The Hindu Business Line : Katra Liquor offers insurance cover to shop boys

SOCIAL concern has always mixed well with promotional efforts of the spirits companies. Katra Liquor Pvt Ltd, a start-up venture funded by Mr Ramesh Vangal, has given the concern a trade focus that could directly boost the depletions of its new brand, Wild Horse.

The company claims it has emerged with "an idea that may revitalise the way corporates view their distribution and retail relationships" in the sensitive and highly regulated spirits industry, "not to mention opening up of new vistas for insurance sales".

The normal practice in the liquor trade, where on-premise consumption fuelled by referrals from counter salesmen is significant, is to lure them with cash incentives based on primary or secondary sales.

Now, Katra attempts to replace that with Mediclaim Insurance Benefit along with accidental cover for registered salesmen in the liquor shops in Kolkata and West Bengal through a tie-up with leading national insurance companies.

The company's `Power Of One' scheme would extend the cover to over 1,500 salesmen in the State in the first phase and plans to extend it to over 15,000 salespersons by the end of the year. The annual scheme coverage envisages mediclaim worth Rs 25,000 and accident cover for Rs 50,000.

Mr Kaushik Chatterjee, CEO of Katra, says, as a travelling official he has seen the plight of counter sales staff suffer in times of medical emergencies. "Our Kolkata team wanted to take incentivisation beyond a few rupees per case to a different level of caring and partnership. We don't want to just incentivise, we want to convert the distribution chain into our fans," he says.

However, sceptics point out that the insurance incentive could falter given the churn among the loosely employed counter salesmen in a liquor shop or licensed bar.

"Its an act of faith whereby we make a one-time payment of premium on their behalf. Most of the shop boys are on contract with the outlet owner, and we do understand there is a lot of flux. But most of them circulate within the same system and the drop-outs are not that significant," says Mr Ashish Misra, Director, Marketing, Katra Liquor.

The company launched the first brand Wild Horse in the medium and regular priced segments across whisky, brandy and rum flavours in Karnataka initially and is in the midst of extending its business nationally.

Katra's corporate team strength is pegged at about 35 drawn from Seagram and other leading Indian liquor companies.

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