Sequoia Capital-backed premium beer maker Bira 91 is eyeing up to Rs 450 crore sales

IMFL manufacturer Tilak Nagar Industries has agreed to buy 10 per cent stake for Rs. 9.75 crore in Spaceman Spirits Lab Private Limited (SSLPL).

The investment is supposed to happen in two tranches via combination of Equity shares and Compulsory Convertible Preference shares (CCPS), read a BSE filing.

Started in 2020, SSLPL is engaged in the business of creating and marketing craft alcohol brands and offering advisory services to prospective AlcoBev entrepreneurs.

“The Company has a presence in the premium craft gin segment through the brand, Samsara. Post the investment in SSLPL, the Company shall hold 10% of the issued and paid up share capital in SSLPL on a fully diluted basis,” read the BSE filing.

It also said that the indicative time period for completion of the acquisition is on or before 30 June 2023.

Started by Shri. Mahadev L Dahanukar in 1933, TIL was previously known as ‘The Maharashtra Sugar Mills Limited’. In 1993 it was renamed as Tilak Nagar Industries and today own some of the top IMFL like Mansion House, Courrier Napoleon Brandy and has also Blue Lagoon Orange Gin under its portfolio.

Indian liquor-maker Radico Khaitan Ltd on Tuesday reported a decline of 22.63 per cent in its consolidated net profit at Rs 61.22 crore in the third quarter ended December 2022, on account of commodity inflation impacting margins.

The company had posted a consolidated net profit of Rs 79.13 crore in the October- December quarter a year ago, Radico Khaitan said in a BSE filing.

Its revenue from operations was down 3.97 per cent to Rs 3,166.19 crore during the quarter under review as against Rs 3,297.24 crore in the corresponding quarter of the previous fiscal.

“Radico Khaitan has delivered another quarter of a consistent financial performance driven by a strong premium volume growth, a robust brand portfolio and excellent execution capabilities. During January 2023, we have successfully commissioned the dual feed plant at Rampur within the committed capex estimate and timelines. As we continue to make strides on our premiumization journey, the availability of additional grain based ENA will strengthen our value proposition,” shared Dr. Lalit Khaitan, Chairman and Managing Director.

The group has recently received price increases in the non-IMFL business in the state of UP which will hold them in good stead in the next fiscal year.

Radico Khaitan's total expenses were at Rs 3,092.49 crore, down 3.30 per cent in the third quarter of FY23, as against Rs 3,198.30 crore a year ago.

Its sales volume of total Indian-made foreign liquor (IMFL) was flat during the quarter at 6.99 million cases.

“Driven by operational excellence and consumer-centric approach, our premiumization strategy continues to deliver strong results. During the nine months of FY2023, our Prestige & Above category brands have shown robust growth including core brands such as Magic Moments Vodka and Morpheus Brandy where YTD volumes have surpassed the full year numbers of FY2022,” added Abhishek Khaitan, Managing Director.

Mumbai has got an all new liquor experience at The Liquor Store on Palm Beach Road, Belapur that is conceptualized for the discerning customer to set out on an exploration of superlative and rare spirit labels through digitally enhanced walk-throughs, interactive tours and intimate tastings.

Conceptualized by third-generation owners of liquor distribution company VK Group, entrepreneurial minds Dinesh, Jayesh and Pritesh Kathuria have transformed the concept of a liquor store into a swanky gallery that offers a bespoke presentation of its best and rare spirits through elevated browsing and tasting settings.

TLS joins the trend of tasting rooms in India and pushes the envelope to start an interactive conversation with customers and turning the mundane liquor store visit into a memorable outing.

The Liquor Store bespoke experience can begin at a customer’s house with a chauffeur-driven pick-up and end with a drop facility on special requests.

The digitally woke set up adapts AR to allow a bottle to converse directly with the customer, showcasing its information on a screen using a digitally QR coded table top.

For the geeks, there’s a handout map that turns the visit into a museum walk, hand holding the customer to display corners.

Done up in black marble and gold finish, the gallery exudes a contemporary art deco vibe. The décor has been executed by IDEAMATRIX, a leading multi-disciplinary design consultancy firm known for the best retail design in the country. Their excellence in visualization of space, objects, colors, feelings and user experience has given TLS a serene output that allows for a calm, uncluttered ambiance for customers to browse through the library of bottles.

