained widespread popularity, thanks in no small part to Jim’s daring efforts to bring them into the public eye. Despite facing criticism and occasional attempts at character assassination, Jim’s bold choices have significantly shaped the current whisky segment.
In a conversation with Ambrosia, Jim shared insights into his passion for the spirit, details about his personal life, encounters with setbacks and comebacks, and perspectives on emerging whisky trends and Indian distilleries.
What led to your transition from journalism to becoming the world’s first full-time whisky writer, and are there any interesting stories or experiences from your journey you’d like to share?
I began my career in journalism covering sports and general news, gradually diving into more intense subjects like murders and special investigations while working for national newspapers. Amidst these experiences, my first encounter with a distillery occurred in 1975 during a hitchhiking expedition across Scotland. Boarding a boat bound for Skye, I visited the Talisker distillery, and it literally changed my life.
The vibrant sensory details of the distillery – the colours, smells, sounds, and the meticulous process – left a lasting impression on me. As a journalist, I used to get to travel a lot. Tasting whisky straight from the barrel with its 60% alcohol content was a revelation, and it sparked a personal interest. From the age of 17, during my spare time, I started making personal notes on whiskies, differentiating their unique qualities. By 1989, I began writing and selling articles about whisky globally, all while maintaining my role as an investigative journalist.
In media publications, I noticed a gap in whisky coverage. Wine writers were handling whisky topics with incorrect terminology and descriptions. Convinced I knew more about whisky, I considered transitioning into whisky writing. This decision faced resistance, especially as it meant giving up a stable income. Despite the initial resistance from my wife, in 1992, I took the leap, becoming the world’s first full-time whisky writer.
Back then, there were no whisky festivals or visitor centers, maintaining a sense of mystique around the industry. Breaking into the scene was tough. For years, I earned little, even became a single parent. Despite financial challenges, I persevered, creating fresh content for the emerging market. The books I wrote brought in money, but research costs were high due to the lack of prior literature on the subject. Believing in the cause, I endured the financial strain, comparing it to the pain barrier in athletics. It’s been a journey with continuous challenges, drawing parallels to my days as a long-distance runner facing a tough race.
A pivotal moment occurred during a meeting with Jim Milne, a J&B revered blender, who has been blending since the 1950s. In a seminar he conducted, whiskies labelled X, Y, and Z were presented without disclosing the distillery names. Upon nosing one of the whiskies, I asserted, “This doesn’t belong in your blend; it’s Fettercairn.” To this, he acknowledged, “Indeed, that is Fettercairn, and it’s included here only because of an oversight.” By identifying a misplaced sample, I earned the blender’s respect and was urged by him to share my opinions on whisky. This encounter led to a realisation – my extensive self-guided apprenticeship in studying whiskies positioned me uniquely.
Unexpectedly discovering my heightened olfactory senses (got to know I had a unique skill set, ranking in the top 2% for sensitive noses), this breakthrough moment changed my perception, realising I could sense and appreciate whiskies in a distinctive way. I ventured into consulting as a blender, complementing my role as a writer. This unforeseen skill set, acknowledged by one of Scotland’s most respected blenders, allowed me to contribute to the whisky industry in ways I had never imagined.
What is your typical approach to whisky tasting? Are there specific methods or techniques you adhere to during the process?
My approach to whisky is akin to that of a blender. I first identify any flaws in the whisky before acknowledging its merits. This involves deducting points for aspects like added caramel, an imbalance of oak flavours that overpower the malt, and any weaknesses that detract from the overall quality of the whisky. I can discern whether a whisky has been meticulously crafted or hastily put together.
When it comes to public awareness, blind tastings are crucial to eliminate biases. People often have preconceived ideas about certain whiskies, which can influence their perception. Therefore, I conduct blind tastings to remove any biases and judge the whisky solely on its merits. When compiling my Whiskey Bible, I don’t taste blind as I need to consider the distillery’s style and whether the blender has captured its essence. I assess the whisky’s complexity and intended profile before making judgments.
My tasting method, dubbed the “Murray Method”, involves avoiding strong perfumes, water intake, and spicy foods to keep my senses sharp. Strong perfumes can interfere with the senses, affecting the ability to discern aromas accurately. Additionally, I avoid consuming spicy foods while working, ensuring my taste buds remain undisturbed and receptive. However, recognising the cultural practices, I understand that asking Indians not to eat spices isn’t practical, given their culinary preferences. In 1997, I authored “Jim Murray’s Complete Book of Whiskey: The Definitive Guide to the Whiskeys of the World”, which gained significant popularity, selling over a quarter million copies. While discrepancies in numbers and subsequent editions may have altered the count, the book’s success is evident.
I’ve come across articles critiquing the book “Whiskey Bible”, accusing it of being sexist. However, generally, I’ve noticed that descriptions of food in a sensual manner are common in many publications. How do you respond to this perspective?
