The Hindu Business Line : Guinness UDV sets `million-case' target for Smirnoff vodka

CONSISTENT year-on-year growth of 30 per cent plus has emboldened Guinness UDV to set a `million-case' target for Smirnoff premium vodka in the domestic market in the next few years.

Mr R.L. Rajah, Chief Operating Officer, India and South Asia, Guinness UDV, told Business Line that sales volumes are about to cross the two-lakh-cases mark. Considering that the brand debuted 10 years ago with sales of 6,000 cases, it had come a long way.

This is more or less reflective of the trend obtaining nationally and internationally in which consumers are increasingly converting to white spirits. Lots of premium whisky consumers are among those converting. Out of the two-lakh cases sold, neo-converts from the premium whisky segment account for a significant proportion.

"The beauty of Smirnoff is that it is the No 1 international vodka. It is backed by a technology called triple distillation. We've patented the Smirnoff technology. And what the consumer gets to taste is the purest form of alcohol. Year on year, we've been growing 30 per cent plus. Premium spirits (Indian made) in the country are not doing that kind of growth. Smirnoff will do a million cases sooner than later," Mr Rajah said.

The promotional Smirnoff Experience parties are now being held all over the country more frequently than before. A new commercial with a tag line "Life's calling, where are you?" launched internationally has debuted in the domestic market as well. This is backed up on the ground by "on-trade" campaigns staged in major pubs and bars.

As for the four major flavours of Smirnoff launched sometime ago, the targets set for the first year were achieved in the first six months. The Smirnoff flavours have been a `huge hit' wherever it was launched — be it major cities such as Bangalore and Delhi or second-rung ones such as Pune or Lucknow.

On consolidation moves in the liquor and spirits segment, Mr Rajah said, Guinness UDV was a `small player' and was not into the `big games'. "We will stick to the organic growth policy for the time being".

Asked about the company's plans for localised operations to save costs, he replied in the negative but mentioned the case of the ready-to-drink brand Smirnoff Ice as a possible exception.

Launched sometime ago, the volumes for Smirnoff Ice have not been good. "But if and when the brand matures, maybe we'll think of locally producing it. Otherwise, there's no great cost savings, with 150 per cent excise duty levied on the bulk imported."

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Guinness UDV sets `million-case' target for Smirnoff vodka