The Vodka market in India hasn’t been experiencing high level of growth for few years now. But while the regular Vodka category has witnessed a flat line, the flavours category has been witnessing good growth in the industry and nearly accounts for 60% of the overall vodka sales. Precisely the reason why you see manufacturers offering flavours of their vodka. So it is only natural that when India Glycols must’ve chosen to launch their vodka, it would be in two flavours, Green Apple and Orange.
If you remember then recently, we reviewed the Single Reserva Whisky which was also from India Glycols. The price of this product is Rs. 750 in UP is also available in Uttarakhand, Chandigarh and Rajasthan. There are also plans to take it National this year. With its price this Vodka is in the same category as some of the highest selling brands like Magic Moments and similar to Single Reserva, this vodka is also made at the company’s Kashipur and Gorakhpur plants.
Now Amazing Premium Vodka has been developed with the help of Raju Vaziraney who has been in the industry for many years and has helped in developing a lot of brands. This is a Grain-based Vodka which is infused with imported enhancers that have been brought from Germany. As you might knoe that enhancers are added flavours that provide the spirit with a premium feel. This is common in the industry and the flavoured vodka market. But since these are imported from Germany, it also is the distinguishing factor for this vodka as compared to the other vodkas made in India. The vodka is also 5-times filtered to make it smooth.
Packaging
Vodka packaging is always more bolder since it needs to be attractive to appeal to the youth and women. Amazing Vodka comes packed in a frosted bottle with four colour printing and the bottle features an illustration of Mermaid suggestive of fantasy. What’s also clear is the flavour with the green colour for the label and the caps. We like the printing on the bottle, it feels premium and nice and also that the word amazing is embossed on the bottle.
Nosing
In terms of nosing you get the subtle green apple flavour, which isn’t very overbearing. With a 37.5% ABV the vodka isn’t exactly very strong. But the filtration process ensures that you can nose that the spirit is refined and smooth. The aroma is also very distinctive and crispy.
Tasting
With the first sip itself you can get the flavour. The spirit is smooth and it feels premium, especially since they’ve used imported enhancers. The finish is medium-longish and there isn’t any afterburn as it trickles down. There is a slight hint of peppery note in the taste to give some spice to it. But again, it isn’t overbearing. We also added a mixer to it to allow the vodka to open up a little and see what it does. Once added it makes the spirit even more milder, so may be as a tip: don’t add too much of the mixer when you choose to drink it.
Conclusion
So what is it that we think about the Amazing Premium Vodka. For a price of Rs. 750 for a bottle it is clear that it is targeted to users that are looking for good value for money. And of course you do have popular brands in that category already. When mixed with something that you like as you usually consume vodkas then you might feel really at home when it comes to this vodka. But our suggestion would be to not mix it with something very sweet since green apple flavour already has a hint of sweetness. But all in all, it has everything that you want from a vodka at this price point and it surely is worth a try.
It has been a long successful journey for Radico Khaitan which first produced supplied extra neutral alcohol ENA to production of their 15 brands, to creating five millionaire brands, operating 28 bottling units, going the premiumisation route, and creating world class brands in the luxury brands category. Dr. Lalit Khaitan looks back in retrospect at the journey and is confident that his son Abhishek Khaitan, who has worked alongside him will take the company to greater heights.
What effort does it take to make a company like Radico Khaitan? Can you share some insights into that?
Establishing a business from scratch requires perseverance and a clear vision. Nothing can be achieved within a few years. When my father, Mr GN Khaitan, bought the loss-making Rampur Distillery in 1972, we produced extra neutral alcohol (ENA) and supplied bulk alcohol for several liquor companies. We started production of our brands in 1999, and now have over 15 brands including five millionaire brands, and operate 28 bottling units across the country. The mantra for success is quite simple: understanding of market or segment, the audience’s taste, and taking decisions to narrow down market gaps.
What are the three key turning points that you attribute to the success of making Radico the biggest IMFL company today?
First turning point was when turned from a bottler to creating our own brands with – The launch and success of 8 PM whisky is the turning point as we started the branded IMFL business with it. We sold a record one million cases of 8 PM in the first year of its inception, a record that is yet to be broken by any other brand in India; in fact, it made it to the ‘Limca Book of Records 2001’ for the achievement. We utilised the best marketing brains and tools to popularise the product; even the commercials for the product won many accolades at that time.
Second was when we started premiumisation – with the launch of Magic Moments Vodka in 2006, followed by six versions under the brand Magic Moments Remix within two years of its release also helped us gain a strong footing in the industry. The brand established itself as the industry’s undisputed leader and category driver by capturing more than half of the category’s market share. Our decision to enter the vodka business paid off as Magic Moments rose to become the world’s seventh-largest vodka brand. I would also like to talk about the decision to go premium in 2009 with the launch of Morpheus XO Brandy as the game-changer for us and a successful PAN India brand.
Third was when we entered into Luxury segment -Then the launch of Jaisalmer Indian Craft Gin and Rampur Indian Single malt in 2018, not only mesmerised the Indian consumers, but brought a delightful experience to the connoisseurs’ world by endorsing Indian brands in the international markets. We have successfully built our brand equity in international markets and currently export products to over 85 countries.
Looking back do you feel that there are some things that you would’ve liked to do differently than today?
The way things have turned out for us, I would not change a single thing. The Branded story of Radico, which we started with in year 2006 is a perfect example of growth and scaling up.
A success of the company is directly attributed to its leaders. But how important is it to have the right team and processes in place to achieve that success?
