Modi-Illva JV to launch four iconic Illva Saronno liqueurs in May

For Umesh K Modi this might be his 'face wash' moment. The chairman, president and CEO of the Umesh Modi Group with well diversified interests in pharma, cosmetics, sugar, distillery, among others, narrates a story about how a current cosmetic giant got an entry in the market through the non-existent face-wash segment.

Soon they created a niche and a name that made it the market leader. The launch of four iconic Illva Saronno liqueurs ( Disaronno, Tia Maria, Isolabella Sambuca and Limoncello) by Modi-Illva that launched the premium Artic vodka in 2011 - a 50:50 joint venture between Umesh Modi Group and Illva Saronno, Italy - is Modi's idea of stepping into the fledgling segment of the Indian liquor market.

The liqueur segment is marginal in India. The Indian liquor market, according to Technopak Advisors, is worth $ 5.7 billion and is growing at 15% a year. The total imported liqueurs market is 20,000 cases (of 9 litre each) as opposed to 234.4 million cases of whisky.

"This segment is expected to grow at around 10-12% per annum," says Purnendu Kumar, senior vice-president, retail, Technopak Advisors. But the at-home consumption remains low. Even at the bar, professional bartender Arindam Basu calls it the slowest moving segment.

SLOW YET SWEET
But the liqueur companies are not too worried. Liqueurs are descendants of herbal medicines; first made in Italy as early as the 13th century. The recipe for the bottled mix of fruit, herbs, nuts, spices, flowers, cream or sugar was a family secret and made artisanally. "It has always been a boutique segment," says Stefano Battioni, international marketing director, Illva Saronno.

Disaronno - Illva's core brand that generates 90% of its business from the global market - is a recipe founded in the 16th century and the secret stays safe with Augusto Reina, CEO and member of the Illva Sarono family. Most liqueurs are not only imbued with rich flavours but a rather flavourful history.

Drambuie, one of the few single-malt-based liqueur, was apparently a concoction invented by the royal apothecary and Charles Edward Stuart, a prince, carried it in his hip flask. Cointreau - the orange liqueur - has been around for more than a 100 years, while Jägermeister was launched in 1934 as a digestif - which liqueurs are - and a cough remedy too.

"The liqueur segment is definitely growing," says Rishabh Suresh, marketing manager, India subcontinent, Remy Cointreau. But the going has been slow. Cointreau - one of the more expensive liqueurs (at Rs 3,000 for 700 ml in New Delhi) has a full-fledged liqueur education programme, if one can call it that.

From Cointreauversial nights in nightclubs to promotional events like High Heel nights to Rendevous Prive - where a Cointreau bartender comes to your house to prepare cocktails for a party of 10-15 at Rs 750 a head.

Disaronno
Available in 160 countries, this Italian liqueur is categorised by a taste of almonds and other herbs - a recipe so secret that only the Illva Saronno family along with two others know how it's made.

Tia Maria
Illva Saronno bought the brand worldwide from Pernod Ricard in 2009. It's a coffee-based liqueur originally made in Jamaica.

Isolabella Sambuca
For seven days seven herbs headlining star anise are left to attract their full flavour and then carefully distilled. It's been following the same process since 1870.

Limoncello
Following a traditional Sicillian recipe this liqueur uses Sicilian lemon rind and is a fine addition to ice-cream or fruit cocktails Prices (for all) Rs 2,000-plus for 700 ml.

THE COCKTAIL SHAKERS
Education through experiential nights is Modi-Illva's proposed plan for their four tipples. "We are surely going to concentrate more on on-trade distribution through popular bars and restaurants," explains Abhishek Modi, executive director, Modi Group.

But they, like other companies, have their work cut out. "The drinking culture in India doesn't suit liqueur consumption," says sommelier Magandeep Singh. Even the cloying sweetness of liqueur is a downside. But Modi is confident that the drinking habits are changing. "Young professionals will shape this segment."

For Cointreau, women are its main target and is wooing them with sweet cocktails. Basu says cocktails will be the saviour of liqueurs. "High price of the liqueurs is not the hindering factor.

While a regular cocktail is anywhere between Rs 485 and Rs 585, a liqueur-based one is between Rs 600 and Rs 700 - not much of a difference for Indian partygoers," he says.

Baileys - the Irish cream whisky liqueur from Diageo - is inarguably the most well-known of all liqueurs. At bars, its Bols, De Kuyper and Marie Brizard that rule.

For now, Modi-Illva can only hope that liqueurs become more than just fancy bar accessories. Or maybe their 'face-wash' moment that will not only create a new niche in the Indian drinking scene but define it.