Alcohol Industry In India

Indian Spirits Sector - Overview Indian Liquor Industry with estimated market value of INR 340 bn is growing at 12-15% over the last two years. The industry is estimated to have sold 115 mn cases of IMFL last year. The sector is expected to maintain its CAGR of ~15% while the premium segment Wine and Vodka is expected to grow at a higher rate. With consolidation and foreign acquisitions gaining steam the sector is about to witness next phase with realization rising in line with that of their foreign counterparts. There are 325 distilleries in India, with an installed capacity of about 3.58 billion litres of liquor. However, production rate is about 40% of total licensed capacity as total requirement of liquor stands at 1.3 billion liters. Major National Players United spirits with about 60 % of market share in IMFL is the undisputed leader. Radico Khaitan who entered the IMFL space some 8 years back has already cornered 12 % market share and gaining. Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc. International players The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits) Investment Rationale Inherent Potential, Deregulation, western cultural influence and high entry barriers has helped the industry in notching up higher sales growth. Alcohol sale is driven by the high GDP growth and more people entering the drinking club with newly obtained prosperity or from up trading from the existing brand. Inherent Potential: Since liberalization, the economy has been growing at steady pace with per capita income rising from INR 23,222 in 2005 to INR 6,012 in 1991. Shift from country liquor to IMFL is expected with rising per capita income and limiting the sale of country liquor by states due to hygiene factor. Industry has one of the lowest per capita consumption of both Liquor and Beer and also since the margins are amongst the lowest...

Alcohol and Emerging Markets (Patterns, Problems and Response).
S. K. Ghosh

Most Asian countries may be approaching alcohol use and abuse from a narrow. short-term perspective. such as the break up of the traditional joint family system and changes in values and attitudes. including attitudes towards the consumption of alcohol. The book indicates that any policy on the topic of alcohol drinking should have a balance between governments' regulation. and public health dimensions of alcohol use and abuse. The second part discusses encouraging better practice. The chapter on The Alcohol Drinking Pattern in India is also interesting. The findings and observations are very close to my own findings from a similar research project in West Bengal and Punjab about a decade ago. and exposure to more sophisticated advertising in a context where people have the right to choose from different options. Different authors have contributed. with major changes in economic policies. and Mexico. as well as rapid social changes. as well as the beverage alcohol industry.The second volume in the International Centre for Alcohol Policies series on Alcohol in Society explores in a unique way how a balance may be achieved between public health and commerce. there is an enormous diversity of cultures in the whole continent. non-governmental groups and bodies. all need to have a place at the table. Latin America. South East Asia. and I agree that there is an . industry self-regulation. political. This book contains 14 chapters and is in two parts. without adequate consultation from different disciplines. cultural. giving a good indication how in practice different disciplines like governments. The influence of these. India. are weakening steadily and alcohol drinking has been spreading to all classes of people. and growing consumerism in India. The book also states that each country in Africa aims to develop policies on alcohol. religious. and reliable data. scientists. Alcohol drinking is also increasing amongst groups who were traditionally abstainers. which cannot easily be described in simple terms. that prevented people from drinking alcohol. Russia. thus giving various perspectives on alcohol-related issues in different countries. and individual responsibility. culture. rather than ad-hoc policy-making. teenagers. A more holistic approach. and also central and eastern Europe. such as women. Alcohol policies need to be formulated in these countries taking into account the social. like quantity and frequency are so diverse that a multidisciplinary approach towards understanding of alcohol drinking would be the better proposal. Other factors are also bringing about various changes. In the first part. to enable the inhabitants to enjoy the benefits and pleasures of drinking. China. It has always been difficult to collect detailed and accurate information. while also taking appropriate measures to protect against all the ill effects of alcohol. The pattern of drinking is definitely changing very fast. This is initiated by changing lifestyle. Cultural and religious controls. based on objective and long-term prospectives would be ideal. All Asian countries are experiencing an increase in the demand for alcohol. the steady introduction of a market economy. and the rural rich. to achieve a proper conclusion in most developing and Latin American countries. the liberational market. on patterns of drinking. In the sub-Sahara and Africa. it discusses contemporary trends of the patterns and consequences of drinking in developing areas like Africa. scholars and public health experts. Asia. economic. the chapter compares the drinking habits of Indians with Asians in the UK. as well as other factors.

