Architect, Interior Designer, Restaurateur, and Founder of Beyond Designs Bistro, Neha Gupta has launched a second restaurant. The new culinary offering is titled, Nineteen78, hinting at the classical influence of the cuisine on offer.
Propelled by the success of Beyond Designs Bistro, Neha takes assured steps to expand her culinary brand. The new restaurant is located at the popular Select CITYWALK, New Delhi.
Having mastered the art of offering a carefully crafted couture experience with the Bistro, she has now launched a prêt affair with Nineteen78. From a relaxed and elegant dining affair at the Bistro that is every bit cherishable, her patrons now have a chance to grab an equally memorable meal at the new restaurant.
The 48-seater multi-cuisine restaurant presents a delectable mix of European, Asian and Coastal cuisines from Vietnam and Sri Lanka. The menu sees the trained chefs revisiting certain classic dishes while also serving up some modern experimental fare. From Caesar and Fattoush salads with a twist to Chicken in spinach sauce with Orzo salad and grilled vegetables; from Sweet and spicy Hong Kong ginger fish to Caramelized dry Vietnamese chicken, and prawn linguini, Sliced lamb in hoisin sauce, there are several finger-licking options to choose from. Raspberry pie with vanilla ice cream, apple crumble & ice cream Chocolate devil cake, and many more make up the dessert menu. The restaurant also has a bar attached, offering a complete dining experience.
There is also an extensive breakfast menu with healthy as well as indulgent selections. The interiors designed by Neha and her husband Sachin Gupta of Beyond Designs, are a youthful mélange of contemporary styles. The boutique vibe of the restaurant is accentuated with colourful and quirky art and a fun bunch of lights made of steel and fiber. The marble tables with metal cast bases are paired with retro-style wooden chairs and sofa seating.
While embracing a contemporary sensibility, the restaurant and the gastronomic experience it offers retain a vintage soul.
In the late 1980s, when Ramada Pub off Church Street, next to the erstwhile popular Premier Bookshop, started vending ‘draught’ or ‘draft’ beer in mugs, it signalled the arrival of not just Bangalore’s but arguably India’s s first-ever pub, thanks to the ingenuity of Hari Khoday, who was known more for his XXX Rum then. A mug of beer cost only Rs. 2.75 paise with peanuts thrown in. It was a place where you could guzzle beer, not from a bottle, but in a mug, dispensed from a tap, connected to barrels of brewed beer got from the distillery. The concept of microbrewery came in much later. Ramada Pub was a tiny place where you jostled for space and guzzled beer with some loud music in the background.
Around the same time, The Pub, renamed later as NASA (guess one got spaced out just drinking beer then) got launched on Church Street and the music and the dim lighting gave fillip to beer drinkers to guzzle more. The Pub drew the upwardly mobile and then came Black Cadillac on Residency road which played rock music and also had regular gigs. I remember Vijay Mallya hosting some liquor-based events here for the media. These were happening places. Then there was Peco’s, Scottish Pub, Underground, Downtown and the like, all in and around Brigade Road, Residency Road, M.G. Road, becoming the city’s ‘beerholes’, if one may coin that term. And then from nowhere pubs started mushrooming across the hotspots of the city, earning Bangalore the moniker ‘Pub Capital of India’.
The city is a cauldron of cosmopolitan culture, with the tech crowd descending from all over the country and elsewhere too. The techies gave Bangalore a new edge and soon, pubs had to re-invent themselves, and voila there was the birth of microbreweries. The pubs of now are very distinct, trying to cater to the hip crowd, setting trends in not just the social drinking habit, but in cuisine, in music, in events and what-have-you. At one time, pub crawl was quite popular, now not so. With an estimated over 500 pubs in the city, these ‘beer-holes’ have to be up there to cater to the discerning and demanding beer connoisseurs and they are, mind it. From pubs to microbreweries, Bangalore or Bengaluru has indeed come a long way from the days of Ramada. Here are some of the new age breweries you can check out to get a taste of the beer world.
Geist Brewing Factory, the pioneer
Among the first to come up with a brewing factory has been Geist. It was in 2006, Geist was incorporated, thanks to Narayan and Paul and later Mohan, software guys who plunge to brew some of the finest beers Bangalore has known. Initially they made 300-400 batches of beer and then when the microbreweries in the city became ‘in’, Geist was right there. When The Biere Club opened in 2013 and later Byg Brewski, Geist became the catalyst. As the pubs grew, Geist set up its own brewery and supplies draft beer to Bootlegger, Hangover and Tipsy Bull, among many other restaurants and pubs.
The name ‘Geist’ comes from the German word ‘zeitgeist’, which is used to define “the general intellectual, moral, and cultural climate of an era”. The sentiment perfectly captures the evolution of Indian beer drinkers, and the resulting rise of the discerning Indian beer enthusiast and you bet, Bengalureans, by birth or otherwise, fall in that category.
To spread their love for beer, they set up their own Geist Brewing Factory – Restaurant and Beer Garden on Old Madras Road, serving their signature crafted beers – Geist Weiss Guy, Geist Kamacitra, Geist Rauch-a-Fella, Geist Marzen, Geist Golden Ale, Geist Witty Wit, Geist Stouter Space stout and Geist Uncle Dunkel. The ambience here is just about perfect to down a beer or two under the shade of a huge banyan tree.
The Geist Rauch-a-Fella is a smoked wheat beer, inspired by the famous smoke beers of Bamberg, while the Geist Stouter Space has delightful notes of chocolate and aromas of vanilla pods. Inspired by Luponic Distortion from Firestone Walker, the Geist Golden Ale series is designed to showcase different hop varieties. The best way to find out how all their beers taste is to go check it out, right?
The Biere Club, welcome to the club
When it opened in 2010, it started a new trend in the pub city – microbrewing and it caught on like raging fire. The Biere Club located, coincidentally on Vittal Mallya road (the man who built United Breweries, later Vijay Mallya gave Kingfisher global branding) got Bengalureans interested in microbrewing, vending beers including wheat, stout, lager and Belgian style ale. They have even experimented with ‘ragi’, locally grown millet, but one must try out the combination of strawberry & vanilla, lemon & chilli and bayleaf. The Moscow Mule created with ale and ginger ale is a drink that finds favour during summers. The Biere Club has another branch in the IT belt, called The Biere Street.
Byg Brewski, Asia’s largest brewpub
This is supposedly Asia’s largest premium brewpub – Byg Brewski Brewing Company or simply Byg Brewski, which is located in Hennur, away from the central business district. It is massive, with a sprawling 65,000 square feet of space which can seat about 3,000 people at a time in five different experience zones. Truly, the experience makes people come back for more and not just for the home-made craft beers. The ambience is an experience in itself with lush greenery and a lake within and a waterfall to boot. The microbrewery serves some amazing beers including Byg Wit (a medium bodied beer, low in bitterness with fruity esters); Byg Hefeweizen, a Bavarian style wheat beer; Byg Triple, a Belgian style strong ale; New Zealand Pilsner; Byg IPA, West Coast style IPA brewed with American hops; Coffee Chocolate Stout, a dark rich decadent stout and many more for one to quench one’s thirst and to experience some of the best brews this side of the world.
Arbor Brewing Company, everything American about it
Decade-old Arbor Brewing Company or simply ABC is supposedly India’s first American craft brewery. This has origins in Arbor Brewing Company, founded by Matt Greff who pioneered American craft beer revolution at Ann Arbor, Michigan. Having tasted American craft beer while studying at the University of Michigan, Gaurak Sikka headed straight to the ‘Pub Capital’ to launch ABC in 2012 and there has been no looking back. In 2018, Sikka took Arbor Brewing Company to Saligao in Goa and both places are rocking for their American craft beer and everything American. The wooden interiors give the place an authentic look, while what can one say about the beers ABC vends – Bangalore Bliss; Phat Abbot Tripel; Smooth Criminal; Rare Earth Lager; Michael Faricy Stout among others. ABC is the place to try highly innovative beer cocktails such as Wheat on Wheat (Ketel one vodka with mango juice, orgeat syrup and Bangalore Bliss); Chocolate Stout Old Fashioned (Michael Faricy’s Irish Stout, Johnnie Walker Red Label stirred together with chocolate and a hint of chilly; and summer refreshment in the form of 3 Spiced Mules (Pineapple and fresh ginger with Johnnie Walker Red Label served tall with Phat Abbot Tripel). ABC offers a full bar and there is a dance floor for one to dance through the night!
