The no- and low-alcohol drinks market is experiencing a transformative period of growth, driven by evolving consumer behaviours and the momentum of no-alcohol. Across 10 key markets, the combined no/low-alcohol market is expected to expand by +4% volume CAGR through 2028, with no-alcohol driving the majority of this growth, at +7% volume CAGR, while low-alcohol volumes remain broadly static. The no-alcohol category is expected to deliver incremental growth of US$4bn+ by 2028, according to the latest findings from IWSR Global Drinks Industry Data.
IWSR stated that ‘No- and Low-Alcohol Strategic Study 2024’ shows that the no-alcohol segment recruits more new consumers than its low-alcohol counterpart, with an increase of 61 million buyers versus 38 million for low-alcohol (2024 vs 2022) in the 10 key markets (Australia, Brazil, Canada, France, Germany, Japan, Spain, South Africa, UK, US).
New recruits entering the category are skewing younger than the core buyer demographic across markets, and demonstrate higher frequency and intensity of consumption. In line with global trends, alcohol purchases among no/low buyers are decreasing, particularly in the beer and wine categories. Across the 10 key markets, per capita consumption in litres of pure alcohol is at 80% of its level in 2000.
As the no/low category develops and more products come to market, other drivers besides alcohol moderation are becoming increasingly important in increasing consumption frequency, particularly in emerging no-alcohol categories. Factors such as taste, availability and brand are increasing in importance in categories outside of no-alcohol beer.
Susie Goldspink, Head of No- and Low-Alcohol Insights at IWSR, notes: “As the no-alcohol category matures, consumers want more than just an absence of alcohol. They want products that deliver on taste, complexity, and overall drinking experience. This evolution is pushing the category further, prompting brands to innovate and raise the bar in terms of quality and variety.”
No-alcohol will continue to drive future growth
Royalty Non Alcoholic Ginger
Strong growth across no-alcohol categories has continued throughout 2024, with RTDs expected to have the fastest growth rate through to 2028, off a lower base (+10% volume CAGR, 2024-2028). Beer will grow at 7% volume CAGR, and will continue to lead future no-alcohol growth in absolute volume terms.
No-alcohol’s share of TBA across the 10 key markets will increase to over 3% by 2028, with its share of the US TBA market doubling in that time. Brazil, Canada and the US will see higher growth in the no-alcohol segment in the near future, whereas growth is predicted to be more gradual in Spain, South Africa and Germany.
The US and Brazil emerge as key growth markets
No-alcohol growth in the US (+18% volume CAGR 2024-2028) and Brazil (+10%) is expected to come from the recruitment of new consumers, increased frequency of consumption and increased incidence in both markets. Growth in the US will come from a wider array of no-alcohol subcategories, while in Brazil, growth will come almost entirely from beer. Smaller markets such as Canada and Australia, also offer attractive opportunities with relatively high growth rates (7.5% and 5% respectively) off a lower base.
No-alcohol consumption frequency driven by Gen Z and Millennial cohorts
Markets with a younger legal drinking age (LDA) consumer base for no-alcohol, such as Brazil, the US and South Africa, continue to show heavier consumption per occasion, while markets with an older consumer base, such as Japan and Spain, report fewer drinks per occasion.
Gen Z who have recently reached legal drinking age are more likely to substitute non-alcoholic drinks, especially soda and energy drinks, while older age groups are more likely to substitute alcohol, especially beer/cider.
Moderation attitudes vary by age cohort
Of the 10 key markets, the US has the largest proportion of Occasional moderators. Along with the UK, it’s a market in which more buyers have participated in alcohol-free challenges. Younger buyers are more likely to adopt an Occasional moderation strategy, limiting alcohol consumption during defined periods or participating in alcohol-free challenges such as Sober October or Dry January (albeit from a small base). Occasional moderators are more likely to choose no-alcohol beverages based on social influence and training for sports.
Overall, markets skew non-loyal to brands, while younger buyers show more loyalty
Markets such as Spain, UK and Japan tend to be less brand-loyal. In Spain where there is a wide range of available brands, buyers are more likely to choose a different brand in the same beverage category. Meanwhile in South Africa, US and Brazil, consumers are more likely to stay within their preferred brand.
Brand loyalty also varies by age cohort. Frequent drinkers and younger buyers, who are more engaged with the no/low category, are more likely to be driven by brand and sensory characteristics. Up to 57% of Millennials are driven by brands they are familiar with, compared to only 45% of Boomers, who are less engaged and claim more occasional consumption of the category.
“Younger consumers are more likely to be moderating alcohol, but they also drink less alcohol to begin with. These consumers tend to participate in a wider repertoire of no/low categories, and to be more brand-loyal,” notes Goldspink. “Older consumers are less likely to be moderating but more likely not to drink alcohol at all, and their preferences tend to be skewed to no/low beer and alcohol brand extensions.”
Availability remains the key barrier
Availability is the biggest reason preventing people from drinking no/low more frequently in emerging no/low markets such as Brazil, South Africa, and the US. It is a barrier for fewer no/low buyers in more established markets such as Spain, France, Japan and Germany. Greater product availability in the on-trade and via e-commerce is helping to enable category growth.
Pricing is not a main barrier to purchase for consumers, but pricing can enable growth. In the UK and Spain – more developed no-alcohol spirits markets – pricing becomes more aligned with full-strength offerings as the category gains traction.
