INSUBCONTINENT EXCLUSIVE:
Pernod Ricard and Diageo, two of the world's biggest spirit makers, have stopped receiving orders for their imported brands from defence
canteen stores where they were sold at concessional prices, industry sources told Reuters.The move is seen as part of Prime Minister
Narendra Modi's "vocal for local" campaign in which he has called for promotion of indigenous products to make India self-reliant during the
coronavirus pandemic, a government measure that critics have called protectionist and against foreign businesses.Defence canteens provide
access to both local and imported products such as liquor and electronics at less-than-market rates to soldiers, ex-servicemen and their
families.But Pernod Ricard India, whose brands include Chivas and Glenlivet scotch whisky, received no orders in May for imported spirits,
compared with average monthly orders of 4,500-5,000 cases by defence stores, one source said
One case typically holds six, nine or 12 bottles of liquor.Diageo India too has not received any orders since May for its imported brands
such as the popular Johnnie Walker Black Label whisky and Talisker single malt, a second source said.Pernod Ricard declined to comment and
Diageo did not respond to queries
The defence ministry did not respond.While no written order has been issued, a senior government official said a formal decision in the
matter was imminent."We want to encourage indigenous products with the PM's campaign, it gets more priority," said the official.A bottle of
Johnnie Walker Black Label costs Rs 3,600 in Maharashtra state's defence canteens, a third lower than the Rs 5,500 retail customers pay
there."Drinking scotch has become a habit, this move is going to hurt our pockets," said a retired Indian army official who said he
purchases five scotch bottles each month for himself and his family.While imported liquor sales at defence stores generate only about $17
million in annual sales, the channel generates regular demand for top foreign brands
The canteens sell about $450 million worth of liquor each year, mostly beer, whisky, rum and other spirits, industry sources said.A formal
order to restrict purchases of imported liquor by defence stores will signal an unfriendly business environment, and will be "protectionism
when there is nothing to protect," said an executive working at a foreign liquor company in India."You can't make scotch in India," said the
executive.In May and June, the defence ministry asked liquor firms to provide details of their brands, the country where they are
manufactured and details of imported ingredients used.The ministry had also sought similar answers from other non-liquor firms, the sources
said, but it was not immediately clear which other orders had been halted.
