Cheers! the Indian Alcobev Industry Era

Cheers! The Indian Alcobev Industry Era by Vincent Fernandes and Trilok Desai 2 3 Cheers! The Indian Alcobev Industry Era Published by Trilok Desai Publisher: Special Audience Publications Pvt. Ltd. in 2013 Printed at JAK Printers Pvt. Ltd., JAK Compound, Dadoji Konddeo Cross Lane, Off Dr. Babasaheb Ambedkar Marg, Byculla (E), Mumbai - 400 027 Photographs, Cartoons & Illustrations National Museum (Delhi), Mathura Museum, Mario Miranda Foundation, Ambrosia Archives Editorial Team Amitabh Joshi, Rojita Tiwari, Lopamudra Ganguly, Yashnashree, Nivedita Nagpal, Alan Fernandes Photographers Shirish Karale, Steve D’souza and Ajay Singh Design and image editing Shirish Karale, Varsha Karale and Rajendra Gaikwad Marketing SAP Media Worldwide Ltd. Production Manoj Surve Advertisements Nivedita Hegde and Sudeshna Chakravarty Special Thanks CIABC, AIBA , AIDA, ISWA, ABDVI, USL, UB Group, Mohan Meakins,Tilaknagar Industries, Bacardi, Carlsberg, Radico Khaitan, Munjral Brothers & Mohan Bros Distributors: BD Distributors & Variety Book Depot Price: `.4,000 US$ 100 Special Audience Publications Pvt. Ltd. Mumbai Office: Delhi Office: 509 & 511, Dilkap Chambers, F-22 Green Park, Fun Republic Street, Off New Delhi-110 016, India Veera Desai Road, Andheri (W) Tel: 91-011-26532567/68 Mumbai 400 053. India Fax: 91-011-26863028 Tel: 91-22-40401919 E-mail: [email protected] Fax: 91-22-40401927 Email: [email protected] 4 5 It gives me great pleasure to present the first Coffee Table Book “Cheers! The Indian Alcobev Industry Era”, documenting the past, present, and possible future of the Indian Alcobev Industry”. As Ambrosia has completed more than two decades of publishing the magazine, it was only fitting that we archive the industry happenings over the years.The book is a complete retrospect with pictures of the alcobev scenario, the way it was. At the outset, we would like to thank Confederation of Indian Alcoholic Beverage Companies (CIABC) for initiating the project, USL and the UB Group for their primary support, and the entire industry for its support in terms of editorial inputs. Many top executives, past and Trilok Desai present have also given us their valuable time and information for the book. Publisher, Ambrosia Also, special thanks to all those who have contributed in any way to the production of this book. Along the way the industry has had to encounter many a hurdle trying to negotiate its way in an environment where Prohibition is enshrined in the Constitution. This book is a tribute to the acumen of those doyens of the Indian alcobev industry. While the book is a comprehensive history there may be some hits and misses. While most were co-operative, some were unable to provide information for various reasons. However, we have made every effort to incorporate every detail that we could get our hands on. Perhaps this book is a harbinger of future books which will document the industry which is going through one of its bullish phases. Although the world is in the throes of a recession, the Indian alcobev industry continues to grow. Perhaps as and when the duties and taxes are scaled to reasonable levels, is when the real action will begin and the Indian market will be the cynosure of every global player. During the course of producing the book, one important event is likely to change the course of the industry: the change of ownership at USL. Diageo, despite procedural hurdles in all likelihood will take over in the course of time and is likely to give the industry a new shape. There have also been some changes in management in few companies during this process. But we have endured it all to give the book its final shape. On this note, we would like to say “Cheers to the industry” and “Responsible Drinking” to our Publisher’s Note millions of consumers. 7 Cheers! The Indian Alcobev Industry Era Contents Chapter 1: Uncorking the annals of alcoholic beverages The alcobev industry has evolved since time immemorial. We look at the history of drinking through the ages. The history of each segment of alcohol is also traced in this chapter. 13 Annexe: The divine intoxication in India The introduction will touch on the history of drinking in India with special reference to the different types of liquors in India. The focus will then shift to drinking in modern times with anecdotes of the past. 27 Chapter 2: The steady rise of Indian Made Foreign Liquor This is a definition of IMFL, its inception in India, some information of the old brands which have stood the passage of time. Special reference has been made to its production, quality aspects, and how IMFL has been revered by the people of India and even foreigners. 