Diageo's rum to hit mart

Diageo, the UK-based leading premium liquor company, is all set to tap the Indian rum market with the launch of international brand Captain Morgan Rum, made out of Caribbean spices and vanilla. The launch of medium segment rum brand in India will be followed by premium rum brands such as Pampero, Cacique, Oronoco and other variants of Captain Morgan including Parrot Bay by the end of 2007.

Asif Adil, managing director, Diageo India, said: "We are planning to launch Captain Morgan Rum in the country on March 15. The brand will be priced between Rs 500 and Rs 525 a bottle."

Besides premium brands, Diageo is also exploring the idea of launching an entry-level rum brand in the country at affordable prices. However, Adil refused to divulge the details.

According to industry sources, over 30 million rum cases are sold annually in the country. The market is expected to grow at 35 per cent. Leading rum players in the country are Mohan Meakin's Old Monk (with 65 per cent market share) and Bacardi, apart from UB group's Celebration Rum.

"Rum is mostly consumed in southern states such as Kerala, Tamil Nadu, Andhra Pradesh, Karnataka and some parts of Uttar Pradesh.

Adil said Diageo is planning to launch the products in the southern market and later to expand it across the country. "We will be marketing Captain Morgan with cola drinks. The international brand ambassador Captain Morgan, who represents the legendary pirate and buccaneer, may visit India for promotion campaigns. There will also be television campaigns to woo youths," Adil added.

Diageo boasts of a number of brands across spirits, wine and beer categories, and has presence in the country's premium scotch segment with leading brands such as Johnnie Walker-Black Label, Black & White and VAT 69, and premium vodka with its Smirnoff range.

In August 2006, Diageo formed a 50:50 joint venture with domestic liquor company Radico Khaitan for brand marketing and distribution in the Indian made foreign liquor (IMFL) segment.

However, Adil clarified the rum foray is carried out alone by Diageo India, and that its joint venture with Radico has nothing to do with it.