The use of Alcohol as drink is an age old story in India and it appears that the technique for fermentation and distillation was available even in Vedic Times. It was then called ‘Somarasa’ and was used not only for its invigorating effect but also in worship. To date, not only has the consumption of alcohol been continued but it is an integral part of the ayurveda system of medicine. Alcohol is one of the commonly consumed intoxicating substances in India. It has traditionally been drunk in tribal societies, although it has won increasing Social acceptance among other groups, urban males being the prime example.
It is easily available and widely used, especially at festivals such as Deepawali and Holi. At the Moment the use of Alcohol is infrequent among women who also tend to resist the habit among male family members. Between 15 and 20 percent of Indian People Consume Alcohol and, over the past twenty years, the number of drinkers has increased from one in 300 to one in 20. According to The Hindustan Times, it is estimated that of these, 5 percent can be classified as alcoholics or alcohol Dependent. This Translated into about five million people addicted to alcohol.
Of what is actually consumed, the Intake of Indian Made Foreign Liquor(IMFL) is growing at a considerable rate of 15 percent a year. Again, The Hindustan Times says that 65 percent of the Indian Liquor Market is controlled by Whiskey manufacturers. The State of Kerala stands first in per capita consumption of liquor at 8. 3 liters followed by Punjab – 7. 9 Liters. INDIAN LIQUOR BRANDS The Varieties of Alcohol Manufactured for Consumption in India are: 1. Beer 2. Country Liquor 3. Indian Made Foreign Liquor (IMFL) 4. Wines
Indian Liquor Brands have registered significant growth in recent years – some of the top Indian Alcohol Brands showing an increase of as much as 50% in Sales (2006-2010). United Breweries registered an increase of nearly 20 percent in Sale in the year 2006-2007. Background Beer began to be exported to India in the early days of the British Empire, including porter and India Pale Ale, also known as IPA. The first brewery in India was set up in Kasauli, in the Himalaya Mountains, near Shimla, in the late 1820s by the Englishman Edward Dyer.
Dyer’s brewery produced Asia’s first beer, called Lion. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh spring water there. The Kasauli brewery site was converted to a distillery which Mohan Meakin Ltd. still operates. Dyer set up more breweries at Shimla, Murree, Rawalpindi and Mandalay. Another entrepreneur, H G Meakin, moved to India and bought the old Shimla and Solan Breweries from Edward Dyer and added more at Ranikhet, Dalhousie, Chakrata, Darjeeling and Kirkee.
In 1937, when Burma was separated from India, the company was restructured with its Indian assets as Dyer Meakin Breweries, a public company on the London Stock Exchange. Following independence, in 1949 N. N. Mohan took over management of the company and the name was changed to Mohan Meakin Ltd. The company continues to produce beer across India to this day and Lion is still available in northern India. Lion was changed from an IPA to a lager in the 1960s, when due to East European influence, most brewers in India switched from brewing Ales to brewing lagers.
Today no brewer in India makes India Pale Ale. All Indian beers are either lagers (4. 8% alcohol — such as Australian lager) or strong lagers (15 % alcohol – such as Australian Max super strong beer). In various parts of north-eastern India, traditional rice beer is quite popular. Several festivals feature this nutritious, quite intoxicating, drink as part of the celebrations. The rice is fermented in vats that are sometimes buried underground. Elephants are known to attack villages, with the primary agenda of drinking from these vats.
Following one such raid in north-eastern India, a police officer in Dumka was quoted in the press as saying: “Tribals who love rice beer brew the liquor at home. Elephants too are fond of this beer. Often it is found that, attracted by the strong smell of the liquor, wild elephants tear down the tribal houses where the brew is stored. ” Viticulture was believed to have been introduced to India by Persian traders sometime in the 4th millennia BC. Historians believe that these early plantings were used mostly for table grapes or grape juice rather than the production of an alcoholic beverage.
