Tag Archives: Alcobev

Beam Suntory India targets $1 billion in sales by 2030

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With leading brands like Teacher’s and Jim Beam, Neeraj Kumar, Managing Director, Beam Suntory, India, is given the ambitious goal of reaching $1 billion in sales by 2030.

As the new MD of India what is your first order of business?

In keeping with our global objective to be the world’s most admired and fastest growing premium spirits company, our ambition in India will be to further develop our business here and join the US and Japan as one of Beam Suntory’s largest markets.

To help achieve our ambition and ensure focus, we have simplified our International region structure and India is now one of three Business Units that comprise Beam Suntory’s International region. In India, with leading brands like Teacher’s, Jim Beam, The Ardmore, Laphroaig, Bowmore, Sauza and premium brands under our House of Suntory portfolio, we have an aspiration of reaching $1 billion in sales by 2030. Our most immediate priority is to build on the current momentum of our premium portfolio across different consumer occasions by leveraging our East-Meets-West competitive advantage. We will also continue to leverage the passion of our people for water and the environment by continuing to commit to initiatives supporting environmental sustainability.

What are the goals and objectives that you have set for the company this year?

We continue to develop our presence in India as a growth engine of the future by unlocking new growth opportunities to build scale. Our Vision into Action strategy leverages three pillars: Creating Famous Brands, Building Winning Markets and Fueling our Growth. This strategy provides continuity with an added emphasis on premiumisation and doing business the right way. Like in our other geographies, we’re demonstrating the unique power of East-meets-West. We blend the best of the East – including an unparalleled commitment to quality, continuous improvement and Dreaming Big – with the best of the West, reflected in an entrepreneurial, innovative and winning mindset.

While the Indian market presents a great opportunity, there are also a number of challenges. Can you highlight both in your company’s case? Firstly, we see an incredible opportunity with the growing LDA consumer base and premiumisation being witnessed in the market where consumers prefer quality over quantity. The Spirits category is large, yet the route to market can be complex and potentially pose challenges across the various markets in India. Our focus is to build brands which can be trusted and delight our consumers in a responsible manner. A key challenge is to be able to build brands in a scalable and sustainable manner.

How do you plan to get Teacher’s to attain its past growth and market share?

Teacher’s is one of the strongest and most loved Scotch brands in India. It has a resilient brand equity. We continue to see great momentum with Teacher’s and over the past few years we have focussed our efforts and resources to create premium innovations like the Teacher’s Golden Thistle 12YO which has found tremendous acceptance across markets in India. Teacher’s remains a strong consumer choice and in the last few years has grown in line with our category footprint – including during disruptive events like the highway bars ban a couple of years ago.

Which are the other brands you would like to focus on for the Indian market?

We believe Jim Beam has a huge potential in the Indian market especially because of the growing number of Legal Drinking Age consumers who like to experiment with new tastes. Jim Beam is a versatile serve and can be enjoyed with a variety of mixers or just straight. It’s differentiated taste is perfectly suited for young metro consumers who are looking to up-trade to high quality Bourbon whiskey. Globally and in Asia, Bourbon is a fast-growing segment and we intend to build Jim Beam into a fun and vibrant brand.

We are also very excited to scale up our premium portfolio and building The Ardmore, our newly introduced Scotch Single Malt which was voted the best BIO Single Malt in India in the 2019 Ambrosia Awards. The Ardmore is a balanced smoky Single Malt and a new taste for Indian consumers.

While Hibiki Whisky is globally recognised for its taste and quality, in India it still isn’t a very popular name. Do you have any plans to promote it since India is primarily a Whisky drinking market?

Japanese whiskies continue to draw very high attention and interest globally thanks to their exclusive taste and craftsmanship. We are assessing the India market opportunity to decide what would be the right time to introduce our luxury Japanese whisky portfolio in India. Our parent company Suntory is fully committed to support the re-introduction of these brands in India.

Gin is also a growing category in India. What are your plans for the same with Roku being a popular product?

Roku has been a huge success globally since its launch. It is already a familiar name amongst the gin consumers in India thanks to its spectacular presence in duty free and other global markets. We are exploring the India market opportunity to finalise the appropriate time to introduce the House of Suntory luxury portfolio in India.

