Bartender at your services

Jui Kulkarni
Ansuhman Singh
Shreyansh Dubey
Shubham Patil
Manish Shete
Janak Dave
 Introduction

• India is the third largest global spirits marked by volume in the world.
• IMFL( Indian made foreign liquor ), Country liquor, BIO ( foreign liquid
bottled in origin), Beer, Wine.
• IMFL is the largest sector with increasing rate of 9 to 10 percent & growth
rate 11.9%.
• IMFL further bifurcated into Whiskey, Rum, Brandy, Vodka, Gin.
• Beer is a rapidly growing & expanding segment in last two decades with 17%
growth rate.
• Vodka is Fastest growing IMFL , Wine industry in India is just in its birth
stage.
• Excise duty on alcohol is 12.5%.
• Alcohol market is valued at ₹2,807,237 billion in 2018 with growing at
CAGR of 7.8%.
Porter’s Generic Strategies

Deciding Factors

Degree of
rivalry Power of
Threat of Threat of
among buyers and
substitutes new entry
existing suppliers
competitors
Porter’s Generic Strategies

Cost Differentiating Focus Strategy:

Leadership Strategy:
Strategy: 1. Grover Zampa
1. Jack Daniel’s Wine
1. Kingfisher 2. Johnnie 2. Craft Beer
2.Bira Walker 3. Moonshine
3. Smirnoff 3. McDowell’s Meadery
4.Bacardi Rum 4. Merlot
For United Breweries
Radico & SPS Joint Venture
First Indian Alcohol company to have
overseas production line

•In 2006, RLK formed Radico SPS UK Ltd

with SPS a UK based distillery
•Magic Moments Vodka and Contessa Rum
were largely promoted Radico handled all the
sales, marketing & distribution
•Manufacture were handled by local partners
•Industry sources said the initial investment
would be in the range of $60 million

•The JV ended in 2009

 Diageo & Radico Joint Venture
Diageo is a global leader in spirits
category with operations in 180 country

•In 2001 Diageo left the IMFL market, But in 2006

it soon realized the growing demand for IMFL
globally.
•Diageo India and Radico formed a 50:50 Joint
venture in year 2006
•Diageo lags its French competitor Pernod Ricard
well comes to Asian market
•In 2006, IMFL was growing a rate of 8-10%
•The JV ended in 2011 and Diageo took control of
the venture
•Diageo has looked to set up its own distribution
presence to handle its international brands in the
country.

Diageo Radico
 Fratelli Wines Secci Brothers
India’s first Indo-Italian wine joint venture
Alessio and Andrea
Italy

Sekhri Brothers
Kapil and Gaurav
New Delhi

Mohite-Patil Brothers
Ranjitsinh and Arjunsinh
Solapur
Mergers and Acquisition of
• Formed through successful three mergers
between InterBrew from Belgium and Ambev
from Brazil in 2004 and Anheuser- Busch in
2008

• Largest brewer in the world

• 630 beers in 150 countries

• $52.3 billion annual sales in 2019

 Acquisition

• AB Inbev ‘s $100 billion acquisition of SABMiller created

world’s first truly global brewer, with operation in almost
every beer market
• Most complex acquisition in history
• Large geographical footprints(Africa, Asia, Central and
south America
• Great opportunities through combined portfolio
• Capabilities of both companies to deliver further product
and service innovations
• Combined pool of global talent
• Additional shareholder values from revenue, cost and cash
flow synergies
 Turnaround

• Hemant Mohan took charge as MD

• Focusing on brand equity

• New launches, brand extensions,

premiumization

• Strong distribution channels

HAPPY DRINKING