During the Vedic period of the 2nd and 1st millennia, the Aryans tribes of the region were known for their indulgence of intoxicating drink and it seems probable that wine was a present beverage. The religious text of the Vedas mentions at least one alcoholic drink that may have been wine related-sura which seems to have been a type of rice wine that was fermented with honey. The first known mentioning of grape-based wines was in the late 4th century BC writings of Chanakya who was the chief minister of Emperor Chandragupta Maurya.
In his writings, Chanakya condemns the use of alcohol while chronicling the emperor and his court’s frequent indulgence of a style of grape wine known as Madhu. In the centuries that would follow, wine became the privileged drink of the Kshatriya or noble class while the lower caste typically drank alcohol made from wheat, barley and millet. Under the rule of the Muslim Mughal Empire, alcohol was prohibited in accordance to Islamic dietary laws. However there are written reports about at least one Mughal ruler, Jahangir, who was fond of brandy wine.
In the 16th century, Portuguese colonists at Goa introduced port-style wine and the production of fortified wines soon spread to other regions. Under British rule during the Victorian era, viticulture and winemaking was strongly encouraged as a domestic source for the British colonists. Vineyards were planted extensively through the Baramati, Kashmir and Surat regions. In 1883 at the Calcutta International Exhibition, Indian wines were showcased to a favorable reception. The Indian wine industry was reaching a peak by the time the phylloxera epidemic made its way to country and devastated its vineyards.
It was a long road for the Indian wine industry to recover from the devastation at the end of the 19th century. Unfavorable religious and public opinion on alcohol developed and culminated in the 1950s when many of India’s states prohibited alcohol. Vineyards were either uprooted or encouraged to convert to table grape and raisin production. Some areas, like Goa, continued to produce wine but the product was normally very sweet and highly alcoholic. The turning part of the modern Indian wine industry occurred in early 1980s with the founding of Chateau Indage in the state of Maharashtra.
With the assistance of French winemakers, Chateau Indage began to import Vitis vinifera grape varieties like Cabernet Sauvignon, Chardonnay, Pinot blanc, Pinot noir and Ugni blanc and started making still and sparkling wines. Other wineries soon followed as the emergence of India’s growing middle class fueled the growth and development of the Indian wine industry. LITERATURE REVIEW Highlights of Indian Alcohol Industry The Indian alcoholic drinks market generated total revenues of $13. 9 billion in 2009, representing a compound annual growth rate (CAGR) of 12. 5% for the period spanning 2005-2009.
The Indian beer market generated total revenues of $4 billion in 2009, representing a compound annual growth rate (CAGR) of 20. 3% for the period spanning 2005-2009. The Indian wine market generated total revenues of $254. 2 million in 2009, representing a compound annual growth rate (CAGR) of 20. 4% for the period spanning 2005-2009. Potential of Liquor Market in India It is India’s Potential for Whiskey – it accounts for about 60 percent of the Indian Made Foreign liquor (IMFL) market – and other spirits such as Rum and Vodka that is attracting MNCs to India.
They reckon that India is a big and growing market with a weakness for spirits, especially whiskey. This is not surprising considering that in the wake of the reforms, as the social transformation gathered momentum and global consumption patterns get increasingly assimilated, the country’s moral fabric is loosening. Drinking liquor has rapidly Gained acceptance and is no more taboo – even among the conservative middle class but whose attitudes have changed with improved standard of living. Liquor Companies have been quick to latch on to this trend.
Groupe Pernod Ricard, the world’s fifth largest producer of alcoholic beverages, will be introducing new brands for the growing middle-class market. In fact, the youth, women and middle-class – overlapping segments —are being targeted by the liquor companies looking for growth. A good example of this potential is the per capita beer consumption placed at half-a-liter for India, in contrast to the Czech Republic’s consumption of half a liter a day. It is also hardly comparable to the very high levels of per capita beer consumption in developed and some of the developing countries.