Which are the major regions that Beam Suntory could see good growth in the Indian market? Are you looking at new territories?

We would like to consolidate our presence in the major whisky markets in India. While the metro cities in India present a showcase and consumption opportunity, the growth in mini metros and towns is spectacular. Teacher’s and Jim Beam enjoy strong distribution and availability across domestic and duty-free channels.

What new marketing initiatives you would like to initiate to take advantage of the growing market?

Growing our presence at the On Trade and Horeca channel is a high priority. Building Sales force effectiveness and focussing on vital consumer touchpoints will be another initiative. We are committed to the strengthening of brand equity and share gains for Teacher’s and drive trials of Jim Beam & The Ardmore At the very top end, consumers can expect our luxury whisky and gin portfolio in top accounts.

Despite the challenges in India, how important is the Indian market for Beam Suntory?

As I mentioned earlier, India is a strategic priority for Beam Suntory. We have an ambitious growth agenda commensurate with our demographic dividend and leading emerging market status. Our robust investments on feet on street, talent and channel expansion reflect a strong commitment from Beam Suntory to the Indian market. Additionally, we are committed to deliver our vision of Growing for Good, protecting water and the environment, giving back to our communities and promoting responsible consumption of our products.

Thibault Cuny appointed as the new CEO for Pernod Ricard India

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Thibault Cuny has been appointed as the new CEO for Pernod Ricard India. He has held the position of CEO and President of Pernod Ricard, Brasil since 2012. He has also previously worked at Pernod Ricard Holding in Paris as Audit and Development Manager and as Executive Vice President – Finance at Pernod Ricard South Asia since 2006.

Cuny has been under the Pernod Ricard umbrella since 2003 and has held various job titles in the company. Pernod Ricard is the world’s co-leader in wines and spirits with consolidated sales of € 8,558 million in 2014/15 and the fastest growing multinational beverage alcohol company in India with a business spanning the entire length and breadth of the country delivering quality products to its discerning consumers.

With leading brands in each segment, Pernod Ricard India holds one of the most comprehensive and Premium portfolios in the industry led by Indian whiskies such as Royal Stag, Blenders’ Pride and Imperial Blue, along with the home grown Wine sold under the brand name Nine Hill and Indian vodka – Fuel. The company also distributes some of the leading international brands including Chivas Regal, Seagram’s 100 Pipers, Ballantine’s, The Glenlivet and Royal Salute Scotch whiskies, Jameson Irish whiskey ABSOLUT Vodka, Havana Club rum, Beefeater gin among white spirits category, Martell  cognac, Jacob Creek wine, Kahlúa and Malibu liqueurs and G.H. Mumm champagne.

When to bottle craft beer?

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Craft beer which is available mostly in kegs is now moving to the retail shelf. A look at some of the compelling reasons.


As the craft beer demand continues to grow, the more successful craft beer produces have a happy dilemma when growing organically, is moving on from the first phase when the start-up microbrewery only kegs the beer to bottling beers. The margins created by retailing your beer instead of selling it wholesale have sustained the growth of microbreweries. This successful approach has succeeded in generating phenomenal growth in the industry.

Wholesaling only has downsides, mainly for those micro breweries that do not have their own direct chain of distribution. Those without direct distribution have struggled in the past and are the micro breweries most likely to disappear. Microbreweries without their own direct outlets are those that have tended to fail first over the years. The need to have a substantial distribution network was recognised immediately for example by BrewDog in Scotland, and Whitewater Brewery in Northern Ireland.

The important initial capital outlay required to open a microbrewery needs a rapid growth of sales and margins to sustain the business. You have to have a guaranteed high margin from your own distribution from the very start, or you will need deep pockets to sustain the start up from zero. Many of your clients will also want to enjoy their favourite beer at home or on a picnic. And you need to serve them, or they will buy their tipple from the competition. Therefore you need to satisfy this type of consumption by offering bottled beer, pretty soon after starting your brewery. Initially the quantities to be bottled are relatively modest – maybe only 500 or 1000 bottles at a time for each of your various recipes. Initially, therefore, the easy way, although an expensive way, is to contract bottle outside the premises. This seems the way to go. Contract bottling has many disadvantages and could eat into your margins because of extra logistics cost and scheduling. In-house bottling could be the solution. Bottling in-house requires generally more money than anticipated.

