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John Distilleries

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John Distilleries Pvt Ltd
Company typePrivate[1]
IndustryAlcoholic beverages
FoundedBangalore, Karnataka, India (1992 (1992))
FounderPaul P. John
Headquarters
Bangalore, Karnataka
,
India
Number of locations
16 manufacturing units in 12 states[2]
Area served
India, Africa, UAE, UK
Key people
Revenue
  • Increase920.09 crore (US$110 million) (2012)
  • 855.10 crore (US$100 million) (2011)[4]
  • Increase479.33 crore (US$57 million) (2012)
  • 443.42 crore (US$53 million) (2011)[4]
Total assets
  • Increase298.68 crore (US$36 million) (2012)
  • 282.51 crore (US$34 million) (2011)[4]
Total equity
  • Increase86.71 crore (US$10 million) (2012)
  • 79.10 crore (US$9.5 million) (2011)[5]
Number of employees
2000[3]
ParentPaul John Enterprises
Websitewww.jdl.in

John Distilleries Pvt Ltd, abbreviated to JDL or JDPL, is an Indian company that produces distilled beverages, and is a part of Paul John Enterprises. The company's flagship brand is Original Choice whisky. It also manufactures brandy, whisky, wines, and India's second brand of single malt whisky, after Amrut, called Paul John.[6] John Distilleries is a closely held company.[5]

History

John Distilleries was founded by Paul P. John,[7] an NRI from Kerala[8] and the son of a plantation and liquor baron in Karnataka.[9] He currently also has interests in the hospitality and furnishing fabric business.[8] John joined his father's spirits trading business in the early 1990s after completing his Bachelor of Commerce and LLB. The partnership company, called National Wines, supplied spirits across Coorg, Mysore and Kerala. He obtained about 1 crore (US$120,000) with support from his father and the Union Bank of India to fund the business.[10] The company's first distillery was set up in Bangalore, Karnataka.[11][12] National Distilleries introduced its inaugural brand, Master's whisky and brandy. However, Master's was competing only on price in Kerala and Karnataka, and was passed up by consumers. According to John, "That's when I realised the concept of branding and the need for quality consciousness".[10] The company was renamed as John Distilleries Pvt Ltd in 1995, and subsequently launched Original Choice whisky the same year.[10][13] The brand was an instant success, taking JDL into the prestige segment of the Indian whisky market. The company decided to take the brand national by marketing Original Choice across several states, instead of embarking on a multi-brand, single state strategy. The company signed Malayalam film actor Mohanlal as surrogate brand ambassador for Original Choice's brandy and rum business in Kerala. However, the endorsement led to a state issue, causing JDL to lose market share over a one-year supply ban. The company also had to ward off packaging duplication of its patented bottle and label by regional players.[10]

The company's entry into West Bengal and the eastern states was delayed by a legal battle with the Officers' Choice whisky manufactured by Allied Distillers & Blenders (then known as BDA Ltd), over claims of trademark infringement.[10] The argument concerned the use of the shortened name of Original Choice and Officers' Choice whiskies, both of which were abbreviated to "OC".[14] Officer's Choice was registered in October 1990 and Original Choice was registered in March 2008.[15] BDA Ltd adopted the trademark Officer's Choice, assigned by its predecessor Cruickshank & Co, in 1991.[14] The dispute first arose when John Distilleries (then known as National Distilleries), applied for approval of the name Original Choice before the Karnataka excise authorities in 1995. The name was approved by the excise authorities despite a challenge from Allied Distillers & Blenders (ABD), with the company alleging that the idea of branding the whisky as Original Choice was implemented with the help of ABD employees. ABD claimed that it began focussing on the issue seriously, only after JDL began selling Original Choice in Andhra Pradesh.[16]

