The Hindu Business Line : UB Spirits plans to unveil premium vodka

UB SPIRITS Division (UBSPD), the fourth largest spirits marketer in the world, plans to introduce a premium vodka brand to fill the void in its otherwise robust product portfolio covering most price segments across different categories in the Indian Made Foreign Liquor (IMFL) market.

Mr Vijay Rekhi, President of UBSPD, said,, "We could look at a licensing agreement with some leading international brands or even come out with our own brand." .

The domestic premium vodka segment, with annual consumption of about 1.6 lakh cases, has shown promising growth in recent years as part of a larger white spirits boom. Most of the leading IMFL players have been rushing to tap the buoyancy.

United Distillers & Vintners (UDV) defined the premium vodka market with the launch of its international best seller, Smirnoff. As the segment keeps up the buoyancy, growing between 25 to 30 per cent annually on a smaller base, companies such as Shaw Wallace and Radico Khaitan have made moves to occupy the space recently. Shaw Wallace, through a tie-up with Whyte & Mackay, introduced Vladivar Vodka, while Radico Khaitan announced plans to bring in a premium vodka through a licensing arrangement with an overseas group. Another significant player in the domestic spirits market, Seagram, launched a premium vodka brand, Fling, last year.

Mr Rekhi said the company's existing regular priced vodka, Romanov, has reported brisk growth in the recent past and has not given the competition much space to grow. Romanov reports depletions of about six lakh cases annually as the vodka consumption percolates to the lower end of the market in a big way.

UBSPD comprising McDowell & Co and Herbertsons, closed the last financial year with 35 million cases and targets 40 million cases in the current year. The division has 10 millionaire brands led by McDowell No.1 Series in whisky, rum and brandy flavours (which is now being extended into the snacks business) and Bagpiper Whisky.