More and more fancy craft beer is also showing up in aluminum cans. Five years ago, just a few dozen craft brewers in the U.S. were canning, while today there are more than 500. The beer in a can cools faster. The can protects from beer-degrading light. Beer cans are portable and take up less space, advantages both for retailers and for consumers who want to take them camping, hiking or fishing. There’s also more space on a can for wraparound design and decoration.

While glass bottles take longer to cool down, they also stay cold longer once they come out of the cooler. Plus, glass producers and plenty of brewers will tell you translucent amber glass has been working fine to protect beer from light and air. The biggest selling point for the bottle, though, is flavour. There’s at least a perception that cans impart a metallic taste, whereas liquid stored in a bottle comes out tasting pure. The metal touching your lips is still a factor in terms of flavour, but most craft brewers suggest pouring out beer into a glass before sipping, whatever package it comes in. It may be coolness, or it may be convenience, but the bottom line is, cans are getting cheaper. Bottling in-house remains a simpler, cheaper process. The Brewers Association estimates just 3% of craft beer on the shelves is in a can. Sixty percent still goes out in bottles, and the rest is sold in kegs. Glass has been a very reliable package and tradition will prove itself well that glass is not going anywhere.

In India quite a few microbreweries plan to launch bottled beer brands to cash in on rising demand for India’s craft beer. So far, India has seen just a few craft beer brands such as Bira, White Owl and Simba, sold off shelves despite nearly 170 microbreweries that opened over the past decade. Karnataka government does not allow brewpubs to distribute in-house beer and are permitted to produce a maximum of just 1000 litres a day. Windmills Craftworks will start producing cans of craft beer from their newly-acquired 2000-litre production brewery in Goa. India’s craft beer industry accounts for 2-3% of the country’s beer market which is largely skewed towards the stronger version. The surge of interest in craft beer has been driven by millennials, many particularly interested in this form of beer that is more authentic, premium and has a complex flavour compared to regular lager sold by MNCs.

But making and selling craft beer at a larger scale isn’t easy. Besides licenses and distribution, brewpubs have to wrestle with cold chain supply infrastructure, short shelf-life of craft beer and smaller budgets compared to United Breweries, Ab InBev and and Carlsberg that together control 90% of the market. As a result, many are planning to roll out variants such as hefeweizen, stout and light golden ale – that can survive better in these tough conditions. And some are opting for pricier cans to package their products instead of glass bottles. Cans are lighter, unbreakable, carry more branding information, have little oxygen uptake and do not allow light to enter easily, unlike bottles. International craft beer brands can collaborate and set up bottling plants in India to retail now. Big commercial beer brands are also waiting, and will hop on the craft brewery segment in the next two-three years. Perhaps herein lies the opportunity for Praj, Krones, Alfa Laval and KHS.

SHOR- Modern Indian Restaurant and Quarter Bar

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Exactly opposite Santacruz police station is the two month old SHOR. It has a stylish ambience with rustic touches to make it warm and friendly and has a seating capacity of close to 45 people. The bar was well stocked with a wide range of cocktails and mocktails. Chota Bheem is their signature drink. Whisky, Kalakhatta, Chaat masala used in preparation of this drink.

For music there as the in-house system with a live DJ station and Karaoke after 10 P.m. This place has Bollywood nights every Thursday and also a Karaoke night once during the week. They do have valet parking service. Cheese and garlic naan bomb starter is a must try. Tiny naan discs served as starter with cheese and garlic stuffing had the right flavours. With dishes inspired from the western coast, the menu not only includes the names of the dishes, but also the place they are inspired from. Signatures include Khakhra from Gujarat, Tadka Hummus from South India, Amritsari Fish from Mangalore and Prawns Koliwada from Mumbai, find your tastebuds, taking a ride along the coast too. The grill section, includes the basics like, Cheese Seekh, Achari Aloo, Fish Tikka and Masala Prawns. The nouveau main course section has dishes like, Truffle Oil and Okra Khichadi, Chicken Gassi, and Goan Fish Curry and Rice. SHOR promises you endless stories and binging sessions over the course of its journey. With a menu that is carefully hand-picked and curated which is juxtaposed with music, this place is sure to win your heart.