36 Chapter 3: The Indian beer binge This is the history of the Indian beer industry with the history of some of the oldest breweries, the type of beers made then and now, and the popularity of different types of beer. There is also an account of the inception of strong beer and its growth story, its market share in the Indian market and how strong beer is only an Indian phenomenon. Special mention is also made about the oldest brands and their popularity over the years. Some mention is being made of their brand history. 52 Chapter 4: Wine world-The Indian connection India’s wine history is documented in this chapter. Mention of the grapes used to make wines in ancient times has been made. The chapter also covers the birth of the modern wine industry in India, some information on some of the architects of the wine industry, the growth story, the challenges, the pitfalls, the opportunities, and the road ahead. 68 Chapter 5: Country liquor – The poor man’s tipple An overview of the country liquor market, the growth of the market through the ages, a qualitative and quantitative profile of the consumer, some of the politics behind the industry and current trends in the industry. 98 Chapter 6: Imported wines and spirits Current taxation policies, the various taxes applicable required to import, some of the import procedures, and the challenges facing importers of alcobev products. Reports of the imported spirits market, profile of some of the major importers and some of the brands they represent. 106 Chapter 7: Allied industry – The shape of things to come A report on the supply chain so critical to the growth of the industry. Profiles of the big players in different segments of the allied industry, and the doyens of this industry. A note on the technologies that shape the products in the market place and future technological trends. 128 Chapter 8: Alcobev companies – Past and present A profile of companies that formed an integral part of the industry then and now. An account of how they grew through the ages, both organically and inorganically. Some of the milestones of all major companies, and their contribution to the growth of the industry. 144 8 9 Cheers! The Indian Alcobev Industry Era Contents Chapter 9: Business leaders – Past, present and future This chapter documents the important people in the industry who shaped the industry, gave it its character, those who contributed to the growth story, their tryst with the authorities, the challenges they had to encounter and how they managed to thrive in a high duty regime. Tributes are also paid to some of the late greats of the industry. 194 Chapter10: Legislation, excise and duty pertaining to the alcobev industry The chapter is the treatment of the subject of Prohibition in the Constitution, its implementation and impact on the alcobev industry. How each state is a market itself. The challenges of meeting the tax demands of various states and how various segments of the alcobev industry namely beer, IMFL, wine and imported spirits cope with the taxation policies. 286 Chapter11: Alcoholic beverage exports India’s exporting pattern of alcobev products, the countries exported to, some of the popular brands that are exported and what are the challenges to export. Also, a report on the impediments that hamper exports. 294 Chapter12: Horeca trade A report on the HORECA trade. How important is it to alcobev marketers? Some insights into the trappings of the trade. 300 Chapter13: Consumer concepts The changing face of the Indian consumer over the ages. Also, some demographics of a growing Indian consumer base and how the industry is gearing up to meet the demands of the new age consumer. Also, some comparisons of the Indian consumer with other global consumers. 308 Chapter14: Market musings The Indian market is beginning to evolve and become one of the biggest markets in the world. We look at some of the demographics and present a qualitative drinkers profile. 316 Chapter15: India alcobev market – Bullish but controlled An overview of the current state of the Indian liquor industry and how it has grown in recent times, the reasons for the unprecedented growth, some of the forces that determine the competitive intensity and therefore attractiveness of a market. 326 Chapter16: Glossary Famous alcoholic drinks, whisky/spirits, beer and wine terminology 336 Chapter17: Glasses and Decanters Photographs of various types of glasses and decanters 350 10 11 The steady rise of Indian Made Foreign Liquor The first glass is for myself, the second for my friends, the third for good humour, and the fourth for my enemies. - Sir W Temple 36 37 he charm of leading a good life comes with having a vice has power packed young honchos, mixing coolly with the chic girls or two to indulge in. A taste for liquor has become the latest gulping down Long Island Ice Tea, a booze that is no longer hidden Tstatus symbol to move up the social ladder for ambitious behind the cola.

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