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Volume: II

May 25, 2007

 

Alcohol

 

Share Prices

 

BSE share prices as on May 15, 2007

 

 

Sales and Market Share

 

 

12. UB Eyes Second Slot Globally, FY07 Revenue Up 33% – May 01

Revenues for USL rise by 33%

In FY 2006-’07, the volume of United Spirits Ltd (USL) increased by 12% and sales increased by 33% to Rs 2,711.94 crores. The company’s frontline brands registered a 19% rise in volume to 61.5 million cases from 51.5 million in FY 2005-‘06. The largest selling Bagpiper Whisky continued with double digit growth, touching 13.75 million cases, while No. 1 McDowell Whisky jumped 45% to close to 9.5 million cases.

 

Source: The Economic Times

 

Trends, Marketing Initiatives and Others

 

 

13. Mallya Buys W&M For $1.2 Bn – May 16

Vijay Mallya buys out Whyte & Mackay for $1.2 billion

United Spirits acquired Scottish whiskey maker Whyte & Mackay (W&M) for $1.2 billion (nearly Rs 4,819 crores). “In India, the potential for premium Scotch whiskey is enormous and, with the acquisition of W&M, we now have a strong portfolio of international recognised brands that we will immediately introduce into the Indian market and use our strong distribution muscle fully to our advantage",  United Spirits Chairperson Vijay Mallya said. W&M has popular brands such as Whyte & Mackay Scotch Whiskey, Highland Malt, Isle of Juara Malt Whiskey, Glayva Liquer and Dalmore Single Highland Malt, John Barr, Mackinlays, Cluny and Claymore.

 

Source: Financial Express

 

 

14. Spanish Wine-Makers Brace To Enter Indian Market – May 13

Spanish winemakers likely to enter India

Winemakers of La Mancha, made famous by immortal Spanish character Don Quixote and his crony Sancho Panza are planning to enter the Indian market, which already has a variety of old and new wines of international fame.        

 

Source: Big News Network

 

 

15. Beer Sales Soar With Temperature – May 13

Beer Sales increase in summers

According to the Director of Indian Breweries Association (IBA), Sundeep Kumar, approximately 60% of the Indian beer sales take place in the months of May to July.  In case of North India, this is even more, as during the winters, the sales drop to almost negligible.  Approximately 20 million cases of beer per month are expected to be sold this summer, increasing from approximately 6 to 8 million cases per month during winters.  According to IBA, the overall domestic consumption of beer in the fiscal ended on March 2007 was 137 million cases (one case has 7.8 litres of beer) up from 108 million in fiscal 2006.

 

Source: The Economic Times

 

 

16. Indians Going For Costlier Whisky – May 07

Indians move toward premium whiskies

With better living standards and higher disposable incomes, Indians are migrating from basic to prestige and premium segment whiskies. In the last three years, basic segment grew at the rate of 8 to 10%, however, prestige segment at 30 to 40%. “Our prestige segment is growing at a rate over 40%, while the regular segment is almost stagnant. If this trend continues, the prestige category will catch up with the regular segment in three-four years”, said Kaushik Chatterjee, CEO (East), United Spirits.

  

Source: The Times of India

 

 

17. Zorgvliet To Tap Indian Market – May 05

Zorgvliet likely to enter the Indian alcohol market

Zorgvliet Wines of South Africa is likely to market its products in India. According to Neil Woorhouse, a winemaker with the company, “We believe there is great potential here and are keen to get our flag ship and the premium brands into the market. Currently, we are not looking at a production facility in India and are interested only in marketing both red and white wine here”.

 

Source: Food and Beverages

 

 

18. United Spirits Plans Store Chain – May 01

Store chain by USL

The liquor major USL is planning to partner with liquor retailers to establish concept or destination stores in different parts of the country, to offer a distinct buying experience to its consumers. The company will examine the concept with new license holders at the initial stage, since the existing liquor shops may not provide the required space for the concept. It has initiated talks with some of the established retailers and new comers, such as Reliance Retail, to introduce the concept with the government’s requisite approval.      

 

Source: Business Standard

 

 

19. United Spirits Bets Big On Luxury Segment – April 30

USL introduces new segment ‘Prestige Plus’

To increase sales in the whisky market, USL – formed by the merger of United Breweries (UB) and Shaw Wallace – has introduced a new segment between the premium and prestige categories called 'prestige plus' or ‘luxury’. USL has positioned 'Royal Mist' luxury whisky in the prestige plus segment. According to USL-East Chief Operating Officer Kaushik Chatterjee, “This segment is expected to grow at a rate of 44 % in the first year of launch”.

 

Source: The Economic Times

 

 

20. Amfora Wine In Talks With Italian Firm – April 19

Amfora Wine and Foods to partner with Italian vineyards

To launch an affordable range of wines in India, Delhi-based Amfora Wine and Foods is in talks with Italian vineyards for establishing a joint venture to import its products. The company currently imports approximately 40 labels from eight vineyards in six major Italian regions.

 

Source: Business Standard

 

 

21. Diageo Firms Up Wine, Beer Plans – April 18

Diageo to enter India

In 2008, the global drinks giant Diageo plans to enter the Indian market with locally-bottled Guinness beer. Diageo India has hired a senior executive from a local wine maker, Sula Vineyards, to spearhead its wine venture. Diageo aims to be present in every segment of the alcoholic beverage industry. The company is likely to re-activate its plan to tap the ready-to-drink (RTD) space.

 

Source: The Economic Times

 

 

22. Beam Global Eyeing Pan-India Presence – April 17

Beam to expand in India

Beam Global Spirits & Wine India, part of the eight-billion turnover Fortune Brands, Inc. of the US and owner of brands (such as Teachers Scotch Whisky, Jim Beam Bourbon Whisky, Laphroaig Scotch, Sauza Tequila and Courvoisier Cognac), expects to establish its presence across the country by the end of April. The company has already introduced its retail presence in northern and western India and West Bengal, and will soon enter Karnataka, Andhra Pradesh, Assam and Bihar, among other states, according to Harish Moolchandani, Managing Director of Beam Global Spirits & Wine India.

 

Source: The Hindu Business Line

 

 

Product Launches

 

23. Beam Brings In Maker's Mark To Take On Jack – April 28

Beam Global Spirits & Wine, Inc. is expected to launch its hand-crafted super-premium bourbon Maker’s Mark by September 2007 at a price of approximately Rs 3000/3500 per quart in retail.

 

 

24. Snow Queen To Foray Into India – April 21

One of the most popular super premium vodka brands in the world Snow Queen, the flagship brand of one of the largest distillers in the world, the Wimpex Company of Kazakhistan, is entering the Indian market. The one litre bottle will be priced at Rs 4,000, 700 ml at Rs 3,300 and the miniature at Rs 300.

 

 

25. Kyndal To Launch Two New Wines – April 20

By October 2007, in addition to its white wine 30th Latt, Kyndal India, a wholly-owned subsidiary of the UK-based Whyte & Mackay, will launch two wine brands in India.

 

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