Toit, popular hangout
From night to Toit, it’s a beer walk. Toit in Indiranagar is an out and out brew pub, brewing a revolutionary culture, as they word it. With the promise of some bodacious brews, fabulous foods and a supreme brew pub experience, Toit has gone beyond that. In fact, the revolution has moved to Mumbai and Pune too. Toit claims all their beers are made only with natural ingredients; imported malts, the hippest of hops and the most eukaryotic of yeast, never using any enzymes, chemicals, colouring agents, artificial flavouring or preservatives, “because we want every sip to be nothing short of wholesome, heavenly, beer”. Using the unique and exotic flavours of local fruits, rice, wheat, and spices, this is Toit’s contribution to the world’s great craft beers such as Toit Nitro Stout (a very dark, full-bodied, roasty, malty ale); Toit TinTin (Belgian style fruity ale); Toit India Pale Ale (a bitter, highly hopped, English style ale); Toit Hefeweizen (a full bodied refreshing Bavarian); Toit Basmati Blonde (a light, crisp and refreshing ale, they call it a love child of India’s Basmati rice from which it gets its lightness, colour and floral aroma); and the city’s own Benga-Lager-U (a clean lager with complex maltiness and subtle spicy notes). Said to be one of the most popular brew haunts, it gives a high like no other.
Windmills, energising in a gentle way
Celebrating its decade-young journey in microbrewing is Windmills Craft Works in Whitefield. Known simply as Windmills, it is an upscale pub which has a jazz theatre where artistes from around the world have performed. On tap, they vend Hefeweizen, a Golden Ale, A Stout, 1-2 IPAs and New England IPA. For the tech crowd which makes up its clientele, Windmills offers a ‘boutique’ experience and the techies swear by it, not minding its ‘pricey’ menu. On the terrace, it serves North Indian fare, totally high end offering with a spectacular view of the sprawling tech city.
XOOX Brewmill, its Zooks, ok?
Coming to Koramangala which is peppered with some of the best restaurants and watering holes, there is XOOX Brewmill (don’t know how they came to pronounce it Zooks) which vends artisanal beers and cocktails. Spread across three floors, Zooks, is a live craft brewing space, converted from an old factory. The brewery offers eight styles of craft beers and signature cocktails like the XOOX G&T — a gin, martini bianco, Campari, red wine reduction with grape, apple juice, and tonic water, the C&C (Coffee & Conversation) — gin, black coffee, rose water, orange bitters, ginger ale and The Asian Wife, an interesting cocktail made with vodka, lemongrass syrup, lychee juice, lime juice and lemongrass haze.
BierGarten, so al-fresco
When in Koramangala, check out BierGarten, a sprawling 14,000 sq. ft and an airy, al-fresco seating across two floors. To go with this perfect setting, they’ve got about eight beer variants on tap with traditional German-style Hefeweizen, a dark Dunkel and Amber Lager being the most moving ones. They also have an outlet in Whitefield and a menu that boasts European-style cuisine.
Bier Library, for the ‘beerworm’
From BierGarten, we hop to the Bier Library, which has a beautiful open space and seating with the view of a koi pond located bang in the middle. There’s a cozy reading corner if you want your reading to transport you to another world, yes, of course, drinking the well-crafted beer and that includes a Red Ale, a Spicy Wheat Beer, and a Double IPA. They are also quite well known for their signatures that include Wittle Wit, Ale-O-Drama and Further Lager.
Druid Garden, you will like their potions
Moving to North Bangalore, which is just about seeing some fancy restaurants and pubs coming up, right perched on top is Druid Garden which has a built-in microbrewery that is run by a Chez Brew Master. Naturally, the ingredients are all sourced from Czech Republic and Germany and use recipes that have been tried and tested for years. Since they’ve opened, they’ve introduced 6 beers – Czech Pilsner, Bohemian Dunkel, Indian Pale Ale and a Basmati Lager among others.
District 6, zoned out
From one end of the city, we move to District 6, an upscale microbrewery that offers both fine dining and classic brews. With rustic and modern interiors and a blend of refined fresh German style brews, District 6 is a quaint brewery where you won’t have to shout out while in conversation with your drinking partner, the music just being right, not raucous. The microbrewery offers European, Indian and Chinese cuisine, but the beers are German-style. The brewery features open-air ducts and brewing equipment. True to its number 6, the brewery has a beer tank area; a brewery area; outdoor seating; front kitchen; public and private dining spaces.
Bengaluru is a trend setter and people from all over the world converge here for its cosmopolitan outlook and culture, unmindful of traffic. The city is peppered with so many watering holes, that one tends to forget the potholes, the chaotic traffic and work-related stress. Cheers to ‘namma Bengaluru’
The Covid-19 pandemic has continued to impact India since its arrival in spring last year. The government initially reacted by imposing a national lockdown from 23rd March to 4th May last year. The on-trade was completely closed, as were most liquor shops in every state. Places of work shut down, so many young office workers left the urban centres. With the on-trade stifled, retail purchases and consumption of beverage alcohol at home became the norm in most mainstream categories. In India, however, women and younger consumers still feel uncomfortable drinking in front of more conservative parents and family members at home. Limitations on space and refrigeration favoured spirits over beer, RTDs and – especially for young urban women – wine, all of which are usually consumed cold.
The implications of the pandemic response for India’s status as a federal republic soon became clear. The importance of excise duty income from alcohol, tobacco and fuel was brought into sharp relief as revenue streams dried up and the diminishing income from national taxes, such as GST, were used to offset fiscal shortfalls at state level. Most states responded by increasing excise duties – often suddenly and steeply – as well as charging taxpayers one-off cess payments, commonly levied by central governments for a specific purpose. Unusually, this cess (tax on tax), commonly levied by central government for a specific and clearly defined purpose (and not shared with state governments), has been applied in a number of instances at state level as a Corona-cess. Some states have been more reluctant than others to review, reduce or cancel such supposedly temporary measures. For instance, Andhra Pradesh – where the government had tried to enforce prohibition before the pandemic – imposed a 75% excise duty incre for two days just as the national lockdown ended last May; and on the same day, Delhi imposed a 70% cess on the maximum retail price (MRP) of all liquor, which remained until 7th June.
The timing of the lockdown could not have been worse, especially for beer. The category relies on young urban drinkers and after-work occasions and its peak season for consumption was about to start. When lockdown ended, bars and restaurants re-opened in most states, but were limited to 50% occupancy, and workers were slower to return to offices. Many are still working from home or – during Q1 2021 – have returned to it.
Compared to some countries, where citizens often remained risk-averse and pessimistic after the first lockdown, Indian consumer confidence seemed to bounce back quickly. Many Indians assumed – wrongly – that their everyday hygiene challenges afforded them a high degree of natural immunity to the coronavirus.
The past year has confirmed that India is squarely a brown spirits market. Whisky absorbs two-thirds of consumption in this market; brandy – with a strong presence in the south – takes 20%; and rum takes around half of that. In a total market that has shrunk by around one-fifth, whisky declined only slightly less than brandy and rum, which fell around one-quarter. Beer and RTDs suffered precipitous falls, deprived of many of the venues and occasions that had driven consumption forward. All clear spirits witnessed steeper declines in consumption than dark spirits: in each category, sales of domestically produced brands bottled in India (BII) fell away faster. Even allowing for the experimentation evident in categories such as Irish whiskey, consumers sought out brands that they knew, had earned equity and had consistent quality. In short, they sought out certainties.