Innovation trends
NPD investment continues to focus on functional attributes. The brand Free AF, for example, offers no-alcohol beverages that feature Afterglow, a patented 100% natural, gluten-free and vegetarian botanical extract that is said to mimic the warming sensation of alcohol. Meanwhile, Parch Spirits and Cocktails has launched a line of no-alcohol agave cocktails containing desert botanicals and adaptogens such as ashwagandha, L-theanine and ginseng.
Products that do not have added functionalities and are not direct analogues of alcohol categories are also on the rise. Examples include sparkling teas, hop waters, and vinegar-based switchels.
On December 3, the second India-UK 2+2 Foreign and Defence Dialogue was convened in New Delhi. The Indian delegation was led by Piyush Srivastava, Joint Secretary, Europe West, Ministry of External Affairs, and Vishwesh Negi, Joint Secretary, International Cooperation, Ministry of Defence. The UK delegation was led by Ben Mellor, India Director, Indian Ocean Directorate, Foreign, Commonwealth & Development Office and Shimon Fhima, Director Strategic Programmes, Ministry of Defence.
Both sides discussed the entire gamut of India-UK comprehensive Strategic Partnership and emphasised the importance of sustained high-level engagement to advance the dynamic partnership between the two countries. The delegations reviewed progress under the India-UK Roadmap 2030 and agreed on the need to revitalise the partnership by identifying new focus areas of collaboration and work towards a refreshed roadmap.
The discussions covered key priorities including strengthening economic and trade ties with focus on early conclusion of mutually beneficial FTA, bolstering defence and security ties including in areas of cyber and counter terrorism, fostering innovation in critical and emerging technologies, deepening cooperation in clean and green energy and technology, health and enhancing cultural, educational and people to people linkages.
It was agreed that the third edition of the dialogue will be held in the UK at a mutually convenient date in 2025. The two sides unveiled the 10-year roadmap in 2021 to expand ties in the key areas of trade and economy, defence and security, climate change and people-to-people connections among others.
Narendra Modi, Prime Minister of India
It may be mentioned here that during the recent G20 summit in Rio de Janeiro, Prime Minister, Narendra Modi and the British Prime Minister Keir Starmer, the latter had stated that the negotiations for the FTA would be relaunched in 2025. The FTA talks had been paused because of elections in both the countries.
Keir Starmer, Prime Minister of the United Kingdom
The India-UK talks for the proposed FTA began in January 2022. The two sides have held 14 rounds of negotiations on it so far. Both countries aim to strengthen their existing £42 billion (US$52.05 billion – ₹4.48 trillion) annual trade partnership.
Keir Starmer had said, “Boosting economic growth is key to improving living standards for working people. A new trade deal with India will support jobs and prosperity in the UK – and represent a step forward in our mission to deliver growth and opportunity across our country.” Welcoming the statement, India’s Minister of Commerce and Industry, Piyush Goyal hoped that the FTA would be a win-win for both.
UK-India trade
As per reports, the trade between India and the UK was USD21.34 billion as of 2023-24 with UK exports to India accounting for a substantial chunk of that at USD16.6 billion. India, in turn, aims to expand its exports to the UK, targetting USD30 billion by 2030. Mineral fuels, machinery, precious stones, pharmaceuticals, apparel, iron and steel, and chemicals form the bulk of India’s exports to the UK, contributing 68.72% of the total export value.
Britain is aiming to touch USD36 billion by 2035. The UK has been wanting an agreement that includes cutting tariffs on exports of British-made cars and Scotch whisky.
According to Volza’s India Import data, India imported 7,922 shipments of Scotch whisky during March 2023 to February 2024. These imports were supplied by 169 foreign exporters to 159 Indian buyers, marking a growth rate of 3% compared to the preceding twelve months. Within this period, in Feb 2024 alone, India imported 489 Scotch whisky shipments. This marks a year-on-year growth of -16% compared to Feb 2023, and a -9% sequential increase from Jan 2024. India imports most of its Scotch whisky from the United Kingdom, Singapore and the United Arab Emirates.
India leads in Scotch Whisky imports
Globally, the top three importers of Scotch whisky are India, United States and Peru. India leads the world in Scotch whisky imports with 77,806 shipments, followed by United States with 13,417 shipments, and Peru taking the third spot with 2,489 shipments.
It is important to understand how the FTA would impact both the countries. Firstly, it would lead to tariff reductions on Scotch whisky and other products coming from the UK, while India is seeking better access to its goods and professionals. The UK has been negotiating for reduced import duty on Scotch whisky from 150% to 75% immediately when signing the FTA and thereafter to 30% over a period of three years. While Indian whisky makers are open to a reduction, they are opposed to the scale proposed by the UK negotiators.
SWA bats for reduced tariffs
The Scotch Whisky Association has stated that Scotch whisky is the world’s number one internationally traded spirit with exports worth over £5.6bn in 2023. 43 bottles of Scotch Whisky are shipped every second to around 168 global markets, totalling the equivalent of 1.35bn bottles (70cl @40% ABV).
As in 2022, Asia-Pacific continued to dominate as Scotch whisky’s largest regional market by value in 2023, supported record value exports to China, a market up 165% on 2019, and value uplifts Singapore (19%) and Taiwan (8%). Premiumisation of Scotch whisky remains a driver in these key markets: single malt Scotch whisky continued to rise in popularity among a growing cohort of consumers, with double digit growth in China and Singapore on 2022.
