Central Consumer Protection Authority monitoring surrogate advertising, brand extensions
17th edition of IPL, big ticket event begins, liquor companies looking at eyeballs
Advertising Standards Council of India too tracking
The Central Consumer Protection Authority (CCPA) has issued a directive to liquor companies to ensure that there is no violation of advertising norms and has sought a list of brand extension products sold under the same name as alcohol products in the last three years. Some examples of brand extension products include mineral water, soda, music CDs, playing cards etc.
The CCPA gave this directive on March 19 after it observed that some liquor brands had been violating regulations of surrogate advertising. Hence, it has sought details of revenue, turnover data related to the sale of alcobev as well as the brand extension products. It directed companies to provide details of expenses incurred in event sponsorship, payments to celebrities and influencers and television advertisements during the last three years, in its bid to correlate between actual sales of the brand extension product and the money spent on event promotion / advertising etc.
The CCPA Chief Commissioner, Rohit Kumar Singh said “This assessment is critical for determining whether promoting of brand extension products authentically represents the extended product or functions as a surrogate for alcoholic beverages under the same brand.”
He further said “The industry is advised to ensure that all brand extensions follow the broad principles of advertising only genuine extensions (that is, turnover and distribution in proportion to advertising spends), and ensure that advertisements contain no cues of restricted category such as tag lines and layouts and do not unduly suppress the category name and extension being advertised.”
Last edition of IPL fetches Rs. 10,120 crore from advertising
The CCPA order comes ahead of the 17th edition of Indian Premier League (IPL) which kicks off on March 22. It may be mentioned here that the 16th season of IPL saw the tournament pocketing a whopping Rs 10,120 crore from all forms of advertising revenue, a significant growth as per market research and analysis firm Redseer Strategy Consultants.
Cricket gets the maximum eyeballs in India and advertising during matches have helped in brand development. During the last ICC World Cup cricket held in the Indian sub-continent, brands spent about $240 million in advertisement spots on streaming platforms. A 10-second advertising slot during matches costs up to 3 million rupees, a 40% increase compared to the last World Cup.
One of the big sponsors is Bira91, fast growing craft beer brand, had entered into a major five-year deal with the International Cricket Council, becoming its Official Partner for the ICC Cricket World Cup 2023, ICC T20 World Cup, ICC World Test Championship, ICC U19 Cricket World Cup and the ICC Women’s Championship. This is Bira91’s first foray into sports and as an official partner, it integrates the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. And now in the IPL, Bira91 is also one of the sponsors for Royal Challengers Bengaluru and Sunrisers Hyderabad and Kolkata Knight Riders.
Laws in place
The Cable Television Network Act, 1995 envisages that, unless such advertising is in conformity with the advertising code prescribed in the Cable Television Networks (Amendment) Rules, 2006- no person shall send or transmit any Advertisement through a cable service. The above provision, however, does not apply to foreign satellite channel programs that can be received without any specialized gadgets or decoders being used.
With regard to alcohol (Beer, Wine, and Spirits), the law says “any advertising directly or indirectly promoting the manufacture, sale, or consumption of alcohol, liquor, or other intoxicants is prohibited by the Cable Television Network Regulations, 1994, the Advertising Codes of Doordarshan, and the All-India Radio and Guidelines for Journalist Conduct published by the Press Council of India. Some states, however, allow ads, albeit subject to several limitations, through billboards, signboards, etc.”
In June 2022, the CCPA banned surrogate advertising with the introduction of a new set of guidelines to curb misleading advertisements. Violators stand to face a penalty of Rs 10 lakh for the first offence and a Rs 50 lakh fine for subsequent offences. That is the stated position, but we need to see what action has been taken.
Well-defined guidelines for brand extension: ASCI
The CEO and Secretary General of the Advertising Standards Council of India, Manisha Kapoor, asked ahead of the World Cup had said “The Advertising Standards Council of India’s (ASCI) code clearly mentions that products whose advertising is restricted or prohibited by law or by the ASCI code must not circumvent such restrictions by posing to be advertisements of other products whose advertising is not prohibited by law or the code. To differentiate between surrogate ads and legitimate brand extensions ASCI has well defined guidelines for Brand Extension products with set criteria for brands to qualify as a valid extension of a liquor brand/brand whose advertising is prohibited. The ICC World Cup is one of the most popular sporting events in the world and garners record-breaking viewership numbers. Given the scale of the event and sponsorships involved, we are mindful that the issue of surrogate advertising could arise, hence we have intensified our monitoring efforts during the ICC World Cup 2023. At ASCI, we have shifted our monitoring from weekly to daily feeds for this period.”
To a question on whether people were aware of brand extensions or these brand extensions were just an excuse, Ms. Kapoor replied “It is true that under the CTNR, advertising of brand extensions of liquor and tobacco products is allowed, as long as the product being sold under the brand extension makes no direct or indirect references to the prohibited product. Since consumers do miss out on the nuances, ASCI clearly defines in its guidelines the criteria for what qualifies as a brand extension and what does not.”
She also clarified that “At ASCI, our chief concern is about the content of the advertising rather than monitoring the availability of products in the market. However, when it comes to brand extensions in order to verify that the advertised product is indeed a legitimate extension and not a surrogate, ASCI does ask for third party verified sales data of the advertised product from the advertiser. Our brand extension guidelines have a clear criterion for both old and new products in the market to qualify as a valid extension. Instances where advertisers fail to satisfy the criteria are treated as surrogate ads.”
However, the CCPA guidelines states that in case of any ambiguity or dispute in interpretation of the guidelines, the decision of the CCPA shall be final. Sure enough, there are going to be claims and counter-claims.
The 16th edition of the prestigious Ambrosia Awards 2024, organized by Ambrosia Magazine – the Wine and Spirits Magazine, celebrated the finest achievements in the Alcobev industry at a gala event. Recognizing excellence in products, packaging, and individual categories, the awards showcased the industry’s best and brightest talents.
Ambrosia magazine, now in its 32 nd year, continues to be a hallmark of excellence in the industry. With a focus on blind tastings for the product category, the awards ensure a fair and unbiased selection process, akin to top international standards.
