The country?s largest spirits manufacturer, the Vijay Mallya-led, United Spirits Ltd (USL) is planning a slew of wine launches from UK, France and South Africa. It is also planning to shift its winery from Hosepet to Bangalore.
The company is in the process of launching 10 Chapters from South Africa, Pink Elephant Rose from UK, Bouchard wines from France and Sacred Hill and Hunter Valley Wine from New Zealand. All the launches will take place before the year ends.
This spirit company is also increasing its production capacity and consolidating its wineries and distilleries in different regions. The Baramati facility will become fully operational by December. Grape crushing has already started in this capacity. It will be producing mainly Four Seasons Wines.
Wine facility in the south is likely to be shifted from Hospet to Bangalore by early next year. Currently the Bangalore facility produces grape spirit. The Hospet facility will be dedicated for producing IMFL brands.
USL is also planning to launch single malts, Dalmore and Jura, besides Whyte & Mackay blended Scotch whisky. John Barr scotch which is not so expensive is also slated to come to India. Jura may come in with offerings aged at 10 years and 16 years while Dalmore may have two variants, at 12 years and 21 years. Whyte & Mackay is likely to hit the market with three age variants of 13, 19 and 22 years.
The company is also planning to launch some wines from the Bouvet-Ladubay range in India. It has developed its Baramati facility with technical know how from Bouvet-Ladubay.
For more operations that are efficient, it is looking at expanding capacity, integrating backwards, packaging benefits. It is upgrading its technology to increase its throughput. In Karnataka facility five tetra machines have been installed. This will cut down cost of breakage, label etc.
The company also wants to take advantage of modern retail. It is in talks with Wal-mart, Spencer?s and Metro to have its product on their shelves in states like Karnataka where liquor norms are retail friendly.
USL is not deterred by state taxation policies. Company officials noted that either they decide to weather the storm and not be perturbed by it or they change their planning and distribution strategies after the states announces their policies.