France’s buoyant US Spirits Business Tops 200 Million Bottles

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France has been known for its luxury spirits brands and the US is one of the biggest markets in the world for premium spirits. Naturally French exports are directed to this market.

French spirits exports to the US have doubled in ten years and now account for more than 200 million bottles a year, says Christophe Macra MW, spirits expert and one of France’s Masters of Wine.

He said that interest in spirits was growing worldwide due to better distillation quality, innovation and new spirit-producing regions entering the market. Spirits consumption would continue to grow in both economically prosperous and developing regions.

At a spirits Master Class and review of market trends at Vinexpo 2019, Macra traced four trends in spirits development. He also predicted which five spirits categories would dominate global spirits in five years time. M Macra illustrated his review of international trends with a tasting of Calvados Armagnac, Gin and a Gentian aperitif and cocktail ingredient from France, Vodka from Ireland, Mezcal from Mexico, Whiskies from Sweden and Taiwan. The diversity of spirits and their origins showed that “The world wants spirits and people want to drink them”. A growing spirits distribution sector worldwide – especially in France where there were now between 20 and 30 national distributors compared with three or so 29 years ago – was further evidence of trade and consumer demand. Trends pushing spirits expansion are: revivals of traditional spirits such as Calvados and Armagnac where there was growing interest in Asia; rediscovery of locally-produced spirits, eg Irish Whisky, Gin and Vodka; global interest in little-known spirits such as Mezcal; new exotic spirits such as agricultural rum from Tahiti, “where no spirits at all were made 10 years ago”.

Similarly, in Sweden 12 whisky distillers operate using locally grown malt and wood casks. Taiwanese whisky was now a huge market characterised by accelerated maturation in a warm climate and excellent cask selection. M. Macra was asked to forecast the five spirits likely to dominate world growth in the next three to five years. He nominated: World Whisky – “still very strong and growing”; Rum – “mostly spirit made from molasses, but a growing contribution from rhum agricole; Brandy – “high quality brandies of all kinds”; Tequila and Mezcal – “growing interest worldwide” and Local craft spirits – “small distillers of high quality –hence the trend to ‘drink local’”

The Way Forward For India And The Alcobev Industry

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While captains of industry welcome the new government and are hopeful of industry friendly policies, they are also looking at sustainable growth for the future. The alcobev industry has sputtered along in spurts and jerks. With a new government in place, the industry is hopeful of new impetus for growth.
“A stable government is indeed welcome for the nation and economy. We hope that the new government will reinforce its progressive policies towards the industry, and usher in the next phase of reforms to promote ease of doing business and ‘Making in India’. We also look towards the Federal government to encourage states to urgently bring comprehensive regulatory reform into key state- GDP contributing sectors such as alcoholic beverages,” says, Anand Kripalu, Managing Director and CEO, Diageo India.
The beer industry has its fair share of challenges. And with the competition heating up and input prices rising it is becoming difficult to invest in growth. “With a strong mandate that the government has received, we look forward to sustained reforms that will spur further growth in the economy. We also look forward to continued emphasis on ease of doing business,” says Shekhar Ramamurthy, Managing Director, United Breweries Ltd.
ABD in its new avatar, has discovered growth in volumes and is now translating it in to value by creating millionaire brands of its premium brands. The elections and the policies will be closely watched. Will Bihar lift prohibition under the new government? That is perhaps the question on the lips of all marketers.
“It is indeed a blessing that India has elected a strong and stable Goverment and I look forward to more structural reforms so that India can continue on a strong growth trajectory with gainful employment for all its citizens. I also expect the federal goverment to build consensus amongst all states to include potable alcohol in GST,” said Deepak Roy, ABD Vice Chairman.
Plagued by high taxes, both Central and State, the Indian alcobev industry is struggling to find the way forward. Some years ago it was the number game and companies like USL managed to cross the 100 million cases mark and brands like Officer’s Choice crossed the 30 million cases mark. But those numbers did not translate into profits and only companies like Pernod Ricard consistently remained in the black. But now companies are scaling down their volumes where the margins are thinner, introducing premium brands and focussing on profits. Diageo is working to get consumers to ‘premiumise’. The company is working to taking a long term view and creating business value. The history associated with Diageo’s iconic brands, too, bears testimony to such far-sightedness.

