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Boby Kurian

"There is fatigue in this category and there is the danger of romance fading away. We feel the need to make RTDs available in many options," Mr Vijay Rekhi said.

Bangalore , Aug. 13

THE UB Spirits Division will tap the nascent ready-to-drink alcohol segment with six brands, which include launch of five new brands in the coming months. The division forayed into the ready-to-drink (RTD) segment with the launch of Shotz last year and is scheduled to expand this portfolio with the addition of Cruiser in September. The company has kept the names of the other four brands under wraps.

Speaking to Business Line, Mr Vijay Rekhi, President of the division, said the slew of introductions were aimed at tackling the fatigue factor that is a major concern for the companies operating in this new segment of the domestic liquor industry.

"There is fatigue in this category and there is the danger of romance fading away. We feel the need to make RTDs available in many options," he said. The six brands will be positioned in the market based on a detailed consumer road mapping exercise.

It must be mentioned that UBSPD has tied up with Independent Liquor of New Zealand, a significant player in the global RTD marketplace, for critical domain expertise, technology transfer and product development. Cruiser Vodka is one among the leading brands from the stable of Independent Liquor.

It is learnt that the other introductions planned by UBSPD are original brands, which are under various stages of development.

This could include brands dedicated exclusively to ethnic and international fruit flavours. Besides the varied fruit flavoured offerings, the company might also look at products with chocolate or wine base.

Currently, UBSPD and Bacardi Martini India Ltd (with Bacardi Breezer) are the national players in the domestic RTD market. Both these players are on thin ice as far as profitability is concerned.

The industry observers estimate that BMIL could have spent between Rs 7 crore and Rs 10 crore as brand investment behind the highly visible Breezer. Mr Rekhi said UBSPD's RTD marketing will not be media driven. "We feel that placement strategy and promotions are important in this segment," he added. It must be mentioned that the industry remains optimistic about the prospects of the business despite a rather timid beginning.

Sources said the entire first quarter RTD sales in the country was roughly one lakh cases with Mumbai and Delhi as the major markets.

Apart from issues such as warehousing and product stability in the country's hot conditions, the liquor companies are also likely to face tough posturings by the regulators on matters pertaining to taxation and retailing. At present only 12 States have allowed sale of alcoholic RTDs, while important markets such as Karnataka, which is UBSPD's home turf, have postponed a decision in this regard.

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