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Tilaknagar Industries reports 82% PAT growth in Q2

  • Expansion plans in East and North-East markets
  • TI leverages Samsara brand equity, soon to launch range of luxury products

Leading Indian-Made Foreign Liquor (IMFL) manufacturer, Tilaknagar Industries Limited (TI) has reported a profit after tax excluding exceptional items (PAT) of ₹58.2 crore, implying a growth of 82.4% over the ₹31.9 crore PAT reported in the corresponding quarter last year. The earnings before interest, tax, depreciation and amortisation (EBITDA) at ₹66 crore grew 39% over the ₹47.4 crore EBITDA reported in Q2 of the previous year.

Significantly, the company’s EBITDA margin expanded 422 basis points year-on-year (YoY) to 17.6%. Adjusted for the subsidy income, EBITDA came in at ₹56 crore, at a margin of 15.3%, showing 188 basis points expansion YoY. This growth in profitability was witnessed despite muted growth in net revenue from operations, at 5.8%, to ₹374.9 crore due to a temporary slow-down in growth, caused by policy transition in one of company’s key markets, Andhra Pradesh, which has recently opened liquor retail to private parties in the state.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “With retail going private in Andhra Pradesh mid-October onwards, we expect to continue with our industry-beating growth trajectory, achieved through a combination of doubling down on our market share gains from our brandy portfolio as well as our new product launches across categories.”

The company that has a strong foothold in key markets of South India, as well as certain markets in East India, recently launched Mansion House Gold Barrel Whisky in Assam. With this launch, the company plans to further expand into the East and the North-East markets where whisky enjoys an 80% share of IMFL market in the East and North-East markets.

TI’s flagship brand Mansion House Brandy is India’s highest selling brandy and the eighth-largest selling spirits brand across categories, while its second millionaire brand, Courrier Napoleon Brandy has emerged as the third-fastest growing spirits brand globally. The company plans to creatively invest in advertising and sales promotion to provide a meaningful share of voice to the brandy category in the overall IMFL market.

During the quarter under reference the company become net debt free, nearly six months ahead of its original target date for achieving the net debt-free status. “From a peak debt more than ₹1,100 crore in March 2019, to achieving the net debt free status, we have come a long way. This transformation was achieved through a combination a financial prudence and achieving industry-beating profitable growth,” Dahanukar added.

The company attributes the growth in profitability to superior brand-mix as well as effective cost-optimisation initiatives. With the worst of the inflationary cycle over, the company anticipates further growth in profitability in the upcoming quarters.

Recently, the company moved to increase its investment in Spaceman Spirits Lab Pvt. Ltd. (SSL), maker of Samsara Gin and Sitara Rum, to 20% from the earlier 10%. TI will leverage the Samsara brand equity to showcase a robust luxury portfolio, along with its soon-to-be launched range of luxury products.

Sula Vineyards records 10th consecutive quarter of growth in Own Brands

Sula Vineyards Limited, India’s largest wine producer, announced Q2 and H1 FY25 Results. H1 Net Revenue at ₹271.7 Cr (+3.7% YoY). Elite & Premium led the way with 7% growth in Q2. Share of Elite & Premium at all-time high of 78.5% in Q2 (vs 73.5% YoY).

Revenue (ex-Maharashtra & Karnataka) grew 6% YoY driven by strong performance in Telangana, Madhya Pradesh, West Bengal, among others.

Wine Tourism growth in Q2 was driven by higher spends per head (+9% YoY) and improved occupancy (74% vs 66% LY). Expanded Bottle Shop at ND Wines now open to Wine Enthusiasts. Expansion at Domaine Sula (near Bangalore) slated to open in Q3.

“We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2 FY25 was a subdued quarter, due to slowdown in consumer discretionary demand, particularly in urban areas where 90% of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi,” says Rajeev Samant. Founder, Sula Vineyards.

“During the quarter, our Elite & Premium portfolio performed well with a 7% YoY growth, led by strong double-digit growth in our iconic brands – The Source, RASA, and Dindori. It is encouraging to see wine culture flourishing beyond our core markets, with strong double-digit growth in states like Telangana, Himachal Pradesh, Madhya Pradesh, Uttarakhand, and West Bengal, affirming our commitment to building a truly pan-India brand.

“Looking ahead, while mindful of near-term challenges, we remain optimistic for the festive season on the back of structural tailwinds including the reopening of Andhra Pradesh after a hiatus of five years, introduction of four new labels in the CSD market and the return of SulaFest at our Nashik vineyards. We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us,” he added.