Trilok Desai, MD and Publisher of SAP MEDIA WORLWIDE LTD, remarked, “The Ambrosia Awards stand for excellence, and our international jury ensures that only the best are honored. Each year, we witness remarkable advancements in product quality, packaging, and technology, setting global benchmarks.
Vijay Rekhi launching Cheers 3rd Edition Coffee Table Book with authors Trilok Desai & Bhavya Desai
Another highlight of the evening was the launch of the 3rd Edition of Cheers – Coffee Table Book, authored by Trilok and Bhavya Desai. The book, inaugurated by Vijay Rekhi, CMD of Vizanar Advisors, and Former President and MD of United Spirits Ltd (USL), commemorates the industry’s journey and milestones.
Shiv Kumar Reddy, MD, Seven Seas Distillery Private Limited accepting the AwardAmar Sinha, COO, Radico Khaitan accepting the AwardAbhishek Khaitan, MD, Radico Khaitan Limited acceppting the Award on behalf of Dr. Lalit KhaitanVijay Rekhi and Mr. Gandhi’s family member accepting the Award
Among the individuals recognized, Shiv Kumar Reddy, Managing Director of Seven Seas Distillery Private Limited, was awarded Entrepreneur of the Year. Amar Sinha, COO of Radico Khaitan Ltd, was named Business Leader of the Year. Dr. Lalit Khaitan, Chairman and MD of Radico Khaitan Ltd, received the Ambrosia’s Paramount Achievement Award for his outstanding contributions, achieving the status of India’s newest billionaire. The Lifetime Achievement Award (Posthumous) was presented to Mr. S.S Gandhi, Former President of United Spirits Ltd, honouring his significant impact and achievements in the industry.
This Product Jury included:
Jury Members at the Tasting Session
Bernhard Schafer – A Whisky Expert, Spirit Consulting and A Master of Quaich
Stephen Beal – Senior Master of Whisky, Chairman of The Council of Whisky Master 2024
Dr. Binod. K. Maitin (PhD) – Technical Expert & Former SVP and Head of Technical Centre USL
Eddie Nara – CSE & Spirits Expert
Ajoy Shaw – DipWSET Winemaker, Consultant and International Wine & Spirits Judge
Julie Lee – Industry Expert and Entrepreneur
This Packaging Jury included:
Jury Members at the Packaging Session
Prof. K Munshi – Industrial Design Centre, IIT Powai
Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre
Pratish Mepani – Founder of SMBD Group
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Taking over the reins of one of the biggest companies in the market, can never be an easy task, especially when the daunting objective is to ensure double-digit growth, drive revenue and increase profits. Add to that, the first woman to lead the business, but Hina Nagarajan, Managing Director and CEO, Diageo India has not only successfully achieved this, but also surpassed many other feats. She speaks to Bhavya Desai about her journey, future objectives and more. Excerpts:
Since you took over, you’ve made incredible strides towards ensuring that the company becomes net debt free. How have you managed that?
The task ahead of me when I took charge in 2021 was to bring our Diageo India business on a sustained double-digit growth path, especially driving revenue and profitable share in the premium and prestige segments of the Indian alcohol market. Together with my leadership team, we made some strategic choices to win in this decade and beyond.
I led the execution of our portfolio reshape with the objective of accelerating premiumisation-led growth while delivering our guidance of mid to high teens margin. We completed the strategic review of our Popular brand portfolio, resulting in the sale of 32 mass brands and franchising of 11 brands in September 2022.
Our commitment to premiumisation is evident in our investments over the past years. We’ve introduced new products and innovations such as Royal Challenge American Pride, Epitome Reserve’s second limited edition of Peated Indian Single Malt in Goa, and Godawan, a unique single malt from Rajasthan. Additionally, our minority stake in Nao Spirits, the makers of Hapusa and Greater Than, underscores our strategy to grow in the luxury and premium segments, particularly in scotch, where we lead the market.
We also redefined our offerings in the Upper Prestige segment with unique products that resonate with new consumer trends. Furthermore, our efforts to premiumise and reposition brands in the Lower & Mid Prestige segments, such as McDowell’s No.1 Whisky and Royal Challenge Whisky, are part of our strategy to respond to evolving consumer needs.
With the consumer at the heart of our business, the strength of our reshaped portfolio, and the investments we are making to accelerate our strategic priorities, we have been able to deliver our mission of profitable double-digit growth for our business and in the process, wiped out our cumulative losses and declared dividend for the first time since acquisition a decade ago.
Having set on this path, what is Diageo’s next objective – in the coming years?
We feel extremely positive and excited about the future of the alcobev industry in India. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. India is in the middle of deep societal change led by women, youth and boom towns. This along with a massive growing need to ‘drink better, not more’ across all segments, is in line with our vision for the category.
The premiumisation trend will continue to stay strong with rising affluence. By 2030, 45% of Indian households (approx. 175 million households) will be in the upper mid and high-income groups. We see a big opportunity, not only to leverage this trend through our incredible portfolio of global and IMFL brands, but also to position Indian whisky as a characterful, distinct, high-quality offering by bringing the best of people, processes, and ingredients together to create bespoke liquids that are ‘Made in India’ for the world.
Our mission is to be a top CPG (Consumer Packaged Goods) company in India delivering sustained double digit topline growth with mid to high teen margins and long-term value to all our stakeholders. With this new strategy, we aim to deliver our Mission through 3 pillars that form the essence of our mission:
Reshaping our portfolio with a focus on accelerating premiumisation-led growth, while delivering our guidance of mid to high teens margins.
Creating an Organisation of the Future – We are building a future-ready organisation by investing in our talent, introducing market-leading policies and driving digital capabilities.
Defining and executing an ambitious role for Diageo in Society 2030 focusing on promoting responsible consumption, championing inclusion & diversity, and pioneering grain-to-glass sustainability which includes preserving water for life, accelerating to a low-carbon world and lastly, becoming sustainable by nature.
Keeping our customers as our main focus, along with the reshaped portfolio of our products and the investments we’re making to accelatate our strategic goals forward, we are confident of growing our business in a steady and sustainable way.
How has the consumer landscape changed over the years in the industry?