But the emerging trends are interesting. Strong Beer(alcohol content in excess of 5 percent), a category non-existent in developed countries, has been growing at about 15 percent in India for the last few years, and already accounts for 55 percent of beer consumption. This trend is slated to continue. Thus, there is Significant latent demand and vast scope for growth in liquor consumption, both in the urban and prosperous rural areas, once the regulatory environment is relaxed. A little noticed factor pertains to the gradual, but pronounced, shift of liquor consumers to the organized sector.
The Indian market has traditionally been inclined towards the unorganized sector, which accounts for two-third of the liquor consumption in India. However, maturing tastes and preferences are making the Indian Liquor market more brand-led. This should promote growth in the organized sector. Market Metrics In a country that still frowns on drinking, about 220 million cases of beer and branded liquor were sold last year and annual sales of alcoholic beverages are growing by about 20 percent annually. More than half of India’s 1. billion population is below the age of 25 years and incomes are rising, but strict government controls on advertising, manufacturing capacities, distribution, retail and pricing pose a big challenge to firms seeking growth. An upwardly mobile young population with a propensity to spend is guzzling booze like never before. Consumption of beer has jumped 51% from 70 million cases in 2002 to 105 million cases in 2006 while consumption of Indian made foreign liquor (IMFL) grew 53% to 115 million cases during the period.
Branded Market Spirits in India is 119 million cases out of which whiskey accounts for 55%, Rum 27%, Brandi 14%, Gin 3% and Vodka 1%. North and West India consumes more of Whiskey and South, more of Brandy and Rum. The UB Group(35%) has a market share of 35% + 13% = 48% after merger of spirits division of Shaw Wallace(13%). The key MNC’s operating in India include Diageo, Seagram and Bacardi. About 80% of Whiskey is Sold at Below Rs. 200 per bottle and 1% above Rs. 600. The Indian Liquor Market is growing at a rate of about 11% Annually. India has quietly emerged as the largest international whisky market, toppling the US by volume.
Industry data for ’05-06 suggests that Indian whiskies, non-matured alcohols mostly made from molasses, and hence not considered whisky by the Scotch Whisky Association (SWA), reported depletions of about 60m cases (9-litre each). In comparison, the US recorded combined sales of Bourbon, American and Scotch whiskies at 48-50m cases, putting it one notch below India. Indian whiskies account for 98% of domestic whisky consumption, reporting 8-10% growth annually, which makes it one among the fastest growing whisky markets anywhere in the world.
About 115 million cases of Country Liquor are Sold in the country and the growth rate is 0. 5%. The Country Liquor market is highly regulated, sold generally as a commodity, often Dominated by Cartels, traders get disproportionate share of MRP. CL companies predominantly are state Centric. E. G. Saraya and Radico in UP, GM Brewey ; Vasant Dada in Maharashtra, IFB Agro in West Bengal, Som Distillers and Kedia in MP, Glenn in Haryana etc. Andhra Pradesh, Karnataka and Tamil Nadu have abolished RS based CL in favor of Cheap ENA based IMFL. UP(19. 5), Maharashtra(19. 3), Karnataka(13. 6), Punjab(10. ) ; Haryana(9. 4) Consume 63% of the Total CL. The Indian Beer Market is 93 million cases and has grown at 5. 54% p. a over 2003-2005. Several parts of India are showing much higher Growth Rates. Five States, Andhra Pradesh(18. 3), Maharashtra(16. 2), Tamil Nadu(9. 0), Karnataka(9. 0) ; Rajasthan(5. 6) account for 63% of total beer consumption and top ten states for 85%. Indian Beer Industry due to merger and acquisitions is dominated by two top players(i. e. UB and SAB Miller together have a Market Share of 75%) and provide attractive profit margins due to the consolidated nature of the Industry.
