Alcohol in

the Shadow
Economy
Presented by
Shreyanshu Ojha
Nidhi Pingala
Shivam Sahu
Ishita Banerjee
 THE
ALCOHOL
MARKET
 5.78 billion Litres Others
17%

BY VOLUME
Carlsberg
8% USL
4.4% 47%

CAGR (2014 - 19)

ABInBev
INR 310 billion 28%
Key Players - Beer Segment Pernod
BY VALUE 15%

North
On-Trade ABD
12%
20% USL 11%
East 45%
9%
Jagjit
South 9%
49%
John Dist.
7%
Others
Off-Trade West 13%
80% 30%
Key Players - Whiskey Segment
 Alcoholic Beverage

Spirits Wine Beer

(74%) (1%) (25%)

Branded IMIL/
Country Liquour IMFL Strong Beer Mild Beer
(67%) (85%) (15%)
(7%)

Vodka Gin Rum Brandy Whiskey

(20%) (16%) (59%)
}

5%
Net Sales in million GBP DIAGEO IN 2020

Share of Diageo’s
global net sales- By
Alcohol Category
By Year
Net Sales in million GBP
By Region
IMP A C T OF C OVID-19 WOR LDWIDE & MA R KET F OR EC A S T IN INDIA
CONSUMER
TRENDS IN
THE NEW
WORLD
 Rise of Craft Beer Moderate Consumption
Premiumization Drink Better, not more
Own Taprooms Value outperforming Volume
Trend Setting Whites showing future trends

Unique product Rejuvenated interest

experience Health & niche lifestyles
Millennials looking Soft Drinks not a solution
for practical & Favor taste, quality and
convenient innovation more than price
packaging
‘ MOR E P EOP LE’ & ‘ MOR E S HIF T F R OM ‘ S A VINGS ’ TO MOR E MILLENNIA LS &
P EOP LE EA R NING MOR E’ ‘ C ONS UMP TION’ MINDS ET GEN Z

India’s GDP to grow ~4X by India’s Consumption 75% of India’s workforce by

2030 to become the 3rd Expenditure share of GDP to 2030; Dependency Ratio will
largest economy move to 60% in 2030 decline to 47% by 2025

Identifying Future Consumer Segments

MILLENNIA LS GEN Z WOMEN B OOM TOWN HNI
 Premiumization
Experience Economy
Democratized Access
 ILLICIT
ALCOHOL
 Licit vs Illicit volume consumed Illicit alcohol consumption by drink type
Beer
Illicit 10%
26% Other
Fermented
9%
GLOBAL TRENDS
GLOBAL
GLOBAL
Euromonitor
International Euromonitor C o ns umer P er cept i o n
International
& Lo w A war enes s

A f f o r dabi li t y o f Illi ci t

TYPES OF ILLICIT ALCOHOL

Licit
74% Distilled A lco ho l
81% Smuggled
Inadequat e/ Ext r eme
Tax R egulat o r y F r amewo r k
Leakage
Illicit Non- Lack o f Enf o r cement
40% Confirming & C o llabo r at i o n
INDIA
The Quint
Licit Counterfeit Di s t r i but i o n C hannel
60% R egulat i o n
Surrogate
 PRIMARY FOCUS

PERCEPTION AFFORDABILITY REGULATIONS ENFORCEMENT DISTRIBUTION

Raise Awareness; Avoid excess Assist Licit industry– Stricter penalties; Ethanol control
Changing attitude taxation & Simplified framework; Ethanol control; through denaturing;
towards illicit regulation; Fiscal Marking; Private Public E-commerce
alcohol Reduce price gap Computerized tracking Partnership awareness

CASE STUDIES
THE CASE OF REDUCING #DONTPEGONPOISON :
PRICE GAP : AB INBEV with
LATIN AMERICA The Quint
Drove up Illicit prices - stricter control Awareness event
over production, logistics and raw material with expert panel
procurement | Awareness among consumers discussions
regarding suspiciously low priced alcohols
 Leveraging
“ D A TA I S TH E NE W OI L”
Technology, This term is coined by “Clive Humby”, the
man that build the Clubcard.
“What scares me about this is that you
Data Analytics, know more about your customers after
three months than I know after 30 years.”

& Making D A TA COMPA R E D TO OI L

Proactive Data is an essential resource that powers

the information economy in much the way
that oil has fueled the industrial economy

Strategy Information can be extracted from data

just as energy can be extracted from oil

PE OPLE A R E MOR E PR E D I CTA B LE

TH A N PA R TI CLE S
Understand psychology of the customer
Know your customer better than others
Customization can be done to new levels
 CASE STUDIES

Codes are written on can

which directs to FB Microsoft Azure
Messenger Platform Machine learning platform
Fourkind's AI solution

Brewmaster gets Customer gives

constant idea of feedback by answering Existing Recipes
Mackmyra Data
changing preferences 10 questions Customer Feedback

Master Blender Angela

Mackmyra Data
With feedback, Data gathered fed to D'rozario experience
questions improve AI algorithm
 Partnership with
IBM & Watson IoT
Savings worth $30000/month
Started multimillion dollar project in 2017 to analyse
different flavours of beer using AI
“The Beer Fingerprinting Project” has developed taste
sensing platform which identifies different elements
The beer garage initiative sitting at the
interjection of startup ecosystem & AB Inbev
They focus machine learning to improve quality
& flavour, build better relationship with
customer and tech intervention in Marketing and
Advertisement content
Alcohol + Tech = Future of
AlcoBev Marketing?
Image recognition software: Leveraging Social
Media to identify pictures with our brands. This
will help in getting to know our target audience
and make important marketing decision. It will
help in improving efficiency and effectiveness
Thank You!
We are open to
questions!