Two other fundamental shifts have also occurred. Firstly, the premiumisation trend – evident before the pandemic – saw some importers shift their focus to retail, increasing its offering of high-end brands, which were previously targetted at Duty-Free and at the on-trade. Disposable income spent on going out to eat and drink before the pandemic was instead often redirected to premium-and-above products for at-home consumption. Secondly, as a corollary to this and confirming the pressure on the mainstream, was down-trading out of Indian-made foreign liquor (IMFL), either bottled in origin (BIO) or BII.
Budget-conscious consumers instead chose either country liquor or illicit alternatives, having long been deprived of licensed outlets in which to purchase their nips.
The on-trade closure has also impacted routes to market and the supply chain and it increasingly determines choice. When all outlets closed, some states permitted home delivery, which many thought heralded the long-expected rise of the e-commerce channel. In reality, this was an expedient option for retail outlets: e-commerce has not seen a consequent increase in regulation or investment since. On the contrary, drinks ordering apps, such as Hipbar, appear to have been actively discouraged.
The effects of a six-week shutdown of alcohol supply lasted long after it ended: restocking and logistics issues extended out-of-stock occurrences well into the summer months. Importers often found it difficult to source supplies as exporters were reluctant to ship to trading partners in an uncertain economy, not least because they wanted to avoid passing on rising logistics costs to consumers.
One of the responses, driven by leading country liquor suppliers, has been the emergence of intermediate or medium liquor produced locally: this refers to a price band of distilled liquor sold under licensed quota in certain states – presently Rajasthan and Uttar Pradesh only – competitively priced between country liquor/IMIL (Indian-made Indian liquor) and IMFL. Commonly the price, set by the state, is at a 25% premium to the country liquor price, a similar proportion lower than IMFL pricing.
This system has the additional benefits of almost guaranteeing state excise income and reducing the occurrence of country liquor-related health issues through better-quality product. In theory, this model should be attractive to many more states. In practice, its implementation may be limited by the relative scarcity of country liquor distillers able to produce medium liquor of the requisite quality. Nevertheless, with investment and a little covert encouragement from the states, that provision will doubtless evolve over time.
In a decentralised India, the domestic beverage alcohol industry relies on a relatively small number of states for its success. The top three states – Uttar Pradesh, Maharashtra and West Bengal – account for one-third of India’s population. The top six states account for half of the population. West Bengal is the only corporate state: the beverage alcohol industry is regulated directly through a state body. By contrast, the five largest states in the south are each home to beverage alcohol corporations.
This complexity and large size of India means that there are very few companies that are truly national. Even those that are considered national – thanks to a contract bottling network – still retain large regional brands in their portfolios. There is a small number of multinationals twinning domestic production with imports that are focussed on urban distribution shared among importers and wholesalers. India has a larger number of local distillers aspiring to convert their regional origins into a multi-region or national presence; and there are many smaller distillers, the majority of whom supply locally. Most distillers, therefore, will only be trading in one or two jurisdictions and navigating one or two bureaucracies. For the larger players, these challenges are manifold.
The second half of 2020 saw the Indian beverage alcohol market emerging quickly and largely unscathed from Covid-19 and lockdown. Leading spirits companies in particular were reporting quarterly revenues and volumes that had recovered to pre-pandemic levels. This was in spite of the on-trade remaining stifled, e-commerce failing to expand and the regulation and excise duty rises imposed by most states. However, by the second quarter of this year – the beginning of the new financial year for most corporations – this initial optimism about rapid recovery has somewhat evaporated.
The picture, though, is mixed. India’s federal state model shows up the inconsistencies between states: decisions can often be arbitrary, poorly thought through and political rather than practical, but a successful model in one state can be swiftly adopted in another. On the one hand, the Delhi state government’s legislation lowering the legal drinking age from 25 to 21 is positive for the industry. On the other, Andhra Pradesh will join Bihar, Gujarat and some other smaller states and territories to prohibit alcohol for around 250m people, which is nearly one-fifth of the population.
It cannot be overstated how the pandemic and its effects demonstrated the importance of beverage alcohol revenues to individual states’ budgets. Some state governments recognise this and are approaching their beverage alcohol policy with pragmatism by listening to the industry more attentively.
The key issues revolve around the temporary and permanent changes brought about by the pandemic. Office work may have changed permanently, calling into question whether or not urban on-trade lighthouse accounts will recover. It is uncertain when occupancy rates in on-trade venues rise above the current 50% constraint. The medium liquor system may see expansion into further states. It is also questionable whether premiumisation will persist or the second Covid-19 wave will dent consumer confidence fundamentally.
The wider economy, of course, is a determining factor. Declining disposable income has particular relevance for beverage alcohol spend. The industry is circumscribed by its investment in advertising and promotion. The pandemic has sharpened the senses of many executives and players, but left others close to collapse, unable to survive further uncertain events. States have pursued short-term solutions throughout the pandemic and it is unknown if this approach will persist. However, it is likely that the distilling capacity of the domestic industry will not grow. This has implications for all, given the contract-bottling model that has enabled the largest players to become truly national.
General Forecast Assumptions
On-Trade – In some states, the on-trade had re-opened up to 85% of its former capacity by Q1 2021. However, the occupancy restriction to 50% remains, so the real throughput is also likely to be at 50%. This will continue to affect beer and RTDs. Furthermore, on-trade sub-channels are re-opening at different rates.
Restaurants opened faster than bars; and bars faster than night venues. Whilst this appears to affect wine and premium spirits in higher-end outlets, the impact will be mitigated by the flexibility of suppliers, many of whom have switched attention to retail and targetting wealthier consumers.
Medium Liquor – Consumers in some states are now being offered a wider choice. Those who had traded down to country liquor may choose medium liquor instead of IMFL. Currently this is available in Rajasthan and Uttar Pradesh, but more states may institute this. A significant number of consumers may prefer the taste and the brands on offer in the category to IMFL.
E-commerce – When three of the larger eastern states – West Bengal, Chhattisgarh and Jharkand – permitted home delivery of alcohol, it was thought e-commerce would, at last, be stimulated by the lockdown conditions. They were soon joined by Orissa and Maharashtra. However, steep delivery charges, regulatory uncertainty, a reluctance to invest and a poor delivery-logistics framework continue to hamper growth, as well as the nature of Indian e-commerce defined on the invitation issued by the West Bengal authorities as “handling the electronic ordering, purchase, sale and home delivery of alcoholic liquors from licensed food [and liquor] outlets”. Retail competitors required to pay for annual licences have lobbied against the channel as well. Some significant platforms – Amazon, Flipkart (Walmart), Big Basket, Swiggy, Zomato and the mobile app Hipbar, reportedly backed by Diageo and, in Mumbai, Living Liquidz – responded to state-level invitations to get involved after the Supreme Court ruled in favour of home delivery from licensed retail. However, it has become clear that any bureaucratic encouragement of home delivery has primarily been one of a range of responses to the crowds that gathered outside liquor shops last year and, while recurring lockdowns may help to accelerate e-commerce, the channel will not significantly impact the industry for the foreseeable future. Informal delivery, where customers call up the liquor store and get an order dropped off by moped, already existed and will continue.
Regulation – Uttar Pradesh, India’s most populous state, had previously imposed a cess of 20 per bottle of beer. West Bengal, the fourth most populous state, increased consumer tax by 30%. Rajasthan, the sixth most populous, enacted both, adding20 per bottle and imposing a 10% increase in consumer tax. Their approach is unlikely to change. Additionally, the election in Bihar state did not return a government willing to reverse prohibition. Andhra Pradesh’s government was unable to enact prohibition but has discouraged some national players by making trading there problematic. However, it is assumed there is no foreseeable regulatory movement throughout the forecast period.
