Tailoring Spirits from Sustainable Tailoring Spirits from Sustainable & Driving Consumer Preference
Raw Material Raw Material
Dr. Shovan Ganguli Sr. Vice President
United Spirits LimiteA Diageo Group of Company
Content
• Alcoholic Beverages Market and Opportu
Content
• Alcoholic Beverages Market and Opportu
• Neutral Spirit from Distilleries for Global
• Sustainability for the Millennial Consume
• Spirits Tailored For Indian Consumers
• Traditional Indian Alcoholic Drinks – Make
• Open Innovation Opportunities with Disti
• Conclusion
unity: Indiaunity: India
BrandsWe Produce
ers
e It Global
We Innovate
illery We Market
We Sell
Al h li B M k tAlcoholic Beverages Market
Alcoholic Beverages Market : Each Ind
Changing Consumer Landscape
g
Each India require
dia Requires
There is not 1, but 3 distinct India
q
ed different offerings
Market Opportunit
1%
29%
11%
ty in India
Growth Forecast by 2026Growth Forecast by 2026
obal Spirit Category Growth forecast by 202
‐ Spirt Growth is Driven by Asia (India and China)Spirt Growth is Driven by Asia (India and China)‐ India will contribute approx. 62.2 M c/s growth by 2020
20
pportunity for Alcohol Industry : Indiapportunity for Alcohol Industry : Indiaaa
Opportunity for Alcohol Industry in Indi
Indian and African
W t d lWe are at good pl
India GDP Growth
India is a Major prGlobal ENA produ
ENA Production (GIndian 2016: ~ 3.3ENA RequirementENA RequirementDiageo*: 100 Mill
India is having worequirement
Next Generation E* Only Smirnoff grade ENA re
a
n markets are growing at faster rate
l t l A i d Af i t ilace to supply Asian and African countries
h 7.3% (2015), Ethiopia 10.2% (2015), World Below 5%
roducers of potable alcohol and contribute ~ 13% of uction (portable alcohol)
GENA +MENA): 3 Billion Lts Global 2016 : ~ 24 Billion Ltst (Global)t (Global)ion Lts USL: 400 Million Lts
orld class distilleries, which can cater the global spirits
ENA Plant – To meet Global ENA SpecificationsSource : World Economic Outlook October 2016http://www.imf.org/external/pubs/ft/weo/2016/02/pdf/text.pdf
equirement
Neutral Spirit from Distilleries for Global Brands
Capability to Deliver uniform quSpirit
To meet chemical & sensory as per global market requ
Deliver sprit at competitive cost bDeliver sprit at competitive cost bof process and new feed
Freight CosCompetitivProductionUniformityLong Term
s
USL Diageo Quality Standards for Global Supplie
GRMS (Global Risk Management Standard) – Integratedd d b d h f ll
uality Neutral
Standard based on the following ‐ ISO 22000, ISO 18000, ISO 14000
l bl f b h l d ll fApplicable for both Bottlers and Distillers, for USLDiageo supplies specification
uirements
by optimization
Critical Quality Specification for USL Diageo
ENA Chemical :‐ <2.5 PPM Methanol, Di‐acetyl <0.3 PPM and by optimization d stuff
other impurities <1.00 PPM.ENA Sensory: Neutral (<9.5/10) no off odor and taste
stve Pricen planning for cut down turn around timey of shipment containers (Drum / IBC) Export Strategy with Foreign buyers
Sustainability and Consumers
ustainability for the Millennial Consumers ?
L ki GLooking Green
Image ConsciousImage Conscious
Looking Sustainability differentlyials
Looking Sustainability differently
Smart and Suspiciousllenn
i
Smart and Suspicious
Driving Sustainability trends across industries
Mil
across industries
Sustainability and Lipton® Tea
Lipton® is proud that 100% of oud Lipton is proud that 100% of outea sold in the U.S. is RainforesAlliance Certified™, Through thecommitment to Rainforest Alliancthey ensure sustainability from c
Brand Stories
y they ensure sustainability from cto cup.
Cadbury Sustainably sou
y
y ycocoa
Through a US$400 million investmCadbury is working with Fairtradesecure a positive future for 200,00f d illi ifarmers and one million communimembers in six key cocoa growincountries by 2022.
lennial Consumers Taste ?