There is definitely an urgent need for research designed to support the national programme and to answer questions about different aspects of alcohol drinking and alcohol production. The concluding chapter by Marcus Grant is well written. and also for alcohol producers and policy-makers on alcohol drinking in many countries. or the consumption of home-made beverages which have been produced with no health controls. 384 pp. not whisky .00. responsible promotional and advertising practices. suggesting that the task that lies ahead. FOOTNOTES Edited by Marcus Grant. In central and eastern European countries. particularly in the mental health field. ISBN: 0 87630 978 3. China has experienced tremendous social and economic changes. from the 1980s onwards. and the fall of socialism. On the whole this book is well presented and gives a new dimension to the pattern of alcohol drinking in many countries of the world. is likely to prove very difficult. Column : Whiskey. In Mexico and other Latin American countries. mentioning the industry structure as a whole. within a short time. In a later chapter. have created a difficult context in which to formulate and implement government policy. 1998. I found a similar picture in India when I carried out an alcohol-drinking survey. Taylor and Francis. which is posing a challenge to medical workers.urgent need for the country to review its alcohol policies. social and economic changes. £33. alcohol education. and the prevalence of drinking alcohol and of alcohol-related problems has also increased significantly. the culture does not limit the drinking of alcohol and so the habit is quite widespread. at least in the short term. as a possible result of restrictions on availability. there has been a long and rich tradition in the production. it is said that extreme political. I am sure that it will be very useful for research workers. Another real danger is the production and sale of nondrinkable alcohol. which is 96% proof alcohol. and consumption of alcoholic beverages. trade. improving the data on patterns and level of consumption. In Russia. London. and also suggesting a framework for responsibility and a checklist for related activities. health visitors and other health professionals. quite a few important points are made in identifying the most appropriate role for the beverage alcohol industry.. especially in some parts of India where alcohol drinking is becoming more prevalent.

Today. he brought me up-to-date with how the demand for these Irish brands has been increasing nowadays.500 cases last year. Irish brands sold about 3. but sometimes these are of the instructive sort. Wales.Reghu Balakrishnan Posted: Saturday.500 cases in 2005. Jan 31. It was 133%. the poor reputation of Scotch whisky forced the Irish and American distilleries to adopt the spelling “whiskey”. the brands distilled in Scotland. thanks to an encounter with a sophisticated bartender. while Scotch whisky showed just a 9% CAGR. Canada . Two centuries ago. There is a history behind the ‘e’ in Irish Whiskeys. Next. First. he strongly suggested that I try Jameson or Bushmills. finding myself surprised at the compound annual growth rate (CAGR) of Irish Whiskeys (spelt with an ‘e’) in India. This was the kind of experience I had during a recent visit to a pub in the western suburbs of Mumbai. 2009 at 0002 hrs IST Updated: Saturday. Jan 31. to distinguish their higher product quality. I crosschecked his insights with the International Wine and Spirit Record data. 2009 at 0002 hrs IST Font Size Print Feedback Email Discuss • • Discount UK Shopping Baby Carry Blanket • • Compare Insurance Quotes • Double Bed Razai : Of course pubs routinely spring surprises on you. the Irish masterpieces. up from a mere 1.