You need to grasp the immense impact of this book. It sparked the rise of Indian whisky and catapulted Japanese whisky to new heights. I awarded World Whisky of the Year to a Japanese whisky, leading to a whopping 3 billion dollars in revenue for them. Despite this success, I personally didn’t gain financially because I don’t accept kickbacks. I maintain complete independence. However, there’s a phenomenon known as industrial espionage, where some individuals might see the power of this book as a threat.
This book is pivotal because, like food and drink share common ground: sight, smell, taste, and touch. These senses, when combined, create a sensual experience. If people in the industry argue that whisky isn’t sexy, they probably shouldn’t be part of it. As a writer, honesty is of utmost importance. The motto of the Whiskey Bible is “the truth, always above all”. Criticism requires integrity and candour.
Some distilleries hold a grudge against me because I refuse to engage in their marketing tactics or succumb to their influence. Despite my disdain for those attempting to control me, I remain impartial in assessing the quality of their whisky. I won’t conform to the prevailing trends, particularly the notion of labelling everything as an anti-feminist crime. Personally, my marriage met its demise when I embraced the role of a whisky writer, a sacrifice I made for my career. The constant globetrotting has hindered the possibility of forming lasting relationships. I’ve never remarried, but it’s not due to a lack of romantic inclinations. Unfortunately, my genuine love for others has been weaponised by jealous individuals aiming to undermine the influence of the Whiskey Bible. Frankly, I feel sorry for these people, in their pursuit to tarnish my reputation, reveal a certain poverty in their character.
During a recent visit to Kentucky, a woman expressed admiration for my writings on whisky, considering it one of the most beautiful things ever shared with her. The hypersensitive woke culture on certain social media platforms seizes any opportunity to unleash their destructive tendencies, fuelled by baseless hatred. Many of these individuals are familiar with my identity and knowledge of whisky, yet they target me simply because I’m a convenient male figure to attack. This trend reflects the fragility of Western society.
Watching a stunning sunset often sparks a longing for someone to share the experience. Similarly, I take pleasure in sharing my love and passion for whisky with the world. I want to introduce people to the finer things in life.
Jim Murray at the launch of Amrut Bagheera and Portonova
When comparing Indian whisky to traditional whisky-producing nations, do you observe any notable differences?
The primary distinction lies in the heat when comparing it to traditional whisky-making countries. The maturation process in cooler climates allows for an important element: time. This time factor plays a vital role as tannins and other components from the environment have the opportunity to integrate and blend seamlessly. In contrast, hotter countries face a more accelerated maturation process, making it challenging to achieve the desired balance. Balancing whisky in warmer climates requires more effort and skill. While some argue that water quality influences whisky, the key is ensuring water is free from contaminants like pesticides and iron deposits, which can discolour the whisky. Interestingly, despite the romanticised notions surrounding water sources, many Scotch whiskies use tap water.
Unlike the present era filled with marketing gimmicks, the industry in the late ’80s and ’70s was less saturated with such tactics. Kentuckians, for instance, boast about having the best whiskey due to their water source originating underground, having been there for centuries, dissolving limestone and aiding fermentation. This stands in contrast to other Scottish distilleries, although not Glenmorangie and Highland Park, two renowned Scottish distilleries, which also derive their water from limestone, similar to the Kentuckians. I advocate for focussing on the contents of the glass rather than getting swayed by marketing claims on labels.
What trends do you perceive in the whisky industry, in your view?
Looking back at the whisky industry’s history, it’s been characterised by cycles of growth and decline. In the 1980s, whisky consumption dwindled as it was perceived as a drink of the older generation, with younger drinkers favouring lighter spirits. A common joke was that one could spot a whisky drinker by looking at the obituary column, as they were diminishing in number. This decline in blended whisky consumption led to an excess of single malt whisky sitting idle in distillery warehouses. It was during this time that efforts to promote single malt whisky, spearheaded by individuals like Michael Jackson, began to gain traction, revitalising interest in the category.
Similar to the boom in distillery construction in the 1890s, the recent surge in new distillery openings has created a crowded market. However, the current global situation introduces uncertainty, making it challenging for new distilleries to establish themselves and sell their products. Despite these challenges, smaller distilleries are poised to thrive, although they will face significant pressure. Nevertheless, it’s crucial for them to remain authentic and transparent in their approach to whisky production.
A concerning trend observed among some Irish distilleries is the practice of finishing whisky in various casks, obscuring the true character of the spirit. This approach detracts from the whisky’s identity, akin to wearing excessive layers of clothing that mask one’s true self. Moving forward, distilleries should prioritise honesty and authenticity to attract discerning consumers. The road ahead may be arduous, but it presents an opportunity for distilleries to redefine themselves and engage with consumers on a more genuine level.