The wine cellar has room for private wine tastings. Gourmet food pairings and curated flights are offered at the classic pub style bar - The Tavern. TLS is an invitation for alco-beverage enthusiasts from Mumbai, Thane and New Bombay as well as commuters between Mumbai and Pune to make their elevated pit-stop purchases.

The 10,000-feet store is spread across two storeys and four sections, the Superlative Catalog awaits customers on the upper level with a library of rare and handpicked labels. An adjacent doorway leads into a wine cellar that showcases a world list including wines from India, Australia and America, Argentina, Chile, Spain, Italy and France.

With 1,000 spirits, 1500 plus wines, 250 champagnes and over 100 beer options, The Liquor Store offers the largest collection of liquors under one roof in all of Maharashtra.

The Tavern

Tasting flights: All spirited flights take off from The Tavern. Tastings of World whiskies and niche trails Scotland distilleries served with gourmet cheese, chocolate and crackers. Wines of the World tastings find delicious company of cheese, fig jam, grapes, nuts, crackers and meats.

Food: The Tavern is designed to serve all-day experiences from breakfast options, lunch meals including Buddha bowls, Poached pear salads and Lemon mustard chicken salad, pizzas and Mexican Chimichangas. Sharing options include their special cheese boards, Dual tikkas (a half basil pesto and sun-dried pesto) and Blue cheese chicken tikka, Chermoula prawns and Katsu baos.

Drinks menu: Drinks menu at The Tavern begin with breakfast cocktails like Tavern After Party, a coconut and herbs concoction that is a great cure for hangovers and a power-packed drink to kick start your day. Matchoman is the bar chef’s recipe of a smokey Indian Whiskey flavored with herbs and Matcha tea. A healthy approach pours into a Brocotini, a vodka cocktail made using farm fresh veggies, flowers and finished with citrus flavors. The Tom Yum Goon Soup becomes Tom Yum Tun drink with a dash of premium gin.

The Liquor Store is also available as an Android and iOS App for on-the-go pick-ups and home deliveries.

“Earlier we used to directly take liquor from the liquor companies but now as the government policies have changed, the way of our buying will be more in a channelized way through the authorised dealers and L1 dealers. But there is a time gap because policies are going to be changed or come into existence from 15th November,” shared Udit Bagga, Co-Founder, OTB Courtyard.

There’s no denying that this channelizing will help the sector grow and would encourage more authorized buying of liquor brand. But at the moment restaurants fear a huge loss of sale because there are certain brands that have started to vanish from the market, the unavailability of these brands may cause a new problem for the already troubled restaurant industry that has just started to recover from the pandemic.

Also Read: Restaurateurs welcome new excise policy by Delhi Govt, says it will boost revenue

“The liquor vendors are keeping low stocks online because they know the policies are soon going to be changed. We are going to face a shortage so not to face that we are trying to stalk the same for next 2 months,” added Bagga by pointing that this needs an additional capital because we have to pay advance to buy liquor and it's an additional working requirement, which requires more storage insurance.

"It is no secret that restaurants go through tough times where policies changes every now and then but keeping ourselves stalked up before hand is what we are planning to do to save ourselves from future hurdles," shared one of the restaurant owner.

“This is a very burning issue as customers are unable to find many brands in either the restaurants or retails outlets. Hence, they are forced to source this from either their friends, relatives or other people living in Noida or Gurgaon. I think it’s necessary to make this transition very smooth,” pointed Abhinav Jindal of Bee Young Craft beer by adding that this is a welcome move and if retail outlets are allowed to function till the time the transition happen this may end customer problem.

May Interest: Restaurants, bars to operate till 3 am announces Delhi Govt in new excise policy

"The taller the building the deeper you have to dig, the policy in Delhi wil have a good imapct for hcb industry, as before supplies were through government portals now with privatisation, good deals and credit periods will be given by private companies and greater choice for consumers. For the two months time period costumers should by their alcohol from neighbouring states," added Vatsal Goel, Owner, The Weekend Wine and More.

Experts were also of the opinion that if any stocks are left behind it will attract high amount of duty which will not be recoverable so they will have massive loss. Hence, the government has to look into it in a wholesome manner so that everything moves smoothly.

