Category Archives: profiles

‘Drink better, not More’ is our Vision – Hina Nagarajan, MD & CEO, Diageo India

Leave a reply

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.   

______________________________________________________________________________

Box Item:

  • Our overall business growth has tripled in the period from 2021-23 vs. 2016-21.
  • Our premium portfolio growth rates have doubled over the same period, P&A is 86% of our portfolio now
  • Our brands are performing competitively in their respective segments 2-3 years in a row,
  • And we have doubled the Market Capitalisation of USL since 2021.

______________________________________________________________________________

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 Foresight to 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.

A Peek into the Whisky Whisperer’s World: Jim Murray Unfiltered

Leave a reply

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.  

Heineken’s Five Star Experience

Leave a reply

With millennials leaning towards fresher and lighter tipple, Heineken recently launched their Heineken Silver Draught beer in Maharashtra with the aim to make it available in other States soon. In an effort to educate the industry and the consumer, they also hosted a Star Serve programme that teaches the five steps on how their fresh draught beer should be served. Jacqueline Van Faassen, Head of International Premium Portfolio, Heineken India spoke to Bhavya Desai and Vincent Fernandes about the launch and plans moving forward. Excerpts:

The launch of the Heineken Silver Draught beer marks an important milestone for both, Heineken and United Breweries, who’ve been in India together since 2019. But while Heineken is a popular premium beer amongst the consumers, Van Fassen felt that the company was still missing on the draught experience, considering the trend where younger consumers are looking for a more fresher and lighter beer.

Heineken’s Global Draught Master, Frank Evers demonstrating the Five Star Serve Experience

The beer is already popular and available in the global markets and gets its freshness from utilizing natural ingredients like its A-yeast and 100% malt. And the brand is hoping to have similar success with the product in India as well.

Hence they launched the new Heineken Silver Draught beer with the initial launch market as Mumbai, Thane and Pune, which will be supplied from their Taloja factory with an aim to expand to the other States soon, most likely Karnataka once the draught is started brewing there. Apart from Taloja where most of the Heineken beer is manufactured, the company also has brewing plants in Telangana with development underway for another brewery in Mysore, Karnataka.

But what’s interesting is that Heineken is not only looking to capitalise on their new product but also are making efforts to educate the bartenders on how to serve the beer, thereby hoping to educate the consumer touchpoints and the industry as a whole. “This week we educate 400 bartenders on how to pour Heineken draft beer. This includes 200 today in Mumbai and another 200 bartenders in Pune later this week. They are important stakeholders for us since they make sure that bring it to consumers in the best way,” says Jacqueline.

The training programme was led by Heineken’s Global Draught Master, Frank Evers, which includes the five step serve process to give the consumers the best experience of the tipple. The steps include cleaning the glass with cold water, pouring it at a 45-degree angle with the right amount of foam and finally skimming the extra foam off. The foam protects the CO2 keeping the oxygen out making the beer fresh for a longer time says Evers. What’s also unique to the beer is its brewing process, which is horizontally fermented  as compared to the other lager beers which are brewed vertically.

But while serving the beer at the right temperature and with the steps seem interesting, whether the end consumer on-trade is really partaking at these points remains to be seen. But Van Fassen is confident that with the programme and efforts to educate the bartenders, once the consumers are served the beer correctly, they will identify with the quality and freshness of the product. Jacqueline is also aware of the potential of the draught beer category as a whole with a huge market that can be tapped on. She also states that the plans are that unleash the draught beer across India as soon as possible. And to do that they are focusing on activities like partnering with popular sports events like Champions League football. Recently the brand also hosted the F1 races across bars in Mumbai to further build on that social recall.

A Warm Welcome, campaign that elevates Mansion House brandy

Leave a reply

Mansion House, a flagship brand of Tilaknagar Industries launched its new DVC titled ‘A Warm Welcome’ with a digital campaign. The campaign aims to evoke emotions and foster a strong sense of shared humanity. In an interview with Ambrosia, Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries speaks about Mansion House’ phenomenal growth, consumer connect and their new campaign.

The idea behind the campaign was simple, to evoke emotions and spread the sense of human bonding. From the visuals of ‘atithi devo bhava’ that is critical to our culture like a friend walking through the gate to a warm hug, a brave woman army officer returns home in the North East to a joyous welcome, a stranded musician gets a lift by a couple, a fresher is made to feel at home in the office cafeteria. With every frame the campaign tries to paint a story of human bonding.

World’s fastest growing Brandy

The campaign ‘A Warm Welcome’ comes at a time when Mansion House brandy has become the world’s fastest growing brandy and the second-fastest-growing alcoholic beverage brand across categories globally in 2022. Mansion House Brandy achieved sales of 7.1 million cases in 2022 as against 4.5 million cases in 2021. It has a 12% market share in the brandy category and is ranked third, in the overall global rankings for the ‘Brandy and Cognac’ category, according to Drinks International.

Premiumisation and tapping newer markets

The flagship brand of Tilaknagar Industries, Mansion House, is already creating waves. And with the trend of premiumisation catching on, the company’s second premium brandy brand, Courrier Napoleon has had a robust 43% growth as per Drinks International’s The Millionaires’ Club 2023 report. 

Mr. Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “We have always been passionate about brandy as a product category. The remarkable performance of both our brandy offerings is a pointer to the immense potential the brandy segment holds in the region. Our brandy-first approach coupled with new product innovations has helped us jazz up the segment.”

Resonates with its target audience

Ahmad Rahimtoola, the Chief Marketing Officer of Tilaknagar Industries. adds that capturing this essence, this cultural richness, this warmth and this bonding is the new campaign by Mansion House Brandy. The campaign resonates well with customers who find Mansion House brandy more than just a product, becoming a symbol of fostering authentic relationships and memorable moments, in the very own words of

With such phenomenal growth and consumer connect, it was necessary for the brand to further connect with its expanding clientele base, hence the campaign, subtly aspirational, resonating well with the target audience of families and friends who value simple but genuine bonding.

Rahimtoola explains that the campaign is to redefine the brandy category’s communication landscape and establish a distinctive category code. “The rationale is to tap into consumers’ emotions and elevate Mansion House beyond being just a beverage to becoming an integral part of their cherished moments.”

Embraces inclusivity, compassion and heartfelt connections

Asked how the team came up with this campaign, Rahimtoola mentions that the “campaign’s central idea drew inspiration from the essence of Mansion House Brandy itself – the warmth and hospitality it embodies. We sought to create a narrative that mirrors the product’s attributes that exemplifies the genuine connections Mansion House.

StoryBoats the creative agency’s brilliance

Talking about how StoryBoats, its creative and brand partner, Rahimtoola says the ‘relationship has been nothing short of transformative. It transcends the typical client-agency dynamic, as we embarked on an extraordinary journey together. From the very outset, StoryBoats became an essential part of the process, infusing their creativity and passion into every step. This campaign’s brilliance is a testament to the profound relationship and mutual respect we share.

