Sunday 18 September 2011

Bhutan Crisis, Travel Retail, Value-Added Project & World's No.1 Ginger Ale

Back in May I wrote about the hardship being felt by ginger farmers in Bhutan whose crops had dropped dramatically in value compared to the previous year. BBS, Bhutan's National Public Service broadcaster, has now reported that the price has continued to fall and has reached a new low. It isn't clear what has caused the fall in price although some in Bhutan blame it on a 'bountiful' harvest in India. I'm not so sure about that as Indian ginger farmers are also suffering from a drop in price. It is ironic that the price is set at the Gelephu auction yard which is also the site of a World Food Programme centre whose role is to alleviate poverty in the country by distributing food aid.

The Boston Globe featured a potted history of the Clicquot Club as told by Paul LaCroix, the great-grandson of the founder of the ginger ale manufacturer. I'll let you read it but I will mention something that I didn't know. The name "Clicquot" was taken from the famous French champagne Veuve Clicquot way back in the 1880s.

A number of sources carried the news that India's largest retailer Future Group has entered a partnership with the Himachal Pradesh state government to promote a range of products, including ginger, under the brand name 'Brand Himachal'. It is hoped that Himachal farmers will have a guaranteed market for their products in Big Bazaar outlets in 80 cities and towns and 65 rural locations across the country. The state chief minister, Kumar Dhumal, believes that the partnership will help farmers to compete in a market currently dominated by China.

The Moodie Report reported that Berry Bros & Rudd (BBR) has identified travel retail as a market with potential for The King’s Ginger. Although the high-strength 41% abv liqueur has been around since 1903, it has only recently been given a new lease of life by BBR. The macerated ginger root drink is made by De Kuyper. If you will allow me, I'm going to shamelessly plug this drink. I'm not a spirits drinker. For years I've only drunk beer and wine. But when I reviewed this product for the All Things Ginger website I instantly fell in love with it. So give it a try. You'll find a link near the top of this page.

When I read the previous report about travel retail it dawned on me that I've never really known what it is. So if you are like me, here is a definition I gleaned from last year's Airline Retail Conference. Travel retail can be defined as "All types of sales to the travelling public". It encompasses duty free sales at airports, on board aircraft and ferries. It also includes sales at off-airport shops, border shops, seaport shops, military and diplomatic sales. Rather obvious really, isn't it? Incidentally, I've also read that travel retail is the best way to advertise a product and build a brand.

Whilst browsing during the week I came across a large project being undertaken in the Indian state of Orissa. The project, A Value Chain On Ginger & Ginger Products, started in April 2009 and will last until next summer when Orissa University of Agriculture and Technology and its four business partners will report on the outcome. The aim of the project is to increase the income for farmers by switching to elite varieties of ginger, improving post-harvest management techniques, introducing value-added product processing and, finally, commanding better prices when going to market. A website has been created for the project if you would like any further information.

The Ginger Ale Authority has named Boylan Bottlework’s Ginger Ale as the World’s No.1 Ginger Ale. The Ginger Ale Authority is a US organisation which reports on the world of ginger ale. A worthy undertaking.

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