The Association cited 2023 exports to India which fell in volume and value compared to 2022, the fall coming against a backdrop of ongoing UK-India FTA talks and the Scotch whisky industry’s calls for a trade agreement which lowers the 150% tariff on Scotch imports into India, which would lead to significant export growth to the market.
Mark Kent, The Association Chief Executive, The Scotch Whisky Association
India is Scotch whisky’s second largest export market by volume, with the equivalent of more than 219 million bottles exported there in 2022. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 2% share of the Indian whisky market. There is huge potential for that to grow.
The Association Chief Executive, Mark Kent said, “The negotiations offer new hope for reducing the longstanding 150% tariff on Scotch Whisky in India. The UK/India trade talks are a golden opportunity to reach an ambitious tariff reduction in an early harvest deal that could grow Scotch whisky exports to India by £1 billion over five years. Tackling the tariff and State level regulatory issues would open the market up to smaller producers who are effectively locked out by the substantial barriers to trade. Improved market access for Scotch would enable an increasing number of Indian consumers to enjoy our premium product. It would also be good for our industry and Indian government tax revenues – a win-win for all.”
Barriers to export success
The Association added that Scotch Whisky is popular among Indian consumers, but a 150% tariff on imports of Scotch Whisky into India mean that it’s significantly more expensive to buy Scotch over Indian whiskies. As a result, India sees many ‘fake’ Scotch whiskies on the market, produced cheaply and traded on the reputation of Scotch whisky as a premium product. This unfair competition, alongside the 150% tariff and combined with the complexity of exporting whiskies into India, mean that many Scotch whisky producers are unable to enter this important market. Breaking down these barriers to trade in India would open up huge opportunities for Scotch whisky exports.
Potential for USD1.3 billion over next five years
The Association added that a UK-India trade deal has the potential to increase Scotch whisky exports to the country by £1bn over the next five years. “Reducing the 150% tariff on Scotch Whisky would make it more affordable in India, while still remaining a high-end, premium product. If the tariff were liberalised, Scotch whisky’s market share could treble to 6%, giving greater access to Scotch whisky products for Indian consumers, but still allowing Indian whiskies and other spirits to retain the dominant share of the market.”
Good for Scotland and the UK
Many more Scotch whisky companies – including smaller and independent producers – would gain access to the Indian market to sell their whiskies. If the tariff were reduced and exports were to rise, India would overtake France as Scotch Whisky’s second largest market by value worldwide, second only to the United States.
Boosting access to the Indian market would secure jobs and investment in the Scotch whisky industry across Scotland into the future. The industry’s contribution to the economy would rise by more than £300 million to nearly £6bn. Higher exports mean higher production – there would be a significant impact into the supply chain in Scotland and across the UK, also growing jobs and investment.
Good for India
The Association mentioned that “bringing down the 150% tariff on Scotch whisky would increase Indian government tax revenue at federal and state level by £3.4 billion annually through an increase in sales. Scotch whisky would be able to compete fairly alongside Indian whiskies, which will continue to dominate the Indian whisky market.
Because a lot of the whisky exported to India is sent in bulk (some for bottling as Scotch whisky, most for use in Indian whisky) bringing down the tariffs would also support domestic producers, reducing their costs and boosting employment in the Indian industry.” However, the Indian whisky manufacturers are opposed to the scale of reduction and are ok with tariffs reduced progressively to 50% over the next 10 years. The negotiations are going to be tough and it remains to be seen who will stand to benefit.
The alcobev sector flourished in 2024, balancing growth with challenges. Premiumisation, innovation, and sustainability stood out as key drivers of success and future opportunities.
India’s alcobev industry has grown to become one of the fastest-developing sectors in the country, showcasing its transformation from tradition to modernity. Over the past few decades, this sector has emerged as a dynamic force, fuelled by changing consumer preferences, increased disposable incomes, and a rising affinity for premium and artisanal beverages.
Per capita alcohol consumption in India has risen significantly, growing from 1.3 litres in 2005 to approximately 3.1 litres in 2022, reflecting the country’s evolving consumer base and expanding market. In 2024, the alcobev sector reached a valuation of $55 billion, driven by a compound annual growth rate (CAGR) of more than 6%. Analysts project that by 2025, the sector will see further growth, with an expected CAGR of 8-10%.
This growth trajectory has been supported by increased urbanisation, a young population eager to explore global trends, and a shift toward mindful indulgence. However, the industry faced its share of challenges, including escalating production costs, supply chain inefficiencies, and regulatory complexities. To better understand the highs and lows of 2024, key industry players provided their perspectives on consumer trends, innovations, and the future outlook.
Consumer Preferences Shape the Market
The year was largely defined by the shift in consumer preferences, with buyers driving the industry toward greater innovation and authenticity. Modern consumers demand products that resonate with their values and provide unique experiences, prompting brands to innovate across production, marketing, and packaging.
Vikram Damodaran, Chief Innovation Officer at Diageo India
Vikram Damodaran, Chief Innovation Officer at Diageo India, attributed much of the year’s success to this change. “Today’s consumers are looking for more than just a drink; they seek experiences rooted in quality, authenticity, and sustainability. We have embraced this change by leveraging our heritage, incorporating locally sourced ingredients, and celebrating artisanal techniques. This approach has not only strengthened our connection with audiences, but has also earned us over 70 national and international awards,” he explained.
