Tag Archives: alcohol industry

Pure Water, Harnessed from the Atmosphere

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

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

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

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

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

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

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

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

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

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

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

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

What happens when there are issues of sunlight?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Juliette: Birth of a new romance, an epicurean love affair of great food & fine cocktails

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When William Shakespeare asked, “What’s in a name?” he surely wasn’t referring to the new Andheri, Mumbai eatery aptly named Juliette Ristorante. Juliette, with a fantastically curated inspired European menu with a modern twist, is bringing us all kinds of European summer vibes and feels as they open their doors.

Located in Andheri, right next to Yazu, this modern European dining is the ideal setting for you to engage in sweet encounters that transform into a one-of-a-kind gastronomical adventure as you savour and enjoy some redesigned Western and Mediterranean delights sealed with artistic culinary skills. Juliette offers the same hospitality experience as Yazu and is owned by the hospitality veterans that own the upscale progressive dining Pan Asian Supper Club. Created to provide a consumer with the ideal all-around experience as a centre for all occasions. Laying the foundation with the same seeds, Enso Hospitality’s partners Gurmeet Arora, Atul Chopra, and Ranbir Nagpal have launched Juliette and are ready to take on the European dining segment by a storm.

As soon as you step in, the soothing monochromatic theme will sweep you off your feet as they recreate an authentic upscale European vibe. A 4000 sq. ft. space with a premium dining area and a vivacious alfresco seating style with clean lines and subdued nude shades synonymous with the artist Sumessh Menon. The nature-inspired elements like the larger-than-life tree installation in the dining section and unique art wall features inspired by pea pods are sure to conjure up images of a pleasant day spent in the European countryside.

“The essence of Juliette as a space is that it has a European charm about it, creating an inviting ambiance for patrons but the key always has to be fresh and well-thought-out curated menu and technique, which Juliette displays,” said Gurmeet Arora, co-founder.

Resonating with the aura of European delis with an indoor and outdoor, although sheltered section, Juliette brings you the taste of modern Europe that will leave you on your balcony saying “Juliette, Juliette, wherefore art thou Juliette!”. The all-day European restaurant serves the fluffiest pancakes, but if a sweet breakfast is not your jam, then give your tastebuds a delightful treat of Croque Monsieur inspired by the French cafes. Pair your coffees with fresh Viennoiseries for breakfast and give your tastebuds a taste of sweet heaven. Indulge in the Smoked Seasonal Vegetables with Stracciatella Cheese and savour the flavours of Italy. With a plethora of dishes to choose from, the charming appetizers made with in-house rub marinated grilled prawns served with millet salad, a flavourful whole-grain salad loaded with fresh veggies, feta, and herbs; the foodie in you will surely be satiated. Relish in the main courses with the in-house special Stroganoff, a root vegetable served with orzo pilaf, or satisfy the meat-lover in you with the lip-smacking Beouf short ribs served with mashed potatoes. Performing magic on your palate, the aromatic flavours of the spiced grilled Moroccan chicken with toumb splashed with cinnamon and ginger will leave you craving for more. Carrying the essence of Europe, Juliette prepares the most authentic pizzas in town using fine sourdough. Keeping the traditional spirits at heart, the portions of pasta are hand-crafted with care, resulting in some delectable Fettuccini Bolognese, and Classic Lamb Lasagne, which are sure to tease your palette and bring back memories of an Italian ristorante or a French bodega. Hitting those sweet spots, the must-try Grand Marnier souffle with Elderflower ice cream and the chef’s favourite Baked Alaska is something you can’t miss out on!

“Juliette is personified as a love between a beautiful looking place with warm hospitality and lip-smacking food made using modern ingredients, classic techniques, and amazing cocktails. It has a world-class vibe with heart-warming hospitality,” said Ranbir Nagpal, co-founder.