Legacy, Bacardi’s first ‘Made-in-India’ whisky, announces pan-India expansion

Marking a milestone in India’s brown spirits segment, Bacardi in India announces the pan-India expansion of Legacy, its first-ever made-in-India whisky. Following its success in debut areas, the whisky will now reach new markets across Goa, Pondicherry, Jharkhand, Odisha, Meghalaya, Assam, Tripura, Arunachal Pradesh, Kerala, and Rajasthan – highlighting Bacardi’s commitment to India, one of its fastest-growing markets globally.

Introduced in 2022, LEGACY offers a one-of-a-kind blend of Indian and Scottish malts with Indian grains, delivering a smooth, balanced whisky tailored to the discerning Indian palate. Embodying the culture and passion of India in its flavour, make and narrative, the whisky has received an extraordinary response since its debut. Capitalising on the positive momentum, this expansion represents a strategic investment in Bacardi’s ambitious vision for growth in the country.

Elated to announce the expansion of LEGACY, Vinay Golikeri, Managing Director, Bacardi in India, said, “Our unwavering commitment to creating exceptional experiences for the discerning Indian consumer has established a legacy of excellence in innovation – one that we aim to uphold with each and every one of our offerings. Legacy, our inaugural premium Indian-made whisky, has resonated deeply with new-age enthusiasts seeking quality, homegrown expressions – driving us to amplify our investments and expand Legacy nationwide. This expansion not only fortifies our brown spirits portfolio in the country but also underscores our dedication to exceeding Indian consumers’ expectations with each new market unlocked in this thrilling journey.”

India is one of the fastest-growing alcoholic beverage markets globally. For locally made whisky, the consumption is at an all-time high, having risen tenfold in the past 30 years and doubled since 2010 (IWSR 2023). Strengthening the presence of LEGACY across the country, Bacardi’s investments in the market will help the alcobev giant tap into the large consumer base seeking options in the premium Indian whisky segment.

Sharing her excitement, Ayaesha Gooptu, Category Head, Domestic Browns & RTD, Bacardi in India, said, “India’s whisky-loving community is thriving, especially when it comes to local whiskies, which are enjoying record-high consumption nationwide. Our newest innovation, LEGACY, blends Indian and Scottish malts with Indian grains, creating a distinctively Indian taste that has quickly won over India’s vibrant whisky loving community. With their affinity for quality homegrown spirits on the rise, we are thrilled about this new leg of our journey in strengthening the legacy of brown spirits across the country, with our crafted in India, for India innovation – Legacy.”

Legacy is available in three sizes (750ml, 375ml, and 180ml) in key markets across Haryana, Punjab, Uttar Pradesh, Rajasthan, Jharkhand, Meghalaya, Assam, Tripura, Arunachal Pradesh, West Bengal, Odisha, Maharashtra, Telangana, Kerala, Pondicherry and Goa – showcasing Bacardi’s commitment to India as one of its top priority markets worldwide. The made-in-India premium blended whisky was also recently awarded ‘Best IMFL Premium Whisky’ at the 16th edition of the mega alcobev event, INDISPIRIT 2024.

Bihar liquor ban resulted in unauthorised liquor trade: Bihar High Court

The Patna High Court has observed that the Bihar Prohibition and Excise Act, 2016, which was passed with the objective of improving public health, instead, gave rise to unauthorised trade of liquor and other contraband items in the state. The single-judge Bench of Justice Purnendu Singh noted that the legislation found itself on the wrong side of the history for several reasons.

The Judge was scathing in his judgment on the state government officials who he said benefitted from the ban. The Judge mentioned Police and Excise officials, officers of the State Tax department and the Transport department who benefitted from the ban.

Quashing a demotion order issued against a police inspector – Mukesh Kumar Paswan – on the ground that he was negligent in implementing the prohibition law, the Bench noted that the police were working in tandem with liquor smugglers and the poor were bearing the brunt of the law.

The writ petition was filed by Mukesh Kumar Paswan, the station house officer (SHO) at Patna Bypass police station, who was suspended after Excise department officials found foreign-made liquor in his possession during a raid. Paswan was demoted in 2020 following a general directive issued by the state government.

