WODKA GORBATSCHOW premium vodka launched by Henkell & Company India Pvt. Ltd., through a joint venture with ABD

Company Brief

New Delhi, July 11, 2008

Allied Blenders & Distillers Pvt. Ltd. have recently entered into a 50:50 Joint Venture with Henkell & Söhnlein Sektkellereien KG Wiesbaden, Germany under the name of Henkell & Company India Pvt. Ltd. to launch WODKA GORBATSCHOW in India.

WODKA GORBATSCHOW has been produced in Berlin since 1921 and is growing from strength to strength – both nationally as well as internationally. With a market share of over 20 per cent, it is Germany’s leading brand of vodka and at the same time the third strongest performing spirits brand in Germany. The brand is now available in premium ranges at all leading licensed liquor stores in select Indian cities. Priced at Rs. 570 for a 750 ml bottle, the brand is being locally bottled at its Aurangabad plant in Maharashtra.

WODKA GORBATSCHOW is the first brand marking the Henkell - ABD alliance in India. The mutual goal is to exploit the large and developing IMFL market in India and to establish WODKA GORBATSCHOW as a leading brand in the premium vodka category. ABD and Henkell have joined forces because the synergies are beneficial for both the companies. All negotiations turned out to be successful and a long-term commitment has been made from both partners.

Commenting on the launch of WODKA GORBATSCHOW in India, Dr. Hans-Henning Wiegmann, Chairman and CEO of the Board of Directors, Henkell & Söhnlein said, "With the stupendous growth of the white spirits market in India in recent years, we recognized the tremendous opportunity that the market posed for a brand like WODKA GORBATSCHOW. Having achieved immense success in Germany, we believe that there is indeed no better time for WODKA GORBATSCHOW to tap the expanding Indian market than now. However we also realized that in order for WODKA GORBATSCHOW to make a serious impact on the Indian alcoholic beverages industry, we needed to gain access to a strong pan India distribution network, which we have now achieved through our partnership with ABD.

This strong international brand WODKA GORBATSCHOW is being produced under license by the joint venture. Henkell & Söhnlein brings to this venture its immense international expertise and production know-how in the spirits, sparkling and still wine business, and will provide all the marketing synergies and financial support for the brand in India. ABD, on the other hand, provides to WODKA GORBATSCHOW its very successful domestic expertise on the production site and an excellent distribution network for the brand all across India. The two companies will continue to operate in their own independent businesses outside of the JV and will maintain their respective brand portfolios.

Says Mr. Deepak Roy, Executive Vice Chairman and CEO, ABD: Emerging markets have been the growth drivers behind the robust performance shown by international players in the alcoholic beverages space over the past 5 years. Having said that, we are privileged to partner with Henkell & Söhnlein, the blue chip in the premium alcohol beverages business worldwide. With such a booming economy, Indian consumers are increasingly connected to global trends and looking for new experiences, thus offering WODKA GORBATSCHOW significant potential. We are confident that Henkell's vast international expertise together with our excellent distribution network all across India will enable us to take the WODKA GORBATSCHOW brand to the discerning Indian customer who values excellence and nothing less than the highest standards of quality.

The brand ‘WODKA GORBATSCHOW’ is highly superior to the other Vodka brands available because of its special triple-chilled filtration process - a technical innovation brought by Henkell to India. This unique filtration process conducted at minus 12°C, after which the vodka is painstakingly double-filtered over charcoal, makes the product extremely smooth and exceptionally pure.

The international profile of the brand is particularly impressive. WODKA GORBATSCHOW is one of the top 15 premium vodkas in the world, and with 1.4 million cases sold it is a member of the “Club of Millionaires”. In 2006, WODKA GORBATSCHOW was awarded the Monde Sélection Gold Medal.

We wished to have entered the market in India years ago, however we strongly believe that WODKA GORBATSCHOW is strong enough to enter a market successfully even with the second wave. We are confident that the product's quality will speak for itself, having done so for decades. Moreover, we believe that ABD, with its strong plethora of brands and pan-Indian presence, is the best-positioned player for a global major like us, looking at a strong India-centric presence. We have backed our brands with good marketing teams and are extremely focused in our approach to the Indian market.” added Dr. Wiegmann.

Henkell & Söhnlein has achieved a global turnover of € 569 Million in 2007. The Company's global reach spans over 10 countries with subsidiaries in Central Europe, and to more than 70 export markets all around the world. The other internationally successful and highly reputable brands of the Group are Henkell Trocken, Deinhard, Mionetto, Champagne Alfred Gratien, Fürst von Metternich, and Söhnlein Brillant, some of which have had a constantly improving track record for over 150 years.

Most of these brands are already available in India, either domestically or through Duty Free shops, but still in small quantities. Despite this, Henkell has achieved ongoing success with its brands Henkell Trocken and Deinhard, due to their high quality. The German Riesling pairs excellently with spicy Indian food, and Henkell sees tremendous opportunities with it in the near future.

For further information, please contact:

Sampark Public Relations

Pushpanjali Singh

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Email: pushpanjali@sampark.com