• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Boby Kurian

Bangalore , May 5

HERE is a fresh move from spirits major Radico Khaitan to leverage on the equity of its flagship brand 8 PM. The Lalit Khaitan-managed company has unveiled 8 PM Royale Whisky in a bid to garner market share in the prestige (semi-premium) segment dominated by UB Spirits Division's McDowell No.1 Whisky.

Mr Abhishek Khaitan, Joint Managing Director of RKL, told Business Line that 8 PM Royale has already hit Punjab and was moving into a few other markets in North India. "We have positioned it against McDowell No.1 (in the prestige segment)," he said.

The prestige segment has been one of the fastest growing for Indian whiskies in recent years and also has a strong multinational presence in the form of Seagram's Royal Stag whisky. McDowell No.1, which sells 5.5 million cases annually, leads this segment with a share in excess of 42 per cent.

RKL blazed into the Indian Made Foreign Liquor (IMFL) market in the late 90s with 8 PM whisky in the regular-priced segment. Backed by high recall advertising and superior packaging, it went on to become the fastest million cases brand in the industry and emerged as the flagship of the company that transformed itself from ENA (extra neutral alcohol) maker to brand marketer.

RKL closed 2003-04 with overall sales of 9.5 million cases, with IMFL accounting for nearly seven million cases and country liquor bringing in the rest. Its net profit jumped 44 per cent to Rs 26 crore from Rs 18 crore in the previous year.

As the company steps up its sales pitch — plans to nearly double its sales to 17 million cases by 2007 — the management has been on the look out for strategic leverage points for the 8 PM brand. It must be mentioned that late last year, the company extended 8 PM into the rum category even though it is still early to claim success.

Mr Khaitan said the move to launch 8 PM Royale will not affect the continuation of Special Appointment Whisky, which is also positioned in the prestige segment, and indicated that markets will be carefully selected for both Special Appointment and 8 PM Royale to avoid sales cannibalisation.

However, industry observers remain cautious: "Brand extensions have not worked very well in the liquor industry. The focus now should be on consolidating the regular priced 8 PM Whisky, which is a major brand, in an extremely competitive environment. The move to bring the Royale variant may cause confusion in the consumer mind that there is something better than the core brand."

Meanwhile, Mr Khaitan added that the company was also poised to enter the white spirits category in a major way with the introduction of vodka and gin brands shortly. Besides 8 PM whiskies and rum, the company's other main brands include Contessa Rum and Old Admiral VSOP Brandy.

More Stories on : New Products & Services | Breweries

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Samsung eyes PC market with turbo upgrade offer

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line