If the team doesn’t resonate well with the vision and the mission set by the management, the whole idea of an efficient leader can fall apart. No success is assured without having employees who are focussed on accomplishing the unified business objective. In my view, anybody can copy machines, but it is manpower who makes all the difference in success and not so success.
What do you think Radico took such a long time to diversify into premium brands?
As I have always maintained, the decision to enhance the brand portfolio has to be taken after taking stock of the overall market dynamics. We entered the premium category in 2006 and that was the time when the liquor market was witnessing a shift from just social acceptance to the development of a society that enjoys drinks. The success of our premium brands attests to the right timing. Besides market leaders including Magic Moments Vodka with over 60% of the market share and Morpheus XO Brandy which has a market share of over 60% in the premium brandy segment- 1965 Rum has achieved a 10% market share in defence, Magic Moments Verve has achieved a 20% market share amongst all premium vodka brands and Rampur Indian Single Malt and Jaisalmer Indian Craft Gin are a rage not only in India but world over. This testament is proof of our timings being right and the strategy being robust.
In the last two years, the company has been churning out some great products in the gin and whisky category like Jaisalmer and Rampur? Moving forward do we expect to see more products like those?
Product innovation is of the utmost importance for us. Our latest offerings including Royal Ranthambore Heritage Collection Whisky and Magic Moments Dazzle have been yielding encouraging responses. We are also working on scaling up the existing brands like Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, 1965 Spirit Of Victory Rum, Morpheus Brandy, and 8 PM Premium Black Whisky. Going forward, you will see a host of products in the premium range from the House of Radico Khaitan.
With its premium products, Radico is focussing a lot on exports as well. But slowly these products are now available in India as well. What was the reason why this strategy was adopted? Was it to replicate the success that some of the other manufacturers have achieved using this route?
We had this strategy for two of our luxury products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin and it worked wonders for us. Both the products are a rage world over. The primary reason was that the single malt and the craft gin categories were already established abroad. In India, these categories are now emerging. Hence, we launched the product first in the international market before bringing them to the domestic market.
What was your vision for the company a decade back and how has it changed considering where Radico is today?
My vision is to work constantly to improve quality standards and enhance customer satisfaction. And it has always been that. Be it last decade or two decades ago. I do not feel that we have to change it as it ultimately gets converted into revenue growth and increased market share. The Customer is the King for us.
The dynamics of the industry and also the way it operates is constantly changing. What are your thoughts on those? Is there anything that you would like to see differently about the industry or any suggestions you would like to make that can improve things?
Right from advertising to marketing, liquor industry operates in a very challenging business environment. For instance, alcohol companies are not allowed to advertise directly so we have to strategise differently to make our brands more visible, rope in more brand ambassadors, and create creative campaigns with infotainment. Since the market is also growing, we have to be on our toes to offer the best products to our consumers and devise marketing strategies that will ensure that our products reach them.
One of the major challenges that has emerged in the recent past is around our surrogate brands. According to the existing rules, companies need to have a separate revenue model for the surrogate brands with a certain amount of turnover and this creates an additional challenge for us.
However, we find solutions to all of these obstacles within the purview of law because we are a responsible company. We have a legacy to maintain. Non-compliance with state regulations is not an option for us. Since we have over 75 years of experience in liquor manufacturing and 25 years in the IMFL business, the company knows about the law across states and knows how to adhere to it.
In Abhishek, you have a son that has led from the front along with a great team. How does that make you feel as a father?
As I worked hard to help improvise and enhance my father’s vision, I am seeing the same zeal in him. He was instrumental in taking the call towards launching our own brands and premiumisation drive which turned the fortunes around for the company. He is a new-age leader who people look up to and that makes me an extremely proud father.
How difficult is it to compete against multinationals as an Indian brand? Your thoughts?
Once a company has a sound understanding of the market, and back that knowledge with its quality products then competition doesn’t pinch much – be it from domestic or multinational brands. Within two decades of launching our brands, we have expanded our reach to over 85 countries, which is an indication of the capability of Indian brands. I would like to give an example of our latest products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin here; when we took the product to the international market, people were surprised by the fine quality leading to immediate acceptance. The idea behind giving this example was that once you have quality products according to the tastes of the people, competition becomes secondary.
Indri Trini is making waves in its nascent years. The new Indian Single Malt, from the stables of Piccadily Distilleries launched in 2021, has been rated as the ‘Best Indian Single Malt’ across all categories by the World Whiskey Awards 2022.
In the first round of World Whiskey Awards Indri Trini won the category winner tag of Gold. Paul John’s Mithuna and Nirvana was tagged silver and bronze respectively. In the second round, Indri Trini walked away with the title of ‘Best Indian Single Malt’ from India across all categories irrespective of being single cask, cask strength or age.
Awakens five senses
True to its name Indri Trini, the Single Malt awakens all the five senses – smell, taste, touch, sight and sound. Indri or Indirya in Sanskrit refers to these five senses. Indri is a quaint little village situated in the catchment area of River Yamuna, nestled in the foothills of the mighty Himalayas. Indri is the place where Piccadily has one of its distilleries, the other two located in Patiala and Bawal.
Indri Trini is truly the new star that the alcobev world is awakening to. Launched recently, its inaugural expression has bagged some of the most prestigious awards globally. Indri has not only got the Indian Single Malt enthusiasts excited, but also has been generating a lot of attention in the international arena.
Indri backed by a mammoth stock of 40,000 barrels with the distillery churning out 12,000 litres of malt spirit every day is all set for the long haul.
