News: Indians plumping for the premium tipple

(DNA 23/03/2007) Mumbai - The Indian Made Foreign Liquor (IMFL) market is set to witness a far more fierce battle with the entry of newer brands in the premium and semi-premium segments. Enamoured of the attractive growth rates, several players — old and new — are trying their luck by launching new brands.

The IMFL market, which is growing at rate of 9-10%, is valued at around 125 million cases.

Interestingly, most of the new brands launched are in the whisky category, which has a volume of 65 million cases/year and growing at 8%.

McDowell’s is the leader in this segment with 45% market share. McDowell’s Royal Challenge and Seagram’s Royal Stag, priced between Rs 300 and Rs 400 for a 750 ml bottle, are the much-sought-after brands in this sector.

Raju Vaziraney, president, sales & marketing, Radico Khaitan, told DNA Money: “There is a huge potential in the segment as the consumers are ready to spend more money for premium and high premium brands.”

“The boom in the Indian economy reflects well in the consumers’ shift towards premium brands. For the past one year, there is about 40% growth in the premium segment.” According to him, the sales in IMFL segment will cross 200 million cases within the next 4-5 years.

The major brand which was launched among others was Masterstroke Deluxe Whisky, from Diageo Radico Distilleries Pvt Ltd — the joint venture between Diageo and
Radico Khaitan Ltd. Masterstroke is priced at Rs 300- Rs 400 per bottle (750ml).

Asif Adil, joint managing director, Diageo Radico Distilleries Pvt Ltd and managing director, Diageo India, said: “Consumers are getting more choices nowadays as the industry grows. We are looking for a 15-20% market share with Masterstroke Deluxe Whisky.”

He added that the JV will be launching 2-3 more brands this calendar year.

Beam Global Spirits & Wine Inc, which has launched its established whisky brand, DYC, in the IMFL category in January, is eyeing a major chunk from the IMFL segment with the launch of new brands. The fourth-largest premium spirit company in the world, as part of strengthening its Indian made foreign liquor (IMFL) portfolio, is looking to launch more brands in the same category.

Whisky DYC, which is priced about Rs 370, is mainly aimed the slot between the premium and semi-premium IMFL brands.

Whisky DYC, launched in Maharashtra, costs around Rs 385 for 750 ml bottle in the state.

Harish Moolchandani, CEO & managing director, Beam Global Spirits & Wine India, said: “We are exploring the possibility of launching more brands in the IMFL segment. All is depend on the turnover from the brand DYC. However, our first aim is to establish the brand DYC. Once it is established, we will launch other brands in IMFL.”

However, he refused to divulge the details of the brands to be launched, saying, “It could be whisky or white spirits. It is too premature to say about it.”

The company is the market leader in the Scotch whisky segment with its flagship brand, Teacher’s whisky. Teachers’ brands hold around 45% of the Scotch whisky segment in India with a CAGR of 22%. The IMFL whisky segment, which has a volume of 65 million cases per year, is growing at a rate of 6-8% per annum.