India is in the middle of deep societal change led by rising affluence, women, youth and boom towns. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. This trend expands to middle India and boom towns which are undergoing a remarkable transformation, fuelled by high aspirations and digital revolution where consumers are looking for premium brands, products, and experiences. The new consumer cohorts are driven by values of authenticity, individuality, local pride and collaboration with women building a more inclusive consumption narrative.
Digital has also been a big game changer. Most consumer journeys begin on digital with discovery, information, inspiration – informing them of their choices and behaviour and most of all aspiration and desire for what they want. If we look at the alcobev category, consumers are choosing different products for different occasions and need.
This means that repertoires are expanding from whisky to gin, vodka, rum, aperitifs, cocktails, etc. Consumers today choose to drink better, not more, leading to premiumisation of the alcobev category. At Diageo , we are responding to these structural shifts in consumer choices and behaviour, pivoted around premiumisation, wellbeing and sustainability. This new, changing, and vibrant India presents a huge opportunity for us.
You are the first woman to lead the business at the company. How do you think this encourages and inspires others across industries?
My appointment sparked interest and garnered positive attention, which reflects the breaking of traditional barriers especially in the alcohol beverage sector. As a woman CEO in alcobev, traditionally a male dominated industry, I see this as an opportunity to change the paradigm of this industry to make it more inclusive and normalise the narrative.
Our efforts are making a difference, leading to an environment where joining our sector feels no different from any other industry for women. At Diageo India, our commitment lies in building a workplace where everyone feels included. 50% of our Executive Committee and 35% of our senior leadership team comprises of women. We believe that a diverse leadership helps create a more balanced and well represented workforce. We’re making this happen by welcoming women into various leadership positions, ensuring we drive change right from the top.
Seeing more women in our company is truly encouraging. Their presence brings fresh ideas and perspectives on how we approach our products, market them, and innovate. This enriches our connection with customers and broadens our talent base, helping us to stand out and succeed in a competitive market. And hopefully, this encourages and inspires others to do more.
With sustainability being a rising factor amongst consumers today, how is Diageo moving towards a more sustainable tomorrow?
We at Diageo strongly believe that social and environmental impact and profitability are not two separate goals but rather interlinked. As one of the world’s largest beverage alcohol producers, we believe that we are ambassadors of our industry and aim to be the best we can – at work, at home, with friends, and in the communities we serve.
Sustainability is at the heart of our business strategy and is outlined in our Society 2030: Spirit of Progress ESG action plan. Our Society 2030 agenda is focussed on pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting responsible consumption.
Pioneering grain-to-glass sustainability plays a pivotal role in our Society 2030 goals and is embedded throughout the process and focusses on three key aspects; preserving water, lowering carbon emissions, and becoming sustainable by design.
In terms of preserving water we have overachieved our water replenishment target by 25% and three years ahead of our 2026 goals. We have improved our water use efficiency by 44% in our distilleries and 30% in our packaging processes, against the 2030 goal of 40%.
Women and girls are disproportionately affected when communities don’t have access to clean Water, Sanitation and Hygiene (WASH) facilities. We’re investing in such projects to empower women by providing sustainable water access and rebalancing their societal roles in more than 30 villages.
At the state level, we have partnered with Forest Department in Rajasthan and Maharashtra for mass plantation projects to improve green cover, protect soil, improve percolation and support biodiversity. In Alwar we have initiated efforts for desilting ponds, constructing check dams, improving drainage systems, to name a few. Measures like maintaining Zero Liquid Discharge status, rainwater harvesting pits, and others were adopted. We have also launched an afforestation drive to plant 2 lakh trees to offset residual greenhouse gas emissions.
We are making good progress in reducing our carbon emissions, and have committed to becoming Net Zero by F26 in our direct operations by mitigating our Scope 1 & 2 emissions and reduce 50% of our Scope 3 emissions by 2030. Our sustained efforts have resulted in industry-recognitions by Sustainalytics recognising the company as a “Top-Rated ESG Performer for 2022 and 2023” and our Alwar unit in Rajasthan,
has achieved the Alliance for Water Stewardship (AWS) certification, making it the first distillery in Asia to attain this certification.
In our efforts to becoming sustainable by design, we have removed mono cartons from 90% of our portfolio. In addition, we have introduced biodegradable packs as well as recyclable PETs in some of our brands and continue to expand it to others. This is aligned to our global mission to ensure 100% of our packaging is widely recyclable or reusable/compostable by 2030. Over 99% of materials used are recyclable. On glass, we have initiated light weighting of our bottles.
Our brands like ‘Signature by Nature’ uses 40% recycled glass for the glass bottle and is associated with Mangrove Plantation in Puri, Orissa where 30,000 Mangroves seedlings are being planted in five villages. These mangroves can sequester carbon up to 2-4 times faster than a mature tropical forest.
Our ESG agenda is owned by senior leadership levels including the board, which monitors the same through a CSR and ESG Committee. The ESG Index report we release annually highlights our progress mapped against each of the three pillars and we have witnessed remarkable achievements.
Our ambition is to be the forerunner in the Indian Consumer Product Goods (CPG) industry on ESG and create enterprise value.
What is Diageo’s roadmap for India with most companies betting big on the Indian markets? What is the next big product category that Diageo is focussing on for the coming years?
Diageo India is responding to structural shifts in consumer choices and behaviour, pivoted around growing affluence, premiumisation across categories, and quest for experiential and experimentation, through its refreshed business strategy focussed on premiumisation and focus on transformational innovation and renovation. We have a future back approach to our innovation pipeline and use a proprietory framework called Foresightto determine where trends will go few years from now.
It is for this reason that we have launched Royal Challenge American Pride which caters to the growing consumer preference for bourbon, renovated Signature to be the most sustainable brand in its segment , developed the Naya Sher campaign encouraging youth to take bold , confident steps forward for our Royal Challenge packaged drinking water as well as launched Walkers & Co – a platform to celebrate bold boundary pushers. We launched Don Julio tequila in the country in response to the growing traction for Tequila consumption in the country. We are also scaling up Baileys given the affinity for desserts in India.