Jim Murray at the launch of Amrut Bagheera and Portonova
How can Indian distilleries enhance their quality and global standing?
When considering the steps Indian distilleries can take, it’s important to acknowledge the unique dynamics in the Indian market. Unlike Scotland, India has a massive population of over a billion people, with a growing middle class. Over the past 30 years, I’ve witnessed significant changes in India, particularly in terms of economic growth and an expanding consumer base. The challenges faced by Scotch whisky in India may not be as pronounced, given the increasing number of people who can afford high-quality whisky. Notable distilleries, like Amrut and Paul John, have set a commendable standard, maintaining their commitment to excellence. In my early involvement with Paul John, I assisted in training their blender and witnessed their staunch dedication to quality. Several other Indian companies are also making strides in improving their whisky, demonstrating a continuous pursuit of excellence. While there is always room for improvement, the progress made in all these years is remarkable.
Comparing the whisky from three decades ago to the present would reveal a staggering leap in quality. This positive trajectory showcases the dedication and attention to detail exhibited by Indian distilleries. The success of Indian whisky on the global stage can be attributed to the determination of distilleries to make a lasting impression. Unlike some companies that may compromise on quality when relying solely on their brand name, Indian distilleries have prioritised maintaining high standards. The meticulous attention to detail is a driving force behind the success of Indian whisky. Even distilleries that were once considered mediocre have elevated their standards, while new entrants to the market are setting the bar even higher.
It can be a common misconception that women don’t like the tipple. From the dawn of the early ages women have also known to enjoy wine and spirits. And if you’re looking for unique alcohol gifts this Women’s Day, then we’ve got you covered. From specialty coffee blends to exquisite spirits, here’s a list of offerings to celebrate that special Woman. Whether she’s a coffee connoisseur or a cocktail enthusiast, these are sure to pour some happiness into her day.
Godawan Artisanal Single Malt Whisky
A single malt that breaks aways from the norm – Godawan is bringing to life Indian single malts that cater to every palate – from fruity and spicy to rich and rounded.
Matured in premium PX (Pedro Ximenez) Sherry Casks and American Standard Barrels, this rich liquid is then treated with two unique Indian botanicals – Rasna and Jatamansi. Each sip features the aromas of sultanas and dried fruits, complemented by a syrupy smooth texture, with a finish of caramel and a butteriness like baklava.
The second expression is a sweeter and fruity variant. Matured in virgin oak casks to release vanilla and clove aromas, as well as American Standard Barrels. It also treated with two unique Indian botanicals – Rasna and Jatamansi. With a distinct touch, this whisky is finished in cherrywood casks, enhancing the whisky’s sweet and sour taste profiles, impressive fruit aromas, and dark colour.
Product details: 700ml; ABV: 46%
Price – INR 2800 – INR 6000
Available in Delhi, Rajasthan, Maharashtra, Karnataka, and Dubai
Maka Zai Gold: Tribute Edition
India’s first homegrown premium artisanal rum makes for a dash of opulence this Women’s Day. High-quality and matured, the Maka Zai Gold Rum is blended on the Goan seashore. It is a perfect dessert and sipping rum. Its silky, elegant and approachable charm gives you the feeling of a sunny, late afternoon.
With a clear colour and creamy and elegant aromas, the Maka Zai White Rum runs a sweet and spicy finish. This flavoured rum that boasts a spicy and grassy palate makes for a star component in cocktails.
Product details: 750 ml; ABV – 42.8%
Price – INR 1100 onwards.
Available in Goa, Maharashtra, Karnataka, Delhi, Haryana and Puducherry.
Amrut’s ‘Children of a Lesser God’
Single Malt Amateur Club, whisky appreciation club, and Amrut Distilleries have joined forces for ‘Children of a Lesser God.’ Amrut’s first Single Cask Special Edition, exclusively available to SMAC members (membership is free). Matured in an ex-rye cask, the expression offers a unique flavour profile, marking unexplored territory in Indian whisky. The bottle’s design, featuring diverse Indian cultures, adds a fun, floral twist to traditional whisky branding.
Product Details: 750 ml | ABV: 50%
Price: INR 9999
Beachville Coffee Roasters – Specialty Coffee
This specialty coffee company offers high quality blends and is sure to make the perfect gift this Women’s Day. With their very own roastery, Beachville Coffee Roasters brews excellence in every sip.
With coffee sourced directly from various regions in India, Beachville provides an array of blends, each boasting its own distinct flavour profile. The single origin specialty coffees are chosen from estates including Nachammai in Yercaud, Mooley Maneh in Coorg, Hippla and Kelagur Heights in Chikmaglur. And, for those who appreciate tradition, the Filter Coffee Blend never disappoints. Moreover, each variety offers customizable grind sizes, including options such as whole bean, espresso grind, pourover, and South Indian filter blend.
