Radico Khaitan is expected to hit the market over the next three months with new products that include a deluxe brandy and white rum even as it has rolled out flavoured gin in select markets under a new brand, Magic Moments.
Company officials said the impending launch of a deluxe brandy blended with cognac would be under a new brand while the foray into the white rum segment will be through the extension of the 8PM Bermuda brand.
It must be mentioned that Radico Khaitan had extended the equity of its flagship 8PM Whisky with the launch of dark rum last year. The white rum launch is part of the company's major initiative in the fast growing white spirits business.
"We feel there is buoyancy in deluxe brandy sales in the Southern markets," the company officials said. The monthly sales volume of the deluxe brandy segment in the South is estimated at about 50,000 cases, with the Mansion House brand from Tilaknagar Industries being the leader. The other notable brands slugging it out in this space, priced around Rs 300, include Brihan's Napoleon, Joie De Franc from UB and VSOP Exshaw from Shaw Wallace.
"There is an opportunity in deluxe brandy as the category has suffered from certain lack of attention, with the market leader Mansion House being an underperformer," an industry observer said.
Radico Khaitan had stormed the Southern brandy markets with the launch of the mid-priced Old Admiral Brandy, which is tipped to cross one million cases in the current financial year. The latest move to tap the deluxe brandy could bolster the company's presence in the Southern belt where brandy is a significant flavour.
Meanwhile, as announced earlier, the company has entered the gin category under the Magic Moments brand. The company officials said the selective launch in Northern markets has also showcased the brand in an orange-flavoured twist. The brand is positioned against UB Spirits Division (UBSPD)'s Blue Riband Gin. In fact, Blue Riband, which crossed sales of one million cases in 2003-04, defines the gin market to a large extent.
Radico is slated to enhance its presence in white spirits business with the introduction of vodka under a separate brand shortly.
The Lalit Khaitan-managed Radico Khaitan, which posted a turnover of Rs 727 crore last year, sold 9.5 million cases of Indian Made Foreign Liquor (IMFL) and country liquor. The IMFL sales through frontline brands such as 8PM, Contessa and Old Admiral accounted for nearly seven million cases, with country spirits sales chipping in with the rest.