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Indian rum to tickle palates in US, UK

April 05, 2004 15:22 IST

The UB Group plans to export rum to the United Kingdom and the United States and position it as 'Indian Rum', with an initial shipment of 100,000 cases this fiscal.

"We produce quality rum, which has a unique taste. We feel there is a market for this in the West. We will be selling both existing rum brands and have a new brand Maharaja for these markets," Vijay K Rekhi, president, spirits division, UB Group, told PTI in Bangalore on Monday.

The Bangalore-based UB plans to market the product in the US through its subsidiary Mandocino and is in discussions with active distributors for the UK.

"We are targeting a sale of 500,000 cases in three years, both in the UK and US," Rekhi said, pointing out that UB is exploring sales of Indian Rum in the developed markets, as whisky produced in India is not defined as whisky in the West.

The foray into the West with rum was part of UB's strategy to achieve annual sales of 50 million cases in the next three years, he said, adding the firm had become the fourth largest spirits group in the world, clocking sales of 35 million cases in 2003, joining the league of Diageo, Allied Domecq and Pernod-Ricard.

McDowell and Co and Herbertsons Ltd are the major spirit producing firms of UB, which registered a 15 per cent growth in volumes in 2003 over sales of 30 million cases in 2002.

Rekhi said UB had clocked exports of 500,000 cases last fiscal, a 40 per cent increase over 300,000 cases in 2002.

The UB Group, Rekhi said, planned to introduce Indian flavoured ready-to-drinks (RTD), which will have rum, whisky and brandy as their base.

"We will have a range of five brands and 15 flavours in this segment and will begin test marketing on a limited scale in Goa this May," he said.

The group would invest Rs 25 crore (Rs 250 million) to Rs 30 crore (Rs 300 million) this fiscal on capital expenditure, which would entail upgrading and expanding about 48 bottling plants across the country.


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