However, despite all the challenges in the Indian alcobev industry, Radico has managed to do well, particularly after the opening of the UP market. They have also successfully launched 8 PM Premium Black followed by a big media blitz. Even Magic Moments is maintaining its leadership position backed by heavy advertising on TV channels.
While congratulating on the grand come back of PM Narendra Modi, Dr. Lalit Khaitan, Chairman of Radico Khaitan Ltd. says, “The voters have endorsed Modi’s decisive leadership, his ability to take the country from red tape to red carpet, his government’s multiple schemes to pull out millions from abject poverty and provide them essential services like electricity, cooking gas, bank accounts and free health services.”
Whereas down South KALS Group has been growing very fast particularly after acquiring Imperial and introducing more products like Sparta and so on. It is aspiring to expand to other markets beyond South and has chalked out long term plans.
KALS CMD Mr.S Vasudevan says on the historic victory of the NDA government, “I wish our Honourable Prime Minister Mr. Modi for his impeccable victory. This is a well-deserved victory for transforming our nation in terms of controls, governance, and GDP growth. I personally look forward to having reforms in the IMFL Industry as well that contributes significant revenue to the respective states. I wish the new government all the very best and I’m confident under the leadership of our Honourable PM, India will get into the strides of excellence.”
In India Diageo is taking a long term view well emphasised by the purchase of USL for over US$ 3 billion which could create tremendous opportunities for the next 20 to 30 years.

USL added about 5,000 employees to Diageo’s global workforce, and it wasn’t just about gaining access to a strategically important market. The company’s Indian talent pool and its investments in IT and service centres in India serve not just the Indian market, but the group globally. And having overcome the legacy issues associated with the USL acquisition, Diageo claims to have set itself the ambitious target of “changing the alcohol industry in India”. Much of that effort revolves around a campaign to inculcate the spirit of ‘responsible drinking’, which translates into reinforcing moderation, and in promoting road safety in collaboration with State governments.

And the way Diageo hopes to make the transformation in India is to “premiumise” the business by inducing consumers not to “drink more”, but to “drink better”, by moving to up-scale brands. That has also seen it franchise out some of the lower-end brands it acquired along with USL, and renovate its brands.

Companies like Pernod Ricard has had a sound strategy in place as well. Not only most of its brands are millionaire brands but they enjoy good margins and the company has consistently delivered profits over the years.


But the company too has suffered from disruptions and would like more business friendly policies. Says Guillaume Girard-Reydet, Managing Director, Pernod Ricard India, “The people of India have exhibited with full clarity, their confidence in stability and progress in current reforms. I encourage this government to continue the momentum on reforms in the economy, to increase ease of doing business and comprehensive regulations enabling best growth for India.”
Pernod Ricard launched recently its 2030 ‘Sustainability & Responsibility’ roadmap as part of the Group’s strategic plan to ‘Transform & Accelerate’. This roadmap sets out 8 ambitious and concrete 2030 targets supporting the United Nations Sustainable Development Goals (SDGs) which was unveiled at the Martell Cognac distillery in France. The Group is taking bold next steps in addressing both environmental topics, to preserve the terroirs its products come from, and social responsibility, in particular by accelerating the fight against alcohol misuse.

Scotch Whisky Association is also looking at a long term boost to its business value. It has drawn up plans till 2050.

Mumbaikars appear to be more discerning about their alcohol now than they were seven years ago. Consumption of hard, and, at times, spurious, country liquor has barely increased, but the tribe of wine-drinkers has risen by over 67% in the seven-year period.