Consumer Base Expansion – India’s population is approaching 1.4bn, with less than half being of legal drinking age. The actual number of alcohol consumers is believed to be closer to 160m, only 7.5% of whom are women. Per capita rates for beer and RTDs remain low at around 1.2 litres for men and 150ml for women, re-calculated at 10 litres and 1.25 litres on estimated drinking population numbers. Wine has similar rates to RTDs, spirits are 1.8 litres per capita and nearly 15 litres on a re-calculated basis. There are more younger consumers joining the potential drinking population every year. Uptake by women reportedly increased during the pandemic.
At-Home Consumption – This trend is likely to persist beyond the pandemic. Wealthier consumers of premium spirits and imports spend for indulging at home and for gifts. The wedding industry will revive: most wine suppliers are focussing on higher-end offerings, educating consumers about its accessibility and suitability during meals, as well as drinking before and after. Beer and RTDs will find difficulty switching as their core message is based on going out and socialising rather than at-home consumption, and most consumers have insufficient refrigeration space at home.
Key Market Factors
Cultural – The legal drinking age varies from state to state. In most states it is 21, but 25 in the populous states of Haryana and the Punjab. In Maharashtra it is 21 for beer and wine, and 25 for liquor. Bigger states with a drinking age of 18 include Rajasthan in the north and Kerala in the south. Delhi is about to lower its LDA from 25 to 21.
Three states with larger populations prohibit alcohol. Gujarat has been dry for the longest, with Bihar and now Andhra Pradesh having imposed prohibition more recently. Outcomes are mixed, with Bihar and Andhra Pradesh reportedly having some of the highest per capita consumption rates for beverage alcohol nationally once illicit alcohol is factored in.
Demographic – A key driver of consumption has been urbanisation, particularly among younger LDA drinkers. The lockdown appears to have reversed this, with young office workers returning to their parents’ houses in smaller cities, towns and the countryside.
The overall population is nearly 1.4bn and grows by 15–20m or more every year. The drinking population is considerably smaller: at least half can only afford very cheap country liquor, which is largely unbranded alcohol with an estimated market of 250–285m cases.
The rapidly growing middle classes, who can afford premium-and-above, may number more than 150m. However, 98% of middle-class women and more than 20% of men are said not to drink for philosophical, religious or cultural reasons.
Some 49% of the population is aged under 19, and few drink, although younger consumers are generally more willing to consume alcohol than many of their parents. This leaves a market of between 25m and 30m people with the inclination and resources to drink IMFL.
Economic – There is little state support in India and wellbeing is the individual’s responsibility. With livelihoods uncertain but a young population inclined to optimism, the second Covid-19 wave may hit confidence hard and a volatile economy will see more cautious expenditure. Excise rates vary substantially from state to state even before the pandemic, which exacerbated the difference when states imposed cess payments to make up fiscal shortfalls.
A number of observers mention a shift to modern retail. This is consistent with state governments looking to secure the revenues they can expect from beverage alcohol and also with consumer expectations around improving retail venues.
Trade – Difficulties with the supply of stock have been widespread. It is reported that lack of supply inhibited sales, especially of premium products. The pandemic hindered logistics and rendered delivery more expensive. Brand-owner allocations have also reduced the agility to respond to demand.
A further element is that the phenomenon of medium liquor in Rajasthan and Uttar Pradesh offers more settled revenue for states and gives consumers an alternative to IMFL. One leading country liquor supplier reports now selling twice as much medium liquor as it does country liquor per month. India is unusual in that spirits demand is significantly more developed than demand for beer. While there is some interplay between the two with bang-for-buck consumers keen to maximise alcohol content per rupee delivery, there were some signs that demand for beer was beginning to develop separately.
However, strong beers of 8.5% ABV still represent more than 82% of demand. The first lockdown also affected trade, and was both severe and ill-timed – six weeks without sales, just before peak season for beer and RTDs. The on-trade revived in the second half of 2020 with near full re-opening in some states, but night and weekend curfews, combined with 50% capacity limits, continue to constrain this channel. The uncertainty of lockdown and the unavailability of liquor drove some consumers back down to country liquor, although not in the south where it is banned in five large states.
There was more limited up-trading by wealthier consumers. However, mainstream products, brands and players have been affected with some of the less financially secure domestic players closing for some months. In some of the larger states, competition in the beverage alcohol category is relatively open. In more there are state corporations set up as wholesalers and frequently as retailers too. In all states, beverage alcohol participants must navigate a web of licences, quotas and taxes, and sometimes incentives.
In certain key states, the regulatory authorities that control pricing have rationalised their price lists. In Delhi, Rajasthan, Madhya Pradesh and Haryana the correction has been downwards for higher-priced imports.
It is reported that there is shift to modern retail. This is consistent with state governments looking to secure revenues from beverage alcohol and also with consumer expectations around improving retail venues.
Political – Breweries have been investigated by the Competition Commission of India (CCI) which has now resulted in fines for collusion and operating a cartel. The reputational impact is more serious than the financial cost.
The Vodka market in India hasn’t been experiencing high level of growth for few years now. But while the regular Vodka category has witnessed a flat line, the flavours category has been witnessing good growth in the industry and nearly accounts for 60% of the overall vodka sales. Precisely the reason why you see manufacturers offering flavours of their vodka. So it is only natural that when India Glycols must’ve chosen to launch their vodka, it would be in two flavours, Green Apple and Orange.
If you remember then recently, we reviewed the Single Reserva Whisky which was also from India Glycols. The price of this product is Rs. 750 in UP is also available in Uttarakhand, Chandigarh and Rajasthan. There are also plans to take it National this year. With its price this Vodka is in the same category as some of the highest selling brands like Magic Moments and similar to Single Reserva, this vodka is also made at the company’s Kashipur and Gorakhpur plants.
Now Amazing Premium Vodka has been developed with the help of Raju Vaziraney who has been in the industry for many years and has helped in developing a lot of brands. This is a Grain-based Vodka which is infused with imported enhancers that have been brought from Germany. As you might knoe that enhancers are added flavours that provide the spirit with a premium feel. This is common in the industry and the flavoured vodka market. But since these are imported from Germany, it also is the distinguishing factor for this vodka as compared to the other vodkas made in India. The vodka is also 5-times filtered to make it smooth.
Vodka packaging is always more bolder since it needs to be attractive to appeal to the youth and women. Amazing Vodka comes packed in a frosted bottle with four colour printing and the bottle features an illustration of Mermaid suggestive of fantasy. What’s also clear is the flavour with the green colour for the label and the caps. We like the printing on the bottle, it feels premium and nice and also that the word amazing is embossed on the bottle.
In terms of nosing you get the subtle green apple flavour, which isn’t very overbearing. With a 37.5% ABV the vodka isn’t exactly very strong. But the filtration process ensures that you can nose that the spirit is refined and smooth. The aroma is also very distinctive and crispy.
With the first sip itself you can get the flavour. The spirit is smooth and it feels premium, especially since they’ve used imported enhancers. The finish is medium-longish and there isn’t any afterburn as it trickles down. There is a slight hint of peppery note in the taste to give some spice to it. But again, it isn’t overbearing. We also added a mixer to it to allow the vodka to open up a little and see what it does. Once added it makes the spirit even more milder, so may be as a tip: don’t add too much of the mixer when you choose to drink it.
So what is it that we think about the Amazing Premium Vodka. For a price of Rs. 750 for a bottle it is clear that it is targeted to users that are looking for good value for money. And of course you do have popular brands in that category already. When mixed with something that you like as you usually consume vodkas then you might feel really at home when it comes to this vodka. But our suggestion would be to not mix it with something very sweet since green apple flavour already has a hint of sweetness. But all in all, it has everything that you want from a vodka at this price point and it surely is worth a try.
It has been a long successful journey for Radico Khaitan which first produced supplied extra neutral alcohol ENA to production of their 15 brands, to creating five millionaire brands, operating 28 bottling units, going the premiumisation route, and creating world class brands in the luxury brands category. Dr. Lalit Khaitan looks back in retrospect at the journey and is confident that his son Abhishek Khaitan, who has worked alongside him will take the company to greater heights.