As a culinary journey of good food and fine cocktails, Juliette Ristorante promises to serve you the most delicious cocktails. You can start with a Smoked Hazelnut Martini, a keen twist on the standard espresso martini with a touch of sweetness from hazelnut and caramel, and a rim coated with hazelnut and peanut. If a glass of wine is your jam, Juliette has you covered with the Elderflower Hugo, a pleasant cocktail served with fresh berries, pomegranate, wine, and elderflower syrup. If you are the classic kind, you can do a Barrel-Aged Negroni, whiskey aged in a barrel, and later served with a presentation tableside. And if you like a good DIY, Passion is your poison of choice. All you must do is select your base spirit blended with fresh passion fruit puree and lemon juice, served in an old-fashioned glass and a short glass of ice topped with sparkling wine. And finally, the namesake Juliette – an encapsulating serving of the place’s obsession with fantastic cocktails, a suave drink combining elements of bourbon, rose shrub, lemon juice, and mint – garnished with fizzy apple juice served with a crushed rose on liquid nitrogen in all its fanfare – a must-have! “Juliette is a feeling of being chic and modern yet traditional but classy. Gives you an overall dining experience of international standards with a classy touch. Hospitality personified, the goal is to connect with the lovers of fine food and exquisite cocktails,” says Atul Chopra, co-founder.

Ambrosia Awards 2023

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The Ambrosia Awards 2023, the most coveted accolades in the alcohol industry, are showcased in the video. They are presented by Ambrosia Magazine in conjunction with an esteemed international jury. It should be noted that the awards, host, or businesses featured in this episode do not encourage or endorse the consumption of alcohol.

Platinum Sponsor: SNJ Distilleries Pvt. Ltd.

Gold Sponsor: Beam Suntory

Silver Sponsor: KALS Group

Sustainability Partner: Pernod Ricard

Supporting Partner: ISWAI

Liquor and duty free sales look upbeat as the Covid threat recedes

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There is an air of optimism as the threat of Covid is on the wane. A report on the growth of the alcobev and duty free market.

The global alcoholic beverages market was estimated to be at USD 1.58 trillion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of around 3.5% between 2020 and 2023. India is one of the fastest growing alcoholic beverages markets globally, with an estimated market size of USD 52.5 billion in 2020 and the market is expected to grow at a CAGR of 6.8% between 2020 and 2023.

The alcoholic beverages industry contributes to around 1.5 million jobs in India and generated around USD 48.8 billion in sales revenue in 2019. The sector is open to foreign investments and many states offer subsidies for local manufacturing (for example, Maharashtra and Karnataka for wines). From the demand side, factors such as rapid urbanisation, changing consumer preferences and a sizeable and growing middle-class population with increased purchasing power have contributed towards growth in demand for alcoholic beverages.

According to industry estimates, the number of people consuming alcohol increased from approximately 219 million in 2005 to 293 million in 2018; it is projected to increase to 386 million by 2030. The share of the upper middle income group in alcohol consumption has increased steadily from 7% to 21% and is expected to increase to 44% by 2030.

The Global Duty-Free Retailing Market is projected to reach USD 127.83 billion by 2027 from USD 87.37 billion in 2021, at a CAGR 6.54% during the forecast period.

The Americas Duty-Free Retailing Market size was estimated at USD 21 billion in 2021, is expected to reach USD 22 billion in 2022, and is projected to grow at a CAGR of 7.37% to reach USD 32 billion by 2027.

The Asia-Pacific Duty-Free Retailing Market size was estimated at USD 36 billion in 2021, is expected to reach USD 38 billion in 2022, and is projected to grow at a CAGR of 6.75% to reach USD 53 billion by 2027.

The Europe, Middle East and Africa Duty-Free Retailing Market size was estimated at USD 31 billion in 2021, is expected to reach USD 31 billion in 2022, and is projected to grow at a CAGR of 5.71% to reach USD 43 billion by 2027.

The global duty-free and travel retail market is estimated to generate revenues of around $112 billion by 2023, growing at a CAGR of approximately 8% during 2018-2023.

The duty-free retail market in the Asia-Pacific, the largest market for duty-free retail products, is expected to cross pre-pandemic levels in 2023 as normalcy returns to the market and customer demand picks up, according to a report from GlobalData.