Product details: 250 gm
Price: INR 375 onwards
D’YAVOL
Celebrate Women’s Day by indulging in these premium spirits – where craftsmanship and authenticity come together to deliver a decadent sipping experience!
D’YAVOL Single Estate Vodka: Originating from Poland, this sipping vodka is made from 100% winter wheat. The luxury spirit stands out with its unique Black Pearl Filtration, resulting in a velvety smooth finish and enhanced mouthfeel. As a single estate vodka, each hand-selected ingredient is sourced from the pristine land surrounding the distillery, reflecting a strong commitment to the grain-to-glass ethos.
Product details: 750ml; ABV: 40%
Price: INR 2,700 onwards
Available in Delhi, Uttar Pradesh, Haryana, Telangana, West Bengal, Maharashtra, Goa and Karnataka
D’YAVOL INCEPTION
This 100% pure malt Scotch whisky is a carefully crafted medley of eight single malts from the distinctive whisky-making regions of Scotland. Undergoing multiple years of maturation in first-fill Tawny Port and rare Madeira casks, the resulting dram has a distinct palate of sherried sweetness, perfectly complemented by gentle Island peat.
Product details: 750ml; ABV: 47.1%
Price: INR 6,000 onwards
Available in Delhi, Uttar Pradesh, Haryana, Telangana, West Bengal, Maharashtra, Goa and Karnataka.
44°N Gin – Comte de Grasse
Celebrate Women’s Day by showing your appreciation to the hard-working women in your life with a gift that pampers and indulges them. Introducing 44° N Gin, a luxury gin crafted on the shores of Grasse that captures the essence of the Mediterranean in every drop. Imagine a harmonious symphony of scents, combining the refreshing burst of grapefruit, the timeless allure of Immortelle, and the delicate fragrance of jasmine – all designed to transport your loved one to the sun-kissed shores of the French Riviera, a place of serenity and relaxation, the perfect escape from the stresses of daily life.
Product details: 500 ml ABV: 44%
Availability & Price:
Delhi: INR 11,230
Haryana: INR 9,800
Mumbai: INR 15,500
Uttar Pradesh: INR 8,910
Geist Crowlers – Geist Brewing Co.
For the beer-loving women look no further than Geist Brewing Co – their range of crowlers are sure to impress. From the zesty Geist Kamacitra with its citrus notes, to the rich and comforting Geist Uncle Dunkel, each brew has its own distinct taste and flavour. Whether she’s relaxing after a long day or enjoying a special moment with friends, a 6-pack of Geist crowlers is an excellent choice to leave a lasting impression.
Celebrate with the exquisite 06 Vodka Rosé by Comte De Grasse. This super-premium vodka has an enchanting pink hue that will infuse your celebration with the alluring essence of the French Riviera. The delicately intricate flavour profile of 06 Vodka Rosé makes it the perfect choice for a self-indulgent intimate evening or a gift. With its refined aromas of strawberry and subtle floral notes, 06 Vodka Rosé sets the stage for a celebration filled with sophistication and charm.
The 16th edition of INDSPIRIT is set to take place on 14th March 2024 in Gurgaon, Haryana. This year, the mega Alcobev industry event and awards will span a day, featuring the participation of top manufacturers in the industry. The event is jointly organized by Ambrosia magazine and SAP MEDIA WORLDWIDE LTD.
INDSPIRIT is renowned for its Conference and Ambrosia Awards ceremony. The ground breaking conference, held during the day, will see industry leaders convene to discuss, engage, and find solutions for the future of the industry.
The theme for the 2024 edition of the Conference is ‘Empowering India and Unleashing its Potential’. This theme will encompass discussions on India’s entrepreneurial journey and future potential, as well as other topics such as the Global Overview of the Alcobev Industry and its Impact on India, the Evolution of Alcohol Regulations and Prohibitions in India, among others. Panel discussions will also focus on Consumer Evolution for Modern Markets, India’s appetite for exploring investments, mergers, and acquisitions, and the Rise of Digital Media, among other pertinent topics.
The conference is expected to offer visitors a comprehensive overview of the industry in a single day, along with the opportunity to network with industry leaders in a closed-door setting. While the conference is by invitation only, interested attendees can register online and check the full list of the conference topics by clicking here www.indspirit.in
Ambrosia Magazine, Asia’s largest and premier Alcobev magazine in its 32nd year of publication, is organizing the event. “We are extremely excited about INDSPIRIT 2024 as India’s global growth story continues to make headlines. The event provides a platform for the industry to come together to celebrate and discuss its future,” said Trilok Desai, Publisher and MD of Ambrosia and SAP MEDIA WORLDWIDE LTD.
“Since its inception, INDSPIRIT and Ambrosia Awards have been the most anticipated events in the industry calendar. In its 16th edition, we continue to expand our horizons to offer more to the industry each year. From the unique style of the Ambrosia Awards to the Conference, the event is a one-stop shop for anyone looking to learn about the industry in a day,” added Bhavya Desai, CEO and Group Head of SAP MEDIA WORLDWIDE LTD.