Tarun Bhargava, Proost’s Co-Founder and CEO
Proost’s Co-Founder and CEO, Tarun Bhargava, shared how their brand remained focussed on balancing quality with environmental responsibility. “While trends like IPAs and craft beers dominated the market, we stayed true to our core identity, producing beer with consistently unique flavours. Consumers appreciate our mature, well-crafted beers free of off-notes. Also, we’ve adopted practices such as reusable packaging to align with the expectations of eco-conscious buyers,” he said.
Shekhar Swarup, Joint Managing Director at Globus Spirits Ltd.
Shekhar Swarup, Joint Managing Director at Globus Spirits Limited, stressed that sustainability and authenticity extend beyond production. “We’ve implemented advanced water management systems and effluent treatment technologies to significantly reduce our environmental impact. Each bottle tells a story of authenticity, showcasing top-quality ingredients, time-honoured distillation methods, and artisanal techniques. This ensures that sustainability and authenticity are central to both our products and operations,” Swarup shared.
Premiumisation Gains Momentum
The move toward premium offerings was another defining trend of 2024, with younger consumers showing an increased preference for high-quality, craft, and luxury beverages. This trend highlights a growing demand for exclusivity, innovation, and elevated drinking experiences.
Rupi Chinoy, Director of South Seas Distilleries
Rupi Chinoy, Director of South Seas Distilleries, spoke about the success of their Crazy Cock Single Malt. “Crazy Cock is a journey. The name reflects the founder’s bold vision, resilience, and passion for creating something extraordinary. Our mascot, the cock, symbolises a new dawn for South Seas Distilleries and the Indian single malt category. This spirit represents decades of dedication and meticulous craftsmanship,” Chinoy explained.
Adding to their accomplishments, Rupi highlighted the launch of Six Brothers Mahura (Mahua), a unique spirit firmly rooted in Indian heritage. “Our Six Brothers Mahura, crafted from 100% Mahura flowers native exclusively to India, revives a legacy long overshadowed during colonial times. As the country’s first commercial distillers of Mahura, we see it as our mission to bring this category to global prominence. Mahura has the potential to become India’s ambassador on the international stage, standing shoulder to shoulder with spirits like Tequila from Mexico and Cognac from France,” she shared.
What distinguishes Six Brothers Mahura is its unparalleled authenticity. “This is a spirit no other country can replicate. Distilled in the same copper pot stills as Crazy Cock Single Malt and platinum-filtered for an exceptionally smooth finish, Mahura is versatile…ideal for sipping neat, on ice, or as a cocktail base. Its reception in the bar scene has been phenomenal, with establishments like Bandra Born hosting the world’s first dedicated Mahura bar, exclusively serving Six Brothers cocktails that have quickly become a sensation,” Chinoy elaborated.
Globus Spirits took advantage of the premiumisation wave by introducing DŌAAB India Craft Whisky. The first edition, Six Blind Men and the Elephant, was designed to appeal to discerning drinkers who value creativity and tradition. This product showcased the growing appetite for unique offerings that bridge the gap between heritage and modernity.
Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura
The agave-based spirits segment also gained traction in 2024, with many referring to it as the “Year of Agave”. Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura, highlighted the category’s growth. “Agavepura is a 100% pure agave spirit that stands apart from tequila and mezcal. It reflects our homegrown roots while appealing to the global palate. As cocktail culture evolves and celebrity endorsements grow, agave-based menus are becoming more prominent in bars across India. We are proud to lead this movement, fostering greater appreciation for authentic, well-distilled agave spirits,” Pereira said.
Leti Blagoeva, Co-Founder SLAB Ventures
SLAB Ventures tapped into the premium spirits market with a lineup that has garnered global recognition. Co-Founder Leti Blagoeva detailed their offerings, saying, “Our Single Estate Vodka is made in Poland, the birthplace of vodka, exclusively from winter wheat and filtered through rare black pearls, ensuring unparalleled smoothness. Meanwhile, our whiskies, INCEPTION and VORTEX, are crafted in Scotland and have received gold medals at several prestigious international competitions. D’YAVOL INCEPTION was even named the ‘Best Overall Scotch’ at the New York World Spirits Competition.
“Looking ahead, we are excited about expanding our range of spirits. In 2025, we plan to launch an Anejo Tequila crafted in Jalisco, Mexico, in keeping with our commitment to authenticity. Moreover, we are broadening our global reach; D’YAVOL will soon be available in the UK and the US. For us, it’s still the beginning, and there’s much more to come from the brand in the coming years,” Blagoeva commented.
The Experiential Turn
The year 2024 also marked the rise of experiential marketing, as brands sought to create deeper connections with consumers by offering immersive experiences. These efforts went beyond traditional marketing, emphasising storytelling, creativity, and meaningful engagement.
Swarup enlightened how Globus Spirits leveraged this trend. “With Six Blind Men and the Elephant, we offered an experiential journey. This limited-edition release allowed us to involve with consumers who value exclusivity and creativity, encouraging a stronger bond with our audience,” he said.
Similarly, SLAB Ventures leaned into experiential marketing through its D’YAVOL AfterDark platform. Blagoeva described the initiative, saying, “Consumers today look for more than good products; they want to engage with the brand’s story. D’YAVOL AfterDark combines exclusive artists, signature cocktails, and a vibrant nightlife atmosphere. This initiative has reverberated not only in India, but also in international markets like the UAE and Australia.”