The awards have encouraged the distillery to excel. In its debut year, it has also bagged
● Category Winner, No Age statement at World Whiskey Awards 2022 @www.whiskymag.com
● Winner Asian Whisky of the year at Dom Roskrow’s New Wizards Awards 2022 (that is Best whiskey from India/Taiwan/Japan) https://www.newwizards.co.uk/
● Silver, with a 91 score at The International Wine & Spirit Competition 2022
Dom Roskrow, a spirits writer, editor and consultant specialising in whisky, said, “This was one of the most competitive categories in this year’s Awards, with several gold medal winners competing for the title. This, though, was a revelation and joins a growing band of wonderful Indian whiskies. It is matured in ex sherry, ex bourbon and French oak casks so unsurprisingly there’s a lot going on- berry fruits and red peanuts, lemon, grapefruit and tropical notes, all held in place by freshly shaved wood tannins and soft spice.”
Another feather in the cap is the Silver with 91 points at the International Wine & Spirit Competition. Tasted by the connoisseurs across the globe such as Ivan Dixon, Dawn Davies MW, Andrea Dionori, Jeremy Stephens and Ludo Ducrocq have all praised Indri stating that it is clean, malty nose with oak sweetness and hints of tropical fruits. They have said it is tannic, yet has delicate mouth feel revealing prunes, figs and dates giving it an earthy finish.
Trini, the Three Wood
Trini – The Three Wood, is curated by the distillery’s master craftsmen. It is distilled using the traditional Indian 6 row barley, matured in selected barrels, and blended carefully to bring out the individual contribution of each wood (first fill bourbon, ex-French wine and PX sherry casks) without overshadowing the original whisky profile. Indri Trini is bottled at 46% ABV and is a non-chill filtered whisky.
Nose: Hints of black tea, caramelised pineapple with a whiff of oak from the barrel comes forward, followed by vanilla and honey from the bourbon oak and traces of spiced tannins from the European oak, finally topped up with vinous raisin and sweet sherry notes. Gentle and mellow on the nose.
Taste: Elegant richness, smooth and warm on the sides of the mouth. Gentle spice and wood characters come through, followed by nutty flavours and hints of burnt pineapple, citrus and raisins.
Finish: A subtle and balanced finish where each flavour compliments one another without dominating. A smooth and long after taste with sweet fruity flavours coming up from the warmth of the throat, lingering long after.
The extreme temperature of the Northern plains helps the malt spirit mature faster inside the barrels, naturally. This also means the angels happily take away their share, leaving behind sweet tropical flavours and rich natural colour. The distillery proudly uses no fossil fuels to generate its power needs.
Piccadily Distilleries growing from strength to strength
Thanks to the vast experience, Piccadily Distilleries have been able to touch one milestone after other. Having started in 1953 as a liquor distribution firm as Kedar Nath & Sons, in 1967 it formally registered as Piccadily. The brand has only grown from strength to strength. In 2008, it became the first Indian company to receive permission to produce alcohol from sugar cane juice and in 2009 it imported oak barrels from the United States and began distilling spirits from cane juice. In 2010, the founders’ envisioned the creation of a distillery on par with those of Scotland. It commissioned Raj Industries to build what would become of the largest malt plants in India.
Importantly, the company embraced in 2018 a new philosophy towards producing premium, high-end spirits that adhere to EU and Scottish standards of production while phasing out the molasses-based whiskeys of the past. In 2020, it launched Whistler blended whiskey and conceived Camikara rum – representing ‘liquid gold’. The following year it launched Indri single malt whiskey and this year it released Camikara rum, India’s first sipping rum.
The malt distillery at Indri, located off the famous Grand Trunk Road (which linked Central Asia to the Indian Sub continent for almost 2500 years) was set up in 2012. The distillery is also home to 6 traditional copper pot stills (designed and made in India) and 40,000 barrels. Today, it is India’s largest independent malt manufacturer and seller of malt spirits. The distillery is rapidly expanding its warehousing capacity to hold another 30,000 barrels. A new visitor center is also under construction and will be open for visitors by the end of the year.
The late English author Gilbert Chesterton once wrote: “Let a man walk 10 miles steadily on a hot summer’s day along a dusty English road, and he will soon discover why beer was invented.” He’s right, of course — there’s something about the combination of the warmest season and an ice cold brew that just works. Summer in Delhi is unbearable and we do not have an opposition for this. And, how most of us beat the heat is by gulping down frosty and flavourful beers. Delhiites can now rejoice as India’s popular beer brand Bira91 brings you a range of four new limited-release beers – Bollywood IPA, Kokum Sour, Brown Ale, and Mango Lassi – as part of their ‘Imagined in India’ initiative. Team Ambrosia was part of the preview tasting, hosted on April 07 2022 at the beautiful QLA, in Mehrauli, Delhi. The tasting was followed by dinner, curated by Chef Vicky Ratnani, and a live music set by DJ MoCity and DJ Nida. It was what we call a perfect dreamy evening filled with all the finer things in life.
A melange of flavours
The ‘Imagined in India’ beers are made with indigenous products and are inspired by the raw creativity of today’s India led by emerging artists, entrepreneurs, and startups combined with the cradle of flavours that find a home here.
The Bollywood IPA variant has a tropical twist, inspired by west coast India Pale Ales that were born in California, while Kokum Sour has traditional ingredients from the Konkan coast. We loved the Brown Ale – a blend of English Nut Brown Ale and the Antwerpian Amber with notes of coconut and vanilla. Fans of lassi would appreciate the taste of their Mango Lassi version that merges its Wheat Ale and a milkshake beer into one.