Ahmed Rahimtoola

Captivating Visuals

In the spirits business, we all are aware how it is rare to see a campaign for brandy as a category, but it requires a brand like Mansion House to set the spirits soaring. Rahimtoola substantiates “Producing this campaign for the brandy category was a rare opportunity to redefine communication norms within the segment. By emphasising the power of warm welcomes and inclusivity, the campaign sets a precedent for elevating the brandy experience beyond the physical product. We envision this campaign to contribute to the category’s growth by connecting with consumers at an emotional level and becoming a catalyst for brand preference and loyalty.”

The campaign addresses different age groups featuring a probable corporate female trainee; a 30ish musician who has hit the road; a female army officer who returns home, probably from a battle zone making the parents proud; an elderly gentleman showing compassion to a middle-aged person seemingly stressed out, consciously making an effort to dispel that brandy is a preserve of the elderly and that it is administered when someone catches a common cold. Brandy is for all occasions, more so celebratory.

Mansion House Brandy

The campaign has been unveiled across all its digital platforms. Strategically rolled out in key south India markets, the campaign utilises a multi-touch point digital strategy and a hyper local influencer amplification campaign to leave an impressionable mark.

In FY23, the company launched India’s first premium flavoured brandy – Mansion House Reserve French Style Brandy, the premium variant of Mansion House Brandy. These products have been well-received in the market and are being instrumental in imparting a new verve to the brandy space. Also, the company has forayed into newer markets, specially in the East and the Northeast, that offer a huge opportunity for category expansion.

UP becoming the hub of distilleries: UPDA’s Rajneesh Agarwal

Leave a reply

Uttar Pradesh better known as the ‘Granary of the Nation’ is the largest sugarcane and wheat producer and the second largest rice producer in the country. In its bid to become one of the top states every which way, the Yogi Adityanath led BJP government has set itself a target of becoming a one trillion economy by 2027, for which it is laying out the red carpet for different industries, infrastructure project development, agri-produce and more. One of the verticals which is doing well is the alcohol production sector and here the Secretary General of the Uttar Pradesh Distillers Association, Rajneesh Agarwal talks about the efforts being made by the industry, the association and the state government in pushing the envelope further.

Tell us how Uttar Pradesh is a land of limitless opportunities?

Rajneesh Agarwal (Agarwal): Uttar Pradesh is indeed a land of limitless opportunities in the distillery/alcohol sector due to several reasons. Firstly, UP is the largest producer of sugarcane in India, which is a primary raw material for alcohol production, making the State an attractive destination for investment in the alcohol industry.

Secondly, the state has a diverse agricultural base that includes grains such as maize, wheat, and barley, which can be used as alternative raw materials for alcohol production and the government is encouraging the same, thus increasing the capacity of distilleries and reducing their reliance on traditional raw materials like sugarcane and molasses.

Thirdly, with a population of over 240 million people, UP has a large and growing consumer market for alcohol. Also with rising incomes and changing consumer preferences, the demand for premium quality alcohol and varieties of alcohol is increasing, supplemented with streamlined licencing process.

Finally, UP has a well-developed transportation network, with several major highways and railway lines passing through the state. This makes it easier for distilleries to transport their products to customers across the country and the world.

What has been a game-changer for the distillery sector in UP?

Agarwal: There are many factors – Expansion of Alcohol production; Ease of doing business; Robust government policies; and growing consumer base.

a. Expansion of alcohol production: In 2018, the UP government announced the new excise policy that allowed the production of ethanol from alternative feedstocks, such as maize, barley, and wheat. This decision supplemented with streamlining of licensing system and restoration of working hours from sunrise to sunset were all game-changers, opening up new opportunities for distilleries to diversify their raw material base and expand their production capacity.

In 2017-18 there were 60 distilleries in UP with total installed capacity of 161 Cr. litres of alcohol production, which in 2022-23 jumped to 85 distilleries with 346 Cr litres of alcohol production, a growth of 115% in a span of five years. While 20 grain distilleries have established in just last one year, 20 more distilleries are in the pipeline which will produce another 80 Cr. litres of alcohol.

The decision to allow the production of ethanol from alternative feedstocks was a significant shift from the state’s traditional focus on sugarcane and molasses as the primary raw materials for alcohol production. This has helped to reduce the reliance of distilleries on these traditional feedstocks and create new business opportunities for farmers and other stakeholders in the supply chain.

The policy has also helped to boost the state’s ethanol production capacity, which has significant implications for the biofuel sector. Ethanol produced from alternative feedstocks can be used as a fuel additive to reduce emissions in the transport sector, which is a key focus area for the Indian government’s energy policy.

b. Ease of doing business

The excise policies in recent years has a significant positive impact on the distillery sector in UP. It has made it easier for distilleries to obtain licenses and permits, reducing bureaucratic hurdles and increasing the ease of doing business in the state. The reduction in taxes on liquor has also made alcohol more affordable for consumers, leading to an increase in demand for alcohol in the state.

Additionally, the policy has encouraged investment in the alcohol industry in Uttar Pradesh, leading to the establishment of new distilleries and expansion of existing ones. This has helped to increase the capacity of the distillery sector in the state and generate employment opportunities for local residents.

c. Robust government policies

There have been robust and encouraging government policies from 2017 onwards. In potable liquor segment itself specific to Country Liquor (mammoth volumes with significant revenue to the state exchequer) the distillery sector volumes have grown 2.3x or at a compounded annual growth rate of 18%.

The total Excise Duty collection increased from ₹17000 Cr. in 2017-18 to ₹41000 Cr. in 2022-23. To sustain this industry growth, an investment of approx. ₹10,000 Cr. has been made by distilleries including an investment of around ₹3000 Cr. for setting up grain alcohol plants.

UP has been primarily producing over 200 Cr. litres of alcohol from molasses and there has been a paradigm shift of producing alcohol from grain too. Over 20 grain distilleries have been established in this short span which are producing around 62 Cr. litres of grain alcohol. Overall, as on date UP has over 85 molasses and grain distilleries producing nearly 350 Cr. liters of alcohol making a massive growth of 150% in less than two years.

UP has been a major contributor in the country’s ambitious ‘Ethanol Blending Programme’ having achieved highest blending of 11.89% with the national average of 11.56% as in March’23.

Rampur Distillery

Tell us about the investments that are coming in this sector?

Agarwal: UP’s alcohol sector is all set to get a shot in the arm with investments worth ₹16,392 crores. According to the state’s excise department, ahead of the Global Investors summit, the department signed 17 MoUs for setting up industries based on distillery, brewing and alcohol products. Along with this, letters of intent have been given for investments worth ₹1400 crore. These include distilleries, breweries, microbrewery, yeast units, malt manufacturing units and caramel manufacturing units.

What efforts are being made to meet the demand for 20% EBP and potable alcohol industry?

