 "Allied Blenders buys Mansion House, Savoy Club rights")
On Thursday, Allied Blenders and Distillers, India’s third-largest spirits company, said it had bought 50 per cent ownership rights in the brands Mansion House and Savoy Club from Herman Jansen Beverages Nederland. Under the agreement, Allied Blenders and Distillers will produce and market Mansion House brandy in India.
At present, Mansion House and Savoy Club are sold in India by Tilaknagar Industries. The marketing rights are under dispute after Herman Jansen Beverages terminated its arrangement with Tilaknagar Industries.
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In 1987 Tilaknagar Industries had entered an agreement with UTO, now Herman Jansen Beverages, by which UTO had ceded ownership rights of the Mansion House and Savoy Club trademarks to Tilaknagar Industries. Later Herman Jansen Beverages accused Tilaknagar Industries of breaching terms of the agreement and sued the Mumbai-based company in Indian courts.
The Bombay High Court rejected Herman Jansen Beverages’ claims and ruled in favour of Tilaknagar Industries in 2012. Herman Jansen Beverages has appealed against the order and a final verdict is due.
The brandy’s sales contributed about 55 per cent to Tilaknagar Industries’ Rs 806-crore revenue in 2013-14.
Tilaknagar Industries’ overall sales in 2013-14 increased 17 per cent to 16.13 million cases, of which 8.8-million cases were of brandy. Mansion House has a 35 per cent share of the premium brandy market. Allied Blenders and Distillers has joined the case between Tilaknagar Industries and Herman Jansen Beverages.
Allied Blenders and Distillers has a small presence in the brandy market with its premium Kyron and semi-premium Lord & Master brandies. With a 50 per cent brand ownership of Mansion House, Allied Blenders and Distillers planned to consolidate its market share, especially in the four southern states that account for 98 per cent of brandy sales in India, a company statement said.
Deepak Roy, executive vice-chairman and chief executive of Allied Blenders and Distillers, said, "India's brandy market is picking up fast and currently constitutes 24 per cent of the overall Indian-made foreign liquor (IMFL) market. We are yet to decide about manufacturing and marketing of Mansion House in India.”
Allied Blenders and Distillers is planning to invest about Rs 1,200 crore in next two years to expand manufacturing and bottling. Allied Blenders and Distillers is also in talks to buy out Tilaknagar Industries. However, Tilaknagar Industries said it would only sell a minority stake.
Henricus Th F Jansen, director of Herman Jansen Beverages, said, “Allied Blenders and Distillers has a strong production and distribution network which will provide the required infrastructure to make the brand stronger in India.”
The Kishore Chhabria-promoted Allied Blenders and Distillers sells Officer’s Choice Whisky, Class 21 grain vodka, Wodka Gorbatschow, Jolly Roger rum, Lord & Master brandy and Kyron brandy. It sold 25 million cases in 2013-14. It has 44 manufacturing units in22 states with 15 sales offices across the country.
Amit Dahanukar, CMD, Tilaknagar Industries Ltd. said, “The assignment of the trademarks (Mansion House and Savoy Club) during pendency of judicial proceedings is illegal. Neither the assignors (Herman Jansen) nor the assignee (ABD) are entitled to use the trademarks Mansion House and Savoy Club as such use would tantamount to violation of TI's rights in the trademarks Mansion House and Savoy Club which have been upheld by the Bombay high court. As regards future course of action, we will be guided by our lawyers and will do whatever necessary to protect the interest of TI.”
- ABD is planning to invest about Rs 1,200 crore in next 2 years for expanding manufacturing and bottling
- Allied Blenders and Distillers is also in talks to buy out Tilaknagar Industries
- The right for marketing the brand is still under dispute as Herman Jansen Beverages had challenged Tilaknagar Industries’ marketing right in India