The Government permitting liquor to be served at restaurants from September 9 is a much welcome decision after a five plus month hiatus.

‘The Walk’ at WorldmarkAerocity, home to some of the top gourmet restaurants, cafes, and bars in Delhi-NCR is geared up to serve its customers with their favourite drink once again along with world class delectable food keeping safety and comfort in mind.

With only half of the seating capacity being permitted and contactless dining already in place, Worldmark is taking all possible measures to ensure a comfortable and convenient dining experience in a safe and hygiene environment for its customers.

Also Read: 4 ways allowing bars to open will help restaurants to overcome Covid-19 losses

However, it has laid down a strict code of safety measures to ensure the highest standards of health and hygiene for customers and servers. As a part of its COVID safety rules, no customers would be allowed to enter without mask and entry would be allowed only post thermal screening.

“This is a much desired step, as this will help in generating more employment; many will get their livelihood back now; people are looking forward to getting back to normalcy but only with an assurance of safety. Safety being the top-most priority, we are all set to welcome and provide a pleasant experience to our customers,” said Mohit Pruthi, Head of Retail and Marketing at Bharti Realty.

Worldmark’s signature dining establishments such as Plum by Bent Chair, Le Reve- French bistro, Kampai, Dragonfly, One8, La Roca, Farzi Café, Kylin, Punjab Grill, Underdogs, Café Delhi Heights are all set to serve their customers with their specialties.

May Interest: Unlock 4.0: Bar owners pour happiness after Delhi govt announced re-opening

WorldmarkAerocity, in line with government guidelines has also put in place special protocols like contactless temperature screening, touch-free sanitizer dispersion, contactless dining, effective crowd management to allow physical distancing, periodic sanitization of common surfaces and several other steps for diners to feel safe and secure inside the premise.

Campari, an Italian drinks group, is in discussions to acquire French firm Rhumantilles SAS. This acquisition will help Campari to expand its rum business and grow its market in France.

French liquor firm Rhumantilles, owned by Compagnie Financiere Chevrillon and a group of minority shareholders, produces Caribbean Rhum Agricole brands through its Bellonnie & Bourdillon Successeurs (BBS) unit. The company makes Mauny, Trois Rivieres and Duquesne rhums.

Rhum is a specific type of rum drink that is only made in the Caribbean.

The Italian firm said that the net sale of Rhumantilles was 24.1 million euros.

Campari stated, "Rum was a premium category "at the heart of the mixology trend and growing cocktail culture. Moreover, France is poised to become one of the group's strategic markets and with this acquisition, Campari group has the opportunity to add significant critical mass in this market."

Campari is the world's sixth largest spirits company. It owns over 50 brands, including Aperol, Grand Marnier and Wild Turkey bourbon. 

Liquor firm Alcobrew Distilleries is targeting a revenue of Rs 1,000 crore by fiscal 2021 as it expands its distribution reach and product offerings in India and overseas.

The company is further looking to invest about Rs 100 crore in the next two-three years for establishing a malt distillation and saturation plant and towards marketing of the brand.

Romesh Pandita, Chairman and MD of Alcobrew Distilleries, said, "We are looking at closing the current financial year with Rs 500 crore turnover and are looking at doubling it to Rs 1,000 crore at the end of 2020-21. We will achieve this growth as we deepen footprint in India, explore new markets overseas and also introduce new products and premium variants of existing brands."

Alcobrew Distilleries reported a net turnover of Rs 350 crore in the previous fiscal. Currently, the company only sells whiskey. But, it is eyeing at getting into rum and brandy products as well.

Diageo PLC, the world's largest spirits company, is selling a portfolio of 19 lower-end spirits brands, including Seagram's VO whiskey and cinnamon schnapps Goldschlager, to US-based Sazerac for $550 million.

The move comes as part of the company's strategy to trim its portfolio and focus on its premium labels like Johnnie Walker in the United States.

Diageo, which also owns Smirnoff vodka and Guinness stout, has said that it will return the net proceeds of about 340 million pounds to shareholders through a share repurchase.

The sale will reduce Diageo's pre-exceptional earnings per share by 1.9 pence per share in the first full financial year after closing. Among the brands which Diageo is selling are Seagram's VO, Seagram's 83, Seagram's Five Star, Myers's, Parrot Bay, Romana Sambuca, Popov, Yukon Jack, Goldschlager, Stirrings, The Club, Scoresby, Black Haus, Peligroso, Relska, Grind, Piehole, Booth's and John Begg.