Consumption of country liquor (CL) increased only 5.7% in this period, prompting experts to say that people with lower income who opt for it have controlled their drinking habit. However, those preferring the costlier IMFLs have increased by almost 30%, show the seven-year data. The consumption of the ‘safe’ option – beer – has only increased by 6% in this period. Beer and wine have less chemical spirit (up to 17%) content than IMFL and CL (which have up to 44%).
“People go for IMFL and CL or may be a mix for a better and quicker kick. But since the chemical spirit is higher in both of them, there are chances of them adversely affecting a patron’s health. It’s hence a worrying sign that Mumbaikars are increasingly drinking more IMFL than beer,” said an expert who works for the de-addiction campaign.
Excise duty on beer has made prices similar to that of IMFL. This, experts say, comes as a major discouragement for those who want to switch over to liquors with lesser pure spirits. On the contrary, countries in the West and a few in Asia like China encourage beer to ensure minimal damage to the health of regular drinkers, by offering cheaper pricing.

Between 2010 and 2017, alcohol consumption in India increased by 38% from 4.3 to 5.9 litre per adult per year, said the researchers. In the same time, consumption in the US (9.3-9.8 litres) and in China (7.1-7.4 litres) increased marginally.

Worldwide Alcohol Consumption Declines -1.6%

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IWSR 2018 Global Beverage Alcohol Data Shows Growth in Spirits, but Beer and Wine Volume is Down; Market Expected to Grow by 3% Over Next 5 Years

Beverage alcohol drinkers across the globe consumed a total of 27.6bn nine-litre cases of alcohol in 2018, but while that number represents a decrease of -1.6% from the year prior, new data from the IWSR forecasts that total alcohol consumption will steadily increase over the next five years, to 28.5bn cases in 2023.

In terms of retail value, the global market for beverage alcohol in 2018 was just over $1tn, a number which the IWSR expects to grow 7% by 2023 as consumers continue to trade up to higher-quality products.

These figures – and more than 1.5m other points of data – are included in the just-released IWSR Drinks Market Analysis Global Database, which also shows:

Gin was the Leading Global Growth Category in 2018, and Forecasted to Reach 88m Cases by 2023

The largest gain in global beverage alcohol consumption in 2018 was in the gin category, which posted total growth of 8.3% versus 2017. Pink gin was a key growth driver, helping the category sell more than 72m nine-litre cases globally last year. In the UK alone, gin was up 32.5% in 2018, and the Philippines (the world’s largest gin market) posted growth of 8%, fueled by a booming cocktail scene and premiumisation of the market. By 2023, the gin category is expected to reach 88.4m cases globally, with particular strong growth in key markets such as the UK, Philippines, South Africa, Brazil, Uganda, Germany, Australia, Italy, Canada and France. Notably, Brazil has emerged as a new hotspot for the category, with volumes there more than doubling last year and forecasted to grow at 27.5% CAGR 2018-2023, as the gin-and-tonic trend has increased in upmarket bars of São Paulo and Rio de Janeiro.

Consumption of Whisky and Agave-Based Spirits Continues to Increase

Spurred by innovation in whisky cocktails and highballs, the global whisky category increased by 7% last year, driven in large part by a strong Indian economy (whisky grew by 10.5% in India, as consumers continue to trade up in the category). The US and Japan posted 5% and 8% growth, respectively. The IWSR forecasts whisky to grow by 5.7% CAGR from 2018 to 2023, to almost 581m nine-litre cases. Also, continued interest in tequila and mezcal (especially in the US), and innovation in more premium variants and cocktails, drove the agave-based spirits category to 5.5% global growth in 2018 – and is expected to post 4% growth over the next five years (2018-2023 CAGR).

