The Hindu Business Line : Irish beverage major eyes Indian market

"The fact that the consumer in India has already tasted or has appreciation of Scotch whiskey means this market must offer substantial opportunities for us to make a foray."

Mr Conor O'hAonghusa, Regional Director, C&C International

New Delhi , Jan. 26

THE 750-million-euro Irish branded beverages and savoury snacks major, C&C Group Plc, is studying the Indian market for introducing its premium whiskey, liqueurs, and beers in the light of India's annual consumption of 12 million cases of imported spirits.

C&C International Regional Director, Mr Conor O'hAonghusa, who was here to take part in the International Food and Wine Show, told Business Line that of the 12 million cases imported spirits in India, a large percentage was rectified spirit with malt or scotch whisky added.

But the centuries' old spirits and liqueurs being exported by C&C International such as Carolans Irish cream liqueur, Tullamore Dew Irish whiskey, and Frangelico liqueur to over 80 countries, did not find even a modest presence other than being sold in big five-star hotels.

"The fact that the consumer in India has already tasted or has appreciation of Scotch whiskey means this market must offer substantial opportunities for us to make a foray."

However, he hastened to add that two things stand in the way between "us and the Indian consumer. First, Irish products and Irish category of beverages and savoury snacks are not known and Tullamore Dew whiskey is not in the Indian market and we are looking to introduce it. Our participation in the Indian food and wine show and presentation in the seminar were but one of fostering education and awareness of our brands."

The second obstacle is the duty structure as duties on alcohol range from about 200 per cent to 500 per cent and any international spirit coming into the domestic market must make do with import duty, countervailing duty, individual State-level levy, and retail taxes.

"Before we can compete with the existing duty rates we would like to keep market access of our product to consumer in India through lowering of duty rates. At present, you find that our product coming from Ireland with a standard European price would end up on the shelf at Rs 1,300-1,400 per bottle."

Stating that he came across some reports in the Indian media that countervailing duty, if abolished, would bring down the imported spirit cost considerably, Mr O'hAonghusa hoped that "our premier whiskey price would come down to Rs 800 a bottle."

Ireland is home to the world's finest cream liqueurs, superb dark beers, and some of the most cherished premium brands in the world, he added.

His company is keen on popularising Tullamore Dew, the smoothest Irish whiskey, which is a winner of gold medal and the 2005 International Spirits Challenge Trophy for best non-Scotch whiskey.

With Ireland's heritage agriculture and best dairy products, C&C Group experimented with blending whiskey and cream to produce the Dew, he said, adding that normally if you mix whiskey with cream it becomes bitter. But homogenisation protects the cream and breaks it down at a temperature where the whiskey is able to blend with the cream.

The Irish Mist liqueur is a beverage blending the distinctive character of Irish whiskey with sweet and aromatic flavouring of honey and herbs.

The company is keen on launching these two premium brands in India along with the Irish stout beers for the emerging middle class, which has developed a discerning taste for things sumptuous.