I feel there is another reason for state government to not let the alcohol business go under GST. It is seen that the central government has been unable to distribute the share of gst revenue of State Government to them on time. Hence, going forward, the state governments will be suspicious of central government and would not allow it to come under gst at any cost.
Just some scuttlebutt which was rather pleasing to do!
I had heard a lot on the conference call about the premiumization project for USL and the evolution in the whiskey category was also spoken about.
This is the new Black Dog product (14 years) which has been introduced. Packaging looks much more premium. The scuttlebutt with the shop owner mentioned that even the other Black Dog variants have seen a packaging upgrade similar to this.
I must admit this is not my usual brand, but currently taste wise it does match up to some of the ones I like to consume - so a thumbs up on this initiative for now!
Hi
Anyone has a report that answers below questions.(globally as well as india)
What are the growth prospects of different beverage types? (Whiskey vs Vodka vs Rum vs Gin vs Beer)
What is the size addressable market?
And a few questions about Indian Alcohol Pricing,
If we see a few wholesalers in NCR are also in the retail business so they sell at very cheap price, eg Red Label around 1000 whereas from retailers we get around 1500 (retail price in Haryana should be more than 1500). So who gets to keep the maximum Margin? Wholesaler or the manufacturer? If wholesalers are having such a huge margin, can there be a price increase for wholesalers? Or retail pricing is decided by some govt laws?
I have a question on one of subsidiary of United Spirits which owns RCB IPL team. With recent transaction on IPL teams and a new Lucknow team valued at over 7,000 Cr.
Mr. Goenka is expecting its valuation to reach at least 10,000 cr in next 3-5 years and has mentioned that the time for sports market as a business to boom in India/Asia has finally arrived. Also, various big groups like kotak/Adani and global groups had bid for over 5,000 cr valuations…what does this mean for united Spirits overall valuation as I see a 10,000 cr valuation of RCB for eg. would mean 15% of current overall mcap of United spirits and that is significant!
Also, anyone aware on long term vision of United spirits/Diageo over this IPL team ownership, do they intend to hold for long term or disinvest/sell strategic stake as they are doing with non-core brands as now this will be significant with valuations based on recent transaction…Does Diageo consider RCB as a core asset or non-core in its overall scheme of things? Thanks
Interesting article from 2019 when Cricket formed 10% of operating profit of United Spirits…now is this a good thing or not so good, I don’t know…I think IPL team would involve upfront costs also to buy players and risk of getting out soon in tournament also?
Do we as shareholders of United spirits should keep track of this aspect of IPL team ownership as well from now on or it is insignificant?
Disc: Invested. Not a buy/sell recommendation. Post only for academic purpose
IPL team is a very good source of branding as well as it will very likely perpetually be profitable (due to its structure), So it does not make sense to divest it even if it’s a non-core asset for USL. Since liquor businesses are too restricted for promotions, It augurs very well and is one of the most efficient way for them for Brand promotion of Spirits business in India.
Also, Since IPL valuations has already grown multifold and expected to do well in future too, Diageo should not get rid of such a asset. Came across this tread on IPL financials which explains it very well.
Hi I am trying to understand the discrepancy between the results seen on Screener vs the reported results. I understand Screener removes the Excise tax that the company pays but even EPS there is some variation. For example for FY 21 EPS is 5.28 but as per the reported results EPS is 5.41.
Hi I had a question regarding the management growth target of double digit - currently the popular segment contributes roughly 35% of sales, so if they are going to restructure this - which might include the selling of certain brands - how will they still achieve the double digit growth target that they have?
Approved the sale of the business undertaking associated with 32 brands and franchising of 11 Popular brands to an unrelated party. The transaction is subject to the approval of the shareholders and other customary closing conditions.