Lower Taxes on beer, falling distribution margin and prices have contributed to the surge in the consumption of beer in India. Indians Love their Booze, but beer, it seems, leaves them cold. The Country ranks top globally in consumption of whiskey, but it’s somewhere near the bottom in beer drinking. So why is just about everyone in the brewing industry scrambling to get a piece of the market? Pretty small is putting it mildly. Although India boasts the World’s Second most Populous Nation, when it comes to beer it barely figures on the map-leaving plenty of upsides for brewers who can get in early.
Annual Per Capita Consumption is very low estimated at 0. 8. Major Players in the Industry The fast growth in the domestic alcohol market has caught the attention of a number of domestic and international firms. That has already drawn the likes of top drinks maker Diageo, Pernod Ricard, LVMH’s Moet Hennessey and SABMiller, with Anheuser-Busch Companies Inc and Danish brewer Carlsberg also firming up entry plans. Liquor major Seagram has most recently entered the locally produced wine segment, while the nascent industry has also seen an increase in private equity interest this year.
In the beer business, leading names such as Anheuser-Busch and InBev, to name just two, could be potential entrants, what with several breweries under construction in the northern States. On the spirits side, Diageo, the largest drinks company in the world, has already inked a joint venture with Radico Khaitan for a new line of products. In time, choice, it seems, will be the buzzword for the Indian consumer. United Spirits is a good play on the Indian consumption theme, more so after the consolidation has bestowed on it significant size and scale.
But the stock’s sharp run-up in the homestretch to the completion of the restructuring exercise warns to adopt a cautious stance. An entry into the stock on dips from the current level can be made. The complexion of the liquor business in India changed with the UB Group finally acquiring the spirits businesses of both Shaw Wallace and Herbertsons. These two outfits, along with a few more, have been folded into McDowell’s to form United Spirits, which will control about 50 per cent of the total spirits market.
Apart from giving the business scale, the acquisition also provides the UB Group combine with enough headway to change it cost structure, be it in rationalizing facilities, phasing out tail-end brands or optimizing advertising expenses. The UB Group is keen on taking a “re-look” at its manufacturing activities as part of the group’s plan to become a global leader in spirit business. According to the President ; Chief Financial Officer of the UB Group, Ravi Nedungadi, “We have an aggressive plan in the spirits business.
In fact, $1 billion have been earmarked for overseas acquisition. ” He indicated that the group was considering the possibility of acquiring a scotch whisky-making unit in Scotland. Similarly, it was on the lookout for vineyards in South Africa and Australia. Investors can consider buying into Radico Khaitan in small lots. The company has made significant strides over the past few years and has a 12 percent market share. Radico Khaitan had stated that I the year (2006-07) and(2007-08) they expects the topline to grow by 25 percent in turnover, and the bottom line by 20-25 percent.
At the moment the company has no active plans for manufacturing wine in India; “the wine market is not large, it is only half-a-million cases or 5 percent of the total liquor market which is 100 million cases. ’’ In 3-5 years, Radico is to become an Indian company with a very strong global presence. Other Major Wine Competitors in India are: 1. Vintage Wines 2. Grover Vineyards 3. Renaissance Wines 4. Indie Wines 5. Sankalo Wines 6. Vivivola Wines Manufacturing Process: Beer: Ingredients: The water must be pure, with no trace of bacteria.
This is vital, because it allows the other ingredients to release all their flavour. 95% of breweries have their own spring or natural well. Barley is a cereal that offers a key advantage: it can be preserved for a long time after harvesting. In order for barley to be used in the making of beer, it must first be malted. It is malted barley that gives beer its characteristic colour and taste. A number of other cereals are used in the brewing of certain types of beer: oats, corn and wheat. Hops or “green gold” come from a climbing plant with male and female flowers; only the female flowers are used.
