Liquor An alcoholic beverage is a drink containing ethanol (commonly called alcohol).

Alcoholic beverages are consumed in most countries of the world. According to the International Center for Alcohol Policies (ICAP), over 100 countries have laws that regulate their production, sale, and consumption. In particular, such laws specify the minimum age at which a person may legally buy or drink them. This minimum age varies between 16 and 25 years, depending upon the nation and the type of drink. Most nations set it at 18 years of age. The Indian liquor industry is divided into two broad segments: IMFL & country-made liquor. IMFL comprises alcoholic beverages that were developed abroad but are being made in India (whisky, rum, vodka, beer, gin and wine), while country-made liquor comprises alcoholic beverage made by local breweries. .

Alcoholic beverages are divided into three general classes: beers, wines, and spirits.

Beer
Beer is the world's most widely consumed and probably the oldest of alcoholic beverages and the third most popular drink overall after water and tea. It is produced by the brewing and fermentation of starches mainly derived from cereal grainsmost commonly malted barley, although wheat, maize and rice are widely used. Two main types lager and ale Lager Lager is a type of beer that is brewed using bottom-fermenting yeast at lower temperatures and for longer durations rather than those typically used to brew ales. In German, the term "lager" refers to storing a beer at cool temperatures and does not necessarily imply bottom-fermentation. Ale - Ale is a type of beer brewed from malted barley using a warm fermentation with a strain of brewers' yeast. The yeast will ferment the beer quickly, giving it a sweet, full bodied and fruity taste. Most ale contains hops, which impart a bitter herbal flavour that helps to balance the sweetness of the malt and preserve the beer. Most beer is flavoured with hops, which add bitterness and act as a natural preservative, though other flavourings such as herbs or fruit may occasionally be included. The strength of beer is usually around 4% to 6% alcohol by volume (above) though may range from less than 1% above, to over 20% above in rare cases.

Wine
Wine is an alcoholic beverage, typically made of fermented grape juice. The natural chemical balance of grapes is such that they can ferment without the addition of sugars, acids, enzymes or other nutrients.

Wine is produced by fermenting crushed grapes using various types of yeast. Yeast consumes the sugars found in the grapes and converts them into alcohol. Different varieties of grapes and strains of yeasts are used depending on the type of wine being produced. Although wine is mainly produced from grapes, now it is also produced from other fruits such as plums, cherries, or apples. Wine involves a longer (complete) fermentation process and a long aging process (months or years) that results in an alcohol content of 9%16%

Spirits
A spirit is distilled alcohol. Spirits distillation is the process of heating a fermented liquid, evaporating off the alcohol as vapor, and then condensing it back into liquid form. Spirits are classified into Whiskies, Vodka, Gin, Rum, Brandy and Tequila made by distilling a kind of beer made from grain. Brandy is made from fermented grape juice, and Fruit Brandy is made from other fruits. Rum and Cane Spirits derive from fermented sugar cane juice or molasses. Tequila comes from the fermented pulp of the agave plant. Alcoholic content for spirits is minimum 20%.

VODKA
Vodka is a distilled beverage and one of the world's most popular liquors. It is composed primarily of water and ethanol with traces of impurities and flavorings. Vodka may be distilled from any starch/sugar-rich plant matter; most vodka today is produced from grains such as sorghum, corn, rye or wheat. Among grain vodkas, rye and wheat vodkas are generally considered superior. Some vodka is made from potatoes, molasses, soybeans, grapes, rice, sugar beets and sometimes even byproducts of oil refining or wood pulp processing. While most vodkas are unflavored, many flavored vodkas have been produced in traditional vodka-drinking areas, often as home-made recipes to improve vodka's taste. Flavorings include red pepper, ginger, fruit flavors, vanilla, and chocolate (without sweetener), Vodkas alcoholic content usually ranges between 35-50% by volume

Tequila
Tequila is a blue agavebased spirit made primarily in the area surrounding the city of Tequila, Mexican laws state that tequila can be produced only in the state of Jalisco and limited regions in the states of Guanajuato, Michoacn, Nayarit, and Tamaulipas.[2] Mexico has claimed the exclusive international right to the word "tequila", threatening legal actions against manufacturers in other countries. Tequila is most often made at a 3840% alcohol content (7680 proof),), but can be produced between 3555% alcohol content (70110 proof).

Rum
Rum is a distilled alcoholic beverage made from sugarcane by-products such as molasses and sugarcane juice by a process of fermentation and distillation.

The distillate, a clear liquid, is then usually aged in oak and other barrels. Many countries require that rum be aged for at least one year. This aging is commonly performed in used bourbon casks, but may also be performed in stainless steel tanks or other types of wooden casks. The aging process determines the coloring of the Rum. Rum that is aged in oak casks becomes dark, whereas Rum that is aged in stainless steel tanks remains virtually colorless.