Mixed Drinks and Cider Grow

The mixed drinks category (which includes premixed cocktails, long drinks, and flavoured alcoholic beverages) grew 5% globally in 2018. By 2023, it is projected that more than 597m nine-litre cases of mixed drinks will be consumed across the world. The growth is backed by continued strong gains in ready-to-drink (RTD) cans in the US and Japan, the category’s two largest markets. In Japan, most RTDs are locally made and almost exclusive to Japan. Their popularity is partly due to the fact that they are relatively dry, which makes them more food-friendly and sessionable. In the US, the popularity of alcohol seltzers has been a tremendous engine for growth in the RTD market. In the cider category, as investment levels in those products continue to rise, almost 270m cases are expected by 2023, a 2.0% CAGR 2018-2023. Both of those categories (mixed drinks and cider) are taking share from beer as perceived accessibility increases (less bitter, easier to drink.)

Vodka, Liqueurs, and Cane Spirits are in Decline

Vodka lost volume in 2018 (-2.6%) as the market for lower-priced brands continued its decline in Russia and the Ukraine (two of the largest markets for this spirit). Higher-priced vodkas, however, showed a more positive trend last year. Nonetheless, the outlook for total vodka over the next five years remains sluggish as the category is forecasted at -1.7% CAGR 2018-2023. Also in decline is the flavoured spirits category (liqueurs), which dropped by -1.5% globally in 2018, and is expected to continue to slip in 2019 before rebounding slightly in 2020. Cane spirits (primarily Brazilian cachaça) was down -1.6% last year, and is forecasted to lose another 4.5m cases by 2023.

Beer Continued to Lose Volume in 2018, but is Expected to Rebound

Global beer declined -2.2% in 2018, impacted greatly from volume decreases in China (-13%). Other large markets such as the US and Brazil also fell (-1.6% and -2.3%, respectively), while Mexico and Germany saw growth (6.6% and 1%, respectively). The future outlook for beer, however, paints a more positive picture, as the category is expected to show a slight increase in 2019 and post a 0.7% CAGR 2018-2023.

Wine Volume Declines, but Value Increases

Wine, which had posted strong global growth in 2017, lost -1.6% in volume in 2018 as wine consumption declined in major markets such as China, Italy, France, Germany and Spain (the US market was flat). However, though consumers are drinking less wine, they’re increasingly drinking better – pushing wine value to increase. Globally, the retail value of wine is projected at $224.5bn by 2023, up from $215.8bn in 2018. The one bright spot in wine volume is the sparkling wine category, which is expected to show a five-year CAGR of 1.17% 2018-2023, driven in large part by prosecco.

Low- and No-Alcohol Products on the Rise

Low- and no-alcohol brands are showing significant growth in key markets as consumers increasingly seek better-for-you products, and explore ways to reduce their alcohol intake. Growth of no-alcohol beer is expected at 8.8%, and low-alcohol beer at 2.8%. No-alcohol still wine is forecasted at 13.5%, and low-alcohol still wine at 5.6%. Growth of no-alcohol mixed drinks is predicted at 8.6%. (Above figures are all CAGR 2018-2023.)

Top Ten Performing Global Markets, 2018-2023

A look at the world’s fastest-growing beverage alcohol markets shows an emergence across a variety of developing countries. A combination of growing legal-drinking-age populations and healthy economies is driving some of this growth, which is expected to continue over the next five years.


“Every year our analysts spend months traveling the world to speak with suppliers, wholesalers, retailers, and other beverage alcohol professionals to assess what is happening market by market in this fast-changing business,” says Mark Meek, the IWSR’s CEO. “The raw data we collect is enormously valuable, but equally important is what that data tells us in terms of trends, challenges, and opportunities facing the industry.”

Seagram’s Royal Stag launches a Limited-Edition Cricket World Cup Pack

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Royal Stag, the official whisky partner of the ICC Cricket World Cup 2019, is truly making the cricket fever larger than ever with the launch of a new limited-edition Cricket World Cup pack.

The limited edition packaging has been conceptualised and designed by Ogilvy and is inspired by the actual ICC World Cup Trophy. The innovative packaging design represents elements from the sport of cricket along with iconic monuments from England & Wales. The pack truly embodies the spirit of cricket and has been launched just before the start of the ICC Cricket World Cup 2019 being held in England and Wales.

