International Brands Beverages, which entered India’s $9-billion liquor market with a whiskey and rum brand, now plans to introduce vodka, brandy and imported wines.

The company, which launched operations in 2010, claimed it was seeing phenomenal growth in the Indian market due to its ‘premiumisation’ strategy.

“We have positioned our product in the premium category. We already have distribution arrangements in north and east India. We will be expanding to the west and south shortly,” Lisa Srao, Managing Director, I Brand Beverages, said.

Srao said the premium segment was under-utilised. The company said it had invested Rs 20 crore in building the brands. “We will be investing Rs 25 crore over the next two years to scale up our distribution and introduce new brands.”

I Brands Beverages said it had set up a contract manufacturing unit in Punjab to manufacture grain-based malts.

Srao, however, declined to give the number of cases that the company manufactures at present. I Brands Beverages has launched three brands in the Indian market so far – luxury segment beverage Three Royals, premium segment beverage Granton, and a Jamaican flavoured dark beverage Rum 99, priced between Rs 300 and Rs 700.

The Indian liquor industry has strong MNC presence with brands such as Diageo, Beam Global, Pernod Ricard, Heineken, SAB Miller and Carlsberg. There are three broad categories — Indian manufactured foreign liquor (which includes whiskey, rum, brandy, vodka and gin), beer and country liquor (cheaper, spiced liquor).

According to various estimates, each of these segments has a volume of between 230 million and 260 million cases a year. The Indian manufactured foreign liquor market accounts for over 65 per cent by value while beer stands at 15 per cent.

bindu.menon@thehindu.co.in

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