PremiumGin has definitely seen a huge resurgence. For years, gin was in the negative as a category. Of late, it has seen a lot of interest, says Pushpanjali Banerji, Brand Director, Kyndal Group
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NEW DELHI : Kyndal Group, which sells premium liquor brands such as The Macallan, Cutty Sark, The Famous Grouse, and Bootz Rum in India, plans to bring more labels into the country, though the company’s brand director Pushpanjali Banerji is tight-lipped about the details. In an interview, Banerji spoke about building premium brands in a value-driven market such as India, the impact of covid on liquor consumption and home delivery of alcohol. Edited excerpts:
You have brought liquor brands from different companies to India. What kind of relationships do you have with them?
Earlier, Cutty Sark belonged to Edrington Group, which is the maker of The Macallan. The Cutty Sark brand was then sold to a very prominent French spirits group, La Martiniquaise. However, we are still the exclusive marketer and bottler of the brand for this part of the world.
We have an equal joint venture with Lucas Bols, a Dutch company, and we first launched the premium Bols brandy and then Bootz Dark Jamaica Rum.
We are the exclusive distributor for The Macallan and The Famous Grouse from Edrington. They also have Highland Park and The Glenrothes globally. They also have a portfolio of rum and vodka, but that part of the portfolio is not present in the country.
Are you present only in brown spirits in India?
That would be a correct assumption because we have a brandy, rum and whiskey portfolio. We have a larger brown spirits portfolio but we will introduce some white spirits also in the coming months. At the moment, I will not be able to name the brands.
How difficult has it been to build a premium portfolio in a value-driven market such as India?
When you look at a portfolio such as ours, it’s a real challenge because we are constantly in the most competitive segments of alcohol, especially with the large players. They have the base of country liquor, cheap spirits, and the economy segment IMFL (Indian made foreign liquor), a huge portfolio spread, which helps them get everywhere.
For us, first is the challenge of availability with a premium portfolio, which can be limited. The other factor with these brands are, because we are a partner, we are ourselves very involved in building these brands. We are very strategic in where we place the brand and, as a company, we have always focused on profitability over everything else. As signatories to various joint ventures, we have to be very careful about how we make ourselves available and present. This means there are certain risks that we just don’t take. That is why we have slower growth but a steadier one.
What are your thoughts on India not allowing liquor advertising in mass media?
It’s something that’s just not been allowed because, somewhere, alcohol is still a very prohibited item. Of course, one can argue that people have the maturity to know what they’re doing and what they’re drinking, but I really leave it to the laws of the land. With the number of people out there and also the kind of alcohol, for me, the worry would be that if you allow it, then it’s allowed for everyone, even country liquor. It’s not that they have any less money to advertise.
It’s more difficult for newer brands to make a mark, but everybody is being very creative in using digital, surrogate advertising, collaborations, using talent to stand out and make sure the millennials know about their brands. Customers are also seeking authentic brands.
You don’t have a gin in your portfolio. Isn’t that the latest trend in drinking?
Gin has definitely seen a huge resurgence. For years, gin was in the negative as a category. Of late, it has seen a lot of interest. Definitely there’s a global wave that’s happened with gin. However, I am not sure how long the trend will last or whether it’s really something that is here to stay. One thing I’ve noticed is that our trends are becoming shorter in alcohol. So, first it was Japanese whiskey, then it was craft beer. Even your Canadian whiskey and Taiwanese whiskey had brief moments and then it’s been gin.
The only thing I can derive out of all this is that earlier everybody would make this chart that you start drinking with Old Monk and then you graduate to this or that. That doesn’t exist now. Customers are like chameleons. They have a drink for every occasion, every mood. Everybody who drinks gin also drinks something else when they like it. They also have a favourite craft beer brand or whiskey. I feel the experimentation has really increased, which I think is fabulous for all categories. People are drinking less, but they’re drinking better.
Did covid help drive this premiumization?
Yes. During covid, we sold some of the most luxurious expressions of The Macallan, Macallan Reflection and Macallan No. 6. Clearly, people were buying it and drinking it at home. I feel the trend of good drinking is here to stay.
Any thoughts on home delivery of alcohol?
I think the only model that can work is if you have home delivery from shops. That’s the only way to ensure that a shop that is of that area can service those customers. These retailers have the licences and have paid a lot of money. That is why I feel food delivery firms getting into alcohol will be a tricky affair because they can’t be sure if they are picking up liquor from these shops or elsewhere.