Ankur Jain, founder and CEO of the company, said, “For this generation of consumers, beer means flavour, and we deliver on that promise. ‘Imagined in India’ is an attempt to bring together the many flavours of India and its creative energy fuelled by emerging artists, entrepreneurs, and startups. Each beer is brewed with unusual ingredients – local and seasonal – which makes them unique.”
He further added, “Each of these flavours originated at the Bira 91 Limited-release Taproom at Koramangala, Bengaluru, where they received tremendous consumer love and affinity. The flavours were voted as the top-ranked choices by beer lovers, which inspired us to bring them to consumers across the country.”
Earlier, back in 2021, Bira 91, in collaboration with non-alcoholic drinks brand Svami, had rolled out Cucumber flavoured Kölsch. The Bira 91 x Svami Cucumber Kölsch is brewed with pure German Pilsner malt, a fresh cucumber flavour and the delicate caress of the finest German noble hops, with an IBU of 18 and an ABV of 6%. It is a crafted blend of bitter-sweet notes and cool cucumbers creating a crisp, balanced, and revitalising beer.
Staying true to the brand’s playful image, Bira 91 encourages consumers to be more experimental and creative, while exploring new flavours in everything, including the beers that they drink. The new ‘Imagined in India’ range is yet another exciting testament to delivering on that promise.
Collaborations for community growth
To bring alive the flavours, Bira 91 has collaborated with Kulture Co, a curated platform spearheading the new wave of Indian Graphic Art across borders. The brand on-boarded contemporary Indian artists from the Kulture Lab – artists who are breaking the mould and taking modern India to new frontiers – to conceptualise and design the packaging of the four new flavours.
Channelising their art and creativity on a new canvas, artists Ranganath Krishnamani, Osheen Siva, M. Sajid and Prince Lunawara showcase a vibrant palette of local stories around shared identities painted onto these beer cans, paying homage, and narrating the story of our home country.
Commenting on the idea behind designing the packaging of Bollywood IPA, artist Ranganath Krishnamani said, “Conceptualising the packaging of a flavour so bold and dynamic, that it takes you to the heart of Mumbai, where all things Bollywood originated, was truly exhilarating. Incorporating the charming art deco cinemas in Colaba, the iconic ‘kaali-peeli’ cabs, and the vintage colour scheme was the perfect way to capture Bollywood on a can.”
Designer of the Kokum Sour packaging, Osheen Siva, too expressed his thoughts behind the masterpiece and said, “Kokum is a tangy flavour, as Indians have developed a taste for since childhood. To depict a taste so loved yet so new to the beer industry was exciting. I conceptualised it to be something offbeat and loud. For me, the can had to give consumers an idea of what they were picking up from the rack when indulging in a Bira 91 Kokum Sour Beer.”
“Imagined in India to me is being authentic, raw and connected to our roots. Capturing the taste of Brown Ale that recognises uplifts and celebrates diverse communities of India and having the essence reflect in the artwork on the packaging was a great experience,” M. Sajid, who designed the Brown Ale packaging, enthused.
Prince Lunawara, who creatively illustrated the Mango Lassi can said, “India loves mangoes and merging the flavour with beer is as creative as it can get. Through the can, my idea was to celebrate this creativity and the beauty of India’s flavours.”
The limited release beers will retail in metros like Delhi, Mumbai, Bengaluru, and Pune.
According to Expert Market Research, the India beer market stood at a value of nearly 371 billion in 2020. The industry is expected to reach approximately 662 billion by 2026, rising at an estimated CAGR of 9.2% during 2022-27.
Diageo launches Godawan, its artisanal single malty whisky, set to redefine the world of sustainable, modern and conscious Indian luxury.
Godawan, the Great Indian Bustard, a regal, majestic avian… once found all over India, is now nearing extinction, and finds its last refuge in Rajasthan.
Rajasthan, a land of stark contrasts… an arid land of extremes which envelops within it some of the harshest weather conditions. However, culturally, it also preserves and conserves with delicate care and passion everything that exists on its land – whether it is the fauna such as Godawan, its flora such as barley, its innovation in the form of step wells, or its people – known across the world for their thriving, colourful and intricate arts & craft.
The flourishing and world-renowned arts and craft of Rajasthan, such as sandstone and marble art, are a testament to “beauty in scarcity” and crafting exceptional things of beauty from what nature provides.
Godawan, Diageo India’s artisanal Single Malt Whisky, is crafted in, its provenance inspired by, and dedicated wholeheartedly to this Rajasthani ethos – of beauty in scarcity, and sustainability. The heat of over 100°F combined with six-row barley, that requires lesser water, helps create a whisky with an incredible depth of flavour, and a rich and complex character. The aridity means the “Angel’s share” is higher than average in Godawan – leaving behind a whisky with stunning taste profiles, which are finished in special casks selectively curated with Indian botanicals.
Diageo proudly call themselves “The Spirit of the Desert” – the spirit of Rajasthan with its culture, people and ecology which permeates in the character and flavour of their liquid. With Godawan, they doff their hats to the artisans and the innovators who are defining modern Indian luxury that is sustainable, that is ecologically conscious, and truly nurturing of the land it comes from.