Light Rums also referred to as silver rums and white rums. In general, light rum has very little flavor aside from a general sweetness, and serves accordingly as a base for cocktails. Gold Rums, also called amber rums, are medium-bodied rums which are generally aged. These gain their dark color from aging in wooden barrels (usually the charred white oak barrels that are the byproduct of Bourbon Whiskey). They have more flavours, and are stronger tasting than Silver Rum, and can be considered a midway-point between Silver/Light Rum and the darker varieties. Spiced Rum: These rums obtain their flavor through addition of spices and, sometimes, caramel. Most are darker in color, and based on gold rums. Dark Rum, also known as black rum, classes as a grade darker than gold rum. It is generally aged longer, in heavily charred barrels. Dark rum has a much stronger flavor than either light or gold rum. Most Dark Rum comes from areas such as Jamaica, Haiti, and Martinique. Flavored Rum: Some manufacturers have begun to sell rums which they have infused with flavors of fruits such as mango, orange, citrus, coconut or lime. These serve to flavor similarly themed tropical drinks which generally comprise less than 40% alcohol, Overproof Rum is rum which is much higher than the standard 40% alcohol. Most of these rums bear greater than 60%, in fact, and preparations of 75% to 80% abv occur commonly.

Status
It generates estimated revenue of Rs. 16,000 crore per annum in spite of the fact that the per capita consumption of liquor in India is the lowest in the world. IMFL accounts for only a third of the total liquor consumption in India. Alcohol sales proceeds account for 45%of the total revenue collection in the country. Whiskey accounts for 60% of the liquor sales while rum; brandy and vodka account for 17%, 18% and 6% respectively. Within India itself, the policy of alcohol retail differs from state to state. While some states like Maharashtra, Uttar Pradesh, and Tamil Nadu have a liberal policy, some states like Haryana and Andhra Pradesh have had very bitter experiences in trying to make these states dry and have eventually had to withdraw the policy.

Policies
In India Bureau of Indian Standards (BIS) prescribes standards for various alcoholic beverages. The Standards of Weights and Measures (National Standards) Rules 1988 prescribe that alcoholic

strength be declared as % of volume with symbol % Vol. Standards for water used and guidelines for hygienic practices in the manufacturing should be prescribed. The Cable Television Network (Regulation) Amendment Bill, in force September 8, 2000, completely prohibits cigarette and alcohol advertisements. No direct advertisement is permitted for promoting consumption of liquor. However, in order to enable consumers to make an informed choice and to promote responsible drinking, communication at the point of sale/consumption could be permitted. The Packaged Commodities Rules are applicable to alcoholic beverages and it provides for affixing of labels incorporating following declaration: (i) Name and address of the manufacturer, (ii) Common name of the commodity (for example, Whisky/Rum/Wine/Beer) (iii) Net quantity when packed, (iv) Month and year of manufacture, (v) MRP. However, in respect of alcoholic beverages printing of MRP is not mandatory subject to the condition that the retailer shall display prominently in his premises the retail sale price of the package. Several States require safety holograms, approved by the Excise Commissioners to be printed on every bottle of liquor. Safety holograms certify that duties/fees due on the particular bottle have been paid and the liquor is of prescribed standard. Barcodes on Liquor packs could be an effective tool for security and prevention of imitation or reuse of the packs of branded liquors. There are several taxes and duties that are applicable to the liquor industry. A comprehensive list of the taxes and duties generally levied on industry are mentioned as: Excise Duty, Additional Duty, Distillery/Brewery License Fee, Bottling fee, Litterage fee, Assessment Fee, Franchise Fee, Permit Fee, Gallon age Fee, Raw Material Excise, Availability Fee, Brand/Label Fee, Permit Fee, Transportation Fee, Import Pass Fee, Export Pass Fee, Educational/Welfare Cess, Vend Fee, Sales Tax/Surcharge, License Fee, Toll Tax and TOT. MAHARASHTRA Maharashtra is the most liberal state as far as liquor policy is concerned. Infact, the grape wine industry in Maharashtra has taken big strides in the last few years. Red, White, Rosae and Sparkling wines are produced in the state. With tax and duty structure moving downwards it is clear that several new players would come up giving an unsullied freshness to the existing competition between Indian and foreign players. To further improve the condition of the wine market government is taking several new initiatives. A Wine Board is being set up. Even a Wine Institute is in the offing to improve quality. As per the Maharashtra Grape Processing Industrial Policy 2001, grape wineries have been given the status of food processing industry. There has been a huge cut in excise duties, which have been cut by 50% for the existing wineries and 75% for the new wineries. As a consequence to it from just three wineries in 2000, there are 36 today. As per the Maharashtra policy guideline on vendor license for sale of wine, wine bar licenses will be available at rates between Rs 5,000 and Rs 37,500 a year depending on the location.

