Documente Academic
Documente Profesional
Documente Cultură
Business Strategy 1
News Article we
referred to…
Business Strategy 2
Introduction to Indian Alcohol
Industry
India is one of the largest producers of alcohol in the world and there has been a
steady increase in its production over the last 15 years.
The production has tripled from 887.2 million liters in 1992-93 to 2300 million liters
in 2007-08
Consumption of Indian made foreign liquor (IMFL) has been growing over 50% per
year
220 million cases of beer and branded liquor were sold last year
Per capita consumption of beer, at 0.7 liter, is among the lowest in the Asia Pacific
Business Strategy 3
Factors Contributing to Growth
Rising disposable
income of the
Indian liquor
consumers
Business Strategy 4
Barriers to Growth –
For New Players
Procuring of licenses
Business Strategy 5
Market Share
United spirits with about 60 % of market share in IMFL is the
undisputed leader.
Radico Khaitan who entered the IMFL space some 8 years back
has already cornered 12 % market share
Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc.
International players
Pernod Richard,
Remy Cointreau
Diageo
Business Strategy 6
Business Strategy 7
Bacardi Limited – An Introduction
Company founded in Santiago de Cuba in 1862
“The world’s largest privately held liquor maker, Bacardi Ltd, is scouting
for potential brand acquisitions in India and expanding its sales and
marketing team to tap anticipated growth in the local spirits market.”
- Livemint.com, Feb 16 2009
Business Strategy 10
Some recent news items of Bacardi
“In a bid to tap the growing demand for premium international spirits in
India, global spirits major Bacardi Martini plans to introduce more brands
from its international portfolio here.”
- Business Standard October 10, 2008
• “Bacardi Ltd, the name synonymous with white spirits, is setting its eye on
the Indian whisky market with the launch of its high-end renowned single
malt Scotch whisky brands such as Dewars and Aberfeldy, thanks to the
raising disposable income of the Indian liquor consumers.”
- The Financial Express, December 24, 2008
Business Strategy 11
Strategies
Acquisitions and Buyouts
Buying Brands throughout the country
In talks with Vijay Mallya’s United Spirits to take stake
Market Penetration
Sales around 1 million cases, way behind French giant Pernod Ricard
and even Diageo in India, even after a decade
Establishing presence in smaller cities, which contribute 70% of total
liquor sale
Introduction of major global brands in India
Product Development
Flavoured Vodka
Locally made Martini
Taking up of Whisky Brands
Introduction of new products
Business Strategy 12
The Implications- Hic Hic Hurray..!!
Bacardi to be a more recognizable brand portfolio to the masses in Tier-II &III cities
Contender for a slot in Top3 Brewery Co. in India by way of increased sales & reach to
an untapped market
Business Strategy 15