Even as new technologies to prevent fake liquor emerge, there are still many hacks who think of devious ways to push the fake business. This needs to be taken head on.
This November, Haryana reported 20 deaths due to consumption of illicit liquor. On and off, we hear of incidents wherein illicit/fake liquor takes toll of human lives, besides upsetting genuine liquor business. Even as new technologies emerge, there are still many hacks who think of devious ways to push the fake business. That needs to be taken head on.
Counterfeit wines and beverages pose a significant danger, causing a loss of US$3.18 billion in direct sales and costing governments US$2.61 billion in tax revenues, states Vikas Jain, Founder of Acviss Technologies. He states that counterfeiters have been able to pull off frauds that would have looked impossible a decade ago, now with the help of technologies. And by leveraging e-commerce platforms and social media they are able to distribute their products across the world as well.
But what is fake liquor? Fake or illegally produced alcohol is that which is produced in unlicensed distilleries or people’s homes and intended for sale. Production of fake alcohol is more likely to use cheaper versions of alcohol, and contain potentially even more dangerous chemicals, unlike alcohol which primarily uses ethanol. There is no way of knowing for certain the ingredients contained in fake or illegally produced alcohol, there lies the risk of drinking it.
The Food Safety and Standards (Alcoholic Beverages) Regulations, 2018 has in detail listed out what companies need to take care of, including labelling, while manufacturing and selling all kinds of spirits, beer and wine. However, the illicit and fake liquor business in India is thriving and many times with impunity. So, it is for the liquor manufacturing companies to secure their businesses, using technologies, intel and other means.
Fake market growing
Reports indicate that in India alone there were over 6,000 deaths due to poor-quality or fake liquor in the last six years. With the Indian alcohol market growing at a CAGR of 8.8% and it was to reach 16.8 billion litres of consumption by end 2022, the fake market too is growing. As per the Federation of Indian Chambers of Commerce and Industry (FICCI), the illicit alcoholic beverage market size in value terms stood at ₹23,466 crores in 2019-20.
As excise comes under the purview of the State and each of the 29 States (Gujarat, Bihar and Nagaland have prohibition) and seven Union Territories have their own ways of regulating liquor trade. There are avenues for fake liquor, interstate smuggling of liquor etc. depending upon where the market is lucrative. The onus lies on the brands to protect their interests as counterfeiting goes beyond the labels, bottle designs and caps.
Counterfeit trade flourishes
Says Vikas Jain, “Counterfeit beverages are being abundantly available in the market and there doesn’t seem to be an end to it. Fake alcohol products that are produced illegally or use sub-par ingredients and don’t meet security and safety standards. The counterfeit trade has already cost the Indian government a loss of ₹1 trillion in taxes in recent years.”
Common malpractices
Mr. Jain mentions that the most commonly used malpractices in the alcoholic beverage industry include –
Bottle Recycling: Counterfeiters collect empty authentic bottles, refill them with inferior or fake products, and reseal them with counterfeit labels and closures.
Label Forgery: By using high-quality printing techniques and materials, counterfeiters create fake labels that closely resemble authentic branding and design.
Blending and Dilution: One of the most widely practised counterfeit techniques is to mix lower-quality alcohol or water base with small amounts of original ones to create the illusion of authenticity. This leaves the consumers convinced that they have purchased the original product and won’t raise much suspicion.
Implementing a clear and standardised labelling
Asked how brands can protect themselves from counterfeiting, Mr. Jain mentions that the starting point would be implementing clear and standardised labelling with detailed information about the product, including origin, production methods and quality certifications. “One of the best visual identifiers to prevent counterfeiting is to use a highly recognisable and unique bottle shape. This helps the customers to directly identify the brand and verify its authenticity without using another method of authentication. Conduct regular campaigns to raise awareness about the risks of counterfeit alcohol and the importance of purchasing from reputable sources. Work closely with retailers to ensure that they are educated about the risks of counterfeit alcohol and can guide consumers in making informed choices. And obtain and display recognised quality certifications on the product packaging to signal authenticity and adherence to industry standards.”
Incorporating non-replicable labels
Asked about how Acviss helps in combating the counterfeiting menace, Jain stated that “Acviss’s Certify helps to incorporate non-replicable, unique labels into your product or packaging. The best part is that they are tamper-resistant and act as a digital certificate for the products. Customers can easily scan and verify the authenticity of these products and quickly glance through the product and manufacturer information.
Acviss’s Origin tracks your product through each stage of its lifecycle, from the manufacturer to distributor and the end consumer. This helps to learn the behaviour of the supply chain, increasing the visibility and locating the vulnerable points.”
