In a bid to tap the growing demand for premium international spirits in India, global spirits major Bacardi Martini plans to introduce more brands from its international portfolio here. Bacardi Martini India is a 76:24 joint venture between the global major and Indian firm Gemini Distilleries.
“We have a three-five year strategic plan for the introduction of our global brands. But it will take some time and more investments. Our focus, however, is to be the number one spirits brand,” says Stella David, chief marketing office, Bacardi and president and CEO of Bacardi Global Brands. She was here to have a better understanding of the Brazil, Russian, India and China (BRIC) markets.
The company is also strengthening its presence in the vodka market having established its name in the white rum category. It had introduced two Vodka brands – Eristoff and 42 Below – in the domestic market last year. “We are still in the process of rolling our Eristoff nationally,” Mahesh Madhavan, president & CEO, Bacardi Martini India.
The company is also bullish on flavoured vodka category which has registered a growth of 50 per cent. “We are considering the possibility of introducing two Eristoff flavours – Sloe Berry and Black wild berry – in the near future. We do have vodka flavours in the market with Grey Goose and 42 Below,” David said.
The company has streamlined its operations and strengthened distribution network. “We are looking at a 25 per cent growth,” Madhavan added.
The premium vodka segment in the country is pegged at 500,000 cases per annum, according to industry estimates, and is the fastest growing one with a compounded annual growth rate of 46 per cent in the last five years. The 4.5-million-case Indian vodka market is dominated by regular vodka. The company faces stiff competition from players such as Diageo and United Spirits who also operate in the premium segment.
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Meanwhile, given the strong growth witnessed by the wine segment in the country, Bacardi is also looking at introducing its Martini brand in India. “Martini is certainly a great opportunity. The only concern is the price, as the duty structure may make it inaccessible to a large audience,” says David.
The company is now exploring opportunities to develop the brand in the country.
On the impact of financial crisis on the company's sales, David said it was too early to comment. “It is difficult to say how it is trickling down at this point. There will be a definite slowing down in the short term. From what I have observed in the past is that during the times of recession, drinking volumes don’t change.” Though she admitted that some consumers were likely to downtrade (opt for cheaper brands) in the short term.
In line with its global strategy of acquiring brands, the company is open to opportunities in the Indian market as well. “If we find a brand that will stand for the long-term growth of the company, we will definitely consider it,” asserts David.
However, Madhavan considers conflict of brand ideology as a problem for acquisition.