Is it whiskey? Or rum? Perhaps a wine? Or even a tequila? No, it?s Jagermeister, a rare spirit that is its own category. Yes, the world?s ninth largest spirit company is also unique in having just one brand. It is technically described as liqueur flavoured with herbs. Partygoers in 60 countries will recognise it better as a bitter, or simply Jager.
Yes, David Bell, who started the Asia-Pacific section of this venerable 70-year-old German brand, is sure it is in the parties where its future lies.
On a tour of India recently, he has chalked out an ambitious list of parties to host for the brand in the coming few months, starting with Mumbai, Delhi, Bangalore and Kolkata. ?In India we are focusing on activities more than sales at present, so for us it?s music, live bands, DJ parties, even bhangra parties that are the current target,? says Bell with an eye firmly on the future. The brand is consciously targeting the young, upwardly-mobile male between the ages 20 and 35, he says ? and that?s the global profile of the Jager drinker too.
Jagermeister sold 6.2 million cases last year globally. It was the same year when it made its entry into China, selling about 5,000 cases. Targetted marketing has seen it establish a toehold in Beijing, Guangzhou and especially Shanghai, the kind of route it hopes to follow in India as well. The end of this financial may see fewer cases sold in India, but Bell is sure these two are mega markets for the future. Currently the biggest market is the US, where about 3 million cases were sold last year. About 75% of the company?s sales are international, and in the US, it is the top imported liqueur, establishing it as a power brand in the sector. It is also the fastest growing brand in Canada, Australia and the UK.
As is the case for most other liqueurs, J?germeister?s recipe is a secret ? it is said to be a blend of 56 herbs. Its recent success in the Asia Pacific Region has been impressive. From no sales five years ago, the brand is the fastest-growing liquor brand in many countries in the region. ?Our business in the Asia Pacific has grown by more than five-fold over the past two years,? says Bell. ?Australia is our leading market, where we are performing exceptionally well with 200% growth in the last five years.?
?So far we?ve launched Jagermeister in 15 countries in the Asia-Pacific region. These markets are not only diverse, they are also at different stages of economic development. India will be an important market for us moving forward,? says Bell. ?We are now taking our first step into the market. Every sale is local, so we adapt our brand-building strategy for each country following a multi-domestic approach?.
And it has an unusual brand profile. ?It is an acquired taste,? admits Bell. And being in a category of its own, they compete with other brands based on image. ?Jack Daniels or some tequila brands would be our competitors,? he says. And he has no qualms about Jager being a niche drink in India. ?Even the niche is huge in this market,? he smiles confidently.
For a leader who started from scratch and is seeing a 90% growth year-on-year, it is no surprise that India, with its ?exploding economy? looks to be in sync with his company?s global growth charts. And it only helps that this Sydney-based and England-educated person is not just familiar with the land, but also is in love with its culture and especially food. Perhaps it goes well with his Jager shot!
?Suman Tarafdar