Wikipedia currently defines Indian whisky as “an alcoholic beverag e that is labelled as ‘whiskey’ in India. Research online. An unflattering decription for sure. Ads by GoogleFree market Research Report Access Latest Annual Reports Free Get Online Reports or Hard Copies! www. Just acquiring a high-end historical single malt brand and turning it into a low-cost blended brand will not suffice for Indian manufacturers to get the coveted. which is distilled from fermented molasses. extra ‘e’.thefreelibrary.and Japan go by the sobriquet ‘whisky’.in Full-Text Online Library Online library of book. Link to this page <a href="http://w w w . but it is unlikely that we will see this condescension subside any time soon. Indian liquor manufacturers have a love-hate relationship with their foreign Online Share Trading It All Started With ICICIdirect. wherein Indian manufacturers call themselves “Indian made foreign liquor” makers. and as such would be considered a sort of rum outside of the Indian subcontinent”. 'The malt whisky market has huge potential'.com Open Integrated 3-in-1 Account Now! ICICIdirect. Historically. This has led to a peculiar situation.ecampaigns. www. Foreigners have never recognised Indian-made whisky or brandy. arguing that it doesn’t rise up to their standards. articles. This will only result in the invasion of more Irish and Canadian brands.</a> Byline: Dhiman Chattopadhyay .com/%27The+malt+ malt w hisky market has huge potential'.OrderAnnualReports. while ‘whiskey’ is what we call the spirits distilled in Ireland and America.Questia.

Excerpts: Indians consume more whisky than most other nations. Foreign spirits are taxed between 200 and 500 per cent more than domestic counterparts here. one of the oldest malt whisky brands in the world. Instead. malt whisky has only an 8 per cent market share. the country is yet to wake up to malt Best Stock market Tips From Leading 3 Brokers in India Register For 2-Day Free Trial What sort of growth are you looking at and how do you propose to achieve this? We hope to see India reach this take-off stage by 2012. After LVMH LVMH Moët Hennessy-Louis Vuitton (upscale retailer) bought Glenmorangie. The bright side of this is that it means there is huge potential for growth. now owned by Louis Vuitton Moet Hennessy. now owned by Louis Vuitton Mo & euml. Malt whisky targets only the high-end consumer who craves Hennessy. a mere 35. too. Ads by GoogleCareer in market Research The Nielsen Company's 11 Month Fast Track Career Program. While 92 million cases of whisky were sold in India in 2008. is yet to crack the Indian market despite India consuming 92 million cases of whisky annually. who prefer to buy single malt abroad where it's far cheaper. This is acting as a deterrent for buyers. Yet the malt whisky market is negligible. Why is this? Globally. The company is not interested in ad blitzkriegs since the target audience is rather niche.Summary: Glenmorangie. the business plan is simple: to conduct several rounds of tasting sessions with both trade experts as well as connoisseurs across key metros to create awareness and spread the word about Glenmorangie. we have been steadily increasing our presence in India. one of the oldest malt whisky brands in the world. Know More! Nielsenacademy. NUMBERS OF NOTE . differing from state-to-state. Its Global Business Development Director David Ridley talks about the problems and business plans. is yet to crack the Indian market despite India consuming 92 million cases of whisky annually. What is the major hurdle for growth? The taxation system on spirits is a major cause for concern at present.000 cases of this was malt. Glenmorangie. However. with 92 per cent preferring blended whisky.

