Feb 12, 2015

Hoegaarden back in India after adhering to regulator’s norms

As per new norms, companies must list on the label all ingredients used in the product in form of imprints and not stickers


Liquor companies are swiftly adhering to newer labelling norms, even as they continue to engage with the FSSAI for more simplified labelling regulations. 

New Delhi: Months after many imported beers, includingHoegaarden, disappeared from shops because of stricter enforcement of labelling rules, the Belgian beer is back in the market after the company’s local partner complied with the Indian food regulator’s norms.
Gurgaon-based RJ Corp. (Ravi Jaipuria), the local partner ofAnheuser-Busch InBev NV, adhered to Food Safety and Standards Authority of India’s (FSSAI’s) norms that require importers to clearly state all ingredients of a beverage to be printed on the bottle label.
“We have adapted labels where it was needed,” said Chris White, president and group chief executive officer of Gurgaon-based RJ Corp. “Our company always complies with local laws.”
“We will be bringing in greater quantities in 2015 to satisfy demand,” added White.
AB InBev also sells brands such as Budweiser—locally bottled in India, apart from importing beers such as Leffe, Hoegaarden and Stella Artois into the country.
Trouble for food and beverage importers started in 2014 after FSSAI tightened labelling norms on products.
According to the new norms, companies must list on the label all the ingredients used in the product in the form of imprints and not stickers. As a result of the new guideline, many imported foods and beverage items, including beers such as Hoegaarden, Stella Artois,Corona and Victoria Bitter, were withdrawn from the market.
Business at local breweries and bars across top metros suffered as imported beers were unavailable.
“Stocks are back in the market in a sporadic manner,” said Rahul Singh, founder and chief executive of The Beer CafĂ© that runs close to 20 outlets in cities such as Delhi, Mumbai, Chandigarh, Mohali and Amritsar.
Demand for the Belgian beer, he adds, remained pent up, with consumers showing loyalty to the brand almost immediately, “we are seeing a very positive shelf take-off for the brand since it returned to the market.”
Lack of stock, for over six months, led local pubs and breweries to turn to locally brewed imported style beer in the country to supplement demand for such brands, that have found a niche in India’s domestic beer market dominated largely by United Breweries Ltd and SABMiller India.
More urban, high-income groups have taken to more expensive imported beers over the past few years. The retail price of 330ml Hoegaarden is `210.
“Popularity of these brands is unprecedented,” added Singh.
To be sure, the draught variant of the beer, however, still remains unavailable in the market.
Retailers also have no clarity on when brands such as Stella Artois will be made available.
The supply remains erratic, said Singh, adding that, even though the stock is back, it’s not easily available because of pent-up demand.
Liquor companies are swiftly adhering to newer labelling norms, even as they continue to engage with the FSSAI for more simplified labelling regulations.
“The goals of FSSAI are good ones, and we continue to work with the government as an industry body to make the process of compliance easier for members,” added White, also chairman of All India Brewers Association.

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