Agarwal: To meet the target of 20% EBP by 2025 it is estimated that 1150 – 1200 crore litres of alcohol would be required for ethanol purposes. In present context of having achieved over 11.5% blending, the sugar / molasses capacities for alcohol production are nearing saturation. Moving forward, grain would be the primary source to meet the 20% EBP programme.  

In UP over 20 grain distilleries have come up in a short span, with 13 more grain distilleries expected by 2024. Overall UP is expected to have over 20 new distilleries (Grain + Molasses) in the next one year.

However, the Ethanol producers within the State and pan India are presently facing operational challenges due to severe shortage and availability of broken rice and damaged food grains (DFG) at the prevailing prices of the government. Ethanol producers are jointly seeking an SOS upward price revision with the Central Government for both broken rice and DFG to put Ethanol producers back on momentum.

What kind of investments have been made to increase grain capacity for potable liquor in UP, a state which has seen industry volumes grow by 2.6 times and expected to double in the next five years?

Agarwal: To sustain this industry growth, an investment of approx. ₹10,000 Cr. has been made by distilleries including an investment of around ₹3000 Cr. in setting up grain alcohol plants in UP. With 13 more grain plants itself expected by 2024 will have an additional Investment of more than ₹1200 Cr.

The state government has approved establishment of distilleries based on molasses, grains, potatoes etc. Could you let us know if the UP distillers have taken that route?

Agarwal: Traditionally, many distilleries in Uttar Pradesh have been based on molasses, as the state is one of the largest producers of sugarcane in India. However, in recent years, there has been a growing trend towards using alternative raw materials such as grains, potatoes, and other vegetables, which can provide a more diverse and sustainable supply of raw materials for the industry. Some distilleries in UP have already taken this route and started using grains like maize, barley, and wheat to produce alcohol. For example, in 2019, a distillery in the state started using maize as a raw material for alcohol production. Similarly, there are distilleries in UP that are using potatoes to produce alcohol, taking advantage of the state’s large potato production. The government is launching numerous schemes and incentives to develop agro-processing industries in UP.

The UP government has allowed production of Absolute Alcohol of Pharma grade, could you give us an update on the same?

Agarwal: The production of pharma-grade absolute alcohol in UP is expected to substitute imports and reduce the country’s dependence on imported alcohol. The state government has allocated land to set up a pharma-grade alcohol plant and several companies have expressed interest in setting up such plants.

The UP government in April’22 has given permission to commence production of Absolute Alcohol of Pharma grade from Cane crushing season of 2022-23. This has paved way for self-reliance on Absolute Alcohol of Pharma grade which till now is dependent on imports from countries like USA, Australia, China etc. The State has envisioned production capacity of 25 lac litres from the total requirement of nearly 50 lac litres currently, saving revenue of around ₹10 cr. in import substitution.

What are the challenges for distillers in UP, regulatory or otherwise, and how can the government resolve it?

Agarwal: Today, UP is proud to hold its head high for turning the major challenges into opportunities. The rapid expansion and overall growth in past years is quite evident of this fact. However, the government continues to make radical reforms in the policies in ease of doing business, simplified regulatory environment, rationalising taxes & duties, expansion of infrastructure development with better road & rail connectivity etc. The ground water being the main source of irrigation, the State’s Environmental Board is taking various measures to avoid over exploitation of ground water.

Tell us about the role of UPDA in promoting the sector?

Agarwal: The UP Distillers Association (UPDA) is an apex body of distillery industry with nearly 90 distilleries. The Association is a 40-year-old body, actively rendering services as interface between its members and both State & Central Government authorities primarily through its advocacy role for policy makers and resolving issues of the industry.

To tap the limitless opportunities, UPDA is fast spreading its wings in international arena to explore and adopt best practices and technologies across the world. In recent years, under the close guidance of UPDA President – Mr. S.K. Shukla and Vice-President – Mr. Manish Agarwal, the association has ensured industry benefits.

The UPDA conducted its first International Summit in Aug’22 with six countries participating. The second UPDA International Summit will be held in July 2023, showcasing global innovation technologies with USA, Brazil, Israel and many more countries, besides home grown technologies.

This was followed by a visit to Brazil a delegation jointly organised by the All India Distillery Delegation and the UPDA, with the objective to explore synergy and business avenues of mutual interest between Indian and Brazilian distilleries and technology providers. Brazil has achieved 27% blending in 2G ethanol. 

UPDA-AIDA are planning their next distillery delegation visit to USA under an exchange programme which will explore:

1)            Corn supply chain model comparison between, India and Brazil & India and USA.

2)            Corn cultivation and corn grains productivity enhancement in India, GM corn cultivation in India, testing of new corn cultivators from USA, and developing a holistic model for the corn growing farmers and industry.

3)            Ethanol production technology transfer from corn grains and from corn biomass (cobs and leaves-corn stover).

4)            DDGS (Dry Distillers Grains Soluble) valorization, Proteins recovery from DDGS and purification, Oils recovery from DDGS and its profiling, Develop of DDGS based holistic nutritive and palatable feed for cattle and poultry.

UPDA is in process of collaboration with ‘Invest India’ wherein UPDA will interface and support bringing investments & technologies, with initial focus in bio-fuels sector and grain based distilleries.

Will UP become the distilleries hub, if so, by when and what are you betting on? How many distilleries are there in UP and how many of them are your members?

Agarwal: Out of the around 520 distilleries in India, UP itself has nearly 90 distilleries with nearly 33 more distilleries coming up in 2024. These numbers show that UP is already a distinctive hub. 

UP Distillers Association’s a prime focus all along has been on potable distilleries and now fast catching up with the industry at large on grain and ethanol producing distilleries. Presently, UPDA has 16 members on board which produce over 90% of the potable Country liquor requirement of the State. UPDA takes pride in having on-board Patron members such as Radico Khaitan Ltd., India Glycols Ltd., Wave Group, Sir Shadi Lal Industries and Superior Industries. Country Liquor sales of over 9 Crores cases per annum contributing significantly to the overall excise revenue of over ₹41k Crores with target of ₹45k Crores in 2023-24.

Kimaya Himalayan Beverages clock 100 crore turnover in one year

Leave a reply

Abhinav Jindal, founder of Kimaya Himalayan Beverages, outlines the company’s growth trajectory

What is your impression of the response to craft beers?

The craft beer industry in India is still in its nascent stage, but it is exhibiting positive indicators of expansion. The global trend towards craft beer is starting to take hold in India, and this presents a significant opportunity for the industry. Unlike developed economies, where the craft beer movement has been established for over a decade, India is experiencing high double-digit growth in the craft beer category compared to a lower double-digit growth in the overall beer market. This indicates that the craft beer industry in India is experiencing a strong upward trend and is expected to continue this path in the future. The surge in the demand for craft beer offers possibilities to innovate and introduce new products in various categories, as well as to redefine existing categories in the competitive market space. This creates a lot of opportunities for innovation and differentiation within the industry, which will further drive growth and create more choices for consumers. Overall, the craft beer industry in India is poised for substantial expansion, and businesses that can tap into this trend and create exciting new products will be well-positioned to capitalise on this opportunity.