Speaking about Godawan, a Single Malt which will change the way world perceives Indian whiskies, Shweta Jain, Chief Business Development Officer, Diageo, says, “When it comes to premiumisation, we, at Diageo India, believe in constant disruptions to up the ante. We believe that our consumers deserve better. We also know that modern affluent Indians are looking for luxury that makes them feel rooted and enriched. Godawan is a product borne out of this belief. It will help our consumers discover an Indianness hitherto unknown – rich and meaningful. Godawan – the spirit of the desert – will redefine the way Indian single malts are perceived globally with its truly world-class story and flavour.
Vikram Damodaran, Chief Innovation Officer, Diageo India, says, “Godawan, Diageo India’s innovation in artisanal single malt whisky, is proof that India is the next emerging destination for quality single malts as well as artisanal craft spirits. Each bottle of Godawan can be traced back to a cluster of barley farms in Rajasthan, ensuring transparency and authenticity of the product and gets its provenance from extreme temperatures which lend it a rare & subtle complexity, and a unique taste. The whisky is not just a testament to the region’s craftsmanship and ingenuity, but also commitment to sustainability and preservation of the land it comes from – and it begins with the Great Indian Bustard.”
Godawan is a labour of love, for our roots, for our heritage, for our land. And it is the embodiment of our commitment – to the conservation of the Great Indian Bustard, and to our communities of artisans and craftspeople. With only a few Great Indian Bustards left in the world, every bottle we make contributes to the conservation of this exquisite bird.
Godawan, The Spirit of the Desert. A story waiting to be told.
The unique whisky-making process involves: Slow-trickle distillation from locally sourced six-row barley; Uniquely matured at temperatures reaching 100°F; Finished in special casks selectively curated with Indian botanicals Godavan will be available in Rajasthan and Delhi to begin with and will then be subsequently available in the rest of India. It will also be available in Dubai from April onwards.
A summer beer can be just about any style, as long as it’s crisp and refreshing and makes you never want to go back inside again. They range from light and fruity to hoppy and complex, but the best summer beer is the one you come back to again and again as soon as the temperature crawls above 60 degrees.
The global beer market size reached US$ 640.2 billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 750.3 billion by 2027, exhibiting at a CAGR of 2.7% during 2022-2027, according to a new report by IMARC Group.
Beer is a fermented alcoholic beverage that is made by brewing and fermenting starches derived from cereal grains. It is flavoured using hops that not only add a buttery flavour to the beverage, but also act as a natural preservative. Apart from this, other flavourings, such as herbs and fruits, are also added to attribute a specific flavour and fragrance to the drink. It is a rich source of niacin, folate, riboflavin, pyridoxine, potassium and magnesium.
Moderate consumption of beer is widely associated with numerous health benefits and aids in maintaining blood pressure levels, preventing kidney stone formations, and minimising the chances of developing cardiovascular disorders, including angina, stroke and heart attack. Owing to this, it is gaining widespread popularity across the globe.
Global Beer Market Trends:
One of the major factors influencing the global beer market is the rapid spread of the Coronavirus disease (Covid-19) and the consequent social distancing norms and lockdowns imposed in several countries as a control measure. The decrease in the number of social gatherings is projected to lead to a decline in the on-premise consumption and sales of beer in bars, restaurants, pubs and public events. However, this trend will to be offset by the demand for to-go packs as well as home delivery services, mainly through online platforms. Another factor driving the market is the widespread preference for specialty beer among individuals. These beers are brewed to a classic style by incorporating different flavours, such as honey, chocolate, ginger and sweet potatoes. This adds a distinct flavour and aroma, which further adds innovative and eccentric flavours to the drinks. The growing inclination toward craft beer is also accelerating the market growth. Since microbreweries produce portioned amounts of beer, they lay enhanced emphasis on the flavour, quality and brewing techniques as compared to large-scale commercialised breweries.
The potential for beer growth in India is strong as well. AB InBev, for example, began brewing Budweiser in the market back in 2010. In January 2021, Kirin Holdings announced an investment of $30 million in New Delhi-based B9 Beverages, the maker of the Indian craft beer Bira. IWSR anticipates beer consumption in India to return to pre-Covid-19 levels by the end of 2023, continuing on its growth path from there.
Expanding beyond beer
As consumers moved to the at-home occasion, the trend for convenience has helped to shape purchasing behaviours. In markets such as the US, the ready-to-drink (RTD) category, which includes hard seltzers, has been taking share from beer. RTDs provide a growing opportunity for brewers to diversify their product portfolios. Indeed, Heineken entered the hard seltzer category in September 2020, with the launch of Pure Piraña in Mexico and New Zealand. In the US, Heineken partnered with AriZona to launch the AriZona SunRise Hard Seltzer in October 2020. AB InBev states that Bud Light Seltzer is their leading innovation in the US market, with over 75% of volume being incremental to their portfolio. In fact, 2021 was the first year in which a hard seltzer commercial (Bud Light Seltzer) aired during the Super Bowl.
Malt-based RTDs are currently dominant in the US owing to their taxation base, and brewers they are in prime position to take advantage. Elsewhere, the alcohol base of choice varies by country, driven by consumer preference and local alcohol tax structures.
Changes in purchasing behaviour propel e-commerce
As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel. Heineken, for example, reported that Beerwulf, its direct-to-consumer platform in Europe, nearly doubled its revenues in 2020, while in the UK, its revenues tripled. Online sales of its home-draught systems grew as well.
Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However, this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel. Online beer sales hold the greatest market share in countries including Japan, the UK and the US. From a lower base, online beer sales will also grow rapidly over the next five years in markets such as Israel and Nigeria.