We will continue to use Foresight to guide us on innovations for the future and bring the best of both our global, as well as Made in India portfolio, to cater to the evolving needs of Indian consumers.
While your association ISWAI has been representing centre and states for rationalisation of taxes including GST/Excise etc., do you expect centre to bring reform in the alcobev sector? How do you think this move will be beneficial?
ISWAI has been in talks with State Governments to rationalise high excise duties. It has made representations to the authorities time and again as manufacturers of alcohol beverages (Alco-Bev) continue to face shrinking margins due to high taxes, along with soaring inflation and import tariffs. The biggest barrier faced by the industry is freedom to price its brands. ISWAI continues to advocate for pricing freedom, especially for premium brands, as this will help the industry to overcome inflationary pressures. There are also several other regulatory and operational barriers which hamper ease of doing business for the industry. We have seen positive steps from the government on resolving some of these issues. ISWAI will continue to work proactively with various government bodies on these matters and is hopeful that the state governments will consider a harmonised tax structure as well as an acceptable annual pricing mechanism for the sector and continue to support ease of doing business for our industry.
Indian single malts have come of age, truly. And they have been savoured in India and elsewhere too. The good news is that in 2023, Indian single malts outperformed global brands, with promise of doing better. According to early estimates by the Confederation of Indian Alcoholic Beverage Companies (CIABC) Indian single malts accounted for approximately 53% of total sales in 2023, a very impressive performance considering that Indian single malts are a decade old phenomenon.
As per CIABC estimates out of the total sales of around 675,000 cases of single malts in 2023, Indian-origin makers sold around 345,000 cases and the rest was sold by Scottish and other international brands. Indian brands such as Amrut Fusion; Amrut Kurinji; Rampur Indian Single Malt; Paul John Mithuna; Indri; Kamet; and GianChand have all given the global players a tough competition. The Indian brands have been competing with well established brands such as Glenlivet, Macallan, Lagavulin and Talisker.
Domestic brands grow 23%
In 2022, Scotch brands sold 2,96,000 cases with a 35 % increase in sales, while Indian brands sold about 2,81,000 cases with a 2.4 % increase. With growing popularity, the overtaking by Indian single malts was given. In 2023, the domestic brands have registered a growth of about 23 per cent, compared to 11 % by imported brands.
Indian whiskies have been making global waves too since 2010 when Amrut Fusion got global recognition with Jim Murray’s Whisky Bible ranking it third, after blind tasting of over 4,000 whiskies. In the 2022 International Wine and Spirits Competition, of the 11 awards that came India’s way, four were for single malts.
In sync with premiumisation
The Director General of CIABC, Mr. Vinod Giri said that this has been made possible due to the premiumisation drive that is happening across all segments of the alcohol sector. Indian single malts have upped the game, in terms of quality, presentation and reach, hence the stunning turnaround was expected. Indian distilleries have worked hard to come to this level, matching international brands. CIABC, he mentioned, is working with the Indian players and government agencies to evolve product and process standards that ensure product quality uniformly and consistently.
What is heartwarming is that the Indian consumer, many of whom have travelled globally, knows that Indian brands are making it to the global stage. This endorsement of the ‘Make in India’ products has largely helped sales.
Price-sensitive consumer gravitating towards Indian brands
Hemanth Adapa, founder of Single Malt Amateur Club (SMAC) said “Indian whiskies are riding the third wave of global recognition and success. It is no simple feat that high quality single malt whiskies are being made from scratch in India and repeatedly being featured in the top whiskies of the world. While the awards and ‘expert views are giving the whiskies a thumbs up what is most encouraging is the consumer gravitating towards these. It is an extremely difficult task to convince the price sensitive Indian consumer to reach for an Indian made brand as against a Scotch which has been the mainstay for premium whiskies in India. This has taken a lot of effort by the manufacturers of repute to encourage this transition. While there are other factors to be considered such as the supply chain issues and global shortage of aged Scotch whisky causing many brands to follow an ‘allocation’ strategy towards India, this is no small feat and perhaps the greatest recognition to the quality of these fabulous whiskies.”
Asked whether the short supply of aged Scotch whisky and supply chain issues had led to increased sales of Indian single malts, answered in the negative, adding “This has not been a flash in the pan for it to be short lived. There are many risks around the governance and quality control of the newly formed category of Indian single malts which is very similar to the challenges in the Japanese whiskies but surely not a doubt around the whiskies being recognised today.”
Amrut started it all
The fact that brands such as Amrut and others have been performing consistently is testimony to the popularity of Indian single malts, not just in India, elsewhere too. One cannot forget what Jim Murray the legendary whisky critic of the world had said in 2010 that “Amrut Fusion, whisky from India, can only be a dream of many Scottish distilleries.” Prior to that, Indian whisky was not even considered as a whisky as it was only producing molasses-based whisky. ‘Amrut Fusion’ changed that as it is made of 80 per cent Indian malted barley and 20 % Scottish peated barley.
In 2022, Amrut which soared by 183 % dethroned Pernod’s Glenlivet which grew by 39 %, according to Euromonitor data. In 2022, two Amrut offerings topped the list, much more sales than Glenlivet, followed by Paul John. Amrut Fusion sold 99,000 cases and Amrut Amalgam 94,000, Solan Gold 20,00 and Rampur 10,000 cases.
Global players go local
Such impressive sales have led to global players in India to start Indian brands such Godawan from the stables of Diageo in 2022. Godawan the artisanal single malt whisky is finished in special casks selectively curated with Indian botanicals. In 2023 Pernod launched Longitude 77, its first Indian single malt with plans to export to the UAE and later to other markets. Further endorsement has come India’s way from the Scotch Whisky Association (SWA) which said that India has overtaken France to become the largest market for whisky sales by volume and single malts are also contributing significantly.
Awards galore
From 2010 onwards, Indian single malts have been cornering global awards at regular intervals. The latest is Radico Khaitan’s Rampur Asava Indian Single Malt Whisky which bagged the ‘Best World Whisky’ at the prestigious John Barleycorn Awards. Rampur’s innovative approach to the ageing process distinguishes it from other world whiskies. The Himalayas provide polar opposite climate conditions throughout the year with the flavour of the famous Indian Summer giving Rampur an added dimension and depth. The malt interacts extensively with the cask, resulting in maturation almost four times faster than in Scotland.