Do you feel consumers will go back to regular beer as compared to strong beer or is it only millennials?

The market trend indicates that consumers generally prefer stronger beer over milder ones, and this preference has been evident in the high growth rates of the premium, stronger beer category. With the availability of better-quality products in the stronger beer category, consumers are more likely to stick with their preference for stronger beer, and therefore, it is unlikely that there will be a significant shift in consumer preference towards milder beer.

What are your plans for the summer season – new launches, and promotions?

We have some exciting developments this season. Firstly, we have introduced a newer bottle packaging for BeeYoung Strong 650 ml bottle, which is a one-of-a-kind innovation that is unprecedented in this industry. It is highly likely that this packaging has not been seen before in the market. Moreover, our team is actively working towards launching BeeYoung in Himachal Pradesh to mark our market presence. To further enhance our product offerings, we plan on introducing new variants in premium segment with unique flavour notes to the Kimaya’s profile, likely to be launched in a couple of months. On the marketing front, we have launched an exciting summer campaign that will be visible both digitally and on the ground. This campaign is designed to be fun and engaging, and we are actively seeking out opportunities for collaborations and event sponsorships that align with the spirit of the summer campaign in the near future.

How would you describe Kimaya Himalayan Beverages’ remarkable journey from being the latest entrant in the market just before the pandemic to becoming a company worth over 100 crores in just one year of full operation?

The pandemic has caused significant disruption in the industry, particularly impacting small businesses and homegrown brands. Despite the uncertainties and obstacles caused by the pandemic, BeeYoung, which was launched in September 2019, has managed to stay resilient with a mindful approach and strategic resource allocation. Through proactive market analysis, the company has taken effective measures to reach its sales targets and develop a robust strategy for expansion into larger markets. As a result, BeeYoung achieved a remarkable milestone by dispatching 1,00,000 hectolitres of beer in its first year of full operation, experiencing an impressive growth rate of 129%. The brand has also successfully established itself in Delhi, Uttar Pradesh, Uttarakhand, Punjab, and Chandigarh and is now focussed on expanding into other states. To meet the increasing demand in its existing markets, Kimaya Himalayan Beverages is increasing its production capacity, reaffirming its commitment to meeting its customers’ needs.

How has the company ensured enhancing product availability in the existing market, diversifying the product range, and venturing into new regions across the nation.

To enhance product availability in the existing market, Kimaya Himalayan Beverages has established partnerships with distributors and retailers to ensure that its products are widely available. The brand has successfully established its presence in multiple regions of North India including Delhi, Uttarakhand, Punjab, and Uttar Pradesh. To diversify its product range, the team is working on introducing new variants with distinctive flavour notes to cater to the changing tastes of consumers. We are working on strengthening the foothold in North India by expanding into new regions and states, such as the upcoming launch in Himachal Pradesh. We have also invested in marketing campaigns to raise brand awareness and attract new customers. Overall, we have taken a proactive and strategic approach to enhancing product availability, diversifying its product range, and venturing into new regions across the nation. These efforts have helped us to grow.

What is the industry overview on alcobev category – the shifts and trends?

The alcohol beverage category has undergone significant shifts and trends in recent years. One of the most notable changes is the growing consumer interest in healthier and low-alcohol options. Consumers are more health-conscious and looking for beverages that align with their wellness goals. This has led to an increase in the demand for low-alcohol or non-alcoholic beverages, such as hard seltzers and non-alcoholic beers. Another trend in the alcohol beverage industry is the rise of craft and artisanal beverages. This has led to an increase in the number of craft breweries, distilleries, and wineries, as well as a growing interest in local and regional products. Finally, sustainability and environmental concerns have become increasingly important to consumers, and brands are responding by prioritising sustainability in their operations and products. This includes using eco-friendly packaging, reducing waste, and sourcing ingredients from sustainable sources.

Overall, the alcohol beverage industry is evolving rapidly, with a focus on health, quality, sustainability, and innovation. Brands that can adapt to these changing trends and meet the evolving needs of consumers are likely to succeed in this competitive market.

What steps are being taken to ensure Sustainability in the alcohol and beer industry: Innovative approaches towards environmental responsibility?

The alcohol and beer industry are taking various steps towards ensuring sustainability and environmental responsibility. These steps include implementing sustainable sourcing practices, using eco-friendly packaging, conserving water, reducing energy consumption, and minimising waste. Companies are exploring innovative approaches towards sustainability, such as using renewable energy sources, investing in water-saving technologies, and using waste-to-energy technologies. The industry is responding to the growing consumer demand for environmentally responsible products and operations. By prioritising sustainability in their operations and products, companies are demonstrating their commitment to social responsibility and ensuring long-term success in the competitive market.

How would you describe the Science of Brewing: The chemistry behind a ‘Perfect Pint’?

Brewing is a complex process that blends the art and science of beer-making. It involves a variety of chemical reactions that transform simple ingredients such as water, malt, hops, and yeast into the diverse range of beers we enjoy today. The science of brewing entails understanding and manipulating these chemical reactions to create the desired flavour, aroma, and appearance of beer. However, creating the perfect pint requires not only scientific knowledge, but also artistic skill. Artistry in brewing involves being artisanal and selecting the right ingredients in the desired quantities. It also involves carefully combining the ingredients without adding concentrated hops, colour, or flavour. The art of brewing complements the science, which includes determining the appropriate temperature to boil, ferment, and so on. Understanding the chemistry behind brewing is essential for creating a satisfying and enjoyable drinking experience that caters to the diverse preferences of beer drinkers worldwide. In summary, brewing is a delicate balance of science and art that requires skill, expertise, and creativity to produce a perfect pint.

What can you do to make the industry more circular?

To make the beer industry more sustainable and reduce waste, adopting a circular approach is crucial. At Kimaya Himalayan Beverages, we have taken steps to minimise our environmental impact by recycling the used bottles. Additionally, breweries can use sustainable ingredients such as organic and locally sourced grains and hops, as well as switching to renewable energy sources like solar or wind power to reduce their carbon footprint. Breweries can also reduce packaging waste by using biodegradable materials. Furthermore, minimising packaging waste by using lightweight materials or reducing packaging size can be another effective approach. Lastly, partnering with local farmers to source ingredients can reduce transportation emissions and support the local economy. Adopting these circular approaches can significantly reduce waste, promote sustainability, and help create a more environmentally friendly product. As businesses, we have a responsibility to act towards becoming more sustainable for future generations.

How would stress the importance on the Art of Beer Labelling: Design Trends and marketing strategies?

In the beer industry, the art of beer labelling is a crucial element that plays a vital role in attracting and retaining customers. A well-designed beer label not only conveys essential information about the beer, such as its flavour and ingredients, but also serves as a marketing tool that sets the brand apart from its competitors. As design trends in beer labelling continually evolve, companies are embracing creative and eye-catching designs that appeal to a broad range of consumers.