The High Court said that a few cases were registered against the kingpins or syndicate operators involved in liquor smuggling, compared to the vast number of cases against the poor who consumed liquor or fell victim to hooch tragedies. The lives of the majority of the poor section of the state facing the wrath of the Act were daily wagers, who were only earning members of their family, it said.

Liquor-mafia goes scot-free

It further said the Investigating Officer in the case did not offer any documentary evidence to substantiate the allegations made by the prosecution against the accused SHO, adding that the liquor mafia also went scot-free due to want of evidence.

The single-judge Bench annulled the entire departmental proceedings initiated against the petitioner, stating that this form of punishment was predetermined, which reduced the entire departmental proceedings to a formality.

It maybe, mentioned that in April 2016, the Bihar government enacted the law, prohibiting the manufacture, trade, storage, transportation, sale, and consumption of liquor in the state. The law remained on paper and Bihar witnessed a rise in illegal transport of liquor. Worse, it saw several deaths due to consumption of illicit liquor.

“The draconian provisions have become handy for the police, who are in tandem with the smugglers. Innovative ideas to hoodwink law enforcing agencies have evolved to carry and deliver the contraband. Not only the police officials (and) excise officials, but also officers of the state tax department and the transport department love the liquor ban — for them it means big money,” the Single Bench said.

“I find it proper to record here that the Article 47 of the Constitution of India, while (sic) mandating the duty of the state to raise standards of living and to improve the public health at large and as such the state government enacted Bihar Prohibition and Excise Act, 2016 with the said objective, but for several reasons, it finds itself on the wrong side of the history,” it said.

Oaksmith Style Studio Features Actor Vijay Varma

Oaksmith packaged drinking water has unveiled an innovative platform – Oaksmith Style Studio in collaboration with actor Vijay Varma, reflecting his distinct sense of style. Conceptualized by BBH, the platform is dedicated to elevating the style quotient and helping Indian men peg it higher in life.

The campaign kicked off with an intriguing teaser featuring style icon Vijay Varma, the brand’s first ambassador, on a quest for the perfect elements for his new Oaksmith Style Studio. The collaboration showcases Vijay Varma in four distinct, trendsetting avatars, set to a captivating original soundtrack.

Speaking about his collaboration, Vijay Varma said, “I am pleased to launch the Oaksmith Style Studio and showcase how men can peg it higher in terms of styling for every occasion. Throughout my career, I have experimented with interesting ways to style and present myself, and I am eager to share these insights. With this collaboration, I aim to bring a fresh perspective and practical approach to men’s styling providing the guidance that many have been seeking. Oaksmith Style Studio is not just about looking good, but about empowering men to express their individuality through style. I am excited to share this new venture with everyone”

 Parikshit Bhattacharya, CCO of BBH India, commented on the experience of building Oaksmith Style Studio. “Our goal was to create a platform that not only offers style advice but also resonates with the modern man. The Oaksmith Style Studio embodies sophistication, individuality, and practical styling solutions. Working with Vijay Varma and Oaksmith has been an exciting journey, and we are confident that this campaign will set a new benchmark in men’s styling. Oaksmith Style Studio is not just a campaign. We wanted to create a platform that goes beyond style tips and becomes a source of confidence.”

Liquor store monitored using CCTV

Liquor Trade in Maharashtra Up in Arms with Government Mandate on AI-ML Cameras

The liquor trade in Maharashtra is up in arms as the State Government has passed a resolution mandating that all liquor vends, be it shops, bars, hotels with liquor licences etc to install cameras with artificial intelligence and machine learning features, each said to be costing ₹4.2 lakhs. 

The Government Regulation was announced just one day prior to the Election Commission announcing the dates for the elections to the Maharashtra Assembly and the Model Code of Conduct coming into play, leaving the liquor trade in a hapless state. 

The liquor trade is approaching the courts over this order which they believe is going to lead to ‘over-regulation’ and ‘monitoring’, besides becoming another tool for corruption. The Government’s contention has been that it wants the vends to install the cameras to ensure that these vends do not sell liquor to underage youth. 

The trade terms this measure as ‘draconian’ and another way for the government to harass and make money. It is estimated that with the implementation of this order, the liquor vends in Maharashtra will cough up nearly ₹3,000 crores, with Mumbai accounting for nearly ₹100 crores.

One Vendor Likely To Benefit

The entire order, the trade states, appears ‘fishy’ as only one company is the single vendor in the absence of other suppliers. The Excise Commissioner, Vijay Suryawanshi, however, has clarified that the government only had specified the technology and not the company from whom the cameras could be purchased. He said there are three to four vendors supplying this type of equipment. 