The entrepreneurial spirit of small-batch players
Craft breweries, which tend to be more dependent on the on-premise, have propelled interest in the global beer category and revitalised its fortunes in many markets. IWSR believes that the entrepreneurial spirit of the sector will mean that craft brewery regeneration will be quick. In the US, for example, IWSR has seen the pandemic lead to a “buy local” approach amongst some consumers, which will benefit small-batch players.
Innovation in the no/low space reignites the category
No- and low-alcohol beer is a bright spot for the category, as moderation and wellness trends continue to resonate with consumers. IWSR data shows that, to date, most volume has come from no-alcohol rather than low-alcohol beer across 10 key markets.
Broadly, low-alcohol beer is giving way to no-alcohol offerings particularly in markets such as Australia, France and the UK. Spain, for example, is seeing a shift from low- to no-alcohol beers, as consumers seek healthier choices and view the newer 0.0% brands as more modern. In South Africa, investment from Heineken and the emergence of a craft segment has helped to generate interest in the no-alcohol category.
While no-alcohol beer has existed for decades, in markets like the US, no-alcohol beer has premiumised through the release of no-alcohol versions of non-lager styles, long the domain of no-alcohol beer. More recent no-alcohol styles, such as IPAs, stouts or porters, are starting to make a real impression, driven particularly by new challenger brands, many of which are not linked to traditional brewing. The recent no-alcohol extension of Guinness – despite some teething issues – will help to underline that no-alcohol beers are no longer the sole domain of lagers.
While several key beer players continue to steer the no/low beer category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space. The segment is likely to become even more of a focus for smaller craft producers who are able to bring a diverse range of products to the market in future.
The India-Australia Economic Cooperation and Trade Agreement (“IndAus ECTA”) was signed by Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Government of India and Mr. Dan Tehan, the Minister for Trade, Tourism and Investment, Government of Australia in a virtual ceremony, in the presence of Prime Minister of India, Shri. Narendra Modi and the Prime Minister of Australia, Mr. Scott Morrison recently. In his opening remarks during the Joint Press Conference with Mr. Dan Tehan after the signing in ceremony, Shri Goyal said the Australia – India ECTA truly symbolises our Ekta (Unity) & the spirit of cooperation. Terming it a historic day for India, as it is the 1st agreement with a developed country after a decade, Shri Goyal said our relationship rests on the pillars of trust & reliability, aptly reflected in our deepening geostrategic engagement through the Quad & Supply Chain Resilience Initiative.
Stating that India and Australia are natural partners, connected by shared values of democracy, rule of law & transparency apart from our shared love for Cricket, Food & Movies, Shri Goyal said Ind-Aus ECTA is expected to almost double bilateral trade to about $50 billion in five years. He said there is great potential for Indian exports in sectors like textiles & apparel, leather, hospitality, gems & jewelry, engineering goods & pharma, IT, Startups etc. Australia has committed to key areas of India’s interest in Services like Education, IT, Business, Professional Services, and Health & Audio-visual while Australia will also provide Post-study work visas for students, the quota for Chefs & Yoga instructors, and Work & Holiday visas for young professionals.
Tariffs will be eliminated on more than 85% of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91% (valued at $13.4 billion) over 10 years.
Australian households and businesses will also benefit, with 96% of Indian goods imports entering Australia duty-free on entry into force.
India is the world’s largest democracy and the world’s fastest-growing major economy, with GDP projected to grow at 9% in 2021-22 and 2022-23 and 7.1% in 2023-24.
Shri Goyal said the Agreement provides adequate safeguards to prevent circumvention, fuse to protect against sudden surge in import of goods; for the 1st time, mechanism included for compulsory review after 15 years. Underlining that the Ind-Aus ECTA will not only herald a new era of trade & commercial ties, but also take the relationship between our nations to greater heights. Shri Goyal said he will be visiting Australia in the coming days, to take the ECTA to people.
Like true brothers, both nations supported each other during Covid-19. Ind-Aus ECTA covers the entire gamut of the trade & commercial relations, removing trade barriers & opening a plethora of opportunities in both goods & services. Expected that with ECTA, the present bilateral trade for merchandise & services of $27.5 bn (2021), may reach a level of about $45 to $50 billion in the next five years.
It is expected to create new employment opportunities, raise living standards and enhance the overall welfare of the peoples of both the countries. Additional employment generation is expected to be 10 lakhs within the next five years. Australian wine exporters, however, will have to wait for the full benefits, with tariffs on wine bottles with a minimum import price of US$15 expected to reduce from 150% to 75% when the agreement enters into force. This tariff will then reduce to 25% over 10 years.
Tariffs on wine with a minimum import price of $5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years.
In services, Australia has offered 135 sub-sectors to India, while India offered 103 sub-sectors to Australia. Adequate safeguards have been provided to prevent circumvention or diversion of goods from any non-party. Provision for bilateral safeguard measures to protect against a sudden surge in import of goods. For the 1st time, a clause is introduced for a special review mechanism that provides for compulsory review after 15 years in a time-bound manner.
“The IndAus ECTA, encompassing trade in goods and services, is a balanced and equitable trade agreement, which will further cement the already deep, close and strategic relations between the two countries and will significantly enhance the bilateral trade in goods and services, create new employment opportunities, raise living standards and improve the general welfare of the peoples of the two countries,” the commerce ministry said recently in a press release.
In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Our Government’s goal is to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment.