ABD filed a petition in the Delhi High Court challenging the use of the Original Choice brand name in 2002.[14] In July 2007, the Maharashtra state excise commissioner dismissed ABD's objection to the use of the initials OC by John Distilleries, allowing the firm to use the name Original Choice for the whisky it planned to launch in that state that year. ABD's main complaint was that a product with the name Original Choice would create confusion among consumers as both whiskies shared the abbreviation OC. John Distilleries informed the excise commissioner that it had not violated any provision of the Trade Marks Act because they did not using similar words. The company also stated that the trademark registration given to Officer's Choice was a conditional one and that the use of the trademark does not give any exclusive right to the use of word Choice. The excise commissioner, while dismissing BDA's objection, pointed out that neither company had registered under class 33 of the Trade & Merchandise Marks Act, 1958, which deals with Indian Made Foreign Liquor (IMFL).[17] In September 2007, the Delhi High Court temporarily stalled the introduction of Original Choice in certain states. However, the court allowed John Distilleries to use the Original Choice name in states where the whisky was already being sold, and also held that there was no restriction on John Distilleries selling any other brand belonging to the company.[18] This decision delayed Original Choice's entry into eastern and parts of western India, where Officers' Choice had significant market share. In January 2008, the Trademarks Registry approved Original Choice certification under class 33 for wine, spirits and liqueurs.[19] The Delhi High Court rejected ABD's case against John Distilleries on 11 July 2008, and also lifted its earlier order restraining Original Choice from retailing in new markets.[14] ABD later appealed the decision in the Supreme Court, however, its plea was dismissed and the Delhi High Court ruling upheld.[13] ABD had also appealed before the Intellectual Property Appellate Board (IPAB), a body constituted by the Centre in 2003 to hear appeals against the decisions of the registrar under the Trade Marks Act 1999, but the petition was dismissed.[16] ABD appealed the IPAB's decision in the Madras High Court in September 2009,[15] but the court decided in favour of John Distilleries. ABD later appealed the decision in the Supreme Court, but the apex court dismissed the plea and directed the IPAB to expedite the decision on the trade mark petition.[16]

JDL sold four million cases in 2005. Original Choice was the largest selling IMFL brand in Karnataka that year, selling nearly two lakh cases a month with JDL's overall IMFL sales by volume in the state amounting to around 12 lakh cases.[20] Original Choice sold about 4.5 million cases in 2006,[19] and 6.41-million cases in 2007.[14]

John Distilleries launched the Big Banyan wine brand in 2007. Big Banyan Wines is named after the Big Banyan Tree near Bangalore, where the corporate headquarters of the Paul John Enterprises is located.[21] The wine is manufactured from grapes sourced from the Ramnagaram and Nashik in Maharashtra.[22][23] Big Banyan Wines has a winery in Goa with a 200,000 litres (22,200 X 9 litre cases) capacity next to its distillery. It uses specialized Italian equipment including crushers, press, pumps, bottling lines, besides the multipurpose tanks.[21][22] The chief wine maker is Lucio Matricardi, an oenologist associated with the University of Milan,[24] who was a former consultant at wineries in Italy. His style of wine making reportedly favours young fruity wines which according to him must "whisper aromas and not cover your nose".[23] The company also employs Luca Toninato, a viticulturist, also associated with the University of Milan. Big Banyan initially launched with 5 varieties of wine - Shiraz, Zinfandel and Cabernet Sauvignon in red wines and Chenin Blanc and Sauvignon Blanc in white.[24] John Distilleries officially launched two new variants under its Big Banyan brand on 7 July 2010 at The Paul, Bangalore, a business hotel owned by Paul John.[22] The new variants were Rosa Rossa, a rose wine, and Bellissima Late Harvest Muscat, a dessert wine.[21] Bellissima is an Italian word meaning very beautiful.[22] Bellissima is the first dessert wine in India to be made from the Muscat grape.[25]

John Distilleries acquired Chitali Distilleries Limited (CDL), a large molasses-based primary distillation unit, in August 2008 for 28.75 crore (US$3.4 million). It was John Distilleries first acquisition outside South India, and enabled it to produce rectified spirit and extra neutral alcohol.[26] was merged with JDL on 1 October 2010.[8] Chittali Distilleries was fully owned by the Government of Maharashtra and is located in Shrirampur in Ahmadnagar district. Chittali also contains an integrated township and laboratory facilities for alcohol testing. At the time, Chitali had a production capacity of 1.50 crore bulk litres of alcohol per annum, with permission to increase this capacity to 4.5 crore litres. It had a licensed capacity to produce 87 lakh litres of extra neutral alcohol, 90 lakh litres of absolute alcohol and 17.25 lakh litres of IMFL, annually.[27][28]

