Ups and Downs of Old Monk and Why it’s Failing Now

Friends, today I’m going to share some interesting facts about a rum brand created for the Indian army that has captivated many. Approximately 20% of people in India consume beverages, and each beverage has its own unique taste. However, there’s one brand whose rum addiction is spoken about passionately by every Indian. You might be wondering which brand it is, so let me tell you: it’s Old Monk. This brand has not only captivated India but also gained fans across various countries. Despite its varying prices, Old Monk is an affordable option for everyone, whether rich or poor, which is part of its charm that’s why people loved to drink old monk.

The Rise of Old Monk

There was a time when Old Monk controlled around 50% of India’s beverage market. Even Vijay Mallya, the so-called king of Indian beverages, couldn’t compete with this brand. However, something happened in 2002 that reduced Old Monk’s market value from 50% to 10%. By 2015, there were rumors that the brand might shut down forever, but that did not happen. Still, Old Monk hasn’t regained its former glory. Today, I’ll discuss the reasons behind this decline, but first, we need to understand its glorious history briefly.

The Origin Story

In 1850, people traveled to Shimla to escape the heat of Bombay and Kolkata. British soldiers, who loved their beer, found importing it from England expensive. Edward Abraham Dyer, an engineer, came to India and, in 1854, established a brewery to produce Lion Beer. He named his company Dyer Breweries, and over the years, he expanded with factories in Shimla, Burma, Rawalpindi, and Quetta (the latter two were part of India back then).

In 1887, a businessman named H.G. Meakin bought Edward Dyer’s factories and started producing whiskey. By 1903, with the expansion of railway lines to Shimla, Dyer Breweries’ beers and whiskeys were sold all over India. However, in 1919, a tragic event occurred when Colonel Reginald Edward, son of Edward Dyer, ordered a massacre in Amritsar, leading to a boycott of Dyer Breweries’ products. To counter this, they renamed the company to Dyer Meakin Breweries, but the boycott continued.

The Birth of Old Monk

After India gained independence in 1947, Narendra Nath Mohan bought the company and renamed it Mohan Meakin Private Limited, which is still the parent company of Old Monk. The idea for Old Monk came from Narendra Nath Mohan’s son, Ved Ratan Mohan, in 1954. Observing the numerous beer and whiskey brands in India, but only one rum brand (Hercules Rum), he decided to introduce Old Monk. This rum quickly gained a foothold in the market and became popular even in the Indian army, overshadowing Hercules Rum.

Why the Name ‘Old Monk’?

The name ‘Old Monk’ was inspired by Ved Ratan Mohan’s visit to Europe where he met a Benedictine monk, a follower of Saint Benedict, who led a simple life and enjoyed rum. This encounter influenced both the creation and naming of Old Monk.

Marketing Strategy

One unique aspect of Old Monk is its distinct marketing strategy. Unlike others, it spends nothing on advertising. There are no banners, posters, or digital ads for Old Monk. Instead, the brand relies on its loyal fans to spread the word. Their motto is “Only taste can advertise it.”

The Downfall

In 2002, Old Monk faced no competition, not even from Vijay Mallya’s United Spirits’ McDowell’s Celebration Rum. However, McDowell’s heavily invested in advertising, leading to a significant increase in sales within three years. Old Monk’s annual sales, which were over 8 million cases before 2002, dropped to 3 million, while McDowell’s sales soared to 10 million cases by 2011. Old Monk’s profits plummeted from ₹2.5 crores in 2005 to ₹30 lakhs the following year, and by 2014, the company incurred a loss of ₹20 crores.

In 2012, Kapil Mohan retired, passing the company to his son, whose management could not match the competition. Poor marketing strategy, failed management, an inadequate distribution network, and changing government policies contributed to Old Monk’s decline. Legal distribution issues further increased prices, and a factory in Uttar Pradesh had to shut down due to state government policies.

Old Monk’s affordability was once its strength, but now it struggles as modern consumers prefer premium beverages. Unless Old Monk revamps its strategies, improves product quality, and invests in advertising and partnerships, it risks falling further behind. A shift in approach could reclaim its top spot in the market.