Varun Jain, Founder and CEO of Smoke Lab
Varun Jain, Founder and CEO of Smoke Lab, explained how their premium events brought the essence of Smoke Lab Vodka to life. “We curated a series of events that embodied our brand ethos, from art-infused cocktail evenings to sensory experiences like Smoke Lab Nights, where guests explored our vodka variants paired with music, visuals, and gourmet cuisine. Collaborations with leading mixologists, chefs, and lifestyle brands helped us to deliver unique experiences,” he stated.
He also highlighted partnerships with sustainable fashion and design brands to reflect Smoke Lab Vodka’s commitment to modern luxury and environmental responsibility. “To enhance exclusivity, we introduced limited-edition bottles featuring bespoke packaging inspired by contemporary art and design. These bottles were accompanied by curated tasting notes and recipes, encouraging consumers to celebrate with elegance and creativity,” Jain added.
Vikram Achanta, Founder & CEO of Tulleeho
Vikram Achanta, Founder & CEO of Tulleeho and Co-Founder of 30BestBarsIndia and India Bartender Week, shared his perspective on the growing importance of experiential drinking. “Experiential events have become a central aspect of consumer engagement, offering meaningful opportunities to connect with the beverage community. This year, Tulleeho participated in marquee events like ProWine, Bar Convent Berlin (BCB), and exclusive masterclasses highlighting Sake, among others,” he noted.
Achanta also underlined the growing popularity of travel-inspired events, with consumers seeking pop-ups and bar takeovers by world-renowned establishments. “The recent takeover by Handshake Speakeasy, crowned the world’s #1 bar in 2024, in Jaipur is a prime example. We anticipate immersive drinking experiences gaining even more momentum in 2025. To prepare for this, we are exploring new opportunities, including events with Tulleeho Tequila Club,” he added.
Challenges and Adaptation
Despite the successes, the alcobev industry faced significant hurdles. Mounting raw material costs, supply chain disruptions, and regulatory changes created obstacles that required companies to remain agile and innovative.
Bhargava outlined these challenges, saying, “We faced price pressures due to intensifying costs, logistical delays in obtaining permits, and changing excise policies. Adapting to these circumstances demanded a proactive approach and collaboration across teams to ensure smooth operations.”
Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd
Adding his perspective, Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd., reflected on the complexities of managing these challenges while launching a new premium offering. “As leaders in the brandy category, we recognised the need to elevate its perception. This led to the launch of Monarch Legacy Edition, our first luxury brandy, in November 2024, aimed at redefining the category and spotlighting the depth and complexity of brandy. However, navigating volatile commodity prices, particularly ENA and packaging materials, was a major obstacle. We overcame this by strengthening our asset-light model, ensuring robust cash flows, and focussing on premiumisation to improve margins. Agility and staying attuned to consumer needs allowed us to turn challenges into opportunities,” he mentioned.
Nevertheless, the industry’s resilience shone through as brands implemented strategic solutions to navigate these difficulties. Investments in technology and sustainable practices helped mitigate challenges, ensuring continued growth.
Urban and Rural Synergies
As the alcobev sector looks ahead, balancing urban sophistication with rural potential has become a critical focus. While metropolitan regions continue to demand premium products, rural areas present untouched opportunities for growth through tailored offerings and localised strategies.
Bhargava described Proost’s approach to addressing this divide. “In cities like Delhi and Gurgaon, we are concentrating on launching lagers that cater to refined tastes. For rural markets, the weight is on deeper penetration and affordable products that resonate with local preferences,” he shared.
Simba Beer and ZigZag Vodka, co-founded by Ishwaraj Singh Bhatia, are also pursuing a dual-market strategy. “Rural and urban audiences require distinct approaches. By combining innovation with eco-conscious practices, we’re catering to the needs of both markets effectively. Plans are underway to introduce new flavours and experiences that further immerse consumers in our vibrant world,” Bhatia noted.
Future Outlook
Looking ahead to 2025, the alcobev industry is poised for further growth, with estimates suggesting a valuation of $60 billion and annual sales exceeding 1.2 billion cases. The focus on innovation, sustainability, and health-conscious options is expected to drive this expansion.
Jain shared his company’s plans for the upcoming year. “We are introducing vodka flavours inspired by regional and global culinary influences, launching limited-edition artisanal vodkas aimed at connoisseurs who value exclusivity, and enhancing our presence in emerging markets like Europe, Australia, Asia, and Latin America. We will also strengthen our reach in established regions such as the U.S. and the Middle East by forming partnerships with premium distributors,” he said.
Ishwaraj Singh Bhatia, Co-founder and COO, Simba Beer and ZigZag Vodka.
Bhatia accentuated the importance of aligning with evolving trends. “We foresee 2025 as a year of experiential consumption, eco-friendly practices, and personalised premium offerings. At ZigZag, we will focus on creating immersive brand experiences, implementing sustainable methods, and collaborating with mixologists to craft innovative, trend-driven products that resonate with today’s consumers,” he conveyed.
Damodaran pointed to two critical trends expected to shape the future of the alcobev industry. “Affluent consumers are seeking bespoke, exclusive experiences, while younger demographics are driving the demand for low- and no-alcohol options,” he observed.
