THIRUVANANTHAPURAM: The allure of Indian-made foreign liquor (IMFL) branded with Kerala’s identity has captivated investors eyeing international markets, according to private distillers in the state.
The distinct Kerala-branded IMFL has garnered substantial interest, particularly in Gulf countries. Already Keralites living abroad have effectively leveraged the brand in countries where they live.
“Kerala’s global perception as a mystical paradise perfectly aligns with our ambition to place the state on the international beverage landscape and establish it as an Indian spirits export hub. With a favourable export policy, numerous investors are eager to establish their brands here for global export,” said Gautom Menon, an advisor to the IMFL industry.
This trend is evidenced by individuals like Bhagyalakshmi Barrett, a Keralite and co-owner of Rebel City Distillery in Ireland, who introduced the Maharani gin, incorporating spices from Wayanad. Similarly, Malayali immigrants in Canada have launched brands such as Mandakini and Taika. Despite the growing demand for Kerala-branded products, the state faces limitations in its ecosystem for IMFL exports.
It produces very little extra-neutral alcohol (ENA) used in the making of booze, as well as essential resources such as glass bottles, blending, and packaging materials. Additionally, there has been a noticeable absence of investment in the distillery sector for several years. The data underscores the state’s poor export numbers, indicating a viable pathway forward through Kerala branding and essential amendments to outdated abkari regulations.
While the country exported 7,100 shipments of IMFL in 2021-22, Kerala managed only 19, with West Asia the primary market and Malayalis its significant consumers. Of the 47 licensed firms (17 distillers and 30 tie-ups), only two are actively engaged in exports. Nearly 55% production capacity of local distillers remains untapped due to inadequate export promotion policies.
There are calls for reforms to the Abkari Act to make it more pragmatic, by boosting revenue and facilitating local employment. Export promotion is unlikely to affect the local sale of IMFL through Bevco, according to industry experts.
Menon emphasised the stagnation in the state due to archaic laws, contrasting it with other states where startups are establishing units and brands, generating substantial capital. However, recent government initiatives signal a potential revival. Industries Minister P Rajeeve and Excise Minister M B Rajesh held a joint meeting to hear the problems of exporters on August 8. A five-member committee has been formed to address the challenges faced by export units. The committee is chaired by the managing director of KSIDC.