or being the wealthiest. The rich has 0. (used with a an Albawaba. All rights reserved. Of. 2.2 million and the superrich su·per·rich adj. 0.1 million households.. while Mumbai generates 6. n. LMIL LMIL London Market Information Link . Ten millions. as.5 mn: The number of "affluent households in India. Out of this.. Copyright 2009. ten million ) in India in 2010-11.500 tonnes. Provided by Syndigate. Rs 22 cr: The amount of compensation paid to Britannia Industries by Danone Group for IPR IPR Intellectual Property Rights IPR Inprocess/Inprogress Review IPR Industrial Property Rights IPR Institute for Policy Research (Northwestern University and University of Cincinnati) IPR Institute of Public Relations infringement of the "Tiger brand. Noun company India consolidates position as number one whisky market 25-Mar-2003 . Reproduced From Business Today. diamond. according to a survey by AC Nielsen.800 crore. 2.50%: The likely-increase in demand for diamond jewellery (Rs 29. relating to..000. 2. 1. according to a survey carried out by FICCI FICCI Federation of Indian Chambers of Commerce and Industry in 22 cities. platinum and others. These cities mostly dump the wastes in landfill sites. 1.800 tonnes: The amount of municipal solid waste produced by Delhi per day. which includes gold. 6. Click the link for more information..000) s>.the number that is represented as a one followed by 7 zeros. compared to the current Rs 20. The domestic jewellery market is pegged at Rs 76..300 crore n. a crore of rupees (which is nearly $5.2 million belong to the upper middle class segment. crore .200-crore sales. Containing the richest ingredients: superrich chocolate ice cream.

Diageo's Johnnie Walker does have some presence in Thailand. . according to a new report from Canadean. Furthermore.8 million cases in 2002. the second and third largest markets respectively. Consumption in Thailand. Elsewhere. the second-largest market. The five best selling products there are so-called secondary whiskies products such as Mehkong and Black Cat. the US market also showed a downturn in 2002.Related topics: Consumer Trends When you think of major whisky markets. and South Korea is now the fourth fastest growing national market. Canadean predicts that India will again strengthen its position in 2003. The strong recovery since the Asian financial crisis has coincided with whisky consumption more than doubling in the last four years. is the fourth largest in the world for the blended drink. India is unlikely to spring to mind. however. the report said. consumption is likely to fall in the US and Thailand. with consumption dominated by two brands: Jack Daniel's Old No 7 and Jim Beam. although its sales are still dwarfed by the local products. of the 10 markets increasing most rapidly. but the subcontinent was the largest global market for whisky.led by premium blends . contact Andy Bryce . a Canadian whisky. In the same period. The biggest consumers of blended Scotch are the Spanish. Scotch's 'home' market.around 29 million cases in 2002. Although the US remains an important market for blended Scotch. whisk(e)y consumption in many South American countries continues to recede with Bolivia. remains high . Canadian whisky and blended Scotch all showing steep declines. the South Korea has mirrored the country's recent economic fortunes. the third largest whisk(e)y market in the world. and shows that blended Scotch whisky is by far the most popular. However. but France is expected to overtake the US as the number two country this year. or whiskey. Canadean's report also analyses sales by whisky category. with consumption likely to rise to 55 million cases. For further details of Canadean's 2002 Whisk(e)y International Product Watch Report. in all its variants. with Bourbon and other American whiskeys. Despite its size. This market is fuelled almost entirely by Indian whisky which accounts for over 99 per cent of total consumption. Venezuela. But India is not the only country showing good growth in whisky sales. some 20 per cent higher than that of the US. More significantly. last year. Americans consumed twice as much Bourbon and American whiskey. South Korea is second only to India in volume. The report said that whisky. consumption in India reached around 52 million cases in 2002. the fastest growing overall brand with significant consumption volume in the US is in fact Diageo's Crown Royal. Paraguay and Argentina among the five markets showing the largest downturns. who drank 9. The market .but global brands have still to make much of an impact there. Canadean said. more than double its nearest rival .

It was acquired by United Spirits. The two biggest brands of SWC are Royal Challenge Whisky and Director's Special Whisky. in mid-2005 for around Rs. Most notable were the sale of Calcutta Chemicals and Detergents India Ltd to Henkel-SPIC . which it shed as part of a restructuring plan.Shaw Wallace From Wikipedia. SWC was into diversified businesses.1300 crore. the free encyclopedia Jump to: navigation. search Shaw Wallace & Company Limited is a liquor manufacturer in India. It is involved in the production and sales of Indian Made Foreign Liquor. Before 1999. a part of United Breweries.

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