Damodaran also talked about plans for Indian craft spirits. “We are closing 2024 on a high note with Godawan’s entry into the UK market. In 2025, we aim to build on this momentum through The Good Craft Co.,” he added.
Tilaknagar Industries Ltd. has ambitious goals for the year, particularly in the brandy segment. “In 2025, our aim is to increase brandy’s ‘share of voice’ in the market,” stated Dahanukar. “Following the launch of our luxury brandy and whisky portfolio, we plan to drive further marketing investments. Monarch, in particular, has already seen strong pre-order interest from export markets in Asia and the Middle East, and we intend to deepen our reach in southern India. Alongside this, we are preparing to expand our portfolio across both local and international markets,” he informed.
As the industry evolves, driving change and nurturing creativity will remain essential for long-term success.
Cheers to 2025! Tipplers across the country have given the liquor trade a good enough reason to be cheerful. Liquor sales have hit the roof, just in the two days as revelers rang in the new year. The southern states of Karnataka, Andhra Pradesh, Telangana and Kerala have shown robust sales. According to estimates, Telangana has broken all records with liquor sales of over ₹800 crores on December 30 and 31, eight times the usual daily sales of around ₹100 crores.
The Telangana State Beverages Corporation Ltd (TSBCL) sources have told some media that last year the sales were around ₹700 crores on December 30 and 31 and this year the increase was phenomenal. Telangana registered liquor sales of about ₹402 crores on December 30 and ₹401 crores on New Year’s Eve night as revelers flocked to bars and restaurants; liquor stores and enjoyed at home drinking. There were hundreds of parties that rocked the city of Hyderabad which had the most sales, followed by surrounding districts of Ranga Reddy and Medchal.
Telangana has overtaken its previous record of liquor sales in the month of December. This year the government raked in a revenue of ₹3,523.16 crores, compared to ₹2,764 crores in December 2023. With Sankranti round the corner, excise officials expect the momentum to continue, though not on the same scale as year-end celebrations. The Telangana government has set a target of ₹45,000 crores from excise for 2024-25.
As per media reports, Uttar Pradesh came next in sales, having done a business of nearly ₹600 crores, breaking its previous record.
Karnataka rakes in nearly ₹1,000 crores in end December
Karnataka, more so Bengaluru which is known for its pub and cocktail culture, witnessed its highest single-day liquor sales of ₹409 crores on December 28 as residents and bars stocked spirits. The Karnataka State Beverages Corporation Limited (KSBCL) reportedly sold liquor worth ₹308 crore during New Year celebrations in the state against the target of ₹250 crores. At least 4.83 lakh boxes of Indian-made liquor (IML) were sold generating revenue of ₹250.25 crore. Around 2.92 lakh boxes of beer bottles were sold for ₹ 57.75 crore. In total 7,76,042 lakh boxes of liquor were sold.
December has been an exceptional month as during Christmas too there were good sales. On December 27, ₹408.58 crore liquor sale was registered. Around 6.22 lakhs of IML boxes and 4.04 lakh beer boxes were sold, generating business of ₹327.50 crore and ₹80.58 crore.
Andhra Pradesh sales hit a new high
Tipplers in Andhra Pradesh gulped down liquor worth nearly ₹300 crores on New Year’s Eve, double the amount of liquor sales during the previous year (₹147 crores). To encourage sale of liquor, the Andhra Pradesh government allowed the retail vends to be open until midnight, while bars were permitted to dispense liquor till 1 am.
The port city of Visakhapatnam registered sale of liquor worth ₹11 crore on December 31 alone with around ₹ 8.89 crores sales happening through 145 liquor outlets in Visakhapatnam district; ₹ 1.55 crores from 119 bars; ₹17 lakh sales from 12 star hotels; ₹8 lakh sales from six clubs and ₹ 7.5 lakh from four tourism hotels, according to the Superintendent of Excise, R. Prasad. Visakhapatnam average daily sales is ₹ 5 crores.
Delhi touches ₹400 crore sales
Delhi also saw liquor sales worth ₹400 crore, with hotels, bars and party events consuming the most alcohol, while Noida had sales touching ₹16 crores on December 31 and January 1, 2025, boosted by the extended hours of vending.
Kerala sees more sales during X’mas
In Kerala, it was Christmas season which saw Keralites guzzle more beer and liquor than during New Year’s Eve. On December 24-25, beer and liquor sales in Kerala was about ₹152 crores (₹94.72 on December 24 and ₹54.64 crores on Christmas day) while on New Year’s Eve it was ₹108 crores, nevertheless ₹13 crores more than the previous year.
The Kerala State Beverages Corporation (KSBC), the sole wholesaler of alcoholic drinks in the state, released these figures. It said that the sale of liquor and beer was about ₹19,088.68 crores in 2023-24, up from ₹18,510.98 crores in 2022-23. The profile of liquor consumers in Kerala reveals that around 32.9 lakh people out of the 3.34 crore population in the state consume liquor, which includes 29.8 lakh men and 3.1 lakh women. Around five lakh people consume liquor on a daily basis. Of this, as many as 83,851 people, including 1,043 women, are addicted to alcohol.
Volcan de mi Tierra, the ultra-premium tequila brand by Louis Vuitton-Moët-Hennessy is launching its portfolio in India. Volcan de mi Tierra brings the finest tequila offerings – Blanco, Reposado, Cristalino and the extraordinary Volcan X.A, to Indian consumers.