Long run benefits
On the issue of anti-counterfeit solutions being expensive, Mr. Jain mentioned, “Yes, most companies see anti-counterfeit solutions as an unnecessary cost. But, frankly, anti-counterfeit solutions are an investment that can benefit the brand in the long term run. Not just to recover the profits, but also to retain customer trust and reach out to new audiences. The plus side with Acviss is, that our solutions can be customised according to the requirements of the brand which is more effective than a one-size-fits-all solution.”
To deal with this menace, brands have to think on different levels. “As technology is getting more and more advanced, counterfeiters are also finding new ways to bypass the existing preventive measures. But it doesn’t necessarily mean that the anti-counterfeit solutions are meaningless. If we take Acviss as an example, we have been constantly evolving and innovating new technologies to keep up with changing environments. We have also been able to surpass the existing measures and create groundbreaking inventions in the brand protection field lately by leveraging the AI and ML technologies.”
Mr. Chander S Jeena, Associate Director of the Authentication Solution Providers’ Association (ASPA) said, “The answer lies in the upgradation of current technologies, systems, and regulations to ensure end-to-end secure supply chain. For example, to prevent tampering, refilling, and ensure revenue protection, the tax stamps (excise adhesive label) must be enhanced with new generations’ overt (visible) and covert (hidden) security features to facilitate easy identification by important stakeholders in the supply chain. Further, there is a need for solutions to safeguard the movement of liquor supply. Many States are using geo-tagged ‘digital locks’ for liquor-carrying tankers, with GPS-based tracking services to track in transit consignments through distilleries, bottlers, company-owned bonded warehouses, and transporters. Widespread use of these solutions across the country can bring a drastic change in just a few years.”
Keep an eye out for European Wines with Sommelier Devati Mallick
The stage is all set for VINEXPO Delhi 2023 to get underway tomorrow. While there is much to look forward to for the visitors, with many foreign producers gracing the event, the European Union (EU), located at Booth F50 in Hall 1B is expected to have a strong showing as the Region of Honour. The fair will be held from 7th– 9th December, 2023.
European wines, beers and spirits are more than alcoholic beverages, thanks to exceptional raw materials, timeless craftsmanship and unwavering safety standards. Europe is the birthplace of the world’s wine industry, and traditions of winemaking are proudly passed from generation to generation; they have defined European rural landscapes for centuries. Nowadays, the EU accounts for 45% of world’s wine-growing areas, 65% of wine production, 57% of global wine consumption and 70% of exports, making it the world leader in each of these categories.
A tradition of quality and excellence
More than 1700 European wines have Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) protections, serving as a guarantee of their authenticity and quality. The consumers can enjoy these products in the knowledge that they have been produced to the highest quality and safety standard. Whatever your preference, you will find something to delight you among the wines of Europe. Red, white, rosé or sparkling wines from Europe can help make any occasion special.
European Union: The Region of Honour at SIAL and VINEXPO in New Delhi
What makes this year’s VINEXPO particularly noteworthy is the presence of over 50 company representatives, including 14representing wines and spirits sector, facilitating B2B matchmaking sessions on December 7 and 8. These sessions offer invaluable opportunities for Indian buyers, retailers, and distributors to connect with European businesses across various food and drink sectors
Moreover, the European Union’s VINEXPO booth will host a series of enlightening masterclasses on wines, beers and spirits. Each Masterclass, lasting 30 minutes, will feature a selection of beverages for tasting. Among these, the EU Masterclasses, led by renowned sommelier Devati Mallick, promises to be a highlight. As you sip and savour the wines, you’ll embark on a journey through Europe’s finest vineyards, guided by the expertise of a true connoisseur.
As we gear up for VINEXPO Delhi 2023, we invite you to join us in celebrating the union of tradition and innovation in European winemaking. Stay tuned for an unforgettable wine experience that promises to captivate your senses and leave you with a deeper appreciation for the world of wine.
Let’s raise our glasses to VINEXPO Delhi 2023, where European wines and spirit drinks will take center stage, and the EU’s commitment to vinicultural excellence, along with the expertise of Devati Mallick, will shine brighter than ever before.
The EU’s participation in SIAL and VINEXPO 2023 is part of its ‘More than Food’ campaign, actively promoting outstanding European agricultural products on a global stage. For the latest information and updates, visit the official ‘More than Food India‘ webpage.
For media inquiries, please contact: sial2023@agripromotion.eu
To infuse moderation India, EU, UK and the US have used taxation as a tool. But other reasons also encourage moderation. A report.
The domestic alcohol beverages (alcobev) industry is expected to have revenue growth of 8-10% in 2023-24 but operating margins may contract by 90-140 basis points due to input cost pressure, a report by rating agency ICRA stated.