Intense Flavor
On the Go and Instant availability
Like
illennialsLike
Theater aspect of cocktail
Tastemakerin Food
Craft Beer‐Foodie
Generation
Craft Beer‐for new
taste (25% in US) )
ld l kNew Spirit Building Block wNatural Intense Flavor through
rs
‐ Distillation Process‐ New Raw Materials
geo Sustainability agenda
• Create a positive role
• Building thrivingpositive role
for alcohol in society
thriving communities
Alcohol & Society Community
• Reducing our environmentalenvironmental impacts
Environment
USL Diageo Sustainability
ustainability for Alcohol Production – Water ?
j i d f l h l dMajor resources required for Alcohol Industry
1. Water2 F d k A i l l di l d d2. Feedstock: Agricultural commodity also dependent on water
a) Molasses – By Product of Agricultureb) Grain Agricultureb) Grain – Agriculture
Facts about crop wise water usages
‐ Sugarcane: 1157 Kg / 1 kg of Sugar‐ Rice: 2000 lit / 1 kg of Rice
Millets: 200 Lit /1 kg of Grain (Sorghum, Bajra , Finger Millets or Ragi)( g , j , g g )
• Current focus is in water usages reduction in distilleries
• Future focus will be towards water foot print reduction in Agriculture
Value Addition in Alcoho
Raw Material
Raw Material AlcohMaterial Suppliers Produc
Farmers BreweriFarmersDistiller
Input Supplie
Innovation can happePartnership n
ol Beverages – “Grain to Glass”g
Consumer
Pub, Café Restaurant & Hotels
Process
ol Distributers &
& Hotels
cers warehousing
Retails Alcohol shops es & co o s ops– Corner /
Liquor Shopsies
rs – Equipment / Freight / Marketing
en in all three areas – RM, Process, Consumer needed to deliver the consumer need
Spirit Tailoring for Consumers
Spirits Tailored For Indian Consumers
Consumer Preference Mapping
Products with
DifferentDifferent Sensory Attribute
s
ConN
Consumer Cluster Analyses
ed panel: nerate xicons
sumers Know What y Like .. They Don’t wWHY!!!w WHY!!!
BRIDGE GAP
Technology to Tailor Spirit for Consumer NeedTechnology to Tailor Spirit for Consumer Need
• Raw MaterialDifferent type of malt/Grain (e.g. Wheat mayp / ( gchocolate malt ‐ Sweet/toffee)
• Fermentation,M lti b t t ti i d f t ti
nsumer eeds
Multi substrates, optimized fermentationnew generation yeast ‐product specific
• Distillation• DistillationCraft distillation to meet consumer
expectations.
• MaturationVarious wood finishes and Indian wood
raditional Indian Alcoholic Drinks – Make It G
Glo•••
PoFeTodsapFenmad
IndIndpre
Global
obalization of IMFL : Indian Whisky, Brandy, Rum, Vodka and Giny y‐ Due to its affordability and competitivenessClassify as Indian Whisky instead IMFL
opularization of Traditional Drinks like Toddy & ‐ Supplynni ddy : Un‐distilled alcoholic beverage created from palm & coconut p.nni : Traditional distilled Indian Liquor made popular in Goa and
Solution
‐ ProcesOptimizade form cashew and coconut.
dian Single Malt Whisky – Make it Global
Optimiza
dian Single Malt Whisky Make it Global esence
Open InnovationOpen Innovation
Open Innovation
Opportunity for Open Innovation
Alternate Source of Raw Material for ENA
Development of New Generation Yeast & enzyme to Meet the Future Challenges of
Alternate RM
Indian Grain Spirit fromIndian Grain Spirit from different grains e.g. Ragi,
millets etc.
Identify Newer Sources oWood for Maturation
Develop a technology for the utilization of resistant starch to increase the
alcohol yield
Reduction in Water foot printCarbon Foot PrintEnergy Costalcohol yield Energy Cost
Distillation Process with different cuts for new
sensorial blocks (Ester, Low FO, RUM, Grain Spirit etc.)
Potential Partners
OIof OI Ecosystem
Distillery
onclusiononclusion
Indian is epicenter of growth driven by yIndian is epicenter of growth driven by y
Distilleries have made significant progresDistilleries have made significant progresQuality, Effluent management and watertowards “Value Added Spirits” for meeti
dneeds
/Brand owners/partners to work closely tfor Innovation”
‐ Can India be a “Silicon Valley” for Alcohol ? ‐ Networking platform to create value additio
young/ Millennialyoung/ Millennial
ss with time on ENAss with time on ENA r uses ‐ needs to move ng future consumer
to create “Ecosystem
n ‐ AIDA
