ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES

REPORT ON INDUSTRIAL TOUR

TO

MCDOWELLS NO. 1

MERA No.1

DATE: 2013, August 14

SUBMITED TO:

PROF: MAMATHA R
SUBMITED BY: (HR TEAM)

CHETHANA G, MANISHA, ROSHNI V, POOJA, JAYPRASAD, AB DEEPAK,

PAVAN P, SOMNATH SARKAR, SHASHIKANTH, GAURAB.

OVERVIEW
Introduction
Heritage & history
Types of product
Products recycle
McDowells no.1 celebration
Awards
What we learnt

HR TEAM
2013, August 14

INTRODUCTION

Business Type: Trading Company

Product/Service (We Sell):alcoholic beverages, Spirits, Bottled water, Soda

Owner: United Spirits Limited (USL)

Tagline: Mera No.1 (My No.1)

McDowells No.1, the iconic brand from United Spirits Limited (USL), has clocked

retail sales worth Rs 20,504 crore ($3.8 billion) in 2012-13. The sales came from nearly half
a billion 750 ML bottles of itsWhisky, Rum and Brandy franchise.
McDowell's No.1 is an Indian brand of spirits manufactured by United Spirits
Limited (USL), a subsidiary of the United Breweries Group. It is USL's flagship brand and
the

largest umbrella

spirits

brand in

the

world,

comprising

three

categories

whisky, brandy and rum. The brand also has bottled and soda. The brand began with the
launch of McDowell's No.1 Brandy in 1963-64. The brand's slogan is Mera No.1 (My No.1).

HERITAGE &
HISTORY

United Spirits Limited's (USL) history arcs through the space-time-continuum,

leaping backwards to the British Raj of the 19th Century, trotting through the license Raj of
an Independent and Socialist India - through the 50s, 60s, 70s and 80s, coming into its own at
the cusp of the new millennium and now in the Info Age, the clear Numero Uno in the world
alcohol beverages market.

In 1826
McDowell and Co is established as a trading company with its Headquarters in
Madras, by an enterprising Scotsman, Angus McDowell.
History has it, that McDowell's rapidly became the preferred purveyors of fine
imported liquors and cigars that gratified the palates of Maharajahs and British Commandants
alike.

In 1898
New York City is created. Hong Kong comes under the British Crown. Radium is
discovered. And in India, "McDowell & Company Limited" is incorporated.

In 1963 - 64
Following the termination of the import contract for No.1 Bisquit Brandy,
McDowell's launches its own McDowell's No.1 Brandy, creating the template for the No.1
brands that followed.

In 1968
McDowell's No. 1 Whisky launched and proves to be an instant success. Today,
McDowell's No. 1 Whisky is the definitive flagship brand of United Spirits Limited.

WHISKY

McDowell's No.1 Reserve Whisky was launched in 1968, and is a blend of imported
scotch and Indian malt whiskies McDowell's No.1 whisky is sold in several countries apart
from India, including Africa, Canada, the Far East, Japan, the Middle East and the United
Arab Emirates.
McDowell's No.1 Diet Mate, which the company claims is the world's first diet
whisky, is a variant of McDowell's No.1 whisky. McDowell's No.1 Diet Mate was launched
in 2006. The product is aimed at calorie conscious customers. According to Ashok Capoor,
chief operating officer of UB Spirits Division, the whisky contains Garcinia, a herb which has
the ability to burn excess fat and control cholesterol levels in the human body. It is sold in
pint, nip, quartz, and 750 ml bottles, at a cost 5% higher than McDowell's No.1 whisky. The
product was initially launched in Mumbaiand Thane in the first phase, but later expanded to
other markets. Debashish Shyam, then General Manager (Marketing) of UB Group Spirits.
Division stated that "Diet Mate is not a low-calorie whisky but has ingredients that increase
metabolism."
McDowell's No.1 Platinum Whisky, a 100% grain-based blend, developed by
the Scottish master blender Richard Paterson was launched in March 2010. It sold over 30
million bottles in its maiden year.

RUM
McDowell's
launched

in

No.1

Celebration

Rum

was

(Dark)

and

Caribbean (White) variants in 1990-91. It is

sold in 13 countries. USL claims that it is
the second largest selling dark rum in the
world and the largest selling rum in India,
with a domestic market share of 45%.