Sanjeev Banga, President of International Business at Radico Khaitan Ltd, and the creator of the iconic Rampur range of whiskies says, “Our position as possibly the only Indian company in the industry with products such as Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin and Sangam World Malt Whisky in the super-luxury space, alongside international alcohol companies is testament to their quality. The global availability of our products, coupled with the admiration and recommendations from top experts including this latest achievement in the John Barleycorn Awards, stands as proof of our unwavering commitment to product quality and consumer satisfaction.” Banga further added that Rampur Asava will soon be available for Whisky aficionados in the Indian domestic market.
In emphasising the global significance of Indian whisky, Kunal Madan, Vice President of International Business at Radico Khaitan added, “India commands a staggering 48 % share of the global whisky market. While the majority stays within our borders, the efforts of producers like us have successfully introduced our exceptional Indian whiskies to markets such as the US and UK. In a landscape dominated by only a handful of Indian whiskies, Rampur has earned its place as one of the most highly regarded brands. This recognition reinforces the impact of our journey, guided by quality and innovation, beyond national borders.”
Another Indian single malt to walk away with another prestigious award is the Indri Diwali Collector’s Edition which won the ‘Double Gold Best in Show’ at the 2023 Whiskies of the World Awards, beating over 100 other varieties including scotch, bourbon and British single malts. Indri, the peated Indian single malt whisky is a product of the Haryana-based Piccadilly Distilleries, launched in 2021.
“The industry can offer much more and consumers want much more as well. This growing appetite for experimentation could translate into a brighter future for the Indian spirits market, beyond the projected flatline of 2024,” Vinod Giri added.
The Delhi Government has decided to grant license in form L1, L1F and L2 for the wholesale vend of Indian liquor in the National Capital Region (NCR) of Delhi for the licensing year 2023-24 with effect from October 1, 2023.
The Excise Department has said that the prescribed forms can be obtained from its website and that there would be a processing fee of Rs. 5,000 for each license. The Department said that the terms and conditions for the licensing 2023-24 would be the same as that of 2022-23. The government said that it reserved the right to review the duties / fees to be paid / payable in case of any amendment to the law related to liquor and bonded warehouses.
The Department said that in case of existing licensees / registered brands active up to September 30, 2023 there is no change in the EDP / right structure / label / source warehouse etc. The registered brands for the year 2022-23 may be registered for 2023-24 on the same terms and conditions of the previous year, consequent to the payment of requisite fees and submission of undertaking / affidavit of the same.
It said that for new registration of brands applications received without complete information and supporting documents as required in the prescribed form along with annexures shall be liable to be rejected.
These changes are to ensure continuity of supply and the amendments will be in place till the new policy is formed. This will be third time the Delhi Government is giving the extension.
It may be mentioned here that the previous policy introduced in 2021 by the Aam Aadmi Party (AAP) government had to be scrapped as it ended up in scandal which is currently under investigation.
The excise department has proposed to extend the existing 2020-21 liquor policy by six months till March 31, 2024, to ensure the continuity of liquor supply. The excise department will issue a formal order in this regard.
Expert welcomes policy
Mr. Raju Vaziraney, one of the veterans of the wine and spirits sector and presently Adviser and Business Development Head of Amrut Distilleries, has welcomed the policy saying technically it is a new policy thereby allowing new companies to get registered and pay one-time fees and not fees from retrospective effect. The Companies will be encouraged to bring – in new brands, thus ensure more variety of brands, more consumer choice. However, he said the new policy gave only two days for companies to submit all documents.
However, he reiterated that the salient features are a) Existing Licences to be renewed by giving an undertaking / affidavit; Existing licences are renewed till March 31, 2024; Existing brands with existing EDPs to continue till March 31, 2024; Existing brands to pay proportionate fees of six months and not 18 months as was the practise in the policy of 2022-23.
In order to ensure continuity of supplies the online transparent system worked overnight & supplies commenced from October 3, 2023. However in view of paucity of time lot of prominent brands are under process of being made available. Mr. Vaziraney said that however, the challenges are that Delhi will have to wait till six more months to get a full-term year policy with possible participation of private trade thereby offering a great buying experience. The vends at the airport could also open next year as presently a world class city like Delhi does not have any vends at the airports
It is expected that Delhi will have a full year policy which will bring-in consumer choice brands and also bring – in reforms in terms of more liquor stores, more in trade outlets, he added.
IWSR Drinks Market Analysis has announced the appointment of Julie Harris as its new CEO. The transition comes following Mark Meek’s decision to step back from the CEO role and to take up a non-executive director position within the company, the world’s leading source of data and intelligence for the $1.5 trillion global alcoholic beverage market.
Julie Harris joins from Comparison Technologies, a leading tech-enabled comparison and customer acquisition platform in the home digital services market, where she was CEO since 2019. Prior to this, Julie held several CEO roles across a number of sectors, including WGSN, the global leader in trend forecasting for the fashion and retail industry.
Julie Harris commented, “I am delighted to be joining the very talented team at IWSR at such an exciting stage in its evolution and to build on the phenomenal growth of the last few years. Mark leaves the company in fantastic shape and I look forward to working with our global teams to continue to develop new and exciting products for our valued clients.”
Under Mark Meek’s leadership, IWSR has delivered annual revenue growth of 20% and has significantly expanded the coverage and functionality of its core database. The company has also developed a range of new products, including annual strategic consumer sentiment studies on topical issues such as e-commerce, no-and-low alcohol drinks and the impact of Covid-19. In conjunction with its strong organic growth, IWSR has also completed the acquisition of Wine Intelligence France, broadening its coverage of the wine sector.
Julian Masters, managing partner at Bowmark Capital, leading private equity investor and IWSR majority shareholder, commented, “Mark has been both a great leader of IWSR and partner to Bowmark, driving transformational change during his tenure as CEO. We thank him for his significant contribution to the company’s success and are delighted that we will be continuing to work together in his new role. We look forward to working closely with Julie Harris on delivering IWSR’s next phase of growth and continued product development.”
