BACARDI’S STRATEGIES

FOR THE INDIAN

MARKET

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News Article we
referred to…

Business Strategy 2
Introduction to Indian Alcohol
Industry
India is one of the largest producers of alcohol in the world and there has been a
steady increase in its production over the last 15 years.

The production has tripled from 887.2 million liters in 1992-93 to 2300 million liters
in 2007-08

Consumption of Indian made foreign liquor (IMFL) has been growing over 50% per
year

220 million cases of beer and branded liquor were sold last year

Per capita consumption of beer, at 0.7 liter, is among the lowest in the Asia Pacific

Business Strategy 3
Factors Contributing to Growth
Rising disposable
income of the
Indian liquor
consumers

Increasing More than half of

India's 1.1 billion
influence population is
western below the age of
cultural 25 years

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Barriers to Growth –
For New Players

Procuring of licenses

Tying up nation-wide bottling arrangements

Ban on direct advertising, resulting in long gestation period involved in
building brands

Ban on sale of Alcohol in some states

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Market Share
United spirits with about 60 % of market share in IMFL is the
undisputed leader.
Radico Khaitan who entered the IMFL space some 8 years back
has already cornered 12 % market share
Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc.
International players
Pernod Richard,
Remy Cointreau
Diageo

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Business Strategy 7
Bacardi Limited – An Introduction
Company founded in Santiago de Cuba in 1862

One of the largest spirits companies in the world

with presence in over 100 countries

Headquartered in Hamilton, Bermuda

Product portfolio includes more than 200 brands

and labels of rum, vodka, whisky, gin and tequila

Manufacturing facilities in 31 plants around the

world

Popular brands include Bacardi Rum, Grey Goose

Vodka, Bombay Sapphire Gin and Dewar’s Blended
Scotch Whisky
Bacardi Martini India Limited
Entered Indian market in 1998
76: 24 JV formed between Bacardi limited and
Gemini Distilleries to enter Indian market
Extremely bullish on growth prospects in
India
Plans to introduce a number of its global
brands in India
Vodka – Eristoff and 42 Below
Flavored Vodka – Sloe Berry and Blackberry
Wine – Martini
Looking at opportunities to acquire brands in
India
Some recent news items of Bacardi
“We have been an acquisitive company traditionally. And we are now
in the market to buy out brands, and that includes India"
- Company President and CEO Seamus McBride to Economic Times
February 25, 2009

“The world’s largest privately held liquor maker, Bacardi Ltd, is scouting
for potential brand acquisitions in India and expanding its sales and
marketing team to tap anticipated growth in the local spirits market.”
- Livemint.com, Feb 16 2009

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 Some recent news items of Bacardi
“In a bid to tap the growing demand for premium international spirits in
India, global spirits major Bacardi Martini plans to introduce more brands
from its international portfolio here.”
- Business Standard October 10, 2008

• “Bacardi Ltd, the name synonymous with white spirits, is setting its eye on
the Indian whisky market with the launch of its high-end renowned single
malt Scotch whisky brands such as Dewars and Aberfeldy, thanks to the
raising disposable income of the Indian liquor consumers.”
- The Financial Express, December 24, 2008

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Strategies
Acquisitions and Buyouts
Buying Brands throughout the country
In talks with Vijay Mallya’s United Spirits to take stake
Market Penetration
Sales around 1 million cases, way behind French giant Pernod Ricard
and even Diageo in India, even after a decade
Establishing presence in smaller cities, which contribute 70% of total
liquor sale
Introduction of major global brands in India
Product Development
Flavoured Vodka
Locally made Martini
Taking up of Whisky Brands
Introduction of new products
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The Implications- Hic Hic Hurray..!!
Bacardi to be a more recognizable brand portfolio to the masses in Tier-II &III cities

Bacardi for Classes & Masses

Contender for a slot in Top3 Brewery Co. in India by way of increased sales & reach to
an untapped market

Options for the consumer to choose from a wide Bacardi portfolio

Low cost of reach due to existing distribution/supplier network.

Expansions in North-East(Distillery/Manufacturing etc.) may offer tax

sops(SEZ’s)/Improving bottom lines
With local partners in manufacturing, the cost of importing/tax duty on liquor for
Bacardi can be saved.
Diversification of Business: Exclusive Bacardi tie-ups with media & entertainment like
Bacardi Club retail channels etc.
Thank you! Hic!
Business Strategy 14
 Group No 2
Abhishek Shah – GMAY08IB084
Kumar Anurag – GMAY08IT021
Raghuram Gupta – GMAY08WM133
Shruti Gosavi – GMAY08WM144
Uday Jain – GMAY08IT053
Vijay Radhakrishnan – GMAY08IB109

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