There are various varieties, ranging from very bitter to aromatic. Hops grew naturally in our regions in ancient times, and this plant has been used by brewers since time immemorial. It could be replaced by mixtures of aromatic herbs, in particular rosemary and thyme, which had the same preserving effect as hops but of course gave the resulting beverage a quite different flavour. Yes, it is hops that give beer its characteristic bitterness, and this plant became so successful that in the 18th century all varieties of beer contained hops.
Yeasts transform the sugars in the must into alcohol and carbon dioxide. The type of yeast used varies according to the type of beer. There was a time when man had no control over yeasts in beer. Louis Pasteur was able to explain their role in the brewing process, and yeast culture was developed thanks to the work of the Danish scientist Hansen. Nowadays there are two main varieties of yeasts that are used in brewing: saccharomyces cerevisiae and saccharomyces carlsbergensis (bottom-fermenting).
Certain other products are used in the making of beer, in particular spices: coriander, ginger, cloves, sage, fennel, mustard seeds, aniseed, cinnamon, etc. Process: Malting: the conversion of barley grain into malt The purpose of this process is to encourage the barley grains to germinate so that they can be used in the making of beer. This involves immersing the grains in water then leaving them to germinate for about five days before arresting the germination process using hot air to dry them at around 65°C (kilning). This interruption is necessary to retain some sugar for the brewing process.
The malts will develop a different flavour and colour depending on the duration and temperature of kilning. These differences will be reflected in the qualities of the different beers. Germination causes the secretion of enzymes which, when the malt is dissolved in water, will convert the starch into sugars and the proteins into amino acids. Brewing: the production of must The malt grains are first crushed (grinding) so that they will dissolve readily in water. Hot water is then added to this grinding process (35-50°C). The temperature of the water is gradually increased to 75°C.
At this temperature, the enzymes start to work and convert the starches into sugars and the proteins into amino acids (which, of course, are essential for the yeast). This mixture produces a very hot sweet tea-like juice. It is then naturally filtered (the first filtration) through the husks of the crushed barley grains at the bottom of the vat. This produces a liquid, the “must”. The dry residue, which is referred to as the “draff”, is generally used as cattle feed. Hot water is usually added two or three times, then the mixture is filtered to extract as much sugar as possible.
The filtered must is then transferred to boiling vats, where the hops are added (110 to 300 grams/hector liter). Sugar can be added at this stage. Depending on the type and quantity of sugar, a hundred different varieties of beer can be obtained. The heating process sterilizes the must by killing off the enzymes. The must is then cooled to allow the yeast to germinate. Fermentation: the addition of yeast Fermentation is achieved by adding yeast to the cooled must. This converts the sugar into alcohol and carbon dioxide. This process is what mainly etermines the taste of the beer. Belgium is the only country that uses three main types of fermentation, according to the type of yeast and the fermentation temperature: Bottom fermentation produces beer of the Pils type (from the Czech city of Pilzen). The process takes between 6 and 10 days. It is called bottom fermenting because at the end of the fermentation process the yeasts settle at the bottom of the vat. This process involves the use of active yeasts of the saccharomyces carlsbergensis type between 8 and 10°C.
Top fermenting, or traditional fermenting, takes no more than 5 days and is carried out with yeasts of the S. cerevisiae type, which are active between 15 and 25°C. It is called top fermenting because the yeasts work on the surface of the must and forms a thick, foamy layer. Spontaneous fermentation (used to produce Lambic and Gueuze) is specific to the Brussels area. It involves around a hundred microorganisms (yeasts, bacteria, etc. ) which are characteristic of the atmosphere of the valley of the river Senne. After boiling, the lukewarm mixture is pumped into open vats in the brewery loft.
It is left there all night to cool and to allow the wild yeasts and bacteria to germinate the must. No more yeast is added by the brewer. The product obtained is called Lambic. The final stage: the personal touch Many brewers add different substances to give their beer a characteristic flavour. However, the composition of these substances is one of the many aspects of brewing that are protected by trade secrecy. However, we do know that they can include real fruit, fruit syrup, spices, different types of sugars, honey, etc.