The Hindu Business Line : Shaw Wallace to foray into Italy

Dr Andrea Bonardi, Secretary-General, The Indo-Italian Chamber of Commerce and Industry, with Mr A.K.M.A Shamsuddin, President, Shaw Wallace Company, at a press conference in Mumbai to announce the Royal Challenge Festa Italiana, an annual festival, showcasing the finest `Made in Italy' brands. The festival will be held between December 2 and 16. — Paul Noronha

Mumbai , Nov. 5

SHAW Wallace & Company Ltd has decided to take its liquor brands to countries in the European Union beginning with Italy. The brands likely to make their presence felt in Italy would include that of Royal Challenge, Director's Special Black, Antiquity and White Mischief Vodka.

Mr A.K.M.A. Shamsuddin, President, Shaw Wallace & Company, told Business Line: "We would like to take our whiskies, rums and vodkas to the Italian market very soon. The brands would get sold through a local distributor." Currently, Shaw Wallace's exports are limited to countries in West Asia, the US and South Africa. There are certain restrictions to exporting liquor brands to the European Union since they have to be grain-based and not the usual molasses-based liquors made in India.

Added Mr Shamsuddin: "We have decided to manufacture grain-based liquor for the European Union. Besides the prices of molasses has been on the rise and it is easier to use grain as a substitute for molasses."

But advertising in these markets will be expensive for the liquor major and it will be relying on the local distributors to create awareness at the premium outlets vending the brands.

Meanwhile, in the domestic market, Shaw Wallace has decided to focus on building the brands with an added emphasis on below the line advertising. It has shifted its ad agency for Director's Special Black from Lowe to McCann Erickson in Mumbai in the past month and is hoping its events division would help the brand in gaining the right visibility. Besides there are plans to have a new agency for its other flagship brands - Royal Challenge and Antiquity.

"We are growing fast and would like to explore new communication strategies for our brands. There are chances of shifting our ad agency and we have invited pitches for the rest of the liquor brands agencies," said Mr Shamsuddin. Currently, Lowe Mumbai handles the Royal Challenge and Antiquity brand.

Besides, Shaw Wallace has also decided to introduce more surrogates to help in creating visibility for its brands. Recently, it extended Director's Special as a water and soda, having launched Royal Challenge water in the past.