The rising number of middle-class population and rapid urbanisation is propelling the growth of the global duty-free and travel retail market. The increase in disposable income, improvement of standard living, and affordability and convenience of air travel are boosting the number of middle-class population travelling and purchasing products from these stores in the global market. The leading vendors are developing consumer-focussed businesses especially for this end-user segment to boost their travel retail industry size over the next few years.

In emerging countries such as India and China, middle-class consumers are the largest contributors to the economic development and have the spending capacity to promote the growth of the duty-free industry in the global market. With the surge in middle-class median income, their expenditure trend, travelling mode, and demand for premium brands will also rise, thereby, fuelling the travel retail sales. The rapid development and urbanisation will augment the development of infrastructure and offer access to better amenities in the global market. The building of new airports and ports will boost the revenues in the global duty-free and travel retail market.

The significant growth in the tourism industry is one of the key factors driving the market growth. In line with this, the increased time spent by passengers at airports due to security concerns and early check-in times is favouring the market growth. Additionally, the increasing preference for luxury and premium products, such as cosmetics, fragrances, and alcohol, is acting as another growth-inducing factor. Besides this, the rising air travel and proliferation of new international airports due to the rapidly expanding aviation industry is providing a considerable boost to market growth. Moreover, the introduction of touch screens and interactive retail kiosks, which offers seamless ordering and payment solutions, is providing an impetus to the market growth. Apart from this, the widespread adoption of new marketing strategies by brands, such as launching exclusive and limited products and partnerships with prominent distribution chains to gain a competitive edge, is propelling the market growth. Furthermore, the implementation of various government initiatives promoting international tourism is positively influencing the market growth. Other factors, including rising expenditure capacities of the consumers, emerging trends of digitalization in retailing processes, the rising consumer inclination for premium wines and spirits, and the introduction of pre-ordering applications, are anticipated to drive the market growth.

The global duty-free and travel retail market by product is segmented into fragrance and cosmetics, liquor, fashion and accessories, tobacco goods, electronics, watches, and confectionery.

However, some countries impose duty on goods brought into the country, though they had been bought duty-free in another country, or when the value or quantity of such goods exceed an allowed limit. Duty-free shops are often found in the international zone of international airports, sea ports, and train stations but goods can also be bought duty-free on board airplanes and passenger ships.

The competitive landscape of the industry has also been examined along with the profiles of the key players being Aer Rianta International, China Duty Free Group Co. Ltd., Dubai Duty Free, Dufry, Duty Free Americas Inc., Gebr. Heinemann SE & Co. KG, James Richardson Group, King Power International, Lagardère Travel Retail, Lotte Duty Free, Sinsegae Duty Free and The Shilla Duty Free.

Erik Juul‑Mortensen, President of the Tax Free World Association (TFWA), was also positive, an outlook largely based on the latest available travel data. Noting that, with the exception of China, every major market in the Asia‑Pacific region has partially or completely reopened to vaccinated travellers, he added, “Many markets have seen a strong recovery in March and April, and with pent‑up demand or ‘revenge travel’, two markets have just exceeded their 2019 duty‑free revenues for the same period, namely Australia and Singapore.

“This has happened despite the total number of travellers remaining relatively low. Duty‑free members have been reporting higher basket value, driven in part by pent‑up demand and less store congestion, and, therefore, more attentive service by store personnel. The pandemic has forced the industry to consider and adapt to a still‑changing environment. Our priority in duty free and travel retail is to keep pace with, even to anticipate, those new expectations. They will continue to evolve, and so must we.”

On duty‑free spending trends, Sunil Tuli, President of the Asia-Pacific Travel Retail Association and Group CEO of King Power Group, agreed, saying, “Around the region, we have reports of increased spending per passenger. Every day there are more people travelling – for instance, here in Singapore, Changi Airport passenger traffic more than doubled in April from March, approaching 40% of pre‑pandemic levels, just one month from when borders were fully re‑opened to vaccinated travellers. However, across the board, significant pain points exist in terms of stock shortages, security delays in product screening, partial retail space re‑openings, low staff levels, a reduction in routes, recession fears, and the Russia‑Ukraine crisis driving inflation.”