Thus, a wine bar license in Mumbai city will cost the maximum while it will go down as one moves to smaller towns in the State. Maharashtra Industrial Development Corporation (MIDC) is the nodal agency for establishment of grape wine parks in the state. It has till date established two wine parks: Godavari Wine Park at Vinchur, Nasik District and Krishna Wine Park at Palus, Sangli district. Major National Players 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 and gaining. Other players include Mohan Meakin (9%), Jagatjit (8.5%), etc. International players . The major international players are Pernod Richard, Remy Cointreau, and Diageo (Diageo has tied up with Radico for entering Indian markets in brown spirits)

UB Group
UB group was established in 1857 by Thomas Leishman. The head quarter of UB group is located in Bangalore, India and headed by Vijay Mallya. The Group has dominated the market in three main consumer driven segments: alcoholic beverages, spirits and aviation which are its main lines of business; and also has interests in the areas of engineering, fertilizers, and biotechnology. . The UB Group comprises of United Breweries Holding Limited (UBHL), the holding company which in turn owns controlling stakes in other Group companies including United Spirits Limited, Kingfisher Airlines Limited and United Breweries Limited.

United Breweries Ltd

UB group is a major player in brewing industry in India. It is major beer manufacture and most beer are under Kingfisher Brands. UBs market share is around 48%. It includes major brands some of it are as follows Kingfisher strong Kingfisher premium King fisher red London Pilsner

United spirits Ltd

It is Indias largest & worlds 2nd largest spirit industry. USL has a portfolio of more than 140 brands, of which 19 are millionaire brands* (selling more than a million cases a year) It has Market share of around 59% in India United Spirits recorded global sales of 90 million cases for the fiscal year that ended on March 31, 2009.

The company is known to be an innovator in the industry and has several firsts to its credit such as the first pre-mixed gin, the first Tetra pack in the spirits industry in India, the first single malt manufactured in Asia and the first diet whisky in the world. Financial Highlights Group turnover : US $ 2.6 bn Market capitalization : US $ 3.2 bn as on March 2008 and December 2008. Net turnover United Breweries ltd: 17475.7 Rs. In million United Spirits ltd: 71,130.831 Rs. In million as on March 2009.

Pernod Ricard
Pernod Ricard is a France-based producer and distributor of spirits and wines. It was established in 1974. Pierre Pringuet was appointed Chief Executive Officer of Pernod Ricard and Patrick Ricard remains Chairman of the Board of Directors. It operates as holding company, with the structure divided between Brand companies and Market companies. Brand Companies develop products and define the global marketing strategy for their brands. Market Companies adapt Group strategy to their local market, in cooperation with the Brand companies.

Financial Highlights
Revenue 7.081 billion (year - June 2010) Operating income 1.707 billion (yr - Jun 2010) Profit 951 million (yr - Jun 2010) Employees 18,975 (2009)

Problems faced by the wine industry

Higher packaging costs - A key differentiation in the wine industry is the relatively higher packaging costs glass bottles, labels, foils etc. So a challenge for industry is maintaining lower costs to control the cost of expensive packaging inputs. Scarcity of water - Scarcity of water could be accounted for as the chief cause responsible for the wine industry as the grape cultivation suffers from unseasonal rains. No government support - Inadequate help by the government authorities to the bar owners as far as promoting this industry is concerned. In some states of India like Gujarat there is ban on liquor consumption.

High sales tax - State Government have imposed very high Sales Tax on consumption of imported liquor in restaurants and bars.

Advertisements - there is a restriction on promotion of alcoholic beverages. No alcoholic beverage company can advertise their alcoholic products. For example: Vijay Mallyas King Fisher products cannot be advertised however, through other promotional activities, the King fisher brand is now promoted through the airlines and his various sporting activities. Change in policies - Any change in policies by the countries, in terms of tariff and non-tariff barriers, from which the Company imports its raw materials and/ or to which its products are exported, will have an impact on the Companys profitability. Similarly, any adverse movement in the exchange rate may have corresponding effect on the export realization / cost of imports and consequently affect the Companys profitability. Conclusion Thus from the given presentation we conclude that Liquor industry in India is growing, but very slowly. Peoples perception about liquor consumption has undergone tremendous change, earlier people used to avoid liquor because of their religious views, but now people do not believe in such things anymore. The contribution share of IMFL in Indian liquor market is less than the country made liquor. In different state of India there are different liquor policies which restrict the liquor companies to enter in India. In some states liquor industry is promoted such as in Maharashtra, Tamilnadu etc. and in some states the liquor is totally banned. E.g. - Gujarat. There is high tax charged on liquor industry so they are not able to openly contribute in market share.