Ivan Menezes, Chief Executive of Diageo, said, "The disposal of these brands enables us to have even greater focus on the faster-growing premium and above brands in the U.S. spirits portfolio."

Kathryn Mikells, CFO, Diageo, stated, "The value space has been in secular decline for a number of years, so we see the bigger growth opportunity and focus for our business in premium and above."

हैनिकन द्वारा नियंत्रित युनाइटेड  ब्रुरीज़ (यूबी) और हेनुअर बुश इनबेव भारत की दो सबसे बड़ी बियर निर्माता कम्पनीज़ अब मादक द्रव्य प्रतिबंधित राज्य गुजरात में गैर-मादक द्रव्यों को लेकर एक-दूसरे के विरुद्ध मैदान में उतरने वाली है। गुजरात राज्य में सन् 1960 से शराब के उत्पादन, बिक्री व सेवन पर रोक है।

दोनों  ब्रूअर्ज जल्द ही गुजरात के बाजार में गैर-मादक बियर के साथ उतरने वाले हैं। युनाइटेड  ब्रुरीज़ इस सप्ताह तक ‘किंगफिशर रेडलर’ नाम से गुजरात में धावा बोलेगी, तो एबी इनबेव की इस रेस में कुछ महीने बाद जुड़ने की संभावना है।   

यूबी के मुख्य बिजनेस अफसर रमेश विश्वनाथन ने बताया, "गुजरात के बाजार में इस तरह के उत्पाद के लिए बहुत संभावनाएं है, क्योंकि यहां इस तरह के उत्पाद उपलब्ध ही नहीं है। 

यूबी का ‘किंगफिशर रेडलर’ ताजे जौ मिले दूध और नींबू के रस से मिलकर बना है। 

विश्वनाथ ने आगे कहा, "देश का यह पश्चिमी राज्य गैर-मादक बियर के सबसे बड़े बाज़ारों में से एक है और यहां मुख्यत: व्यापारी और आयतक ही अपनी सेवाएं दे रहे हैं। फिलहाल यह बाज़ार सिर्फ आयतित उत्पादों का है, महंगा है, छिन्न-विछिन्न है और इसे कोई संभाल भी नहीं मिली हुई है। सबसे बड़ी बात कि जिसका स्वाद लोगों को रास नहीं, वो बियर मिल रही है।

एबी इनबेव के निदेशक बेन वरहार्ट ने कहा कि हम विश्व के दूसरे सबसे बड़े उपभोक्ता समूह को लिए भारत में गैर-मादक बियर के लिए एक बहुत बड़ा बाजार देखते हैं, क्योंकि यहां कई कारणों से मादक द्रव्यों से परहेज़ भी बहुत अधिक है। हमारा उदेश्य इस बाज़ार को एक दिशा देना है, जहां उपभोक्ता को उसके चुनाव एवं वरीयता के अनुसार शामिल किया जा सके। 

Heineken-controlled United Breweries and Anheuser-Busch InBev, India's two largest beer makers, will soon be in a battle over non-alcoholic drinks in the dry state of Gujarat. In Gujarat, the making, selling and drinking of alcohol is banned since 1960.

The two brewers will soon enter Gujarat with non-alcoholic beer. UB will foray into the dry state with non-alcoholic beer Kingfisher Radler this week, while AB InBev is expected to join the race in a couple of months.

Ramesh Visvanathan, Chief New Business Officer at UB, said, "Gujarat is an opportunity market for this product as it’s a state with no access to alcoholic drinks." 

UB's Kingfisher Radler is made of fresh barley malts and natural lemon juice.

"The western state is one of the largest non-alcoholic beer markets in the country, served mostly by drinks sold by traders and importers. The current products in the market are imported, expensive, sparsely distributed and not supported. Above all, they have a beer taste which people don’t want," Visvanathan added.

Ben Verhaert, President – India at AB InBev, said, "We see non-alcoholic beer as an opportunity for the beer category to offer choice in India, which is the second largest consumer base in the world where the level of abstinence is high for various reasons. Our intent is to shape the category by making it a more inclusive place for consumers with diverse choices and preferences."

