The Hindu Business Line : Kyndal to launch premium brandy brand

Bangalore, March 21 Kyndal India, a leading distributor of foreign liquor brands in the country, is set to launch its own premium brandy brand through a tie up with a south-based bottler while the brandy will be sourced from the Netherlands-based Bols Distilleries NV.

In another development, Kyndal will launch at least eight super premium foreign brands in the tequila, vodka and rum categories in the country during the next fiscal. It will also set up between 10 and 15 Absolut (vodka) branded shops across the country during the next 12 months.

Kyndal India managing director, Mr Siddharth Banerji told Business Line that brandy would be imported from Bols Distilleries and bottled in Karnataka and will be launched in the country in a couple of months. He said the premium brandy market in India was growing at about 25 per cent and hence the company decided to kick start its manufacturing plans by launching a brandy brand.

“The premium brandy brand, especially in the south is showing a huge growth,” Mr Banerji said. The size of the brandy market is about 28 million cases with the price ranging between Rs 450 and Rs 800 for a 750 ml bottle.

Wine brand

Kyndal which also has a wine brand, 30th Latitude, is going slow in its plans to launch more brands in the category because its returns are not as per market projections. “Right now, there is lot of hype but not enough sales. It is time to remain patient,” Mr Banerji said. He, however, said 30th Latitude has been seeing some good depletions.

Kyndal is yet to firm up plans for manufacture or bottling of whisky brands and wants to stick to importing super premium brands in the category at present. “The whisky market is over-populated and except a couple of brands in the mass market, none else is doing well,” he said. Hence, Kyndal has decided to continue marketing super premium brands in its portfolio which are Morrison Bowmore and Isle of Aaran, both single malt whiskies from Scotland. The price in the super premium segment is between Rs 4,000 and Rs 20,000 per bottle.

Mr Banerji said the mass market segment needs big investment but at the same time has low returns. He pointed out that even though there has been a growth in the per capita income among the Indians, it has been very gradual and very slow. Hence, Kyndal has decided to bring more brands and build a ladder of different price points. “Hence we have decided to get into multiple partnerships and we will do whatever it takes to grow our premium spirits business,” he said. Kyndal distributes an average of 1.5 lakh cases (of 12 bottles each with 750 ml) of various brands globally, of which 50,000 cases are distributed in the domestic market.

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