UB Group to launch readymade cocktails  ( December '26,2000, BS)

The Rs 75-crore Millennium Alcobev Ltd, a subsidiary of the Rs 3,000 crore UB Group, has made a foray into the ready-to-serve drinks (RTD) category. The first of its kind in the Indian market, Millennium Alcobev will launch these drinks in the beer, rum and whisky segments. The company is currently test-marketing the products in Goa.

The ready-to-serve drinks comprise light cocktails with an alcohol content of under five per cent. To begin with, the drinks will be available in returnable bottles of 330 ml and later in cans as well. These will be very competitively priced between Rs 25 and Rs 30. The target audience: youngsters on the move. Says Ravi Jain, vice-chairman and managing director, Millennium Alcobev Ltd: “These drinks are positioned keeping in mind the status-conscious youth who wish to drink labels.” Jain says that the prices have been kept low to build volumes as it is a small margin business.

However, the products will be available in the niche segments of the Indian market. According to Jain, the company is ready for a national roll-out as the production capacities have been lined up. The ready-to-serve drinks is a popular category overseas and a couple of foreign brands are already present in the Indian market. These include Bacardi Breezer and Jim Bim Cola. But it is not competition which is bothering Jain. It is the lack of an advertising opportunity.

Ever since the government banned liquor advertising on television, Jain has been exploring opportunities to publicise the new brands. “Since it is a new category, television would have been the ideal medium to create brand awareness,” says a rueful Jain. In fact, the company post-poned the launch by a couple of months when the ban came into force. In fact, TV advertising for Millennium’s only other product, Zingaro strong beer, was also cut by the ban. The company reportedly sells approximately 70,000 boxes of Zingaro every month.

The other brands from the UB stable are: Black Label, Bullet, Charger, Flying Horse, Guru, Sandpiper and Turbo. By next year, Millennium hopes to sell 3 million cases of Zingaro, thus emerging as the third largest player in the beer category followed by Shaw Wallace and UB. Publicity or no publicity, senior officials at UB say that the test-marketing has not evinced the desire response in Goa.

Apparently, when UB Group’s Mc Dowell’s attempted to get into the category some time back, the product bombed. Now, its is Millennium Alcobev’s turn to wait and watch.