‘Our aspiration of reaching $1 billion sales by 2030 drives our Premiumisation Journey’

Leave a reply

With offering some of the best global spirits and portfolio on offer and an aim to establish itself as the home for premium spirits across categories and create human connections while focussing on sustainability, Beam Suntory has major plans for India. In an interview with Ambrosia, Neeraj Kumar, Managing Director, Beam Suntory India talks about the journey, their aim and the Indian consumer. Excerpts:

You have been associated with the company for over 15 years. How has the company grown in India over those years? From then to Now?

Beam Suntory is a proud custodian of world-renowned spirits whose legacies can be measured in centuries. We are a leading premium spirits company and the world’s third largest as well. Over the last few years, we have introduced some of the world’s most exclusive brands from our global portfolio to the Indian consumers, providing an opportunity to access some of the most sought-after spirit experiences in the world.

We have also made our successful debut into the Indian whisky space with Oaksmith Indian Whisky inspired by Japanese craftsmanship. Apart from this we have also launched more than 10 renowned Japanese brands from The House of Suntory – Yamazaki, Hibiki, Suntory whisky Toki and Roku Japanese Craft Gin. We have strengthened our Scotch brands portfolio with Bowmore, Laphroaig Select and Teacher’s Highland Cream Reserve and continue to embolden our Bourbon whiskey portfolio with Jim Beam and Jim Beam Black Kentucky Straight Bourbon whiskey.

Our aspiration of reaching $1 billion in sales by 2030 continues to drive our premiumisation journey in India. We strive to deliver a portfolio that combines the best of the East and West, with an unwavering emphasis on quality. We have invested in capacity and our people capabilities and proud to be certified as a Great Place to Work in India, three years in a row.

The Indian liquor market is expected to grow by 7% annually in the 2021-25 period, with whisky and spirits among favourites. What do you think are the key drivers in India?

The increasing demand for luxury spirits and premiumisation among Indian consumers signals a greater emphasis on quality. With rising disposable incomes, exposure to global culture and a desire for premium products, purchasing habits are evolving, making India an appealing market for global and Indian brands.

The channel landscape has also seen a dramatic shift in specialist store infrastructure. In addition, consumers now enjoy world class on-premise premium experiences and cocktail immersion, specially led by whiskeys and gins. The Indian consumer base is expected to grow and is witnessing a trend towards premiumisation. We expect a greater thrust on new innovations across whiskies, gins and vodkas, presenting an opportunity for cocktail craft as well as beverages for refreshment occasions. These trends will continue to drive growth at the top and premium end of the market.

What is Beam Suntory’s strategy to expand the India market?

For Beam Suntory, India is a strategic market with a long-term growth ambition. The company continues to deliver strongly along its ambitious goal of reaching $1 billion in revenue in India by 2030. Our ‘Yatte Minahare’ spirit inspires us to dream big and our commitment to the India ambition is consistent with our objective to develop our business scale sustainably in India and join our other large markets like the US and Japan.

Beam Suntory aims to establish itself as the home for premium spirits across categories and create inspiring human connections, while maintaining an integral focus on sustainability. The company continues to develop its presence here with robust investments on capability building, capacity expansion and inspiring top talent to join our global talent pool. With the early signs of success with Oaksmith whisky, we have a long-term commitment to build a business of scale whilst driving premiumisation.  

You mentioned that by 2030 the company would touch $1billion in annual revenues in India, is that objective on course? Can you share the revenues from India as of 2022 across categories?

The Indian market is advancing towards quality over quantity and our goals for the Indian market are in line with the consumers’ needs catering to their discerning palates. With leading brands like Teacher’s, Jim Beam and Oaksmith and a range of luxury and premium products, we are confident in our ambitious goal for 2030. Over the past two years, we have accelerated our current portfolio, gaining value growth outperforming peers in the market. Our portfolio has been crafted carefully for Indian consumers and guided by our competitive advantage of ‘East Meets West’. These include principles of ‘Gemba’ (real consumer and customer insights from the points of consumption) and ‘Monozukuri’ (an unwavering commitment to quality from Seed to Sip). Our consumer-first mindset will continue to develop our
portfolio to pioneer and leverage category, channel and consumer trends.

Since the launch of Oaksmith, it has become a very popular product. Can you share the market share, cases sold, etc. for the brand? Will the whisky be made available in the other markets as well?

After a successful launch in 2020 in Maharashtra and Telangana followed by expansion in over 20 markets, Oaksmith is at the helm of reinventing the Indian whisky segment. As a result of consumers tremendous response, Oaksmith has already sold 1 million cases since its launch, reinforcing Beam Suntory’s commitment to lead the growth and premiumisation of the Indian spirit’s market. With multiple international accolades behind its name, including the London Spirits Competition, we remain optimistic of this brand’s future in the market.

There is a major push towards sustainability in the industry. What are Beam’s plans towards the same?

Inspired by our Proof Positive commitments and Growing for Good vision, leaving a positive impact on the environment is central to Beam Suntory’s business and fundamental to its culture across every facet of the value chain. At the start of 2021, we made a global announcement to invest more than $1 billion to make positive impacts on the environment, consumers, and communities through our Proof Positive programme.

We have been making significant progress on this vision both globally and in India. Some of our local initiatives include

•             Reduced dependency on single use packaging, starting with our range of Teacher’s and Oaksmith.

•             Tree plantation project in Mumbai and Goa.

•             Donation of USD 150,000 to NRAI to support workers in the F&B community during Covid-19.

•             Donation of $600,000 to British Asian Trust, Confederation of Indian Industry (CII), National Restaurant Association of India and Government-led relief efforts to mitigate the shortage of hospital equipment supporting Covid-19 relief during the second wave.

What is your understanding of ‘Growing for Good’, can you break it down for us?

Our vision of ‘Growing for Good’ guides us to demonstrate a commitment to social responsibility and sustainability by promoting ethical and environmental-friendly working practices and behaviours. It applies both to the company and to everyone within the company and relays that the bigger we are, the greater our positive impact can be.

As a business that heavily relies on natural resources to make products that delight consumers around the world, we believe it is our responsibility to give back and leave the planet in a better way than we found it. To further define this vision, our long-term sustainability strategy – Proof Positive sets bold targets for us. Resting on pillars of nature, community and consumer, it guides us to make actional change within a defined timeline that protects the planet, offers education and expanded choices to consumers and gives back to our society.

The Ready-to-Drink brand sales has grown 16% driven by performance in Japan, Australia and the US, any plans for that category?

The emergence of the RTD (Ready to drink) market in India is growing at a fast pace and is bringing a distinct change in drinking behaviour. RTDs are popular since they come in various flavours and variants that are low in alcoholic strength and suitable for the refreshment and light experience. We are understanding the consumer needs and bringing forth products in response to their evolving preferences and will continue to monitor this space to guide our future business decisions.