BRANDY
McDowell's No.1 Brandy was launched in 1963-64,
and was the first McDowell's No.1 branded product. The
brand created the template for the many "No. 1" brands that
the company would launch later. It is the largest selling
brandy in the world by volume. It sold 4.6 million cases in
2004 and 13.7 million cases in 2009.
2012 cognac / brandy brand champion: Courvoisier

VISSION
The company aims to double its volume in the next 5-6 years.
Aggressive plans are drawn up.
Continued innovation, expansion into Emerging markets, building digital marketing
capabilities, supply side investments, building trade marketing capabilities and strengthening
trade relationships will be key drivers in order to achieve the 200 million goals.
USD ten billion set as a target for market capitalization. For the UB Group

MISSION STATEMENT
To be the most admired global leader in the spirits industry by creating unique highquality brands for consumers, driven by highly motivated employees and supported by bestin-class processes and continued innovations. United Spirits is and will continue to be
responsible towards its stakeholders and the society.

SALES
McDowell's No.1 is largest selling umbrella spirits brand in the world. It sold over
13.5 million cases in 2003-04, 6.07 million cases in 2005, and 8.65 million cases in
2006. The McDowell's No.1 brand had sales of 27.5 million cases in 2007-08, McDowell's
No.1 sold 14.3 million cases of whisky, 13.8 million cases of rum and 11.7 million of brandy
in 2010.
McDowell's No.1 sold over 31.5 million cases in the 2008-09 fiscal. McDowell's No.1
Celebration Rum sold over 10 million cases becoming the world's third largest rum, while
McDowell's No.1 Brandy remained the world's largest-selling brandy with sales of nearly S
million cases. McDowell's No.1 also displaced Amul as the largest FMCG brand in terms of
retail value. McDowell's No 1 valued at US$ 1595 million features in the world listing of the
top 100 distilled spirits brands by retail value. The McDowell's No.1 brand achieved retail
sales worth $3.8 billion in 2012-13, selling nearly half a billion 750 ml bottles of its whisky,
rum and brandy, making the brand the largest alcoholic beverage franchise in India by
volume and value.
The following table shows the annual sales of McDowell's No.1:

Sales (in million cases)

Year
Whisky

2001-02

3.8

2002-03

2003-04

5.5

2005

6.1

Rum

Brandy

4.6

2004

2006

8.7

6.2

2007

11.5

7.6

2008

13.4

9.7

2009

13.5

11.2

2010

14.3

13.9

2011

16.1

15.6

2012

19.5

14

13.7

17.8

MARKETING
McDowell's No.1 is mainly advertised through Bollywood and cricket, as well as
sports and music events. The brand has associated itself with Bollywood films such
as Devdas, Road, Kaanteand Stumped, through its "Mera No 1 Entertainment" banner.
On 21 August 2009, McDowell's No 1 announced a tie-up with Shillong Lajong F.C.,
the first team to qualify for the I-League 2009-2010 from North-East India. McDowell's No.1
signedMahendra

Singh

Dhoni for

three-year

endorsement

deal,

worth

26 crore (US$4.1 million), for McDowell's No 1 soda.

McDowell's

No.1

whisky

releases

special

packs

to

commemorate Holi, Diwali and New Year. Since 2002, it has also released special packs for
regional festivals like Baisakhi in Punjab, Carnival in Goa, and the Pujas in West Bengal. A
Special Edition Cricket World Cup pack, a gold pack emblazoned with flags of all the 14
participating nations and a calendar of tournament fixtures, was released to commemorate the
2003 Cricket World Cup. A limited edition of McDowell's No. 1 whisky featuring a glittering
monocarton with hues of gold, burgundy and festive sparkles, specially created for Diwali
was sold in Mumbai during the months of September and October 2009.
McDowell's No.1 has sponsored several music concerts in India featuring artists such
as Mark Knopfler, Enrique Iglesias, Elton John, ShankarEhsaanLoy, Vishal Dadlani and
Shekhar Rajviani, and Rabbi Shergill, Strings, Bombay Vikings, Shibani Kashyap, Abhijeet
Sawant, Kailash Kher and Mika.

PRODUCT RECYCLE

Convert (waste) into reusable material or return (material) to a previous stage in a

cyclic process or use again.