French liquor giant Pernod Ricard has laid off nearly 5% of its workforce that could cost around 50 people their jobs in India following a restructuring underway in the local outpost.

The layoffs are attempted to address the redundancies and building a younger workforce with downsizing the company. Pernod's local unit was letting go people mostly in sales and in consumer insights teams, among others.

World’s second-largest spirits maker, including premium spirit brands like Chivas Regal and Absolut has around 1,100 employees in India. An email sent to Pernod Ricard India didn’t elicit a response till the time of going to print. Incidentally, the layoffs come at a time when Pernod has rolled out new brands like Imperial Red rum and reintroduced Something Special, a locally bottled scotch whisky.

“Although we were expecting some fallout from the not-so-good results, we didn’t expect the company to take this step. It happened without a warning and people just about had a week to leave,” a senior executive at the company said.

The liquor industry was dealt severe blows due to demonetisation and the Supreme Court’s ban on liquor sales along highways. Pernod, which follows a July-June calendar year, reported 9% sales growth in India between July and December 2017. The company witnessed a slowdown in sales in Punjab and Haryana due to regulatory hurdles.

Pernod, which is only behind Britain’s Diageo, reported a 14% increase in sales for the first nine months of its fiscal, compared with just 1% in the year-ago period. Pernod’s growth in India has been driven by its focus on premium and midpriced whiskies, helping it maintain a lead over

Diageo, which has been also shifting its focus on similar categories due to meatier margins. Pernod Ricard India sold 43 million cases last year, including Imperial Blue (18 million), Royal Stag (16 million) and Blenders Pride (6.2 million).

Amazon.com Inc. is opening a bar. The web retailer is going to sell beer, wine, sake and cocktails in Tokyo’s glitzy Ginza district to promote alcoholic products sold on its website in Japan.

While Amazon has opened physical bookstores, bought Whole Foods and is testing a food market without cash registers at its Seattle headquarters, this is the first time the e-commerce giant will operate an actual bar. Its part of a bigger push by Amazon to boost its physical presence to promote the array of merchandise sold on its website, and branch into new markets.

The company said in a statement “Amazon Bar will offer a wide variety of drinks procured from across the globe, and offer exclusive products as well as samples of products not yet on store shelves.”

Instead of a menu, Amazon’s 78-seat bar will feature an ordering system that will suggest drinks, and also hire sommeliers to dispense wine advice. Nikka whisky, Yebisu beer and other drinks will cost 500 to 1,500 yen ($4.43 to $13.30), and some food will be offered. The pop-up bar will be open for evenings beginning Oct. 20.

The new bar is located a stone’s throw from the Emporio Armani store in Ginza, Tokyo’s prestige shopping district where Apple and Louis Vuitton have flagship outlets.

Premium beer maker Bira 91 today said it has launched its fifth beer The Indian Pale Ale (IPA) brewed in India.

Bira 91 said in a statement The company has launched the beers in Delhi-NCR, Mumbai, Bengaluru and Pune through promotion across 250 restaurants and bars.

Ankur Jain, founder and CEO of B9 Beverages (the maker of Bira 91) said "This is a sort of a homecoming for the IPA. The IPA was perhaps the only beer style made for India, by British brewers in 1800s and pretty much died down from the world after lagers took over." 

The company's other product range includes Bira 91 White, Bira 91 Blonde, Bira 91 Light and Bira Strong.

Located in the iconic Lutyens area of Delhi, The Claridges’ New Delhi has an age-old reputation for seamlessly integrating traditional elegance with contemporary luxury and topping it off with exceptional service. The Claridges hosts Aura, one of the most premium vodka bars in the city, which has garnered rave reviews and acclaim over the years. Aura emanates the same plush vibe that the hotel is known for, with classy minimalistic interiors and ambient lighting. It boasts of having over a whopping 56 brands of the finest and rarest vodkas from across the globe, alongside other spirits.

Aura, in association with QualeMagni launched ‘Khortytsa’, the third highest selling vodka in the world. The Ukrainian brand, Khortytsa Ice,has interesting characteristics of the bottle that changes its colour when chilled. It is the right blend of aromatic mint, lime and menthol varieties of ethanol. Khortytsa Icehas an extremely subtle floral flavour and the feeling of coolness. A perfect balance of the finest experience, Khortytsais produced using a traditional recipe with the best modern technology at their distilleries.