What effort does it take to make a company like Radico Khaitan? Can you share some insights into that?
Establishing a business from scratch requires perseverance and a clear vision. Nothing can be achieved within a few years. When my father, Mr GN Khaitan, bought the loss-making Rampur Distillery in 1972, we produced extra neutral alcohol (ENA) and supplied bulk alcohol for several liquor companies. We started production of our brands in 1999, and now have over 15 brands including five millionaire brands, and operate 28 bottling units across the country. The mantra for success is quite simple: understanding of market or segment, the audience’s taste, and taking decisions to narrow down market gaps.
What are the three key turning points that you attribute to the success of making Radico the biggest IMFL company today?
First turning point was when turned from a bottler to creating our own brands with – The launch and success of 8 PM whisky is the turning point as we started the branded IMFL business with it. We sold a record one million cases of 8 PM in the first year of its inception, a record that is yet to be broken by any other brand in India; in fact, it made it to the ‘Limca Book of Records 2001’ for the achievement. We utilised the best marketing brains and tools to popularise the product; even the commercials for the product won many accolades at that time.
Second was when we started premiumisation – with the launch of Magic Moments Vodka in 2006, followed by six versions under the brand Magic Moments Remix within two years of its release also helped us gain a strong footing in the industry. The brand established itself as the industry’s undisputed leader and category driver by capturing more than half of the category’s market share. Our decision to enter the vodka business paid off as Magic Moments rose to become the world’s seventh-largest vodka brand. I would also like to talk about the decision to go premium in 2009 with the launch of Morpheus XO Brandy as the game-changer for us and a successful PAN India brand.
Third was when we entered into Luxury segment -Then the launch of Jaisalmer Indian Craft Gin and Rampur Indian Single malt in 2018, not only mesmerised the Indian consumers, but brought a delightful experience to the connoisseurs’ world by endorsing Indian brands in the international markets. We have successfully built our brand equity in international markets and currently export products to over 85 countries.
Looking back do you feel that there are some things that you would’ve liked to do differently than today?
The way things have turned out for us, I would not change a single thing. The Branded story of Radico, which we started with in year 2006 is a perfect example of growth and scaling up.
A success of the company is directly attributed to its leaders. But how important is it to have the right team and processes in place to achieve that success?
If the team doesn’t resonate well with the vision and the mission set by the management, the whole idea of an efficient leader can fall apart. No success is assured without having employees who are focussed on accomplishing the unified business objective. In my view, anybody can copy machines, but it is manpower who makes all the difference in success and not so success.
What do you think Radico took such a long time to diversify into premium brands?
As I have always maintained, the decision to enhance the brand portfolio has to be taken after taking stock of the overall market dynamics. We entered the premium category in 2006 and that was the time when the liquor market was witnessing a shift from just social acceptance to the development of a society that enjoys drinks. The success of our premium brands attests to the right timing. Besides market leaders including Magic Moments Vodka with over 60% of the market share and Morpheus XO Brandy which has a market share of over 60% in the premium brandy segment- 1965 Rum has achieved a 10% market share in defence, Magic Moments Verve has achieved a 20% market share amongst all premium vodka brands and Rampur Indian Single Malt and Jaisalmer Indian Craft Gin are a rage not only in India but world over. This testament is proof of our timings being right and the strategy being robust.
In the last two years, the company has been churning out some great products in the gin and whisky category like Jaisalmer and Rampur? Moving forward do we expect to see more products like those?
Product innovation is of the utmost importance for us. Our latest offerings including Royal Ranthambore Heritage Collection Whisky and Magic Moments Dazzle have been yielding encouraging responses. We are also working on scaling up the existing brands like Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, 1965 Spirit Of Victory Rum, Morpheus Brandy, and 8 PM Premium Black Whisky. Going forward, you will see a host of products in the premium range from the House of Radico Khaitan.
With its premium products, Radico is focussing a lot on exports as well. But slowly these products are now available in India as well. What was the reason why this strategy was adopted? Was it to replicate the success that some of the other manufacturers have achieved using this route?
We had this strategy for two of our luxury products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin and it worked wonders for us. Both the products are a rage world over. The primary reason was that the single malt and the craft gin categories were already established abroad. In India, these categories are now emerging. Hence, we launched the product first in the international market before bringing them to the domestic market.
What was your vision for the company a decade back and how has it changed considering where Radico is today?
My vision is to work constantly to improve quality standards and enhance customer satisfaction. And it has always been that. Be it last decade or two decades ago. I do not feel that we have to change it as it ultimately gets converted into revenue growth and increased market share. The Customer is the King for us.
The dynamics of the industry and also the way it operates is constantly changing. What are your thoughts on those? Is there anything that you would like to see differently about the industry or any suggestions you would like to make that can improve things?
Right from advertising to marketing, liquor industry operates in a very challenging business environment. For instance, alcohol companies are not allowed to advertise directly so we have to strategise differently to make our brands more visible, rope in more brand ambassadors, and create creative campaigns with infotainment. Since the market is also growing, we have to be on our toes to offer the best products to our consumers and devise marketing strategies that will ensure that our products reach them.
One of the major challenges that has emerged in the recent past is around our surrogate brands. According to the existing rules, companies need to have a separate revenue model for the surrogate brands with a certain amount of turnover and this creates an additional challenge for us.
However, we find solutions to all of these obstacles within the purview of law because we are a responsible company. We have a legacy to maintain. Non-compliance with state regulations is not an option for us. Since we have over 75 years of experience in liquor manufacturing and 25 years in the IMFL business, the company knows about the law across states and knows how to adhere to it.
In Abhishek, you have a son that has led from the front along with a great team. How does that make you feel as a father?
As I worked hard to help improvise and enhance my father’s vision, I am seeing the same zeal in him. He was instrumental in taking the call towards launching our own brands and premiumisation drive which turned the fortunes around for the company. He is a new-age leader who people look up to and that makes me an extremely proud father.
How difficult is it to compete against multinationals as an Indian brand? Your thoughts?
Once a company has a sound understanding of the market, and back that knowledge with its quality products then competition doesn’t pinch much – be it from domestic or multinational brands. Within two decades of launching our brands, we have expanded our reach to over 85 countries, which is an indication of the capability of Indian brands. I would like to give an example of our latest products Rampur Indian Single Malt and Jaisalmer Indian Craft Gin here; when we took the product to the international market, people were surprised by the fine quality leading to immediate acceptance. The idea behind giving this example was that once you have quality products according to the tastes of the people, competition becomes secondary.
The late English author Gilbert Chesterton once wrote: “Let a man walk 10 miles steadily on a hot summer’s day along a dusty English road, and he will soon discover why beer was invented.” He’s right, of course — there’s something about the combination of the warmest season and an ice cold brew that just works. Summer in Delhi is unbearable and we do not have an opposition for this. And, how most of us beat the heat is by gulping down frosty and flavourful beers. Delhiites can now rejoice as India’s popular beer brand Bira91 brings you a range of four new limited-release beers – Bollywood IPA, Kokum Sour, Brown Ale, and Mango Lassi – as part of their ‘Imagined in India’ initiative. Team Ambrosia was part of the preview tasting, hosted on April 07 2022 at the beautiful QLA, in Mehrauli, Delhi. The tasting was followed by dinner, curated by Chef Vicky Ratnani, and a live music set by DJ MoCity and DJ Nida. It was what we call a perfect dreamy evening filled with all the finer things in life.
A melange of flavours
The ‘Imagined in India’ beers are made with indigenous products and are inspired by the raw creativity of today’s India led by emerging artists, entrepreneurs, and startups combined with the cradle of flavours that find a home here.
The Bollywood IPA variant has a tropical twist, inspired by west coast India Pale Ales that were born in California, while Kokum Sour has traditional ingredients from the Konkan coast. We loved the Brown Ale – a blend of English Nut Brown Ale and the Antwerpian Amber with notes of coconut and vanilla. Fans of lassi would appreciate the taste of their Mango Lassi version that merges its Wheat Ale and a milkshake beer into one.
