Kishore Chhabria-promoted Allied Blenders and Distillers (ABD) is flying high after its brand Officer’s Choice became number 1 in India toppling Bagpiper. But the company says that a slowdown in sales and Government policies are stifling the growth of the spirits market.
“Selling liquor in India is like selling to 36 different countries. The logistics, bottling and distribution are a nightmare due to different taxation structures and selling methodology. The spirits market has been growing at a negligible 6 per cent annually,” said Deepak Roy, Executive Vice-Chairman and Chief Executive Officer of ABD.
The company said it had achieved significant boost in sales after it repositioned its brands, adopted new packaging and scaled up distribution. “Consumer traction has picked up significantly,” Roy said, after launching Officer’s Choice Blue. The brand is positioned against McDowell’s No. 1 and Pernod Ricard’s Imperial Blue.
ABD’s other brands include Gorbatschow vodka, Jolly Roger rum and Kyron brandy.
The company said it is aiming for over 15 per cent rise in sales volume at 20.5 million cases in the current fiscal. The company had sold 17.75 million cases of various brands across the country last year. It has already launched Officer’s Choice Blue in various markets, including Assam, West Bengal, Maharashtra and Punjab.
“In the last six months, the brand has already sold 6 lakh cases in these markets and we expect it to sell around 1.2 million cases by the end of the current fiscal,” Roy said. The company outsources as much as 70 per cent of its production to various bottling units.
According to industry estimates, the Indian liquor industry is pegged at around 286 million cases a year and is growing at 2-3 per cent year on year.
Asked if the company saw consolidation in the liquor market following Diageo acquiring United Spirits Ltd, Roy said it will help grow the market.