Ranked number three in sales worldwide, every Khortytsa bottle is truly known for its unique bottling that changes colours when cooled; a never seen before experience..

Mr. Yangdupa Lama, renowned mixologist of Cocktails and Dreams and owner of Thirsty Three Hospitality served his signature vodka based cocktails at the launch, showcasing the versatility and depth of Khortytsa vodka.

Speaking at the event, Mr. Surya Phadke (MD, QualeMagni) said “Our aim to represent high quality brands is the driving force behind all our endeavours going forward. The core of our beliefs lies in selling a lifestyle and consistently serving our customers with the finest products for an enriching experience. We were introduced to Khortytsa with a first taste that successfully matched up to its tagline ‘Ultimate perfection’. We are certain that every one of our customers will relish each sip of Khortytsa just like we did, and appreciate its rich taste.”

Mr. Atul Lall, VP Hospitality and General Manager, The Claridges, New Delhi said, “Being Delhi’s only exclusive vodka bar, we are elated to launch Khortytsa here at Aura and add it to our portfolio. The vodka of exceptional taste and quality will be a great fit in the premium liquor sector.”

Jhonnie Walker, the world’s largest selling scotch whiskey has lost its pace in India and it is its smaller rival Chivas Regal who took the lead. This for the first time that world’s scotch giant’s sales has been challenged by a smaller brand.

As per the market data, Chivas Regal managed to sell its 12 year old scotch’s 1.37 lakh cases as compared to 1.29 lakh cases of Jhonnie Walker Black Label in the bottled-at-source, premium blended scotch segment.

According to the latest report from International Wine and Spirits Research (IWSR), though the Johnnie Walker family of brands together outsells the competing Chivas Regal portfolio, the loss of leadership in the country's most visible segment of scotch consumption is a setback for Diageo. Johnnie Walker Black has lagged behind the peer from the stables of Pernod Ricard in the five year and ten year compounded growth rates, while volume sales last year tumbled 21.8 per cent.

This data accumulates sales of domestic retail as well as duty free sales. India gets its most duty free sales through the airports (almost 80 per cent) and hence it can be marked as the most convenient route for domestic consumption. Pernod Ricard's sustained, promotional work at duty-free and strong show in pushing sales at upmarket on-trade premises has favored slow and steady climb of Chivas Regal, said top industry observers who didn't wish to be named. Interestingly, data from Canadean, which takes into account domestic sales only, shows Johnnie walker much ahead of Chivas Regal.

Chivas Regal 12-Year-Old saw depletion rise 12.3 per cent last calendar, up from 1.22 lakh cases in 2014. The brand which Pernod Ricard acquired from Seagram's in one of the biggest industry consolidation deals outpaced Johnnie Walker with 9.9 per cent and 14.7 per cent compounded growth over a five year and ten year period respectively. Johnnie Walker reported 2.7 per cent and 2.3 per cent growth over a similar time frame, IWSR added.

The world's biggest brewer Anheuser-Busch InBev has reported a good result ahead of deadline to finalise its blockbuster offer for London-based rival SABMiller.

AB InBev, the giant behind top lager brands like Budweiser and Stella Artois, said operating profit rose by 9.6 per cent in the third quarter to $4.4 billion (four billion euros), reported AFP.

The strong performance beat analyst expectations and was driven by strong sales of its premium brands in US, Mexico, China and the UK, said analysis Bloomberg news service.

"We are particularly pleased with the performance of our Global Brands which delivered double digit volume and revenue growth," the company said in a statement.

The push for the blockbuster tie-up with SABMiller is being fuelled by fears of declining beer sales in key markets as US and European drinkers abandon traditional brands for more local options.

But the company's premium brands had a bumper quarter. Sold volumes of AB InBev's three global brands grew by 11.5 per cent in the quarter, with Budweiser up 11.5 per cent, Corona up 11.1 per cent and Stella Artois up 12.9 per cent.

Based the solid quarter, the company raised that its forecast for the whole year, saying that sales would now grow above inflation in 2015.

AB InBev on Wednesday said it had agreed with SABMiller to extend its massive buyout offer by a week to allow for further discussions. The results statement made no significant update on the state of those talks.