The Australia-India Economic Cooperation and Trade Agreement (AI ECTA) signed recently will further strengthen that relationship.
Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year.
“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said.
“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.
“This is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, wool producers from Victoria and metallic ore producers from the Northern Territory.
Benefits of AI ECTA include:
Sheep meat tariffs of 30% will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20% of India’s market.
Wool will have the current 2.5% tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.
Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years (based on Indian wholesale price index for wine).
Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150% to 75% on entry into force and subsequently to 25% over 10 years (based on Indian wholesale price index for wine).
Tariffs up to 30% on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.
Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.
The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
LNG tariffs will be bound at 0% at entry into force.
Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.
Minister for Trade, Tourism and Investment Dan Tehan said AI ECTA would also further strengthen the people-to-people links between our countries. India was Australia’s third largest market for services exports in 2020.
“This agreement will turbocharge our close, long-standing and highly complementary economic relationship in areas such as critical minerals, professional services, education and tourism,” Mr Tehan said.
“It will create new opportunities for jobs and businesses in both countries, while laying the foundations for a full free trade agreement.”
Both countries will facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies in both countries.
Australian services suppliers in 31 sectors and sub-sectors will be guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in: higher education and adult education; business services (tax, medical and dental, architectural and urban planning; research and development; communication, construction and engineering; insurance and banking; hospital; audio-visual; and tourism and travel.
Australia will also provide new access for young Indians to participate in working holidays in Australia. Places in Australia’s Work and Holiday programme will be set at 1,000 per year and Australia will have two years to implement the outcome. This is expected to contribute to both workforce requirements and to boost tourism to support our post-Covid recovery.
In a boost to our STEM and IT workforces, the length of stay for an Indian Student with a bachelor’s degree with first class honours will be extended from two to three years post study in Science, Technology, Engineering or Mathematics (STEM) and information and communications technology (ICT) sectors.
Australia and India have also agreed to undertake cooperation to promote agricultural trade as part of the agreement and will now work toward concluding an enhanced agricultural Memorandum of Understanding (MoU).
Mr Tehan signed AI ECTA on behalf of Australia during a virtual ceremony with India’s Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Piyush Goyal, attended by Prime Ministers Scott Morrison and Narendra Modi.
This announcement builds on the Morrison Government’s $280 million investment to further grow economic relationship and support jobs and businesses in both countries, that includes:
$35.7 million to support cooperation on research, production and commercialisation of clean technologies, critical minerals and energy;
$25.2 million to deepen space cooperation with India and $28.1 million to launch a Centre for Australia-India Relations.
AI ECTA is an interim agreement and both countries continue to work towards a full Comprehensive Economic Cooperation Agreement.
The Kerala Government has approved setting up pubs and wine parlours in IT parks across the state. The State Cabinet which met recently announced a new liquor policy for the financial year 2022-23 which aims to increase the number of retail outlets in the state to bolster its exchequer. In the last five years, God’s Own Country received `46,546.13 crores through the taxation on liquor.
The government revealed to a RTI that it had collected Rs. 766 crores monthly as tax on liquor which meant that tipplers paid as much as Rs. 25.53 crore as tax on liquor. The highest revenue from the tax on liquor was collected during the period of 2018-19 and 2019-20. A total of Rs. 9,615.54 crore was collected in 2018-19 and Rs. 10,332.39 crore in 2019-20. There was dip in sales of liquor due to the pandemic in 2020-21. The Kerala State Beverages Corporation (BEVCO) posted a loss of Rs. 1,608.17 crore in revenue during 2020-21.
Hence, the government which was toying with the idea of opening up retail vends at different places has tweaked the policy. Now, BEVCO and Consumerfed outlets will be started in those areas which are safely away from populated and residential areas. The demand for allowing pubs in the IT sector has been a subject of debate for some time.
The IT sector in the state was demanding to change its policy on the matter. It is learned that the pubs will have facilities of five-star luxury hotel. The Pinarayi Vijayan government tweaked the liquor policy enabling the opening of more retail outlets and the biggest gainer appears to be the IT parks in Kerala, where special earmarked areas will be provided where IT buffs can have a drink.
Incidentally, the liquor policy of the Kerala government is an annual ritual, when the rules are made for the new fiscal and become applicable from April 1 every year.
The biggest gainer appeared to be the three IT parks in the state, where over one lakh professionals are employed at Technopark, Kochi Infopark and the Kozhikode IT park.
The State Excise Minister MV Govindan pointed out that there has been a long-standing demand from IT professionals for a lack of facilities for recreation. “It has been decided to allow sanction for special licenses to these parks where specially marked areas will be there in the park and facilities will be available for consumption of liquor under strict norms,” said a statement from the Minister.
The government also is giving permission to produce liquor with low alcoholic content or wine from the cashew apple, pineapple, jackfruit and nutmeg. Similar to what Delhi did, Kerala intends to allow buying of foreign liquor from the outlets without queues. The decision to increase the production of liquor in the existing units and launch new units has been taken to address the issues in the production of Indian-made foreign liquor and beer.
The government said that it was taking measures to escalate the production of Jawan rum of Travancore Sugars and start manufacturing at the Malabar distillery.