Ankur Jain, founder and CEO of the company, said, “For this generation of consumers, beer means flavour, and we deliver on that promise. ‘Imagined in India’ is an attempt to bring together the many flavours of India and its creative energy fuelled by emerging artists, entrepreneurs, and startups. Each beer is brewed with unusual ingredients – local and seasonal – which makes them unique.”
He further added, “Each of these flavours originated at the Bira 91 Limited-release Taproom at Koramangala, Bengaluru, where they received tremendous consumer love and affinity. The flavours were voted as the top-ranked choices by beer lovers, which inspired us to bring them to consumers across the country.”
Earlier, back in 2021, Bira 91, in collaboration with non-alcoholic drinks brand Svami, had rolled out Cucumber flavoured Kölsch. The Bira 91 x Svami Cucumber Kölsch is brewed with pure German Pilsner malt, a fresh cucumber flavour and the delicate caress of the finest German noble hops, with an IBU of 18 and an ABV of 6%. It is a crafted blend of bitter-sweet notes and cool cucumbers creating a crisp, balanced, and revitalising beer.
Staying true to the brand’s playful image, Bira 91 encourages consumers to be more experimental and creative, while exploring new flavours in everything, including the beers that they drink. The new ‘Imagined in India’ range is yet another exciting testament to delivering on that promise.
Collaborations for community growth
To bring alive the flavours, Bira 91 has collaborated with Kulture Co, a curated platform spearheading the new wave of Indian Graphic Art across borders. The brand on-boarded contemporary Indian artists from the Kulture Lab – artists who are breaking the mould and taking modern India to new frontiers – to conceptualise and design the packaging of the four new flavours.
Channelising their art and creativity on a new canvas, artists Ranganath Krishnamani, Osheen Siva, M. Sajid and Prince Lunawara showcase a vibrant palette of local stories around shared identities painted onto these beer cans, paying homage, and narrating the story of our home country.
Commenting on the idea behind designing the packaging of Bollywood IPA, artist Ranganath Krishnamani said, “Conceptualising the packaging of a flavour so bold and dynamic, that it takes you to the heart of Mumbai, where all things Bollywood originated, was truly exhilarating. Incorporating the charming art deco cinemas in Colaba, the iconic ‘kaali-peeli’ cabs, and the vintage colour scheme was the perfect way to capture Bollywood on a can.”
Designer of the Kokum Sour packaging, Osheen Siva, too expressed his thoughts behind the masterpiece and said, “Kokum is a tangy flavour, as Indians have developed a taste for since childhood. To depict a taste so loved yet so new to the beer industry was exciting. I conceptualised it to be something offbeat and loud. For me, the can had to give consumers an idea of what they were picking up from the rack when indulging in a Bira 91 Kokum Sour Beer.”
“Imagined in India to me is being authentic, raw and connected to our roots. Capturing the taste of Brown Ale that recognises uplifts and celebrates diverse communities of India and having the essence reflect in the artwork on the packaging was a great experience,” M. Sajid, who designed the Brown Ale packaging, enthused.
Prince Lunawara, who creatively illustrated the Mango Lassi can said, “India loves mangoes and merging the flavour with beer is as creative as it can get. Through the can, my idea was to celebrate this creativity and the beauty of India’s flavours.”
The limited release beers will retail in metros like Delhi, Mumbai, Bengaluru, and Pune.
According to Expert Market Research, the India beer market stood at a value of nearly 371 billion in 2020. The industry is expected to reach approximately 662 billion by 2026, rising at an estimated CAGR of 9.2% during 2022-27.
Diageo launches Godawan, its artisanal single malty whisky, set to redefine the world of sustainable, modern and conscious Indian luxury.
Godawan, the Great Indian Bustard, a regal, majestic avian… once found all over India, is now nearing extinction, and finds its last refuge in Rajasthan.
Rajasthan, a land of stark contrasts… an arid land of extremes which envelops within it some of the harshest weather conditions. However, culturally, it also preserves and conserves with delicate care and passion everything that exists on its land – whether it is the fauna such as Godawan, its flora such as barley, its innovation in the form of step wells, or its people – known across the world for their thriving, colourful and intricate arts & craft.
The flourishing and world-renowned arts and craft of Rajasthan, such as sandstone and marble art, are a testament to “beauty in scarcity” and crafting exceptional things of beauty from what nature provides.
Godawan, Diageo India’s artisanal Single Malt Whisky, is crafted in, its provenance inspired by, and dedicated wholeheartedly to this Rajasthani ethos – of beauty in scarcity, and sustainability. The heat of over 100°F combined with six-row barley, that requires lesser water, helps create a whisky with an incredible depth of flavour, and a rich and complex character. The aridity means the “Angel’s share” is higher than average in Godawan – leaving behind a whisky with stunning taste profiles, which are finished in special casks selectively curated with Indian botanicals.
Diageo proudly call themselves “The Spirit of the Desert” – the spirit of Rajasthan with its culture, people and ecology which permeates in the character and flavour of their liquid. With Godawan, they doff their hats to the artisans and the innovators who are defining modern Indian luxury that is sustainable, that is ecologically conscious, and truly nurturing of the land it comes from.
Speaking about Godawan, a Single Malt which will change the way world perceives Indian whiskies, Shweta Jain, Chief Business Development Officer, Diageo, says, “When it comes to premiumisation, we, at Diageo India, believe in constant disruptions to up the ante. We believe that our consumers deserve better. We also know that modern affluent Indians are looking for luxury that makes them feel rooted and enriched. Godawan is a product borne out of this belief. It will help our consumers discover an Indianness hitherto unknown – rich and meaningful. Godawan – the spirit of the desert – will redefine the way Indian single malts are perceived globally with its truly world-class story and flavour.
Vikram Damodaran, Chief Innovation Officer, Diageo India, says, “Godawan, Diageo India’s innovation in artisanal single malt whisky, is proof that India is the next emerging destination for quality single malts as well as artisanal craft spirits. Each bottle of Godawan can be traced back to a cluster of barley farms in Rajasthan, ensuring transparency and authenticity of the product and gets its provenance from extreme temperatures which lend it a rare & subtle complexity, and a unique taste. The whisky is not just a testament to the region’s craftsmanship and ingenuity, but also commitment to sustainability and preservation of the land it comes from – and it begins with the Great Indian Bustard.”
Godawan is a labour of love, for our roots, for our heritage, for our land. And it is the embodiment of our commitment – to the conservation of the Great Indian Bustard, and to our communities of artisans and craftspeople. With only a few Great Indian Bustards left in the world, every bottle we make contributes to the conservation of this exquisite bird.
Godawan, The Spirit of the Desert. A story waiting to be told.
The unique whisky-making process involves: Slow-trickle distillation from locally sourced six-row barley; Uniquely matured at temperatures reaching 100°F; Finished in special casks selectively curated with Indian botanicals Godavan will be available in Rajasthan and Delhi to begin with and will then be subsequently available in the rest of India. It will also be available in Dubai from April onwards.
A summer beer can be just about any style, as long as it’s crisp and refreshing and makes you never want to go back inside again. They range from light and fruity to hoppy and complex, but the best summer beer is the one you come back to again and again as soon as the temperature crawls above 60 degrees.
The global beer market size reached US$ 640.2 billion in 2021. Looking forward, IMARC Group expects the market to reach US$ 750.3 billion by 2027, exhibiting at a CAGR of 2.7% during 2022-2027, according to a new report by IMARC Group.
Beer is a fermented alcoholic beverage that is made by brewing and fermenting starches derived from cereal grains. It is flavoured using hops that not only add a buttery flavour to the beverage, but also act as a natural preservative. Apart from this, other flavourings, such as herbs and fruits, are also added to attribute a specific flavour and fragrance to the drink. It is a rich source of niacin, folate, riboflavin, pyridoxine, potassium and magnesium.