Pure Water, Harnessed from the Atmosphere

Leave a reply

As the industry moves towards sustainability, efforts are being made by global giants to get Carbon Neutral. While majority of this push is still focussed on packaging, SOURCE Global, a Bill Gates funded Public Benefit Corporation is harnessing the energy from the Sun and converting it into premium drinking water. SOURCE has already worked with Diageo on their product Godawan Whisky. In an interview with Ambrosia, Manu Karan, Sr. Vice President, Business Development, Middle East & South Asia, SOURCE Global, PBC speaks about the technology, the products in the industry and more. Excerpts:

What is the SOURCE Hydropanel technology and how does it work?

Access to safe, clean drinking water is a fundamental human right. That’s why SOURCE is on a mission to perfect drinking water for every person, every place, regardless of their location or socio-economic status.

Rather than extracting water from the earth’s water table, SOURCE Global’s technology – called the Hydropanel – uses the sun to draw pure, endlessly renewable water vapour from the air and transform it into premium drinking water. Solar photovoltaic-powered fans draw air into the Hydropanel, where a proprietary material absorbs pure H20 molecules and then releases them as water vapour. The off-the-grid technology creates optimal conditions inside the panel to condense water vapour into liquid, which is collected in an onboard reservoir, mineralised with calcium and magnesium, and delivered to homes, businesses, and bottling operations using flexible piping.

With this one technology, we are creating a renewable, sustainable source of drinking water – virtually anywhere in the world – for conscious consumers, communities that have no access to safe water, and companies looking for sustainable solutions. Here in India, SOURCE water will serve as an ingredient in Godawan, Diageo’s artisan whiskey. Godawan will be the world’s only whiskey made with water tapped from the sky and harvested using the sun, all in support of the Diageo’s commitment to sustainability and the Rajasthani ethos of “beauty in scarcity”.

Ground water and borewells globally are not in a good condition and India is not different. What sets SOURCE apart?

While climate change and contamination challenge the world’s freshwater resources, we’re tapping premium drinking water from an abundant and endlessly renewable resource. SOURCE starts pure, stays pure, and is balanced with the perfect blend of minerals for health and taste. We make drinking water locally, for the people and places that need it most, ending the need to treat water, package it in single-use plastic bottles, and transport it from far away. With Diageo we are stewarding industrial water to be used in the production of the artisanal whiskey, all while, alleviating stress on the local ground water and borewell sources.

What is the estimated installation site for the panels? For instance, for the 27,000 litres that you have put up for Diageo in India?

The SOURCE system is infinitely scalable, from single homes to entire businesses and communities, and we design water farms and arrays to meet unique customer needs. The water farm (similar to a solar farm) that supports Diageo’s artisanal whiskey production will be in Alwar, Rajasthan. Initially, the installation is expected to generate 9,000 litres of water within the first six months and will further scale up to produce around 27,000 litres of water per month after a year; in around 2000 sqm area.

How cost effective is this process? Also tell us the sustainable aspect of the Hydropanel?

SOURCE is revolutionising everything we know about drinking water. The system is powered by the sun and taps into a constantly replenished resource, making it an efficient, entirely renewable technology. There are no pumps, pipes, electrical lines, treatments plants or processes like desalination, which requires 10-13 kilowatt hours of energy for every 1,000 gallons of water produced, creating significant costs and carbon emissions. This is truly renewable drinking water infrastructure that replenishes, rather than depletes, our natural resources, which is aligned to Diageo’s Society 2030: Spirit of Progress plan. The same infrastructure is used to offer a premium, great-tasting sustainable whisky.

Our internal studies from existing projects across the world have shown that a project of this size – 27,000 litres/month – would directly reduce over 19.4 million litres of water extraction over its lifetime, and indirectly displace the use of more than 4.8 million single-use plastic bottles over 15 years.

What happens when there are issues of sunlight?

The Hydropanel is based on solar technology, which means that it performs the best when the sun is shining, like in the sunny Alwar region – where Godawan whiskey is made. But the system is also designed to work across a wide variety of applications and climates, making it unlike any other drinking water technology.  

What is the life of Hydropanels and what kind of maintenance do they require? Can the locals be trained in operating and maintaining?

We created our technology, and our business, to serve everyone who needs quality drinking water, whether they live in a water-stressed community or are looking for premium, renewable solutions. We offer a low-maintenance, long-lasting solution with a 15-year lifespan. Around the world, we hire and train local people to operate and maintain our water farms, creating not just a sustainable source of drinking water, but also local jobs.

In how many countries are you operational and are governments looking at this technology to address water needs in water-stressed geographies?

In 52 countries, we work with consumers, governments, national and international NGOs and businesses of all sizes.

SOURCE is incorporated as a Public Benefit Corporation and in India, on example is our installation at the Zilla Parishad Primary School Kolpimpri. This project was born out of the Village Social Transformation Foundation’s work to bring access to clean, drought-resistant drinking water to school children, and is part of the local government’s initiative to align villages in Maharashtra with the UN’s Sustainable Development Goals.

The company also creates drinking water for businesses looking to reduce their water extraction, or that work in places where clean water is scarce, must be trucked in, or is available only in single-use plastic bottles.

Does the water tapped through this technology elevate the ‘whisky’ per se?

To support, Diageo’s commitment to sustainable, luxury products and experiences, we’ve provided technical expertise that complements Diageo’s artisanal brand and serves as a powerful representation of Diageo’s deep commitment to sustainability.

Why did you think of using SOURCE as against the soft water that is traditionally used for making whisky?

At Diageo, we have a responsibility to grow our business sustainably from grain to glass. Our partnership with SOURCE Global, PBC will help produce premium water which reflects the unique terroir of the region while saving groundwater which is aligned with the craft philosophy of born good, made good and serve good.

How is SOURCE supporting you on the sustainability mission? Are there plans to implement SOURCE water in other brands.

‘Society 2030: Spirit of Progress’ is our 10-year ESG action plan to help create a more inclusive and sustainable world. We have set ambitious targets aligned with the United Nations’ Sustainable Development Goals including accelerating to a low-carbon world and preserving water.

Since SOURCE Hydropanels also operate off-grid and without electricity or traditional piped water infrastructure, it will help reduce the carbon emissions associated with treating and transporting potable water. In addition, it will help us take a step forward in our sustainability journey by saving groundwater and being a part of the solution in water-stressed geographies. Godawan will be the first beverage alcohol brand to use SOURCE water and we will explore brand synergies and consumer preferences.

Consumers are slowly moving towards Eco-Conscious Choices

Leave a reply

With the industry and consumer moving towards a more eco-friendly and sustainable future, alcobev manufacturers have also initiated their move towards reducing their footprint. As one of the biggest stake holders in the industry, Pernod Ricard also recently announced its move towards the removal of mono cartons from its brands. But how does the company intend achieving this? Bhavya Desai spoke to Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India about it and more. Excerpts:

What are the current trends in the Indian Alcobev market?