In September 2008, JDL appointed creative agency, Creative Land Asia, to design communications for Salute vodka and Mônt Castlé brandy, and also nurture the advertising for JDL's existing, Original Choice whisky.[29] The company initially established itself in South India, retailing in Karnataka, Kerala, Goa, Puducherry and Andhra Pradesh. In early 2009, it began retailing in Punjab, Haryana, Himachal Pradesh, Chandigarh, Rajasthan, Jharkhand, Bihar, Maharashtra and Chattisgarh.[11] JDL launched a brand of French brandy called Mônt Castlé in December 2009. Mônt Castlé was available across Karnataka in frosted glass bottles of 750 ml, 375 ml, 180 ml and 90 ml. The brand later expanded to other states.[30] Its main competition is Mumbai-based Tilaknagar Industries' flagship Mansion House brandy.[31]

JDL sold 12.5 million cases in 2009.[32] On 1 October 2010, along with the Chittali Distilleries merger, two other wholly owned subsidiary companies of JDL, namely John Metal Closures & Allied Products Pvt Ltd, and Chateau De Banyan Ltd, were also merged with JDL.[8] The company launched Roulette brandy in 2012.[33]

The company had been making blended whisky since its foundation, but decided to manufacture single malt whisky in 2008[34] in an attempt to enter the premium end of the market. John Distilleries chose to use Indian ingredients in the first bottling, to give the whisky characteristics of its country of origin. The first bottling of Paul John whisky, branded "Paul John Single Cask 161 Whisky", was officially launched on 4 October 2012 at the Capital Hotel in Knightsbridge, London, England.[35] The brand's second release, also in 2012, was "Paul John Single Cask 163 Whisky" having 57% abv and priced at £60.[36] Following the single cask release, Paul John released two single malt whiskies in May 2013.[37] They were branded Paul John Single Malt Whisky Brilliance and Paul John Single Malt Whisky Edited.[38]

Brands

John Distilleries manufactures brandy, whisky, wines, and single malt whisky. Original Choice whisky contributed almost 95% of JDL's overall sales in 2010.[10] The company currently manufactures the following brands:[39]

Production and Distribution

John Distilleries has a network of 16 manufacturing units across 11 States and Pondicherry. The company's primary distillery, a malt plant is located in Goa. It also has a winery[40] in Maharashtra. The company also owns some blending and bottling units that manufacture IMFL. Many of these units are leased by John Distilleries. As on 30 June 2012, the total installed capacity for IMFL (including leased capacity) was 17.2 million cases annually (14.7 million cases per annum in respect of owned units) and for malt spirit was 0.9 million cases p.a.[5] The is one unit in each of the locations listed below, unless otherwise specified:

John Distilleries currently sells its products in ten States and four union territories (UTs) of India, besides exports to Angola, Congo[disambiguation needed], Ghana, Namibia, the United Arab Emirates and the United Kingdom. The States/UTs it currently retails in are listed below:[41]