Moderate consumption of beer is widely associated with numerous health benefits and aids in maintaining blood pressure levels, preventing kidney stone formations, and minimising the chances of developing cardiovascular disorders, including angina, stroke and heart attack. Owing to this, it is gaining widespread popularity across the globe.
Global Beer Market Trends:
One of the major factors influencing the global beer market is the rapid spread of the Coronavirus disease (Covid-19) and the consequent social distancing norms and lockdowns imposed in several countries as a control measure. The decrease in the number of social gatherings is projected to lead to a decline in the on-premise consumption and sales of beer in bars, restaurants, pubs and public events. However, this trend will to be offset by the demand for to-go packs as well as home delivery services, mainly through online platforms. Another factor driving the market is the widespread preference for specialty beer among individuals. These beers are brewed to a classic style by incorporating different flavours, such as honey, chocolate, ginger and sweet potatoes. This adds a distinct flavour and aroma, which further adds innovative and eccentric flavours to the drinks. The growing inclination toward craft beer is also accelerating the market growth. Since microbreweries produce portioned amounts of beer, they lay enhanced emphasis on the flavour, quality and brewing techniques as compared to large-scale commercialised breweries.
The potential for beer growth in India is strong as well. AB InBev, for example, began brewing Budweiser in the market back in 2010. In January 2021, Kirin Holdings announced an investment of $30 million in New Delhi-based B9 Beverages, the maker of the Indian craft beer Bira. IWSR anticipates beer consumption in India to return to pre-Covid-19 levels by the end of 2023, continuing on its growth path from there.
Expanding beyond beer
As consumers moved to the at-home occasion, the trend for convenience has helped to shape purchasing behaviours. In markets such as the US, the ready-to-drink (RTD) category, which includes hard seltzers, has been taking share from beer. RTDs provide a growing opportunity for brewers to diversify their product portfolios. Indeed, Heineken entered the hard seltzer category in September 2020, with the launch of Pure Piraña in Mexico and New Zealand. In the US, Heineken partnered with AriZona to launch the AriZona SunRise Hard Seltzer in October 2020. AB InBev states that Bud Light Seltzer is their leading innovation in the US market, with over 75% of volume being incremental to their portfolio. In fact, 2021 was the first year in which a hard seltzer commercial (Bud Light Seltzer) aired during the Super Bowl.
Malt-based RTDs are currently dominant in the US owing to their taxation base, and brewers they are in prime position to take advantage. Elsewhere, the alcohol base of choice varies by country, driven by consumer preference and local alcohol tax structures.
Changes in purchasing behaviour propel e-commerce
As with the wider beverage alcohol industry, Covid-19 has propelled the value of the alcohol e-commerce channel. Heineken, for example, reported that Beerwulf, its direct-to-consumer platform in Europe, nearly doubled its revenues in 2020, while in the UK, its revenues tripled. Online sales of its home-draught systems grew as well.
Beer has traditionally under-traded online, primarily due to the channel offering lower margins. However, this will change as consumers continue to buy more groceries online and beer is included in the weekly shop. This is especially true in the US, where IWSR expects sales of online beer to grow rapidly as supermarket chains increasingly invest in the channel. Online beer sales hold the greatest market share in countries including Japan, the UK and the US. From a lower base, online beer sales will also grow rapidly over the next five years in markets such as Israel and Nigeria.
The entrepreneurial spirit of small-batch players
Craft breweries, which tend to be more dependent on the on-premise, have propelled interest in the global beer category and revitalised its fortunes in many markets. IWSR believes that the entrepreneurial spirit of the sector will mean that craft brewery regeneration will be quick. In the US, for example, IWSR has seen the pandemic lead to a “buy local” approach amongst some consumers, which will benefit small-batch players.
Innovation in the no/low space reignites the category
No- and low-alcohol beer is a bright spot for the category, as moderation and wellness trends continue to resonate with consumers. IWSR data shows that, to date, most volume has come from no-alcohol rather than low-alcohol beer across 10 key markets.
Broadly, low-alcohol beer is giving way to no-alcohol offerings particularly in markets such as Australia, France and the UK. Spain, for example, is seeing a shift from low- to no-alcohol beers, as consumers seek healthier choices and view the newer 0.0% brands as more modern. In South Africa, investment from Heineken and the emergence of a craft segment has helped to generate interest in the no-alcohol category.
While no-alcohol beer has existed for decades, in markets like the US, no-alcohol beer has premiumised through the release of no-alcohol versions of non-lager styles, long the domain of no-alcohol beer. More recent no-alcohol styles, such as IPAs, stouts or porters, are starting to make a real impression, driven particularly by new challenger brands, many of which are not linked to traditional brewing. The recent no-alcohol extension of Guinness – despite some teething issues – will help to underline that no-alcohol beers are no longer the sole domain of lagers.
While several key beer players continue to steer the no/low beer category, the market is fragmented with a number of smaller brands vying to establish themselves as market leaders in this space. The segment is likely to become even more of a focus for smaller craft producers who are able to bring a diverse range of products to the market in future.
The India-Australia Economic Cooperation and Trade Agreement (“IndAus ECTA”) was signed by Shri Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Government of India and Mr. Dan Tehan, the Minister for Trade, Tourism and Investment, Government of Australia in a virtual ceremony, in the presence of Prime Minister of India, Shri. Narendra Modi and the Prime Minister of Australia, Mr. Scott Morrison recently. In his opening remarks during the Joint Press Conference with Mr. Dan Tehan after the signing in ceremony, Shri Goyal said the Australia – India ECTA truly symbolises our Ekta (Unity) & the spirit of cooperation. Terming it a historic day for India, as it is the 1st agreement with a developed country after a decade, Shri Goyal said our relationship rests on the pillars of trust & reliability, aptly reflected in our deepening geostrategic engagement through the Quad & Supply Chain Resilience Initiative.
Stating that India and Australia are natural partners, connected by shared values of democracy, rule of law & transparency apart from our shared love for Cricket, Food & Movies, Shri Goyal said Ind-Aus ECTA is expected to almost double bilateral trade to about $50 billion in five years. He said there is great potential for Indian exports in sectors like textiles & apparel, leather, hospitality, gems & jewelry, engineering goods & pharma, IT, Startups etc. Australia has committed to key areas of India’s interest in Services like Education, IT, Business, Professional Services, and Health & Audio-visual while Australia will also provide Post-study work visas for students, the quota for Chefs & Yoga instructors, and Work & Holiday visas for young professionals.
Tariffs will be eliminated on more than 85% of Australian goods exports to India (valued at more than $12.6 billion a year), rising to almost 91% (valued at $13.4 billion) over 10 years.
Australian households and businesses will also benefit, with 96% of Indian goods imports entering Australia duty-free on entry into force.
India is the world’s largest democracy and the world’s fastest-growing major economy, with GDP projected to grow at 9% in 2021-22 and 2022-23 and 7.1% in 2023-24.
Shri Goyal said the Agreement provides adequate safeguards to prevent circumvention, fuse to protect against sudden surge in import of goods; for the 1st time, mechanism included for compulsory review after 15 years. Underlining that the Ind-Aus ECTA will not only herald a new era of trade & commercial ties, but also take the relationship between our nations to greater heights. Shri Goyal said he will be visiting Australia in the coming days, to take the ECTA to people.
Like true brothers, both nations supported each other during Covid-19. Ind-Aus ECTA covers the entire gamut of the trade & commercial relations, removing trade barriers & opening a plethora of opportunities in both goods & services. Expected that with ECTA, the present bilateral trade for merchandise & services of $27.5 bn (2021), may reach a level of about $45 to $50 billion in the next five years.
It is expected to create new employment opportunities, raise living standards and enhance the overall welfare of the peoples of both the countries. Additional employment generation is expected to be 10 lakhs within the next five years. Australian wine exporters, however, will have to wait for the full benefits, with tariffs on wine bottles with a minimum import price of US$15 expected to reduce from 150% to 75% when the agreement enters into force. This tariff will then reduce to 25% over 10 years.