Mark Meek said, “I’m incredibly proud of what the IWSR team has accomplished, with the support of Bowmark, since the management transitioned from our founder. The business has grown strongly, and we’ve considerably enlarged our talent base and product range. The future continues to look bright. So now, after nearly 10 years, I believe it is a great moment to hand over the reins of the business to the talented Julie Harris. I look forward to being part of the IWSR story as a non-executive and will give Julie all my support to ease her into the new role.”
The rum market is experiencing significant growth, but have you ever tried rum made from jiggery? In this article, we will delve into a review of Two Indies Rum, crafted by Amrut Distilleries, the renowned Indian whisky maker known for putting Indian whiskies on the global stage. Interestingly, Amrut doesn’t just produce Two Indies Rum; they also offer another exceptional rum called Old Port Deluxe Matured Rum. However, our focus today is solely on Two Indies Rum, especially as the winter season approaches, making it the ideal time to explore quality rums. This spirit is priced at ₹1,700 in Mumbai, ₹2,200 in Bangalore, and a wallet-friendly ₹850 in Goa. Furthermore, it’s readily available in numerous states.
Why the name?
The Two Indies Rum was actually conceptualised by the now late CMD Shri Neelakanta Rao Jagdale, wherein he was keen to bring a fusion of two rums, a concept that Amrut has also brought to its whiskey’s. The rum is a tribute to India, its farmers and also to the West Indies, which is where Rum originated from. And because this is blended with matured rums that come from these two countries, it got its name ‘Two Indies Rum’. This rum has won a few international awards and also won the Ambrosia Award for the best premium rum in 2021.
Blend
This rum has an interesting and unique story when it comes to its blend. It uses Caribbean rum, specifically from Jamaica, Barbados, and Guyana, which are sent to the Amrut distillery unit in Kambipura, Bangalore where it is mixed and blended with Indian rum, aged about 3 years or less. Also this is made from ‘jaggery’. This approach is pretty different from most manufacturers making rum. For instance, you have rums that are made from molasses, which is used in this also btw. Then you have rum made from cane juices, which is a popular concept. But jaggery is used in making most Indian sweets. So in this case that is the unique blend, which might make this sweet and perhaps this is the only rum in the world that is made out of jaggery.
The Spirit is distilled in both pot and column spirit stills such that the natural congeners of molasses are retained and then skilfully blended after maturation in select oak wood barrels that give a dash of sweetish oakiness on the palate. The rum is made by blending it with molasses ENA and no artificial flavouring has been added, although the bottle says that permitted colours are.
Packaging
It’s a nice looking bottle, at first glance the bottle actually reminds me of the Gianchand Indian Single Malt, of course Two Indies Rum was launched before that. This is also its new packaging and new avatar, which came in 2020. Earlier this use to come in a different bottle. This is a rum like bottle and the words Rhum-Ron are written since the Caribbean’s has the influence of both French as well as Spanish former colonies. It has 42.8% ABV and the bottle is nice and sleek.
Nosing
Coming to the nosing, you’ll notice a sweet scent, and it’s pretty strong at 42.8% alcohol. There’s also a hint of nuttiness in the background, but you might need to take a closer sniff to pick it up because the overall dominant aroma is sweetness with some spice notes.
Tasting
The rum has a nice taste – it’s not too mild or too strong. It’s just right, and it gives you a nice kick of flavour without being too much strong. When you sip it, the taste sticks around, and you can feel a bit of spiciness in your mouth. At first, you might notice a bit of banana flavour, kind of like when you eat the skin of a banana. It also makes your throat feel a little dry, which means it’s a dry drink. There’s also a tiny hint of saltiness, like the taste of nuts with a pinch of salt, but it’s not too strong. One cool thing about this drink is that it starts with a bit of sweetness from the wood it’s made from, like oak. The sweetness starts small and then gets spicier, so it changes as you sip it, and that’s what makes it interesting.
Conclusion
What do we think about Two Indies Rum? Well, let’s talk about rum and how people feel about it. Just like with whiskey or vodka, many people usually have their favourite brands. Some people prefer Old Monk, while others like a stronger taste, especially in the winter. But Two Indies Rum is a bit different. It’s like those fancy single malt whiskeys – it’s an acquired taste. It might not be the rum for everyone, especially if you’re used to regular, mass-produced rums. But if you’re a rum enthusiast and appreciate high-quality products, you should definitely give Two Indies a try.
The Ron De Ugar Rum comes from Ugar Sugars Works Ltd who have been in the Sugar business for about 75 years. And as you know that manufacturing ENA is a natural extension of being in this business and in line with that Ugar Sugar also has a portfolio of spirit products in the market. This is their first rum product and is priced at Rs. 1300 in Goa for a 750 ml bottle. The rum features a 42.8% ABV and is currently only available in Goa and Karnataka, with plans to launch it soon in others states as well.
Why the Name?
It is common to believe if this rum is from India? The name suggests that it might be an international product and honestly I also thought for it to be one at first glance. But this is a 100% Indian handcrafted Rum and it is manufactured in the Ugar Khurd region, which is a small hamlet in the erstwhile princely state of Sangli in the West of India, on the border of Maharashtra and Karnataka. The region is a sugar manufacturing-focused township with large areas under sugarcane cultivation, which is where the distillery is based and also of course this rum is also made there. And since this comes from the Ugar region, its named after it, the ‘Ron de’ has been added to give it some flair of course.
Apart from the name there are few other interesting things about this Rum, and the most important is that this is made from cane spirits and not molasses. Most of the rums that you find in India are made from Molases, whisky’s also in fact. Much like Camicara Rum, which is also a small batch rum made from cane spirit, Ron De Ugar is mixed with mature 3-5 year rums and cane spirit.
Another interesting thing about this rum is the moniker on the rum. When you look at him it seems like an international figure, but this is actually Shivaji’s Naval Commander, Kanoji Angre, who use to monitor that belt and is also known as askilled navy chief hence used here.
Kanoji Angre features as the moniker on the label
How is it made?