References

  1. ^ "John Distilleries aims 30 pc growth". Business Standard. 2010-07-08. Retrieved 2013-07-04.
  2. ^ "Corporate Profile > Our Team". Jdl.in. Retrieved 2013-07-04.
  3. ^ a b "John Distilleries Pvt. Ltd". Jdl.in. Retrieved 2013-07-04.
  4. ^ a b c "John Distilleries Bank Loan Rating" (PDF). Brickwork Ratings. 2012-11-30. Retrieved 2013-07-04.
  5. ^ a b c "John Distileries Credit Rating" (PDF). CARE Ratings. August 2012. Retrieved 2013-07-04.
  6. ^ "Welcome to John Distilleries Pvt. Ltd". Jdl.in. Retrieved 2013-07-04.
  7. ^ "John Distilleries Pvt. Ltd". Jdl.in. Retrieved 2013-07-04.
  8. ^ a b c d "John Distilleries" (PDF). CARE Ratings. November 2011. Retrieved 2013-07-04.
  9. ^ "Recreating an authentic Kerala experience". Express Hospitality. 2006-07-31. Retrieved 2013-07-04.
  10. ^ a b c d e f Sarah Jacob (2010-02-17). "In High Spirits: John Distilleries drafts Rs 150-crore fund raising plan". Articles.economictimes.indiatimes.com. Retrieved 2013-07-04.
  11. ^ a b "John Distillers sees growth with national presence". Ambrosia. Retrieved 2013-07-04.
  12. ^ "John Distilleries seek good brands to drive growth". Ambrosia India. 2009-04-06. Retrieved 2013-07-04.
  13. ^ a b "SC allows Paul John to sell its IMFL under the brand "Original Choice" freely". Fnbnews.com. 2009-03-14. Retrieved 2013-07-04.
  14. ^ a b c d e "Original Choice Whisky can expand to newer markets". Articles.economictimes.indiatimes.com. 2008-07-17. Retrieved 2013-07-04.
  15. ^ a b "ABD drags John Distilleries to SC over trademark row". Financialexpress.com. 2010-02-19. Retrieved 2013-07-04.
  16. ^ a b c M Padmakshan (2013-01-19). "IPAB set to decide on 16-yr-old dispute over the brand name Original Choice". Articles.economictimes.indiatimes.com. Retrieved 2013-07-04.
  17. ^ M Padmakshan (2007-07-11). "Officer's Choice vs Original Choice". Articles.economictimes.indiatimes.com. Retrieved 2013-07-04.
  18. ^ M Padmakshan (2007-09-29). "Delhi HC restrains Original Choice". Articles.economictimes.indiatimes.com. Retrieved 2013-07-04.
  19. ^ a b "Original Choice gets fair marks for trademark". Articles.economictimes.indiatimes.com. 2008-01-12. Retrieved 2013-07-04.
  20. ^ Boby Kurian (2005-12-29). "Original Choice stuns leading whiskies in South". Articles.economictimes.indiatimes.com. Retrieved 2013-07-04.
  21. ^ a b c "Big Banyan Wines adds two new variants". Fnbnews.com. 2010-07-09. Retrieved 2013-07-04.
  22. ^ a b c d "Big Banyan takes a Step Forward". Delhiwineclub.com. 2010-07-13. Retrieved 2013-07-04.
  23. ^ a b "It's all in the grape". The Hindu. 2007-07-18. Retrieved 2013-07-05. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  24. ^ a b "John Distillers uncorks Big Banyan range of wines". Articles.economictimes.indiatimes.com. 2007-07-14. Retrieved 2013-07-05.
  25. ^ "Big Banyan launches two premium wines". Hospitality Biz India. 2010-07-12. Retrieved 2013-07-05.
  26. ^ "Alcobev Magazine for Indian Alcohol and Beverages industry by SAP Media Worldwide Ltd. India". Ambrosia India. 1908-10-27. Retrieved 2013-07-05.
  27. ^ "Paul John buys Chitali Distilleries". Economictimes.indiatimes.com. 2008-08-13. Retrieved 2013-07-05.
  28. ^ "Paul John buys Chitali Distilleries". Articles.economictimes.indiatimes.com. 2008-08-13. Retrieved 2013-07-05.
  29. ^ "Creativeland Asia to handle JDL creative duties". Medianewsline.com. 2009-09-18. Retrieved 2013-07-05.
  30. ^ "John Distilleries introduces Mônt Castlé in India". Hospitality Biz India. 2009-12-19. Retrieved 2013-07-05.
  31. ^ "John Distilleries: From regional to national". Business Standard. 2010-03-15. Retrieved 2013-07-05. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  32. ^ Mitra, Sreerupa (2010-08-31). "John Distilleries eyes No. 2 slot in IMFL market". mydigitalfc.com. Retrieved 2013-07-05.
  33. ^ Sarah Jacob (2012-05-18). "United Spirits, Radico Khaitan & Tilaknagar launch higher-priced brandies to meet rising demand". Articles.economictimes.indiatimes.com. Retrieved 2013-07-05.
  34. ^ Matt C (2012-11-04). "New release - Paul John Single Cask #161". Whiskyforeveryone.blogspot.in. Retrieved 2013-07-04.
  35. ^ "Indian whisky in scotch's back yard". Drinks International. 2012-10-05. Retrieved 2013-07-04.
  36. ^ "Top 10 Whiskies Reviewed in Whisky Advocate's Summer Issue". Whisky Advocate Blog. 2013-05-13. Retrieved 2013-07-04.
  37. ^ Olly Wehring (2013-05-15). "Paul John Brilliance, Edited Indian whiskies". Just-drinks.com. Retrieved 2013-07-04.
  38. ^ "Tasing Notes: Paul John Brilliance and Edited". Blog.thewhiskyexchange.com. 2013-05-21. Retrieved 2013-07-04.
  39. ^ "Brands > Original Choice". Jdl.in. Retrieved 2013-07-05.
  40. ^ "The Company > Manufacturing". Jdl.in. Retrieved 2013-07-05.
  41. ^ "The Company > Distribution". Jdl.in. Retrieved 2013-07-05.

External links