The Hindu Business Line : Allied Domecq to streamline brands

ALLIED Domecq India's local bottled brands portfolio may be streamlined in the coming months as a fallout of the joint global acquisition of the parent company by Fortune Brands and Pernod Ricard.

While Teacher's Scotch whisky will remain the mainstay of the company, the fate of brands such as Old Smuggler and Long John is uncertain and the two may eventually be phased out.

"Jim Beam Brands has already taken over the sales and general management of Allied Domecq India and is committed to continue building the Teacher's Scotch whisky brand in India," Mr Harish Moolchandani, Managing Director, Allied Domecq Spirits and Wine (I) Pvt Ltd (ADSWI), said. Jim Beam Brands is the spirits and wine division of Fortune. "On the other hand, Old Smuggler is a brand under disposal as it was not acquired by Pernod Ricard, due to restrictions imposed by the European Union at the time of the global buyout. We continue to produce Long John on demand only," he added.

ADSWI is set to be renamed soon to reflect the change in ownership. Subsequently, Jim Beam Brands is likely to introduce some of its brands in India through the entity.

Pernod Ricard already has a presence in India through local arm Seagram India.

Meanwhile, ADSWI's manufacturing unit in Rajasthan is also likely to see changes with the facility being split between Jim Beam Brands and Pernod Ricard. The unit has a capacity of two million cases and had earlier also been contract manufacturing Seagram brands such as Royal Stag.

"We are focusing on growing the Teacher's brand aggressively. India is already the fastest growing market for Teacher's with sales growing 25 per cent in the first quarter over the same period last year. We are targeting to sell about 1,25,000 cases of Teacher's this year," Mr Moolchandani said.

ADSWI had a turnover of Rs 100 crore last year.

Pernod Ricard and Fortune Brands had jointly acquired Allied Domecq earlier this year. While brands such as Teacher's, Canadian Club whisky and Sauza Tequila were acquired by Fortune, Pernod Ricard acquired Ballantine's among other brands.

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