An award-winning distilled spirits company which uses innovative accelerated ageing technology to manufacture its products will raise the quality of Jagatjit’s IMFL brands at an affordable price. The technology will also be made available to all players in the industry who choose to use it in India.
Jagatjit Industries Limited (JIL), one of India’s oldest and established Liquor company, engaged in Indian Made Foreign Liquor (IMFL),Country Liquor, Malted Milk Foods, Malt extract and Real Estate, recently announced its proposed partnership and association with Lost Spirits Technologies (LST), USA, an award-winning Los Angeles-based distillery adopting disruptive accelerated ageing technology producing whiskey and rum.
LST is a pioneer and the most successful company to have mastered and demystified the chemistry involved in the barrel ageing of spirits and has been very successful in creating technology which can replicate very high quality accelerated ageing of alcoholic spirits. LST has been widely acknowledged for its use for this disruptive technology which results in replication of a 20 year aged alcoholic spirit in a span of six days producing the same chemical signature and taste.
With this association Jagatjit Industries Limited (JIL) will enhance current product portfolio and launch new products in the premium segment using this technology in the near future. The joint venture will help Jagatjit launch a premium whisky in the next three months and reduce its dependence on imports from Scotland and the high costs associated with barrel-ageing, the company said. The partnership will also allow the technology to be made available to all players in the industry who choose to use it in India. Since India is one of the largest liquor markets in the world, it is JIL’s objective to use this technology to reduce the dependence on imports from Scotland and the prohibitive costs associated with barrel ageing. With this technology JIL will strive towards world class aged and matured alcoholic spirits which will be “Made in India”. It will also further India’s position as a world class whisky hub capable of producing top of the line alcoholic spirits at very competitive price, further reducing import costs and increasing export value.
Talking about the association, Bryan Davis, Founder & Chief Executive Officer of Lost Spirits, said, “India is the world’s largest individual whiskey market. So for Lost Spirits, choosing a technology partner in India was a very important decision. We ultimately chose to work with Jagatjit Industries for a variety of reasons. We were seeking a partner with both the manufacturing and distribution capability to follow through at scale and a management style compatible with our board of directors. We believe we found the right partner in Jagatjit and Ms. Roshini Jaiswal. After working together for the past 18 months, we are delighted to see the project progress and excited to share the forthcoming developments.”
Roshini Jaiswal, Chief Restructuring Officer (CRO) of Jagatjit Industries, said, “Jagatjit Industries has always been a company that has been on the forefront of change and innovation. The founder Late Mr. L.P. Jaiswal was a visionary who set the trend by bringing in path breaking associations to India in the form of his tie-ups with Pepsico, Ovaltine and being the first company to introduce Bottled In India (BII) scotch in the form of Teachers Whisky. True to tradition we are now announcing our association with Bryan and Joanna (co-founders of LST), an association which will allow us to reshape the industry. This partnership between JIL and LST was possible because of the synergy in the vision of Bryan, Joanna and I which has allowed us to work very successfully together in bringing the company to a scalable position in the last 18 months. This is a significant strategy for our future to remain sustainable, designed to strengthen Jagatjit Industries, and to create long-term value for our shareholders and stakeholders across the value chain.”
The move is being described by Roshini, as the last part of the overhaul process she initiated ever since she came on board about five years ago. She has tried to make the management leaner, struck debt-restructuring deals with private equity company KKR and Indiabulls Commercial Credit, strengthened distribution networks and withdrawn from loss-making markets.
Roshini added:“Jagatjit Industries has always been a company that has been on the forefront of change and innovation. True to JIL’s tradition, we are announcing our investment in LST, which will allow us to reshape the global spirits industry. Disruptive technology is the future across all business categories. Uber, AirBnb, Smartphones, Tesla, have clearly demonstrated the impact of innovative technology. The accelerated ageing process developed and patented by LST will revolutionise the global spirits industry. The quality and cost advantages of this technology are unparalleled as compared to its predecessors.”
“Our future with disruptive technology is coming after series of steps that we are taking as a part of our restructuring exercise. The restructuring exercise started with our need to create an asset light, low working capital model at the national level by embracing established and strong partners/associates in every state who would be able to effectively utilise their existing manufacturing and distribution facilities for growth at lower cost. This restructuring has enabled JIL to work on product development, packageing and the new technology for the required push necessary for our state associates. Needless to say this transition has resulted in temporary disruption in sales volumes over the last few seasons.”
Further she pointed out, “Through this investment, we have also entered into an agreement with LST specifically for the Indian market. We will not only use this technology to improve our own product portfolio (and reduce costs at the same time), but will also license this technology to others in India. Further this will also exponentially grow India as an export hub. This is a significant strategy for our future to remain sustainable, designed to strengthen Jagatjit Industries, and to create long-term value for our shareholders and stakeholders across the value chain.”
Jagatjit, set up under the patronage of the Maharaj of Kapurthala and founded by the late L P Jaiswal, will use the technology to make the product in its distilleries. The move comes at a time when legacy Indian spirits makers such as Mohan Meakin, House of Khoday and Jagatjit have been struggling to cope with the stiff competition from the larger multinationals and seen their market share dwindle. While Jagatjit did not specify the nature of the whisky it intends to make, Meakin and Khoday have launched single malts in the last few months.
- This technology was granted patent in the USA in the year 2017.
- This breakthrough technology has earned LST encomiums in the form of:
- Liquid Gold Award- Jim Murray Whisky Bible ( top 5% of Whisky)
- Best World Whisky in Dominic Rioskrow’s Wizards of whisky
- Best in Class for oven proof rum at the Miami Rum Renaissance
- Favorable reviews in Whisky Advocate Magazine
- Nominated for Craft Distillery of the Year in Whisky Magazine
- Best in Class for super premium rum from the Spirits Business UK