The likelihood of impending recovery in the duty‑free industry was championed by Pedro Castro, Chief Operations Officer Asia‑Pacific of travel retailer Dufry, who said, “Markets such as the US, the Caribbean, Central America and Europe have already seen a return to about 60% of 2019 levels, with only Asia‑Pacific still lagging behind at about 10%. Domestic travellers in some markets around the world are already slightly higher than 2019 levels, and business travellers are close to 2019 levels. The Asia‑Pacific region is ready to support a rapid return to normalcy.”

Ashish Chopra, CEO of Delhi Duty Free Services, provided a deep dive into the Indian market, an analysis likely reflective of the air‑travel and duty‑free industries across Asia‑Pacific markets – if not now, then in the near future, saying, “In the past two months, we have seen sales reach 90% of pre‑pandemic levels on the back of 70% of passenger traffic. There is definitely pent‑up demand, and we expect Delhi to reach 2020 levels by this year.” For now, the passengers were business and high‑middle‑income travellers, and therefore were willing to spend more, with mass‑market travellers expected later in the year.

According to a new report published by Allied Market Research, titled, “Airport Duty-free Liquor Market by Type: Opportunity Analysis and Industry Forecast, 2021-2027”, the airport duty-free liquor market size was valued at $8.9 billion in 2019, and is projected to reach $10.4 billion in 2027, registering a CAGR of 22.22% from 2021 to 2027. The airport duty-free liquor at airport shops have become a favourite destination for travellers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies.

The key players operating in the global airport duty-free liquor industry are Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc., Remy Cointreau, Pernod, and Ricard.

The airport duty-free shops have become a favourite destination for travellers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops.

Due to Covid-19 crisis, there is a decrease in international travel, which has affected airport duty-free sales in large proportion. As the lockdown continues in major parts of the world, airport duty-free retailers have unsold stock, while some retailers are finding imaginative ways to keep trading. As the travel retail sector market is temporarily on hold, airport duty-free liquor has experienced crucial sales channel cutoff. Airport duty-free liquor sales declined to large proportion due to the closure of international flight operations.

By type, the whiskey segment accounted for the second maximum share in 2019, owing to increase in demand for whiskey across the globe.

For the past few years cognac has gained universal recognition as one of the finest spirit, which is distilled from grapes. Cognac is also getting popular in the airport duty-free liquor market due to the recent surge in demand for premium liquor.

By region, Europe accounted for the highest revenue in 2019 owing to the tourists from the Middle East, China, the U.S., and Russia contributing a significant part in the market. Also, love for travel is experiencing an upward airport duty-free liquor market trends among Germans, which significantly contributes toward the growth of the market.

Taylors Wines foray into Indian market

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Taylors Wines (known as Wakefield Wine) has entered Indian market through one of the leading Indian importers – Ace Beveragez Private Limited.

Promised Land Shiraz and Chardonnay are launched in India by Rikshit Parsan, Director, Ace Beveragez Pvt Ltd; Jay Meek, General Manager, Trade, Australian Trade and Investment Commission (Austrade), Adelaide; Pratik Angre, Business Development Manager, Ace Beveragez; Catherine Gallagher, Senior Trade and Investment Commissioner, Austrade, New Delhi; John Southwell, Trade and Investment Commissioner, Austrade, Mumbai; Peter Truswell, Australian Consul General in Mumbai and Bhavin Kadakia, Director – Business Development, Austrade, Mumbai. This is the first Australian wine in the portfolio of Ace Beveragez Private Limited.

Taylors Wines is a family-owned winery established in 1969, which is in the Clare Valley of South Australia. After over fifty years in business, spanning three generations, the Taylor family has been making wines under the Wakefield Taylors Family Wines name – a winery known around the world for crafting powerfully elegant wines of regional distinction and character.

