INDIA: UB shelves plans for RTDs in India – report
By just-drinks.com editorial team | 20 August 2007
The UB Group has reportedly ditched plans to partner with Independent Liquor in the Indian RTD market.
Citing a UB spokesperson, local newspaper Business Line said today (20 August) that the Indian company has ended its partnership with Independent, as it is no longer interested in entering the RTD market in its home country.
In a separate report, Moneycontrol.com cited sources close to UB as saying that the group does not see much value in launching RTD beverages in India. No-one was available at UB for confirmation of the reports when contaced by just-drinks today.
The two companies have had a tie-up in India for the last four years, the report said, with UB even being linked to making a bid for the New Zealand company last year. Independent was believed to be worth in the region of up to US$839m at the time.
Sectors: Spirits
Companies: The UB Group
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A recent report in the Indian business press suggested that local spirits force United Spirits, part of the UB Group, had abandoned plans to develop RTDs for the Indian market. However, other companies appear to be keeping more of an open mind on the subject. Ben Cooper reports.
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Congratulations to UB. It is fact that when in indian market bacardi came first with RTD, & got fantastic volume of sales. In my professional opinion it was due to so many reasons as given below-
1- It was a very new & unexpected drink for the indian consumers, & freshers, means wants to drinks but, do not dare because of acceptance of alcoholic quantityor due to permission / not permited by family , but because of very economical , availability, law persantage of alcohol, join & shakehands policy/given the company to the guest in the family funtions/bussiness party etc , got good sales.
2- Teenagers, Younsters womens ,girls those were fond of alcoholic drinks without the knowledge of their family members or relatives used to drinks. This was also the reason of good quantum of sales.
3- Local wineries of maharastra later on came with their RTD with wine flever instead of vodka like bacardi, according to fullfill the extra lying stocks of grapes, as well as excise duty & levies margin compare to spirit policy in state to state in india. no doubt taken the share of bacardi RTD sales.
4-Now days it is called a story as a eighteen century story(old).
5- Peoples through out the country (india) thinks to waste money if drinks with their own pocket money any RTD.
6- If any body compare the sales of any RTD brand in india in state to state, according to previous years sales,it is no where at all at present.
I am unable to understand that if for sale in indian domestic market UB has plan to come with RTD , NO mean at all.
Mahendra Nathani
Mahendra Nathani said at 7:24 pm, September 3, 2007
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