So, how exactly is this rum produced? The aged rums are combined with cane spirits and left to mature gradually in Oakwood casks. Afterward, they’re mixed with fragrant spices to create a unique flavour. This rum is crafted and bottled at the Ugar Sugar Works Ltd. in Ugar Khurd, located in the Belagavi district of Karnataka.
The Rum is matured in Oakwood Cask
Packaging:
Similar to many other rums available in this segment, it comes in a canister. A marron base colour along with gold letterings make it look good and the canister also has some night texture with the picture of the Naval Commander Kanoji Angre on it. The shape of the bottle is similar to that if Monkey Shoulder whisky somewhat.
The bottle looks like Monkey Shoulder Whisky
Nosing:
With an alcohol by volume (ABV) of 42.8%, this rum is undoubtedly smooth while nosing. Its sweetness carries note reminiscent of vanilla, which is evident from the aroma it imparts. There’s a distinct and clear vanilla scent. While there’s not much spiciness, the scent is deep and intense. Taking a whiff of this rum can also provide a pleasant sensation, gently expanding one’s nostrils.
Tasting:
Talking about the taste, as expected, it’s smooth. When the spirit enters the mouth, it feels refined, smooth and also warm. The spiciness hits you slightly late just as the vanilla sweetness fades away. There’s a lingering texture on the palate, offering a warm and comfortable feeling. Interestingly, although the spiciness isn’t obvious at first sip, it becomes evident shortly after. The spiciness is balanced and not overwhelming, providing a relaxed experience. The finish is prolonged, felt at the back of the throat, and carries a warm sensation with a subtle hint of spice. Despite the enticing aroma of vanilla and sweetness, these flavours don’t translate as strongly onto the palate. For a rum with a 42.8% ABVit goes down smoothly.
Conclusion:
Priced at ₹1300, this rum certainly falls into the premium category. It’s important to note that this isn’t a budget-friendly option, especially when considering potential higher costs in other states. But the makers are very clear that this is meant to be a handcrafted small batch rum. While the rum is good I would’ve been happier if it would’ve been priced at around Rs. 900 – 1000, it would’ve flown off the shelves then. But overall you must try this for sure, atleast once.
The Founding House of Japanese Whisky partners with film icons Sofia Coppola and Keanu Reeves
Introduces new limited-edition whiskies to toast its centennial
The House of Suntory, the Founding House of Japanese Whisky, celebrates its 100th anniversary of whisky innovation: a major milestone not only for Suntory’s history but for Japanese spirits culture. In honour of this centennial, the House releases a Suntory Anniversary Tribute as imagined by Academy Award-winning director Sofia Coppola and starring actor Keanu Reeves, as well as exclusive 100th anniversary editions of its world-renowned whiskies.
Twenty years after filming Lost in Translation, Sofia Coppola returned to Japan to create the Suntory Anniversary Tribute. Coppola brings her artistic genius and admiration for Suntory Whisky to life as the creative director of The Tribute that honours Suntory’s illustrious past, present and future. The Suntory Anniversary Tribute tells the remarkable story of the brand’s heritage and whisky-making legacy over the last 100 years, depicting the meaning of “Suntory Time” through the eyes of its creator. It features actor Keanu Reeves, a lover of Suntory Whisky and who previously appeared in a Suntory Reserve ad campaign in 1992, debuted yesterday during the Suntory Time 100th Anniversary Global Premiere event in New York City.
“As the pioneer of Japanese whisky, the House of Suntory played a significant role in shaping culture and leading craftsmanship in Japan over the last century,” said Jon Potter, Managing Director of House of Suntory. “To mark this historic milestone, partnering with Sofia and Keanu, who are Suntory Whisky fans, makes perfect sense. From our Fifth Generation Chief Blender Shinji Fukuyo’s striking blends to Sofia and Keanu’s unique cinematic creations, this commemoration has surpassed all expectations to celebrate our iconic Japanese whiskies.”
Later this summer, Reeves will star in another creative project in partnership with the House of Suntory: a series of documentary shorts from filmmaker Roman Coppola titled: “The Nature and Spirit of Japan.” The series explores Japanese whisky culture inspired by harmony with nature (Wa), elevated by Japanese craftsmanship (Monozukuri) and enjoyed as an authentic Japanese cultural experience (Omotenashi). The docuseries will strike a balance between education and entertainment, aiming to foster a deeper exploration of the House of Suntory and Japanese culture overall.
“I’m honored to partner with Suntory Whisky again thirty years after our Suntory Reserve campaign,” said Keanu Reeves. “I’m a huge fan of Suntory Whisky, so it’s very special to collaborate in honour of this milestone anniversary. My admiration for the whisky goes beyond tasting the whisky. It is the elevated Japanese craftsmanship and attention to every detail that makes Suntory Whisky so special. As an actor honing and perfecting my own craft, sharing this process in a docuseries is a thrill.”
In honour of the centennial, the House of Suntory is releasing several limited-edition whiskies that highlight the unique Japanese craftsmanship at Suntory’s whisky distilleries and their meticulous art of blending, including Yamazaki 18 Year Old Mizunara and Hakushu 18 Year Old Peated Malt whiskies. Limited 100th anniversary labels of the flagship Yamazaki 12-Year-Old and Hakushu 12-Year-Old will also be released for the centennial.
“Hakushu and Yamazaki whiskies are gifts from our past handed down by generations,” said Fifth Generation Chief Blender Shinji Fukuyo. “It is fitting to release limited editions as part of this incredible milestone, as they represent our relentless pursuit of quality and symbolise our promise to carry our philosophy on for the next one hundred years and beyond.”
The centennial of the House of Suntory began with the establishment of its Yamazaki Distillery in 1923 – the first and oldest malt whisky distillery in Japan’s history. The House of Suntory founder Shinjiro Torii’s 100-year legacy began with a dream to “create an original Japanese whisky blessed with the riches of Japanese nature and craftsmanship,” which his grandson Shingo Torii carries forth today at Yamazaki and its distilleries across the country. Since its founding, the House of Suntory has been crafting world-class spirits and is known for Yamazaki, Hakushu, Chita, Kakubin, Hibiki, Suntory Whisky Toki and Ao, as well as Roku Gin and Haku Vodka.