Rooted in over 300 years of heritage and passion, Volcan de mi Tierra draws on the time-honoured traditions of the Gallardo family, whose roots in the tequila-making process trace back to 1774 at the famed Hacienda La Gavilana in Jalisco, Mexico. In partnership with Moët Hennessy, the Gallardos’ mastery in tequila craftsmanship is combined with Moët Hennessy’s global savoir-faire, resulting in a product that celebrates the art of tequila making, authenticity, and innovation in every sip.
Volcan is associated with NOM 1523, a prestigious distinction in the tequila industry. With over 2,200 tequila brands made from 169 distilleries in Mexico, Volcan stands out as one of only five additive-free single nom distilleries which are 100% additive free in the world highlighting commitment to the highest standards of quality and purity. Driven by a passion to craft the best of what tequila can offer, Volcan de mi Tierra uses the finest 100% Blue Weber Agave. Its all-natural flavour and colour result from Volcan’s expertise in blending and aging. Each bottle is hand painted numbered and sealed reflecting exceptional craftsmanship. Its handcrafted field to bottle.
The Volcan portfolio honours Mexico’s terroir, with each expression showcasing the spirit of Jalisco capturing the essence and energy of the volcano’s raw natural power and allows different tequila profiles to come together in perfect harmony.
Volcan Blanco: A pure expression of 100% Blue Agave, this perfectly balanced tequila offers subtle sweetness and natural flavours of agave with delicate hints of grapefruit, a touch of black pepper spice resulting in a well-balanced finish.
Volcan Reposado: Aged in American and European oak barrels, the dual aging process brings out the intricate complexity and refined finesse of our carefully selected agave, terroir and wood. Soft with a rich mouthful. Balanced and smooth.
Cristalino: Aged and charcoal filtered for clarity. Further finished in Cognac and whisky casks giving it the primary notes of caramel, tabacco, and dark chocolate followed by the secondary notes of vanilla, soft spices and dried fruits.
Volcan X.A: A true masterpiece, this innovative blend of Reposado, Añejo, and Extra-Añejo tequilas is a unique assemblage of ages. Crafted from 100% Blue Agave, without any additives, XA reveals a perfect balance of cooked agave, hint of spices and sweet aromas delivering an unparalleled richness and complexity that sets a new standard in the world of tequila.
“Volcan de mi Tierra brings a distinctive offering with its positioning of being one of the only five Tequila’s worldwide with a single nom and 100% additive-free – it delivers an authentic expression of Mexican terroir and craftsmanship,” says Smriti Sekhsaria, Marketing Director, Moët Hennessy India.
Volcan de mi Tierra is available in Goa, Haryana, Mumbai and Airports and is priced –Volcan Blanco- ₹10,267; Volcan Cristalino – ₹15,967; Volcan Reposado – ₹12,198; and Volcan XA – ₹39,107.
It’s the holiday season and what better way to celebrate than to sip on some truly exceptional cocktails? Dive into this list of must-try cocktails to bring in the festivities. Whether you’re throwing a New Year’s party or enjoying a cosy holiday dinner, try your hand at these festive and flavourful concoctions from some of India’s top brands which are bound to bring in the festivities and leave one in great spirits (pun intended)!
Madras Mahura by Six Brothers Small Batch
Elevate your cocktail game with a vibrant and refreshing blend that marries the bold, heritage-rich flavours of Six Brothers Small Batch Mahura with the tangy brightness of cranberry and orange juice. Madras Mahura is the perfect drink to celebrate in style – Six Brothers Mahura’s floral spice notes add depth, while the cranberry juice delivers a crisp, slightly tart kick, perfectly complemented by the sweet and citrusy notes of fresh orange juice.
This holiday season, elevate your celebrations with Six Brothers Small Batch – India’s first global luxury heritage spirit. Made from 100% Mahura flowers, indigenous to India, this exquisitely sophisticated and versatile white spirit is destined to become a global icon. Just as top-tier spirits like Tequila defines Mexico and Scotch represents Scotland, Mahura is set to represent India on the world stage as our global ambassador – a spirit that is uniquely and authentically ours. South Seas brings you the most refined expression to date with a distinct and unforgettable flavour profile. Double distilled in India’s largest copper pot stills, which also distill India’s oldest single malts Crazy Cock Single Malt Whisky, Six Brothers is further platinum filtered for a clean finish.
Ingredients:
Ice cubes
60 ml Six Brothers Mahura
90 ml cranberry juice
30 ml orange juice
An orange peel (for garnish)
Method:
Fill a highball glass with ice cubes
Add Six Brothers Mahura, cranberry juice, and orange juice over the ice
Stir gently to combine the ingredients
Twist a strip of orange peel over the drink to release its oils, then place it as a garnish
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The Spice Route Negroni by Monarch Legacy Edition
If you haven’t explored brandy cocktails yet, here’s your cue. Monarch invites you to experience ‘A Royal Welcome’. This brandy stands out as the world’s only 100% pure grape brandy that marries both French grape spirits aged up to eight years with the finest Indian grape spirits from the Sahyadri region.
The Negroni, a timeless classic, is traditionally known for its balance of bitterness and sweetness, usually crafted with gin, Campari, and sweet vermouth. However, when crafted with an exquisite brandy like Monarch Legacy Edition, this iconic cocktail takes on a delightful twist that adds depth and warmth to its profile.
