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Purvita Chatterjee

Expects to be the first liquor firm to bag shelf space at the outlet

Mumbai , Aug. 8

Changing the dynamics of liquor distribution, Diageo India is in talks with the Future Group (formerly Pantaloon Retail) for selling its brands. To seize the first mover advantage in modern trade, Diageo India, with its premium brands such as Smirnoff and Johnnie Walker, expects to be the first liquor company to bag shelf space at Pantaloon's Food Bazaar outlet in Bangalore.

Considering that Karnataka is the only State where the laws allow liquor retailing through modern day retailers, the liquor major has decided to launch its offerings here.

Mr Asif Adil, Managing Director of Diageo India, told Business Line, "We expect to be available at Food Bazaar in Bangalore within the next few months and would like to take the lead in entering modern trade. We are still lobbying with the Government to make changes in the law pertaining to liquor retailing in the rest of the country."

Liquor retailing

Trying to make a difference to liquor retailing, Diageo India has taken on the onus of `redefining the liquor retailing environment' and has created teams to cater to the modern trade. Moving away from small liquor shops, it will now create merchandising space within Food Bazaar.

There are plans to innovate in packaging and introduce party and celebration packs at the Food Bazaar outlets. Apart from liquor, the shelf space would accommodate bar accessories and even soft drinks to go as mixers with the drinks being sold.

Mr Adil said, "We would give a new look and feel to our modern liquor formats. The existing liquor shops do not allow for attractive merchandising and one cannot touch or feel the products.

Better avenues

"Customers make purchases based on recall value and impulse purchases are not exactly happening. We would try and make a difference to liquor retailing through the modern format stores." In fact, apart from Pantaloon's Food Bazaar, Diageo India is also engaged in the B2B model of wholesale retailing by tying up with the Metro chain in Bangalore. There are plans to partner with duty-free shops as and when privatisation is allowed in this sector. "The arrivals duty-free segment is a big business opportunity. At the moment we do supply our merchandise to such stores, but we are waiting for privatisation in this sector," says Mr Adil, who is open to exploring new distribution channels for Diageo's iconic brands.

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