The alcobev industry witnessed a strong revival in the last fiscal in FY23 led by a healthy demand across both segments – spirits and beer, after two consecutive pandemic-hit years of FY21 and FY22 “During Q1 FY2024, the spirits industry reported a 13% YoY increase in revenues despite being the lean season for the segment, while the beer industry, despite being the peak season, “Moreover, the majority of the ongoing capacity addition is attributed towards beer manufacturing, which is expected to come up in the near to medium term with some players looking to expand to new states and deepen penetration in the existing regions.
“ICRA expects the industry to continue to demonstrate stable and healthy credit metrics supported by strong cash flow generation and limited debt addition,” it said. India is also poised to make strong spirits gains thanks to its booming economy; rising consumer incomes; market recovery and growth post-pandemic; and strong consumer confidence. However taxes play an important role in determining the prices of alcohol.
In spite of GST on alcohol not being levied, the prices of liquor continue to rise after the rollout of Goods and Services Tax. This is because the inputs used to manufacture liquor were taxed at 12-15% under the VAT regime before GST. However, after the introduction of GST, most of the input raw material now attract 18% GST resulting in increased input cost. This rise in taxes on the inputs is passed on to the end customers. The other reason for the sharp increase in the cost of liquor is the applicability of GST on transportation and freight charges. Previously, transportation and freight attracted a service tax of around 15%. However, post-GST, they are taxed at 18%. Hence, even with no major changes in the VAT rates charged on beer or liquor, the cost of beer and liquor increased due to the increase in input taxes.
Industry Analysis
The liquor industry isn’t much supportive of the government’s decision to charge no GST on alcohol. Exempting liquor from GST has led to a rise in the overall cost due to the increased taxes on the inputs. Further, as the output is a tax-exempt product for the manufacturers they need to pay input taxes on inputs and then claim the refund of ITC (input tax credit) accumulated. This is a long process, which leads to the lengthening of the working capital cycle. Most of the liquor manufacturers believe that there’s no point in excluding beer from the purview of GST as the alcohol content by volume is only 5%. Most of the industry insiders wish that beer is brought under the GST regime. This will have a remarkable impact on the flourishing tourism industry.
EU law requires every EU country to levy an excise duty on beer of at least €1.87 per 100 litres (26.4 gal) and degree of alcohol content. That amounts to a minimum tax of €0.03 ($0.03) for a 330ml (11.2 oz) beer bottle with 5% alcohol content.
After a decade of cuts and freezes to the alcohol duty in Britain, in August the level of duty will rise with inflation – an international best practice and World Health Organization recommendation.
With the new alcohol duty system alcohol tax rates will lower the cost of beer for pub-goers and will raise the cost of most other alcoholic beverages in supermarkets and other off-licenses.
In recent decades, alcohol had been getting ever cheaper, fuelling a public health crisis. In the UK, the alcohol duty is a type of tax paid by companies that produce alcohol. It is paid by the company who produces or imports the alcoholic drinks. The tax level relates to the strength and size of the product, rather than its sale price. The level of duty is decided each year in the Government Budget.
On August 1, 2023 the alcohol duty change has come into effect in the UK. It makes duty across different types of alcohol more consistent by taxing based on alcoholic strength by volume (ABV).
In the past the UK tax system has been complicated and inconsistent, with different rules for different alcoholic products. The new system is much closer to international standards in alcohol tax policy and contains elements of World Health Organization (WHO) best practices.
Evidence from across the world shows that alcohol harm falls when the population levels of alcohol consumption fall. When alcohol is less affordable, less is consumed, and so there are fewer deaths, injuries and illnesses caused by alcohol.
Alcohol harm disproportionately affects people on lower incomes and in greater deprivation, even though evidence shows these groups consume less alcohol than higher income groups.
The impact of alcohol on communities and health is also unequal across the UK. People living in the poorest areas of the country are more likely to experience illnesses due to alcohol, and a greater proportion of the population in deprived areas die due to alcohol.
Taxing alcohol by volume (ABV) targets strong alcoholic drinks, which are particularly harmful. Increasing the price of alcohol could be viewed as ‘regressive’ policy (if alcoholic products are more expensive this affects those with less money more). However, on average, people with less money tend to consume less alcohol than those with more disposable income. At the same time, the health costs and mortality from alcohol are higher among lower income communities and people.
A recent study showed thousands of deaths could be averted through lowering alcohol strength in beer, wine and spirits – something the new alcohol duty system is likely to facilitate.
Finland, the United Kingdom, and Ireland levy the highest excise duties on beer. Finland levies a tax of €0.63 ($0.66) per 330ml beer bottle, followed by the United Kingdom at €0.37 ($0.40) and Ireland at €0.37 ($0.39) per beer.
Bulgaria, Germany, Luxembourg, and Spain each levy approximately the EU’s minimum rate of €0.03 ($0.03) per beer bottle.