This landmark anniversary is a significant milestone for House of Suntory and for its home country of Japan. As a first step toward its promising future, the House of Suntory is investing 10 billion JPY ($77 million USD) to enhance its Yamazaki and Hakushu Distilleries which are currently closed for renovation and scheduled to reopen this fall. The House of Suntory has become synonymous with some of the best Japanese whiskies in the world today, and it has undoubtedly built a legacy worthy of celebration.
The House of Suntory has invited fans to join its new global membership programme. Members will be among the first to hear about House of Suntory new releases, receive priority consideration for invitations to consumer experiences, learn news from the distilleries, gain early access to content and more. The House of Suntory membership programme aims to bring Japanese whisky enthusiasts together around the world and provide a cultural journey through Japan.
Recent years have seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers. There are now strong indications that the growing demand for craft beer is paving the way for new microbreweries in India.
The beer industry in India has emerged in the last two decades to become a thriving money spinner today. Just a few decades ago, it wasn’t commonplace to find modern bars, restobars, lounges, and even friends sitting over a few beers. Today, there’s a new culture of brewing in India, even among millennials and Gen Zs, and beer has become trendy. As of 2022, the beer market was valued at 383.6 billion, growing at a CAGR of 8.1%, and expected to reach 622.4 billion by 2028.
Recent years have also seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers, with an emphasis on new and evolving flavours, enthusiasm, and techniques. There are now strong indications that the growing demand for craft beer is paving the way for microbreweries in India. Some industry players believe this is only the start of a journey that can transform the beer scene much more significantly.
Craft beer flexibility and a burgeoning segment
There’s a growing crop of craft beer producers and brands in India who seem determined to take over the beer market with what they call a breath of fresh air. “Being true to style and ingredients, the experience that craft beer provides in terms of flavour, aroma and array of styles has led to the growth of craft beer the world over. We often say that once one has tasted true craft, he’ll never go back to industrial lager, especially if craft is available within reach.
“This is the reason that the world and, indeed, India are seeing the growth of microbreweries. Industrial lager literally offers one-style-fits-all products, whereas craft gives the choice back to the consumer for its preferred taste profile and styles,” said Upesh Gulati, Founder, Strategist, and Master Brewer, Effingut Breweries Pvt Ltd.
Over the years, Effingut has taken pride in introducing patrons to various different styles from around the world. With 16 different craft beers on tap, there is a flavour for each and every patron to enjoy. As of today, Effingut has a pan-India presence with three different verticals across four cities that cater to any kind of patron. This includes the Effingut 2 Go boutique stores, Effingut Bistros, and The Effingut Brewpubs and Taprooms.
Rather than release large batches of single-flavour, often mundane beers, microbreweries offer a variety of tastes and flavours based on the changing preferences of consumers and innovativeness of producers. As more adventurous beer enthusiasts emerge, craft beer makers have to continually innovate and expand to meet growing demands. According to Dr. Nishant Grover, Brew Master at Hotel The Royal Plaza, craft beer has quickly become a trend in India.
“There are several factors responsible for the growth of microbreweries in India. First is the shifting consumer tastes and the desire for distinctive and expensive beverages, as well as the fact that they are becoming more daring and discriminatory in their taste preferences. Second, increasing disposable income has also contributed to the growth of microbreweries, and lastly, we must acknowledge the encouraging government policies that are making microbreweries like our own The Royal Brewery Bistro to thrive,” he says.
Creating richer experiences with richer flavours
Microbreweries like The Royal Brewery Bistro are also being fostered by the craze for the culture by both local and international tourists and beer enthusiasts. This contributes to the overall tourism sector in India. Beyond that, the most important changes are the ones seen in the lives of budding beer drinkers in India. Younger Indians are becoming adventurous and seek out newer tastes each new day.
“After a long hectic day at work, people would stop by a bar to relax with a mug of their favourite beer in hand. But now with changing demographics, millennials and Gen Zs, people’s taste for beer is also undergoing a shift. They are looking for something different to explore and experiment including their consumption of alcoholic beverages. It was only 20 years ago that the first breweries opened in the industrial city of Gurugram. Today, there are microbreweries spurring across the country. Well-known internationally trained brewers are brewing international quality beer recipes in new-world pubs and bars across the country. As the best quality raw material is available with ease, production becomes less hassle, this is why craft beer availability is spreading across the country. Multiple yearly events on brewing and brewing equipment have also propelled information sharing and technical know-how for the industry,” explains Sandeep Singh Katiyar, CEO of The Finch, one of the finest premium luxury lounges in India, known for its extensive range of freshly brewed craft beer.
Breaking the odds, surging ahead
There’s still a long way to go. The craft beer culture may be growing in popularity, but it is still relatively young in India. Brewing has certainly become easier because quality ingredients are easier to come by and the manufacturing process has been simplified. However, there’s a long path ahead, and it is rough and rocky. There’s need for both the central and state governments to support the segment and its operators for them to thrive even better and ensure the growth is smooth.
As Katiyar of The Finch puts it, “The new brewery policies in Haryana, Karnataka, Maharashtra, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh have helped craft beer businesses scale to new heights. However, craft beer and microbreweries yet have a long path to cover and have plenty of hindrances to cross in the upcoming years. The industry requires care, support, and nurture from the state and central governments. With the government’s support, the smooth growth of microbreweries can be ensured.”
The idea of authenticity loved by millennials is what is spurring the growth in the industry, and there’s need to support the over 200 microbreweries in India to succeed, while also ensuring new ones emerge, especially in far-flung cities and towns where they’re currently non-existent.
“It’s no secret millennials live life differently. Things no longer matter. Experiences do. Indeed, the potential rise of craft beer has paved way for many microbreweries in India. Millennials are clearly choosing experiences over things, fuelling the homecoming of microbreweries. They now know that there is much to the world of beer than just the dull and mass-produced bottled hard liquor. With hints of chocolate or sweet caramel, floral hops or fruity notes, rich coffee undercurrents and more – the options are tempting and endless. Today, India is now growing its own craft culture one sip at a time, and it will get even better in the future,” notes Anirudh Khanna Managing Director, Independence Brewing Company.