The Taylor family’s wine-making philosophy is built on the idea of “respect the fruit” meaning, quite simply, that the essence of great wine comes from great fruit. To achieve this, every decision the family makes (referred to within the company as the ‘Taylors Way’) – from the planting of vineyards to what viticulture practices they employ, harvesting, crafting and the investments they make in barrels and ideal storage – even to how we drink the wine – is underpinned by this philosophy.

In 2017 Wakefield Wines was announced as The World’s Most Awarded Winery by the World Association of Wine Writers and Journalists (WAWWJ) in a global ranking of more than 50,000 producers.

Why the name Promised Land: The name comes from one of the those classic over the fence chats that neighbours have. His neighbour to the east had a beautiful patch of land with gentle rolling hills and soils perfect for grape growing. Bill Taylors, Co-Founder and Company Director, Taylors Wines went to visit him and struck a deal that he’d be the one to purchase the land should he ever decide to sell it. Well, it was almost twenty years later but Bill is nothing but tenacious.

The neighbour kept promised and that section of the estate became forever known as “The Promised Land”.

Delhi extends Old Excise Policy by 6 Months

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The Kejriwal led Delhi Government made an announcement today that the old excise policy for Delhi is being extended for further six months. In the interim the government is working on the new excise policy that has been in the news in recent times, following the recommendations made by LG VK Saxena after the CBI probe into the alleged irregularities in its implementation.

The extension also marks as a blow to the Delhi private players who were looking to keep their shops open having invested heavily in procuring licenses. For the consumer this also means that the offers made by private players have also disappeared since the old policy uses government-run liquor vendors.

The former Deputy Chief Minister of Delhi was recently arrested alleging the irregularities in the new policy, which was believed to be favouring certain players. The ED in their case also stated that kickbacks were provided by the players to the government, which lead to the dismissal of 11 excise officials as well following the probe.

It is believed that Delhi was looking to compete with Haryana with its new policy offering lucrative discounts to the consumers, who often prefer liquor shops in Gurugram, since they offer massive discounts as opposed to most states in India.

CaSa de Spirits launches Fentiro in Goa

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CaSa de Spirits Pvt. Ltd, launches its first ever range of spirits under the ‘Fentiro’ brand on December 1st, 2022 in Goa.

Its initial launch in Goa will see its two variants of party shots – “Fentiro Dusk” and “Fentiro Dawn”. They are the newest and coolest entrant to the party shots category. Fentiro Dusk unleashes the wilder side along with the setting of the Sun and Fentiro Dawn is just the perfect shot as the first light of the rising sun appears in the dawn sky.

Fentiro prides itself as a lifestyle brand, whose priority is to bring exceptional quality, priced competitively, that appeals to the tastes and preferences world over.

CaSa de Spirits Pvt Ltd. is founded by former Divtone Group Country Manager & former WWE Director, Marketing – Carl Sequeira along with founder of Go Fish Entertainment, Sajay Moolankodan. Both industry veterans have rich industry experience, throughout their career of 20+ years of marketing some of India’s largest consumer and alcobev brands. The founders have also brought on board alcobev stalwarts, Shatbhi Basu and Binaisha Sundaram. Together these industry stalwarts bring their 60+ years of combined alcobev industry experience to this new venture.

Shatbhi Basu, celebrated mixologist and founder of STIR academy, who has been honoured by the President of India, for being India’s first female bartender, has spent her career working closely with trade and consumers to educate them on the art and science of mixology. She will drive product research and development for the brand. Binaisha Sundaram, who was part of the team that recently launched Copter 7, has also been associated with the launch of various other leading alcobev brands in India, will drive sales and business development for CaSa de Spirits

Commenting on the launch of Fentiro, Carl Sequeira, Managing Director said, “We were inspired and motivated by our homeland Goa with its unique culture and wanted to create a product that is truly made in Goa from cashew apple along with our proprietary blend, for the world to enjoy. The party shot category has remained stagnant over the past few years, however with Fentiro, we plan to change that! By establishing a new product range, we intend to upend the entire category and build a lasting impact on the minds of consumers over the years.”