The government has initiated this on ‘an experimental basis’ in Mumbai to begin with and on successful implementation here, it plans to roll this out across the State. Soon other states may follow, leading to ‘keeping the liquor trade in a vice-like grip’. The liquor industry, as such, is highly regulated and this new rule will adversely impact businesses. 

As per media reports, Pivotchain, a video analytics company, helps secure Government and private companies’ physical infrastructure with large scale Artificial Intelligence driven Video Surveillance (RAVEN AI). They leverage computer vision to provide maximum performance to vision-based systems when solving day-to-day automation challenges at government and military premises, airports, and logistics centres. 

The liquor trade members wonder why the need for such sophisticated systems, best usage scenarios being government, military premises etc. There are wine shops, bars, permit rooms etc which number over 2,000 in Mumbai alone and another 1,500 in the metro region. The software company has got three distributors, reportedly owned by one individual, and this has raised doubts on the entire move itself. The government however maintains that these cameras will help track the person (minor or those indulging in criminal activities) with all his or her background and in real-time. 

Constant Monitoring Of Liquor Stores

The liquor vends are seeing this as another way of ‘harassing’ the trade. With elections round the corner, the Excise Department has announced guidelines and one of which states that “Licence holders must share a photo of their shop’s closure daily in the group of excise officers and liquor licence holders to confirm adherence to the specified closing timings. Besides, they need to update their shop’s opening purchase, sales, and closing details daily before the store closes. These updates must be logged into the Excise Department portal using individual logins assigned to each licence holder.” 

The Excise Department has cautioned that any violation of the guidelines would lead to stricter penalties. As per guidelines for consumers have been advised to purchase liquor well in advance as shops may close earlier than usual time. They are also required to carry  valid permits (permanent or temporary) while purchasing, carrying, or possessing liquor in Maharashtra.

Toki Whisky and Yamazaki 12-Year-Old wins awards

  • Suntory Whisky Toki receives its First Gold
  • Chief Blender Shinji Fukuyo recognized as ‘Master Blender of the Year’ for the first time 

Suntory Spirits – Toki and Yamazaki Whisky’s recently have been recognized at the International Spirits Challenge 2024 Awards in London. Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category while the Suntory Single Malt Whisky Yamazaki 12 Years Old was awarded the Supreme Champion Spirit. Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards.

Toki Suntory Whisky was awarded the Gold in the Tasting Awards – Japanese Whisky category

This esteemed recognition reaffirms yet another significant achievement among for these products. Toki Whisky has earned over 20 international awards while Yamazaki 12 Years Old award to the highest scoring Trophy winner of the competition, the top award in the Japanese Whisky category, and was also selected as the most outstanding product out of thousands of entries among all categories. 

Suntory’s Chief Blender Shinji Fukuyo was also awarded the ‘Master Blender of the Year’ for the first time at the awards

This marks the first time that Yamazaki 12 Years Old has been awarded as the Supreme Champion Spirit and the second consecutive year for a Suntory Whisky brand to achieve this accolade following Yamazaki 25 Years Old last year.

These recognitions are a testament for the company’s excellent blending skills and the pursuit of perfection in quality for its whisky making, further cementing the reputation of Japanese Whisky added the company.  

Octaga Green unveils Master’s Imperial and Captain’s Select Whisky’s

Marrying tradition with sustainability

Octaga Green introduced Master’s Imperial and Captain’s Select, two premium whiskies that embody the brand’s philosophy of blending sustainability with time-honoured craftsmanship. The Master’s Imperial whisky is priced at Rs. 1,815 for a 750 ml bottle, while Captain’s Select is available for Rs. 1,245 for a 750 ml. Both products are available for purchase throughout India and M.O.D. (Ministry of Defense) across 18 states and 5 countries. 

Master’s Imperial is a premium blended Scotch whisky tailoured for discerning consumers who seek quality whiskey without a hefty price tag. This blend combines rare grain spirits with 6-year-aged, imported scotch malt delivering a smooth and unique taste. The aging process imparts a distinctive depth and complexity to the final product.

At the same time, Captain’s Select Whisky is a top-tier malt whisky that delivers a smooth and unique flavour. The blend features rare grain spirits and malts aged for 3 years, this classic whisky has been rewarded with a Silver Medal at the IWSC London in 2018. 