Tariffs on wine with a minimum import price of $5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years.
In services, Australia has offered 135 sub-sectors to India, while India offered 103 sub-sectors to Australia. Adequate safeguards have been provided to prevent circumvention or diversion of goods from any non-party. Provision for bilateral safeguard measures to protect against a sudden surge in import of goods. For the 1st time, a clause is introduced for a special review mechanism that provides for compulsory review after 15 years in a time-bound manner.
“The IndAus ECTA, encompassing trade in goods and services, is a balanced and equitable trade agreement, which will further cement the already deep, close and strategic relations between the two countries and will significantly enhance the bilateral trade in goods and services, create new employment opportunities, raise living standards and improve the general welfare of the peoples of the two countries,” the commerce ministry said recently in a press release.
In 2020, India was Australia’s seventh-largest trading partner, with two-way trade valued at $24.3 billion, and sixth largest goods and services export market, valued at $16.9 billion. Our Government’s goal is to lift India into our top three export markets by 2035, and to make India the third largest destination in Asia for outward Australian investment.
The Australia-India Economic Cooperation and Trade Agreement (AI ECTA) signed recently will further strengthen that relationship.
Prime Minister Scott Morrison said the agreement would create enormous trade diversification opportunities for Australian producers and service providers bound for India, valued at up to $14.8 billion each year.
“This agreement opens a big door into the world’s fastest growing major economy for Australian farmers, manufacturers, producers and so many more,” the Prime Minister said.
“By unlocking the huge market of around 1.4 billion consumers in India, we are strengthening the economy and growing jobs right here at home.
“This is great news for lobster fishers in Tasmania, wine producers in South Australia, macadamia farmers in Queensland, critical minerals miners in Western Australia, lamb farmers from New South Wales, wool producers from Victoria and metallic ore producers from the Northern Territory.
Benefits of AI ECTA include:
Sheep meat tariffs of 30% will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20% of India’s market.
Wool will have the current 2.5% tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.
Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150% to 100% on entry into force and subsequently to 50% over 10 years (based on Indian wholesale price index for wine).
Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150% to 75% on entry into force and subsequently to 25% over 10 years (based on Indian wholesale price index for wine).
Tariffs up to 30% on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.
Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.
The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
LNG tariffs will be bound at 0% at entry into force.
Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.
Minister for Trade, Tourism and Investment Dan Tehan said AI ECTA would also further strengthen the people-to-people links between our countries. India was Australia’s third largest market for services exports in 2020.
“This agreement will turbocharge our close, long-standing and highly complementary economic relationship in areas such as critical minerals, professional services, education and tourism,” Mr Tehan said.
“It will create new opportunities for jobs and businesses in both countries, while laying the foundations for a full free trade agreement.”
Both countries will facilitate the recognition of professional qualifications, licensing, and registration procedures between professional services bodies in both countries.
Australian services suppliers in 31 sectors and sub-sectors will be guaranteed to receive the best treatment accorded by India to any future free trade agreement partner, including in: higher education and adult education; business services (tax, medical and dental, architectural and urban planning; research and development; communication, construction and engineering; insurance and banking; hospital; audio-visual; and tourism and travel.
Australia will also provide new access for young Indians to participate in working holidays in Australia. Places in Australia’s Work and Holiday programme will be set at 1,000 per year and Australia will have two years to implement the outcome. This is expected to contribute to both workforce requirements and to boost tourism to support our post-Covid recovery.
In a boost to our STEM and IT workforces, the length of stay for an Indian Student with a bachelor’s degree with first class honours will be extended from two to three years post study in Science, Technology, Engineering or Mathematics (STEM) and information and communications technology (ICT) sectors.
Australia and India have also agreed to undertake cooperation to promote agricultural trade as part of the agreement and will now work toward concluding an enhanced agricultural Memorandum of Understanding (MoU).
Mr Tehan signed AI ECTA on behalf of Australia during a virtual ceremony with India’s Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Piyush Goyal, attended by Prime Ministers Scott Morrison and Narendra Modi.
This announcement builds on the Morrison Government’s $280 million investment to further grow economic relationship and support jobs and businesses in both countries, that includes:
$35.7 million to support cooperation on research, production and commercialisation of clean technologies, critical minerals and energy;
$25.2 million to deepen space cooperation with India and $28.1 million to launch a Centre for Australia-India Relations.
AI ECTA is an interim agreement and both countries continue to work towards a full Comprehensive Economic Cooperation Agreement.
The Kerala Government has approved setting up pubs and wine parlours in IT parks across the state. The State Cabinet which met recently announced a new liquor policy for the financial year 2022-23 which aims to increase the number of retail outlets in the state to bolster its exchequer. In the last five years, God’s Own Country received `46,546.13 crores through the taxation on liquor.
The government revealed to a RTI that it had collected Rs. 766 crores monthly as tax on liquor which meant that tipplers paid as much as Rs. 25.53 crore as tax on liquor. The highest revenue from the tax on liquor was collected during the period of 2018-19 and 2019-20. A total of Rs. 9,615.54 crore was collected in 2018-19 and Rs. 10,332.39 crore in 2019-20. There was dip in sales of liquor due to the pandemic in 2020-21. The Kerala State Beverages Corporation (BEVCO) posted a loss of Rs. 1,608.17 crore in revenue during 2020-21.
Hence, the government which was toying with the idea of opening up retail vends at different places has tweaked the policy. Now, BEVCO and Consumerfed outlets will be started in those areas which are safely away from populated and residential areas. The demand for allowing pubs in the IT sector has been a subject of debate for some time.
The IT sector in the state was demanding to change its policy on the matter. It is learned that the pubs will have facilities of five-star luxury hotel. The Pinarayi Vijayan government tweaked the liquor policy enabling the opening of more retail outlets and the biggest gainer appears to be the IT parks in Kerala, where special earmarked areas will be provided where IT buffs can have a drink.
Incidentally, the liquor policy of the Kerala government is an annual ritual, when the rules are made for the new fiscal and become applicable from April 1 every year.
The biggest gainer appeared to be the three IT parks in the state, where over one lakh professionals are employed at Technopark, Kochi Infopark and the Kozhikode IT park.
The State Excise Minister MV Govindan pointed out that there has been a long-standing demand from IT professionals for a lack of facilities for recreation. “It has been decided to allow sanction for special licenses to these parks where specially marked areas will be there in the park and facilities will be available for consumption of liquor under strict norms,” said a statement from the Minister.
The government also is giving permission to produce liquor with low alcoholic content or wine from the cashew apple, pineapple, jackfruit and nutmeg. Similar to what Delhi did, Kerala intends to allow buying of foreign liquor from the outlets without queues. The decision to increase the production of liquor in the existing units and launch new units has been taken to address the issues in the production of Indian-made foreign liquor and beer.
The government said that it was taking measures to escalate the production of Jawan rum of Travancore Sugars and start manufacturing at the Malabar distillery.
Highlights of the policy:
• No hike in brand registration fees for liquor selling in cans and glass bottles • The government proposes to ban sale of liquor in plastic bottles from 2023-24 • The closed outlets will be reopened as premium shops to reduce the rush in existing outlets • Grant of bar licenses will be only to three-star hotels and above • Kerala Toddy Industry Development Board will be revived and soon licenses will be issued to operate toddy shops from 2022-23 • Track and trace systems will be introduced for production of liquor and inter-district/intra-range transport • Beverages corporation will launch liquor-related industries in the state • All services provided by the Excise department will be made available online from April 1 • Computerisation of foreign liquor outlets • More vehicles and 100 pistols will be delivered to the excise circle offices of eight taluks • Mobile app titled ‘Peoples Eye’ to lodge complaints about the trade, stocking and consumption of illicit liquor • Increase the posts of women civil excise officers • Appoint 100 youth from scheduled tribes as civil excise officers