Reuse
Despite efforts to reduce the amount of waste generated, consumers and businesses
still create substantial waste. The U.S. Environmental Protection Agency estimates that each
American generated 4.3 pounds of waste daily in 2009. Much of this waste can immediately
be reused to minimize the strain on the environment and municipal waste management. For
example, consumers can refill a purchased bottle of water with water from home to minimize
the number of plastic bottles being discarded. Consumers have a financial incentive here as
well, as municipal water is far cheaper than bottled water.

Recycle
When waste is eventually discarded, segregating items for recycling from other waste
is important. Recyclables include glass, newspaper, aluminium, cardboard and a surprising
array of other materials. Lead, for example, has one of the highest recycling rates because of
laws requiring the recycling of lead-acid batteries. According to the U.S. Geological Survey,
recycled lead accounts for almost 90 % of the lead used in manufacturing today.

BOTTELS

Recycled for repeated bottle manufacturing, PET pellets are the asked-for material on
the market. The process developed by Buhler serves a worldwide growing market. The
increase in PET packaging in the beverage industry poses major challenges to companies. In
more and more countries, packaging is being reclaimed and recycled. Manufacturing new

products from recycled PET is a business-savvy way to minimize purchasing costs and help
the environment by recycling used bottles. With its bottle-to-bottle process, Buhler provides
the ideal basis for manufacturing top-quality PET pellets from used bottles.
Not only world leading brand owners, but local manufacturers of beverages and food
are also using recycled material for their packaging. The demand for bottle-to bottle recycled
PET is constantly growing, not only because it helps manufacturers improve product quality
and costs, but it is also a political and public relations tool.

SUPER CAP IS A SNAP FIT

TYPE

The super cap is a snap fit type all-plastic closure, which seals on the bottle with
application of top pressure by interlocking special teeth inside the cap with engineered
bottleneck.
No 1 Reserve whisky 375 ml with smart cap. The bottle has a neck finish that has
been uniquely designed in order to accommodate this tamper evident super cap. The neck
ring has been specially designed to hold this cap. The super cap is a snap fit type all-plastic
closure, which seals on the bottle with application of top pressure by interlocking special
teeth inside the cap with engineered bottleneck.

MCDOWELL'S NO.1 CELEBRATION

McDowell's No.1 Celebration Rum is the fastest growing rum brand in the world.
Celebration was launched in 1991 with a modest beginning of a hundred thousand cases.
Today McDowell's No.1 Celebration Rum sells in excess of 14 million cases with a reach
across 13 countries that, makes Celebration the 2nd largest selling dark rum in the world. Part

of the McDowell's franchise with the highest FMCG retail value of Rs 8300 crores (PASH
Beverage Report, Impact International, Nov 2008), Celebration Rum is the largest selling
rum in India, with a market share of 45% and growing. The proud recipient of several
prestigious awards, Celebration Rum owes it success largely to the high quality standards that
McDowell's No.1 Celebration Rum provides its consumers and this has been recognized at
the highest International level.

AWARDS
McDowell's No.1 Celebration Rum has won the following awards for its blend

Silver from the Beverage Tasting Institute, Chicago, USA, in 2008

Bronze at the Monde Selection 2006

2 Stars at the ITQI Awards 2006

Silver at the IWSC 2005

What We Learnt
We came to know that,

How practically the things work in the company and how a product will be well
recognised in the market.

Aim of the company.

Understood the basic relationship between employer and employee.

In what way the company will help our social-economy.

Company will manufacture the products according to the customer needs.

Employ satisfaction and also there precautions are taken by the company.

There are different departments for different section.

There is ample difference in what we study and what we saw practically in the

company / organisation. The industrial visit made us to experience the actual corporate world
and learn its ways of functioning and also facilitated us to know the actual functioning of
different departments in an organization. Also inter-departmental relationship and its
significance practically understood during this visit. The employees of McDowell's provided
us excellent support by viewing their work to us. The McDowell's employ guided us in every
step with all necessary information for doing the organization study. This has made us to
learn that people in organization are accommodative in Human Relations, without their
support it would have been highly difficult to complete the task. Throughout the industrial
visit of McDowell's we have understood that the company is efficient in maintaining the
quality and has overall commitment to sell the best to the clients.