Speaking on the occasion, Sajay Moolankodan, Director said, “Over the years, we’ve noticed that the consumer has started to experiment with new tastes and experiences in the alcobev space. With that in mind, we embarked on creating a product that looked and tasted distinctly unique from others in the same category. Fentiro Dusk and Fentiro Dawn are the perfect shots for your parties from dusk to dawn.

Fentiro Dusk and Fentiro Dawn are available in selective outlets and restaurants in Goa, so when in Goa – “Party with Fentiro!”.

Consumers are slowly moving towards Eco-Conscious Choices

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

What are the current trends in the Indian Alcobev market?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ABD launches Jolly Roger Rum in Uttar Pradesh and Rajasthan

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Allied Blenders and Distillers Limited, the largest Indian spirits company has extended its deluxe rum Jolly Roger to Uttar Pradesh and Rajasthan. Jolly Roger offers an exceptional rum with matured special spirits.

The communication of Jolly Roger is reflective of the young audience who value the company of good friends with a great rum. Jolly Roger Rum is available in 750ml, 375ml. and 180ml. sizes.

Commenting on the launch Bikram Basu, Vice-President- Strategy, Marketing and Business Development, ABD said, “We are excited to extend the franchise of Jolly Roger to the markets of Uttar Pradesh and Rajasthan. Winter gets out the woollens, bonfires, barbeque and more of a great rum in Jolly Roger with friends.”

Bira launches Hill Station Cider Ales

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• Under ‘House of Bira 91’, the brand plans to experiment with fast growing premium beverage categories in India

• The ‘Hill Station Hard Cider Ale’ portfolio includes three variants and will be available across the country, starting with Bengaluru

Just in time for the new year celebrations, Bira 91, the world’s fastest-growing premium beer company, announced its foray into beyond beers with the launch of Hill Station, a category of Hard Cider Ales. The launch is part of the company’s move to bring new categories beyond beers, in congruence with the increasing demand for ready-to-drink options and a growing generation of consumers enthusiastic about experimenting with new flavours.

Hill Station Hard Cider Ales will have three flavours of hard ciders in its portfolio – Himalayan Apple Original (5.3% ABV); Himalayan Apple Strong (7.5% ABV); and Himalayan Apple Berry Twist (5.3% ABV). These Hard Cider Ales are made from a blend of the freshest Himalayan apples and mountain barley. Their flavours are dry and mildly sweet with a hint of malt and full flavour of orchard-fresh apples. The Himalayan Apple ciders are natural and crisp, that makes them perfect for all seasons and are best enjoyed over ice.

First major cider brand

Speaking on the launch, Ankur Jain, CEO, of Bira 91, said, “Over the last few years, the preferences of young Indian consumers have shifted drastically, and they are now keen on exploring newer categories, including ciders. With Hill Station Hard Cider Ales, we aim to become the first major cider brand in the country and expand the category for this beverage. Ciders help us become a part of wider occasions that call for celebration as they can be consumed throughout the year and are perfect for afternoons as well as evenings. We are bringing this product just in time for the new year celebrations and we are sure that Hill Station Hard Cider Ales will transport consumers to their summer holidays spent in the hills, bringing back fond memories.”

He further added, “With ‘House of Bira 91’, we are continually looking to explore beverage categories that are growing rapidly and recruit consumers from the larger beverage space. The launch of Hill Station Hard Cider Ales gives us an exciting opportunity to expand Bira 91’s portfolio and pioneer the growth of beverages in the Indian premium segment.” The portfolio of Hill Station Hard Cider Ales will be available in 330ml bottles and cans across Bengaluru, priced at ₹150.

Bira 91 has been bringing flavourful beers on a regular basis, a diverse portfolio of award-winning beers, aiming to drive the global shift in beer towards more colour and flavour. Bira 91 is available in over 550 towns and cities spread across 18 countries and brews its beers across four breweries in India. Bira 91 has its flagship taproom in Bengaluru, where it releases one new experimental beer every week, paired with its curry-shop menu.