The alcobev industry is dynamic in nature and new trends emerge every six months, but 2022 witnessed disruption and innovation in more ways than one.

While premiumisation has consistently been a key trend over the past few years, it will continue in the coming years, but not in isolation. Consumers are slowly moving towards eco-conscious choices and are seeking brands and products that bolster a sustainable impact on the environment and planet. This has nudged the industry at large to evaluate its impact on the environment and integrate sustainable practices into their businesses.

Low-calorie drinks and lower alcohol by volume (ABV) spirits are likely to see a surge in demand, as we see this trend currently growing. To cater to the growing demand for low alcohol drinks, especially for our health-conscious consumers, we recently introduced a non-alcoholic wine ‘Jacob’s Creek UNVINED’ in two variants to further build the category. There is a palpable consumer attraction across India for these categories and Tier 2 cities represent an additional robust source of growth.

Digital disruption backed by new-age technological innovation will continue to enable and enhance consumer engagement. On-ground consumer experiences today have become more immersive, which enable brands to curate personalised and customised opportunities for consumer engagement. In the years to come, the metaverse will also dominate as a key trend for consumer engagement.

What is Pernod’s outlook for India in 2023? Any plans to expand product offerings etc.?

India is a winning market for Pernod Ricard, globally. Innovation is at the core of Pernod Ricard – across all functions and initiatives and we will continue to invest in insight-led innovation to enhance consumer experiences.

As part of an industry wide initiative, Pernod has also announced its sustainable approach recently. However there haven’t been specifics on the details. Can you tell us more about this initiative?

At Pernod Ricard India, we continue to strive towards a circular future, with people, planet, and community at the core of our business. Resources are finite and over the years, we have taken so much from the planet. We feel now it’s time for us to give back to the environment.

Keeping this in mind, we are aiming to lead by example in the industry with #OneForOurPlanet, which is a significant step in achieving our commitment towards zero waste to landfill contribution for permanent mono cartons by 2030. With this, we commit to remove 100% permanent mono cartons from our packaging across our brand portfolio.

We strive to be sustainable and responsible at every step, from grain to glass and are responding with agility to global ecological challenges with this major environment-first initiative.

We have introduced innovative ways to offer convenience to consumers as well as build awareness through recycled and recyclable neck tags along with QR codes in several markets, that will redirect consumers to a micro-site solely created around #OneForOurPlanet. Using an integrated approach through new-age channels of communication, we aim to raise awareness around the positive impact of this initiative.

We believe in ‘responsible hosting’ which entails ‘responsible retailing’ and ‘responsible consumption’ practices. Our customers are receptive to change and are helping us amplify this further. Together we can make a significant difference and we trust that our partners and customers will help us pave the way for a better future!

Are there specific products/category that will be focussed on initially? Could you give us a phased timeline on the same?

Since 2020, we have been working on pilot projects to test consumer acceptance on the removal of permanent mono cartons. In May 2022, we finally decided to integrate this into our business in a phased manner, starting with IMFL brands. The key challenge now is how to address the assumptions that exist with respect to packaging in the alcobev industry. Consumers typically would associate mono cartons with luxury and premiumness, which becomes a critical factor when deciding what alcohol to buy. 

#OneForOurPlanet was a bold move for us, especially with regard to taking that extra effort in changing consumers’ mindsets towards responsible consumption. And, with the way and the kind of agility we are moving ahead, we are confident to complete the removal of mono cartons by June 2023 or before.

What is the current market share for your Strategic Local Brands? Could you give the percentage of growth in 2022 for the Strategic Local Brands and forecast for 2023?

Royal Stag is Pernod Ricard India’s leading brand and the group’s largest by volume. It has the largest market share in the deluxe whisky category with volumes sales of 25 million cases in 2022. Imperial Blue, one of the world’s best-selling whiskies, is our leading brand in the value segment at 24 million cases sold during the period Jul’21-Jun’22 (Market share: 34%, YTD Jun’22).

Could you share details of import of your international brands into India?

We are globally strong and locally relevant. Our focus has been on developing world-class whiskies, gins, vodka, rum and engrossing wine culture in India, by successfully bringing global products to India and catering to the evolved preferences of the new-age Indian consumer. New innovations for us cater to the market in terms of products and experiences that tap into key category trends. Some of the recent premium innovations that we’ve launched in India include Havana Club 7, a super-premium rum and Jacob’s Creek UNVINED range which is non-alcoholic range introduced in two varietals – Riesling and Shiraz, with 50% less calories than regular wine of the same varietal. We also introduced super-premium Japanese and Italian gins – KiNoBi and Malfy respectively. Another recent addition was the launch of Ballentine’s 7YO Bourbon Barrel Finish Scotch whisky.

There seems to be an uptake in consumption of international brands in India, despite high import duties. Thoughts?

The uptake in the Indian economy combined with a strong propensity towards drinking less, but better brands leads to a belief that FY23 will also be another positive year for both our IMFL (Indian Made Foreign Liquor/BII) and imported brands portfolio, which are well-positioned towards the premium end of their segments, in keeping with our long-standing focus on premiumisation. This trend has been further amplified by a few states adopting a progressive policy towards imported products leading to greater consumer affordability.

India is a ‘structured’ premiumisation story. The kind of and the quality of growth we are witnessing, is unlike anything we have seen before and it’s happening differently for different categories. We are focussing on deepening and enhancing consumer experience through our premium portfolio of products and initiatives.

What are the major challenges of operating in India, apart from taxation? What can the government do to ensure that ‘ease of business’ is a reality?

The alcobev industry is one of the biggest contributors to the government exchequer and requires policy and regulatory support to the same extent as other industries in the country. The industry operates under stringent regulations and arduous licensing process, which impacts the ease of doing business. Single-window clearance for all documents relating to alcobev production, updating IT infrastructure and streamlining various state-level bureaucratic processes are, therefore, the need of the hour. Furthermore, it would help if annual registration processes were further streamlined. For instance, if there are no changes in labels and pricing, they should be deemed approved after successful payment of fee. Further, a deeper and wider expansion of the retail universe to cater to emerging cities will lead to greater efficiencies and revenue growth for the state exchequer.

What products do you export out of India and to which countries? What is the growth like and the reasons for growth (besides Indian diaspora)? Also, could you let us know the markets that you are planning to enter?

Globally, our products are relished in over 50 countries with a volume of more than 2 million cases annually. We are looking to grow at a CAGR of 15% over the next three years. Strong growth is projected from Sub Saharan Africa and the South East Asia region. Our vision is to establish Pernod Ricard India’s Seagram’s portfolio as a world leader by creating the best brands and experiences for the middle-class and affluent consumers. The growth levers for our strategy are scaling up consumer base in existing markets, expanding portfolio via innovation, and targetting strategic whitespace expansion.

Our strong portfolio of Seagram’s brands includes Royal Stag, Blenders Pride and Imperial Blue.