“At Octaga Green, our vision is to shape a sustainable future while delivering world renowned spirits. True quality goes beyond the product; it’s about creating a positive environmental impact,” said Basab Paul, CEO and Managing Director, Octaga Green.

Indri Single Malt launches ‘The City Series’

First Travel Retail Exclusive for Bengaluru Duty Free

Indri single malt launched its first travel retail exclusive ‘City Series’ with the debut Oloroso-Sherry cask expression exclusively crafted for Bengaluru Duty Free. The limited edition is solely available for travel retail and is also the first in a series of bespoke single cask expressions, where each release will embody the spirit and essence of a different Indian city, available solely through select duty-free outlets across India and the world. 

This travel retail exclusive single malt whisky is specially made, designed, and bottled for Bengaluru Duty Free, celebrating the city in every bottle. The 750 ml bottle of the Indri Single Malt Bengaluru Duty Free Expression is Rs. 9,500 and will have an ABV of 58.8%. The exclusive edition is also available only in the Duty Free, Terminal 2 Departure, Kempegowda International Airport, Bengaluru.

David Grady, Country General Manager, Avolta with Surrinder Kumar, Master Distiller & Blender, Piccadily Agro Industries Ltd.,

The Bengaluru Duty Free Expression captures the spirit and essence of Bengaluru, paying homage to its blend of vibrant modernity and rich traditions. It showcases the intricate craftsmanship Indri is known for, presented with iconic Bengaluru landmarks incorporated into the bottle design. 

The makers state that each sip of this Oloroso-Sherry single cask expression offers a taste of the city, combining complexity and warmth with layers of tradition and innovation. This expression boasts a rich and full-bodied nose, revealing sweet caramel, fresh red fruits, and gentle spices, all beautifully intertwined with nutty, caramelized notes and earthy undertones. 

On the palate, it offers a warming and balanced experience, featuring fresh red berries, subtle toffee, vanilla, and nuttiness, complemented by soft spices and a gentle dryness. The finish is long and smooth, with lingering flavours of sweet vanilla, spice, and fruity undertones, creating a lasting impression of depth and complexity.

Watch the review of Indri Single Malt here.

“We are thrilled to unveil the first expression of our ‘City Series’ with Bengaluru Duty Free. Each expression of this series is a celebration of India’s diverse cities, their unique essence, and cultural richness,” said Siddhartha Sharma, Promoter, Piccadily Agro Industries Limited. Piccadily plans to launch each expression of the ‘City Series’ that will be an ode to a city’s unique culture, essence, and personality. City specific expressions will be released at other exclusive duty-free outlets, allowing travellers to embark on a flavourful journey through India.

Longitude 77 launched in Punjab

Pernod Ricard India has launched Longitude 77 in Punjab offering seekers of authentic, contemporary Indian luxury a memorable experience which was marked by a launch event at the 10th anniversary of EYP Creations. The launch was held at the 10-year celebration of EYP Creations, which specializes in handling Punjabi music artist. 

EYP Creations manages Punjabi artist like Parmish Verma, Jassie Gill, B Praak, Babbal Rai, and others out of which the event witnessed the presence of B Praak, Gurnazar, and Jassie Gill.

With the availability of Longitude 77 in Maharashtra, Goa, Haryana, Chandigarh, Rajasthan, Uttar Pradesh, Dubai, and at Delhi Duty Free, the brand is further making its way in the Indian markets with the launch in Punjab. It is aimed at providing a premium convivial experience while establishing a new benchmark for Indian whisky drinkers in Punjab.

The culinary experience featured Punjab’s bold flavours, reimagined in contemporary, experimental dishes. The event culminated in an exclusive Longitude 77 tasting experience, featuring serves along the Longitude such as Punjab Old Fashion that highlighted the finest local ingredients, recognized with GI tags for their exceptional uniqueness.

Watch our review of Longitude 77 here.

Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India said, “We are proud to bring Longitude 77 to Punjab, a region known for its deep appreciation of authenticity and grandeur. This launch marks an exciting chapter as we continue to share this unique spirit of India with connoisseurs across the country.”Nikhil Dwivedi, Founder & Director, EYP Creations said, “As we celebrate a decade of EYP Creations, it’s truly exciting to mark this milestone by partnering with such a prestigious brand like Longitude 77 for their launch in Punjab. The brand reflects the same values we stand for.”