Cheers to Vijay Mallya; premium Black Dog scotch now in India
02 Apr 2011
1
Seeking to further capitalise on its acquisition of Scott spirit maker Whyte & Mackay, Vijay Mallya's United Spirits Ltd (USL) today announced the launch of the premium 18-year-old version of the well-known Scotch brand Black Dog in India.
Speaking at the launch in New Delhi, Anant Iyer, business head (luxury brands) for USL said, ''We are proud to introduce one of our most awaited luxury labels - Black Dog 18 year old, a vintage and smooth luxury scotch which will be bottled in India by USL. This exceptional and exquisite brand promises to be a rare blend for those who have developed a taste for the finer things in life'' - and so on.
Black Dog is a blended whisky, unlike the single malts that in recent years have captured the imagination of consumers, especially in emerging markets. But it is matured for a minimum of 18 years and comes in a special Saint Gobain bottle.
Despite being bottled in India, the spirit will come at a steep price of between Rs3,900 and Rs7,100 a bottle, depending on state taxes. In Mumbai, it is likely to be at the higher end, since the Maharashtra government imposes a notoriously extortionate tax regime on anything it perceives as a 'luxury' (from beer to cinema tickets).
One also wonders about the volumes the company hopes to garner with the launch, as people who can afford these prices would prefer foreign-bottled brands. ''Why should I pay so much for India-bottled Black Dog when I can probably get the 'bottled in Scotland' variety for similar prices – perhaps cheaper if I can get it from the right sources,'' said Nirmal Kundel, a former US Consulate employee and a self-proclaimed connoisseur of scotch whisky. ''In any case I prefer single malts.''
Mallya made his initial fortune (enough to launch an airline) by selling second-rate liquor to hapless Indian consumers, fully leveraging India's ridiculous tax regime on alcoholic beverages of decent quality. Now, with Whyte & Mackay in his stable and exports of Scotch reaching new highs, he has realised the desirability of better exploiting emerging markets, including India.
He told the media earlier this week that he is reconstructing his spirits empire to grow USL outside the Indian sub-continent. He will move much of the Glasgow-based Whyte & Mackay's international operations to Bangalore and combine it with the overseas ambitions of his Indian spirits brands under a separate unit.
Mallya said, "There has been a proposal to form a new division that will focus on emerging market which I have accepted. The new emerging market strategy will extend from Africa to the Indian Ocean rim states to Asia-Pacific." The new division will have a separate head but report to the USL chief executive. He would unveil the plans in this regard within a few weeks, Mallya added.
In April, USL is expected to formally announce becoming the world's top spirits company by volumes, going past Diageo Plc. Mallya could also unveil a top-level management rejig around that time.
Analysts feel that Whyte & Mackay's expansion into emerging markets including India has been slow and lacked focus. "It makes sense for the leadership to be based in Bangalore and be closer to these emerging markets that are seeing a huge boom in the consumption of scotch and single malts. Premium Indian drinks brands are also taking off in many markets of Africa and in those around the Indian Ocean," said a senior company executive who did not wish to be named since plans were still not public. (See: No hangover for Scotch makers as exports hit new high)
Speaking at the launch in New Delhi, Anant Iyer, business head (luxury brands) for USL said, ''We are proud to introduce one of our most awaited luxury labels - Black Dog 18 year old, a vintage and smooth luxury scotch which will be bottled in India by USL. This exceptional and exquisite brand promises to be a rare blend for those who have developed a taste for the finer things in life'' - and so on.
Black Dog is a blended whisky, unlike the single malts that in recent years have captured the imagination of consumers, especially in emerging markets. But it is matured for a minimum of 18 years and comes in a special Saint Gobain bottle.
Despite being bottled in India, the spirit will come at a steep price of between Rs3,900 and Rs7,100 a bottle, depending on state taxes. In Mumbai, it is likely to be at the higher end, since the Maharashtra government imposes a notoriously extortionate tax regime on anything it perceives as a 'luxury' (from beer to cinema tickets).
One also wonders about the volumes the company hopes to garner with the launch, as people who can afford these prices would prefer foreign-bottled brands. ''Why should I pay so much for India-bottled Black Dog when I can probably get the 'bottled in Scotland' variety for similar prices – perhaps cheaper if I can get it from the right sources,'' said Nirmal Kundel, a former US Consulate employee and a self-proclaimed connoisseur of scotch whisky. ''In any case I prefer single malts.''
Mallya made his initial fortune (enough to launch an airline) by selling second-rate liquor to hapless Indian consumers, fully leveraging India's ridiculous tax regime on alcoholic beverages of decent quality. Now, with Whyte & Mackay in his stable and exports of Scotch reaching new highs, he has realised the desirability of better exploiting emerging markets, including India.
He told the media earlier this week that he is reconstructing his spirits empire to grow USL outside the Indian sub-continent. He will move much of the Glasgow-based Whyte & Mackay's international operations to Bangalore and combine it with the overseas ambitions of his Indian spirits brands under a separate unit.
Mallya said, "There has been a proposal to form a new division that will focus on emerging market which I have accepted. The new emerging market strategy will extend from Africa to the Indian Ocean rim states to Asia-Pacific." The new division will have a separate head but report to the USL chief executive. He would unveil the plans in this regard within a few weeks, Mallya added.
In April, USL is expected to formally announce becoming the world's top spirits company by volumes, going past Diageo Plc. Mallya could also unveil a top-level management rejig around that time.
Analysts feel that Whyte & Mackay's expansion into emerging markets including India has been slow and lacked focus. "It makes sense for the leadership to be based in Bangalore and be closer to these emerging markets that are seeing a huge boom in the consumption of scotch and single malts. Premium Indian drinks brands are also taking off in many markets of Africa and in those around the Indian Ocean," said a senior company executive who did not wish to be named since plans were still not public. (See: No hangover for Scotch makers as exports hit new high)