Highlights of the policy:
• No hike in brand registration fees for liquor selling in cans and glass bottles • The government proposes to ban sale of liquor in plastic bottles from 2023-24 • The closed outlets will be reopened as premium shops to reduce the rush in existing outlets • Grant of bar licenses will be only to three-star hotels and above • Kerala Toddy Industry Development Board will be revived and soon licenses will be issued to operate toddy shops from 2022-23 • Track and trace systems will be introduced for production of liquor and inter-district/intra-range transport • Beverages corporation will launch liquor-related industries in the state • All services provided by the Excise department will be made available online from April 1 • Computerisation of foreign liquor outlets • More vehicles and 100 pistols will be delivered to the excise circle offices of eight taluks • Mobile app titled ‘Peoples Eye’ to lodge complaints about the trade, stocking and consumption of illicit liquor • Increase the posts of women civil excise officers • Appoint 100 youth from scheduled tribes as civil excise officers
The Chief Minister Jai Ram Thakur, under whose chairmanship, the Cabinet met announced that the government intended to collect Rs. 2,131 crore revenue from state excise. This would be a jump of nearly Rs. 264 crore and a 14% jump in excise revenues over the previous financial year.
The policy includes renewal of retail excise vends for the financial year 2022-23 at the renewal fees of 4% of the value of unit/vend. The objective is to gain adequate enhancement in government revenue and curb the smuggling of country liquor from the neighbouring states by a reduction in its price.
Annually, Himachal Pradesh earns Rs. 1,800 to 1,900 crore from excise, which includes the sale and consumption of foreign liquor brands and country liquor sold in open markets, vends, bars and restaurants. Excise is one of the biggest source after the sale of power, mining (minerals) and tourism in the hill state.
Country Liquor prices reduced
The brands of Country Liquor will be cheaper as license fees has been reduced. This will help in providing good quality liquor at a cheaper rate to the consumers and they won’t be tempted towards purchase of illicit liquor and evasion of duty will also be checked. In new excise policy, the 15% fixed quota of country liquor for manufacturers and bottlers to be supplied to the retail licensees has been abolished. This step will give the retail licensees to lift their quota from the suppliers of their choice and further assure supply of good quality country liquor at competitive prices. The MRP of country liquor will be cheaper by 16% of existing price.
The fixed annual license fee of bars has been rationalised by abolishing the area specific slabs of license fee. Now throughout the State there will be uniform license slabs based upon the room capacity in hotels.
Fixed license fee of bars in tribal areas reduced
As Himachal Pradesh is known for its tourism, the government intends to provide better facility to the tourists visiting tribal areas and also provide relief to the hotel entrepreneurs, the rates of annual fixed license fee of bars in the tribal areas.
To keep a check on illicit trade and to monitor the manufacturing, operations of liquor, its dispatch to wholesalers and subsequent sale to retailers, it has been made mandatory for all the above stakeholders to install CCTV cameras at their establishments. The government also has imposed stringent penalties to ensure that irregularities detected by the department in liquor bottling plants, wholesale vends and retail vends are curbed. An effective end to end online Excise Administration System shall be setup in the State which shall include the facility of track and trace of liquor bottles besides other modules for real time monitoring.
As per the policy the Renewal fee (non-refundable) for each vend/unit shall be paid @ 4% of the value of vend/unit (MVV) for 2022-23 while filing application for renewal. b) Renewal Fee of Country Fermented Liquor (Lugdi/Jhol) Vends Sr. No. Value of vend Renewal Fee (i) Upto Rs. 1.00 Lakh Rs. 20,000 (ii) Above Rs. 1.00 Lakh upto Rs. 10 Lakh Rs. 25,000 (iii) Above Rs. 10.00 Lakh Rs. 30,000.
The policy said that the Zonal Collectors/District Incharges shall not be allowed to proceed with the conditional renewal of any vends/units. Sub-vends shall be granted to a retail licensee within the State subject to payment of annual license fee of Rs. 8,00,000 or 10% of the vend value whichever is lower subject to the minimum of Rs. 4,00,000. Whereas, keeping in view the issue of smuggling of liquor into the State, the sub-vends shall be granted within a distance of 100 meter from the State border on the payment of annual license fee of Rs. 3,00,000. The sub-vends shall be approved and granted by the Collector of the Zone concerned.
Fixed License Fee
The fixed license fee on annual basis (including renewal fee) for various Licenses of Foreign Liquor, Country Liquor and Beer per license for the year 2022-23 have been changed.
Type of license Fixed license fee per annum
L-1 (Wholesale vend of IMFS/Foreign liquor/Beer/Wine)
Minimum license fee of ₹20,00,000/- for lifting upto 3.00 lakh proof litres. Beyond 3.00 lakh proof litres an additional ₹3.00 per proof litre
L-1A (Storage of Foreign Liquor in Bond)
₹2,00,000/- excluding such other fee as may be prescribed
L-1B (i) Wholesale vend of Foreign Liquor to L-1 vend only
₹4.25 per P. L. on Foreign Spirit and ₹1.50 per B.L. of RTD Beverages subject to minimum of ₹4,00,000/-
Exclusively for Beer
₹1.50 per B.L. subject to minimum of ₹4,00,000/-.
L-1BB (wholesale vend of imported foreign liquor) from outside India to L-1 & L-2 as well as to the Club and Bar license holders.
Annual fixed license fee ₹5,50,000/-
L-1BIO (License for space holder in Custom Bonded Warehouse for wholesale of imported BIO brands to L1BB)
Annual fixed license fee ₹10,50,000/-
L-1C (Wholesale vend of foreign liquor by distiller or bottler only).
₹6,00,000/-
L-1E for export of IMFS for non-manufacturer wholesale licensee for interState sale
₹3.00 per proof litre subject to minimum of Rs. 10.75 lakh per annum.