There seems to be an emphasis on premiumisation, could you substantiate in the Indian context what that would mean?

The last few years have seen premiumisation as a dominant trend in the alcobev industry. Consumers today are seeking ‘value’ and ‘convenience’ more than ‘volume’ and this defines the shift in consumer behaviour as well as their enhanced expectation from brands. Besides this, the pandemic led to a rapid transformation in consumer behaviour by breaking down societal barriers and taboos. Today, consumers have gravitated towards self-indulgence leading to premiumisation and a boom for our higher end brands like Chivas Regal, The Glenlivet and Royal Salute. In fact, with house parties becoming the norm and the cocktail culture further gaining popularity during at-home consumption, our premium offerings such as Absolut and our Gin portfolio led by Monkey 47 and Beefeater have truly become at-home bar staples.

Premiumisation will continue to be a key trend as consumer preferences evolve in line with growing disposable incomes of the millennials and as they adopt global trends.

Tell us about your sustainability journey in India? Specifically, the W.A.L initiative on how it has impacted lives and your company?

Sustainability isn’t new to Pernod Ricard’s operations in India. As a responsible corporate citizen present in India for over 25 years, sustainability is the key to Pernod Ricard India’s operations. The company continuously works towards an enriched value chain that is committed to supporting the UN Sustainable Development Goals, ensuring that our business is aligned with the ‘World’s to-do list’ to help reach prosperity for the planet and its people.

The four pillars of our roadmap – Nurturing Terroir, Valuing People, Circular Making, and Responsible Hosting – address all aspects of our business from grain to glass. We are consistently working towards water stewardship to save, store and replenish water, especially in our plant locations, with a stakeholder inclusive approach. We are water positive in our operations with replenishment strategies at extremely high-water risk sites.

With our CSR Programmes on W.A.L (Water, Agriculture, Livelihoods) vertical, communities in water-stressed areas have adopted a circular approach and eventually have become more resilient in their approach to water use while increasing their disposable income. 

Assam’s Rice Wine Goes Global with Entrepreneur’s Vision

Leave a reply

The sweet mild flavour doesn’t easily give it away; a taste so distinct and broad at the same time. First time drinkers find it hard to describe, for its aroma is more “vinegarish” than alcoholic. But in places where this drink is more of a traditional staple, rice wine means more than just a drink. For perspective, South Asians love their rice wine. And if you’ve been around a lot, you’ve probably heard of Sake, the iconic Japanese brew with a global reputation. In many other countries like China, South Korea, Thailand, Malaysia, and Indonesia, rice wine comes in different forms, recipes, and flavours.

India also has a rich history of rice wine. In Assam, the North-eastern part of the nation, there is a booming rice wine segment that is centuries old, with each tribe and ethnicity having its own unique taste. Communities such as Bodo and Ahom significantly use the glutinous rice, the Karbi, Mishing and Rabha tribes use non-glutinous rice. Although the differences seem to be minor, yet these subtle variations and adaptations do bring about significant differences in the quality and characteristics of the rice wine. Whether it’s Xaj Pani by the Ahom tribe, Apong in Mishing, Jou in Bodo, Karbi’s Hor, or Rabha’s Chako, one line that runs through is the fact that these rice wines are part of the social, economic, and traditional life of the people. With regional support now received and policy reforms in place, local producers are now taking advantage of the new policy environment to produce these heritage alcoholic beverages for all.

When the North-East Agro Products and Services (NEAPS) approached the Assam Agricultural University months ago to develop a rice brew technology for them, it was in line with the new mandate to grow the local industry. Today, the Jorhat-based company has launched its commercial brand, “XAJ”, its own version of Xaj Pani, the Ahom variant of rice wine. But for Akash Jyoti Gogoi, director of NEAPS, it was an ambition first nursed in 2014. “I had visited South Korea at the time and had a taste of Makgeolli, a popular rice wine in the country, and I realised that our own Xaj Pani tasted better.

“I then intentionally searched out other popular rice wines of South East Asian origin, such as the Sake of Japan and Lao Lao of Laos. I again felt that taste-wise, our Xaj Pani can be the winner. Moreover, Xaj Pani is 100% herbal in preparation. Thus, I decided to go commercial with Xaj,” says Gogoi.

Starting out in strange waters

Flanked by his wife, Mampi Gogoi and his cousin Uttam Chetia of Indian Institute of Technology Bombay, Gogoi set out to carve a niche for XAJ. A total of ₹3.5 crore formed the initial investment for the business, part of which was a ₹65 lac machinery loan from the government of India’s North East Centre for Technology Application & Reach (NECTAR) programme. Since inception, NEAPS has continued to work towards building capacity and growing its reach in the market. Thanks to the Heritage Liquor Bill of Assam, they’re able to sell XAJ in departmental stores, grocery stores, and restaurants across the state after procuring their Heritage Liquor Retailer License.

Although rice wine is a local craft in Assam, Gogoi needed to brush up on his skills. As he says, the process is both scientific and artistic. “The starter cake is made traditionally using local herbs with rich medicinal value. Then the sticky rice is cooked, before mixing it with the starter cake and kept for 24-36 hours. After that the rice is sifted to the fermenter tank and left for 14-16 days before the wine is extracted. Then the wine is filtered in a 3-tier filtration system, before it is filled in 750 ml bottles,” he reveals.

“XAJ has a shelf life of more than two years. The alcohol content is 12%-13% V/V, as per the government guidelines. We also intend to introduce the 375 ml bottle very soon,” he reveals.

Starting off production just two months ago, the company currently produces about 25% of its full capacity. What NEAPS has been able to do in the last few months is to take a complete rural product and transform it into a scientifically stable product. Now with a standard operating procedure (SOP), a process technology, and process machineries and equipment, Gogoi says upgrading its design is the next task for the brand. XAJ offers a unique smoky flavour, herbal value, and a sense of heritage which have been well received so far.

Educating us about the cultural background of this drink, Assam’s Tinsukia-based Sanjeev Konwar belonging to the Ahom community, says that the Ahoms possess an age-old tradition of offering Xaj Pani to their forefathers to please them and seek their blessings. “In special ceremonies held during childbirth, marriage, and even funeral, Xaj Pani is a primary element. Besides, Xaj is also prepared during Bihu and served as a welcome drink to guests. It is naturally loaded with a variety of probiotics and has great therapeutic values. There are even many folk songs centred around Xaj,” he explains.

A promising XAJ future

Indeed, rice alcoholic beverages present a lot of prospects for brands that invest in technology and innovation. For NEAPS, the plan is to go beyond Assam and move into the major cities of India. But beyond that, the goal for Gogoi is to export XAJ to other countries in South East Asia and Europe, so that they can have a feel of what real rice wine tastes like. And just like Judima (rice wine of Dimasa tribe), which has earned a Geographic Indication tag and put the global spotlight on Assam, the plan is to make XAJ an Assamese identity and tourist attraction.