Commenting on the launch of new packaging, Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India said, “For Indian fans, The ICC Cricket World Cup 2019 goes beyond the boundaries of a regular sporting event. The passion, madness, thrill, excitement and love for the sport can be seen in every devoted cricket lover. Our long-standing association with cricket bolsters our relationship with consumers across the nation. By introducing a limited-edition Cricket World Cup pack, we are giving cricket lovers a world cup memorabilia to hold on to and together celebrate the spirit of cricket. Additionally, the on pack contest offers consumers a chance to watch the ICC Cricket World Cup Live in England & Wales.”

Speaking on the occasion, Kapil Arora, President, Ogilvy said, “Cricket and Royal Stag have been synonymous with one another for many years. However, when the brand decided to partner with the ICC Cricket World Cup, the world’s greatest festival of cricket – it deserved a special commemoration. The result is a limited-edition pack of Royal Stag that will give fans of the brand and cricket, an opportunity to collect a unique pack that celebrates and brings alive the spirit of the World Cup.”

Sparta – VSOP French brandy is the next need-to-have bottle for your home bar!

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KALS Group, Southern India’s alcobev company announced the launch of Sparta – India’s most admired premium grape brandy.

Sparta is an authentic French VSOP brandy that has native elements of authentic French grapes from Cognac Region, which is matured to the tune of 3+ years.

The high-spirited growth of KALS

Deriving its name from ancient Greece – A city in the southern Peloponnese in Greece, capital of the department of Laconia; population 14,400 (est. 2009). It was a powerful city state in the 5th century BC, defeating its rival Athens in the Peloponnesian War to become the leading city of Greece, Sparta embodies the exceptional French style of making heritage and the expertise. Sparta is known for its winning spirit and Sparta of KALS is expected to be the curtain raiser for well-informed connoisseurs!

Sparta is made from carefully selected grapes from the best Indian vineyards which are then double distilled in small batches using traditional French alembic pot stills, to produce a liquor of exceptional smoothness and character.

Sparta is a modern take on a French classic using some of the best southern French grapes, copper pot stills for distillation, and French oak barrels for maturation, all under the direction of Master Distiller. The result is a very special blend with honey blended caramel notes of fresh fruit, vanilla, and a hint of the oak. The brandy can be enjoyed on the rocks or to add some flavour to a signature cocktail.

SPARTA- UNIQUE VALUE PROPOSITION

Sparta is the first authentic french-style brandy to be 100% made from grapes of Cognac region. Nothing else and nothing less then the timeless savoir faire of french double distillation making. since it uses grapes only from the best vineyards of France, Sparta is the first to reveal such an aromatic intensity. Unlike others, it relies on the time-honoured savoir faire of brandy making in small alembic copper pot stills. It is then aged in oak barrels and carefully blended by the cellar master. with its subtle gold colour, Sparta is the perfect harmony of mature and intense aromas. Discover its delicate notes of summer fruits and vanilla coming from the oak barrels. On the palate, its texture is as smooth as silk.

Enjoy it neat, on ice or with your favourite mixer.

Sparta is aged in small French oak barrels under the supervision of French Master Blender imparting a smooth and distinctive taste, exceptional aromas and a complex character of a cognac – style brandy with a long finish. Keeping up with the tradition of French Cognac making, the master blender has developed a unique recipe guaranteeing excellence in every drop.

Chairman & Managing Director Mr. Vasudevan S of KALS Group said, “With this launch KALS takes its aggressive step into the world of spirits with a superbly crafted high end offering. We are confident that Sparta will win accolades and significantly raise the bar for brandy making in India. Sparta is India‘s first handcrafted cognac derivative – style brandy for connoisseurs – from the House of KALS.”

Sparta comes in premium packaging and bottle design inspired from the Mid-19th century with a transparent gold labels that shines & scintillates to captivate the eyes of consumer- Sparta a style known as ‘standard fifth’ or ‘lettered brandy’ with embossing. Sparta will be available initially in three SKUs of 750 ml, 375 ml and 180 ml.

According to Uppiliappan G, CEO, KAL, Sparta is priced at `640 in the Tamil Nadu market. For KALs MGM Brandy is the closest in comparison. However, Sparta is rolled-out in all southern states and expected volumes will be 30,000 cases per month initially, says Uppiliappan.