The EU’s wide range of tax rates spans the range of global tax rates on beer. Finland is a high tax outlier within the EU, but its tax rate is only slightly more than half of Israel’s tax rate on beer. Conversely, Germany has the lowest tax rate on beer of any country in the OECD. Tax rates across the EU are generally higher than rates in the U.S. The minimum EU beer tax of $0.03 per 11.2 oz bottle exceeds the tax rate of the median U.S. state (Virginia at $0.02 per 11.2 oz bottle).
All European countries covered also levy a value-added tax (VAT) on beer, which is charged on the sales value of a beer bottle.
Moderation increasingly driven by economic concerns
Previously driven mostly by health and wellness concerns, moderation in alcohol consumption is now increasingly being spurred by economic worries and a need to cut household spending. Consumers are choosing to cut down rather than down-trade in many markets.
Moderation – both as a lifestyle choice for health and wellness, as well as an economising strategy amidst rising inflation – is taking a number of forms, such as:
• Reducing the number of occasions during which alcohol is consumed, either by substituting with a non-alcoholic beverage, such as a soft drink, or by simply exiting the consumption occasion (such as skipping the mid-week after-work drinks).
• Reducing the number of alcoholic drinks on a given occasion, for example, by drinking less, or in some cases, by combining consumption of a full-strength alcoholic beverage with a no- or low-alcohol beverage during the same occasion.
About half of all adult drinkers of beverage alcohol surveyed as part of IWSR’s price sensitivity study across 17 focus markets in H2 2022, expressed interest in moderating their alcohol consumption. The trend is particularly strong in European markets where economic confidence is low, such as the UK and Germany.
The long-established trend of moderation as a health and wellness choice continues, especially amongst those on higher incomes in countries such as the US, Canada, Australia, and China. Germany remains the largest market for no- and low-alcohol products, however smaller markets, such as the US, Canada and Australia, will show more dynamic growth, with volume CAGRs 2022-2026 outpacing that of Germany.
For some consumer segments, such as millennials in select markets, previous interest in no- and low-alcohol products due to wellness concerns has now been combined with an economic imperative, amplifying the trend.
The Delhi Government has decided to grant license in form L1, L1F and L2 for the wholesale vend of Indian liquor in the National Capital Region (NCR) of Delhi for the licensing year 2023-24 with effect from October 1, 2023.
The Excise Department has said that the prescribed forms can be obtained from its website and that there would be a processing fee of Rs. 5,000 for each license. The Department said that the terms and conditions for the licensing 2023-24 would be the same as that of 2022-23. The government said that it reserved the right to review the duties / fees to be paid / payable in case of any amendment to the law related to liquor and bonded warehouses.
The Department said that in case of existing licensees / registered brands active up to September 30, 2023 there is no change in the EDP / right structure / label / source warehouse etc. The registered brands for the year 2022-23 may be registered for 2023-24 on the same terms and conditions of the previous year, consequent to the payment of requisite fees and submission of undertaking / affidavit of the same.
It said that for new registration of brands applications received without complete information and supporting documents as required in the prescribed form along with annexures shall be liable to be rejected.
These changes are to ensure continuity of supply and the amendments will be in place till the new policy is formed. This will be third time the Delhi Government is giving the extension.
It may be mentioned here that the previous policy introduced in 2021 by the Aam Aadmi Party (AAP) government had to be scrapped as it ended up in scandal which is currently under investigation.
The excise department has proposed to extend the existing 2020-21 liquor policy by six months till March 31, 2024, to ensure the continuity of liquor supply. The excise department will issue a formal order in this regard.
Expert welcomes policy
Mr. Raju Vaziraney, one of the veterans of the wine and spirits sector and presently Adviser and Business Development Head of Amrut Distilleries, has welcomed the policy saying technically it is a new policy thereby allowing new companies to get registered and pay one-time fees and not fees from retrospective effect. The Companies will be encouraged to bring – in new brands, thus ensure more variety of brands, more consumer choice. However, he said the new policy gave only two days for companies to submit all documents.
However, he reiterated that the salient features are a) Existing Licences to be renewed by giving an undertaking / affidavit; Existing licences are renewed till March 31, 2024; Existing brands with existing EDPs to continue till March 31, 2024; Existing brands to pay proportionate fees of six months and not 18 months as was the practise in the policy of 2022-23.
In order to ensure continuity of supplies the online transparent system worked overnight & supplies commenced from October 3, 2023. However in view of paucity of time lot of prominent brands are under process of being made available. Mr. Vaziraney said that however, the challenges are that Delhi will have to wait till six more months to get a full-term year policy with possible participation of private trade thereby offering a great buying experience. The vends at the airport could also open next year as presently a world class city like Delhi does not have any vends at the airports
It is expected that Delhi will have a full year policy which will bring-in consumer choice brands and also bring – in reforms in terms of more liquor stores, more in trade outlets, he added.