This drink carries a smooth, rich texture and subtle hints of dried fruit, caramel, and oak. These nuanced flavours complement the vibrant bitterness of Campari, while the sweet vermouth introduces a gentle sweetness that harmonises perfectly with the brandy’s complexity. The result is a Negroni that’s both familiar and refreshingly new – a warm, rich take on the classic that stands up to the bold, herbal Campari and brings a unique elegance to the drink.
Ingredients:
Monarch Legacy Edition – 30 ml
Spiced vermouth infused with nutmeg and star anise – 30ml
Campari – 30ml
2 dashes of orange bitters
Glass: Old fashioned
Ice: Block
Method:
Add all ingredients into a mixing glass, stir and serve chilled in an old-fashioned glass over a block of ice. Garnish with star anise.
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Añejo Manhattan by Pistola
A festive twist on a timeless classic, the Añejo Manhattan combines deep amber tones and a smooth, smoky finish that perfectly captures the warmth of the holiday season. Featuring Pistola’s 100% Agavepura Añejo, an additive-free and famously smooth spirit, it pairs beautifully with the sweetness of vermouth and a hint of cinnamon, evoking cosy Christmas vibes. Easy to recreate at home, this cocktail offers a refined drinking experience that’s as guilt-free as it is hangover-free. Cheers to a no-brainer way to toast the season!
Ingredients:
22 ml – Sweet Vermouth
45 ml – Pistola Añejo
5 ml – Cinnamon Syrup
Method:
Assemble all ingredients along with ice, in a beaker and stir
Pour into a Nick & Nora glass
Garnish with a Maraschino cherry
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Down The Chimney by Geist Brewing Co.
Rich, bold, and brimming with festive cheer, Down the Chimney strikes the perfect balance between sweetness and citrusy zest. The warming notes of whisky are elevated with orange bitters and chocolate liqueur. Topped with a gold coin garnish, it’s a sip of holiday magic.
Ingredients:
Whisky – 30 ml
Orange Bitters – 3 dashes
Chocolate Liqueur – 45 ml
Chocolate Coin as garnish
Method:
Add the ingredients into a mixing glass
Stir together with ice
Pour into a chilled glass and garnish with a chocolate coin
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Gold Rush with D’yavol Vortex
Gold is the colour that exudes royalty and sophistication. Take your festive gatherings to the next level with Gold Rush, a cocktail that radiates charm. With D’yavol Vortex as its star, this drink is pure liquid luxury – a toast to the rebels, the dreamers, and the ones who dare to stand out.
Ingredients:
D’yavol Vortex Blended Scotch Whisky – 60 ml
Lime juice (clear) – 20 ml
Sugar syrup – 20 ml
Blue pea tea – 200 ml
Rhubarb bitters – 3 drops
Lecithin powder – 1 gram
Method:
Shake D’yavol Vortex, lime juice, and sugar syrup together
Strain the mixture over ice in an Old-Fashioned glass
Prepare the blue pea and rhubarb foam by blending both with lecithin powder with a hand blender until foamy
Spoon the foam over the cocktail
Garnish with a touch of sweetness for a festive and striking presentation
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Brandy Alexander by Tulleeho
Decorated homes, parties by a fireplace, a huge spread of food and the best of baked desserts, Christmas is a gastronomic delight! Rest assured no matter how cold it gets, they will warm you up, here are some easy-to-whip cocktails for the season, perfect for your Christmas table.
Ingredients:
Brandy – 60 ml
Fresh cream – 30 ml
Chocolate syrup –15 ml
Nutmeg powder – a sprinkling
Ice cubes – to fill shaker
Method:
Fill a shaker with ice, pour in all the liquid ingredients
Shake well and strain into a chilled cocktail glass
Sprinkle the powdered nutmeg on top and serve
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Godawan Espresso Martiniby Godawan Artisanal Indian Single Malt
Elevate your holiday celebrations with the Godawan Espresso Martini, a rich and indulgent drink that balances festive warmth and sophistication. The fruity spice of Godawan 02 pairs beautifully with the robust intensity of espresso and the creamy sweetness of almond syrup, creating a luscious blend of flavours. Finished with a sprinkle of nutmeg, this is sure to be a show-stopping addition to any holiday gathering.
Ingredients:
Godawan 02 – 50 ml
Espresso – one shot
Orgeat or almond syrup – 10 ml
Nutmeg for garnish
Method: Shake everything together and fine strain it out into a cocktail glass. Garnish with grated nutmeg.
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Not So Dirty by Mossant Fermentary
Move over, martinis – this holiday season, it’s time to embrace the vodka-forward sophistication of “Not So Dirty”.
Mossant’s clean-label Rosemary Tonic adds a festive, herby twist, elevating this cocktail to holiday showstopper status. This cocktail blends herbaceous and savoury notes with a hint of floral sweetness. It’s also incredibly simple to make!
Ingredients:
50ml Grey Goose Vodka
5ml Elderflower Syrup
30ml Olive Brine
Mossant Rosemary Tonic
Rosemary Sprig (for garnish)
Brined Olive
Method:
Fill a glass with a block of fresh ice
Pour in 50ml Grey Goose vodka
Add 5ml elderflower syrup and 30ml olive brine
Top up with Mossant Rosemary Tonic for that aromatic, botanical punch
Stir gently to mix
Garnish with a fresh rosemary sprig and a brined olive
Paul John Indian Single Malt Whisky recently announced the release of the 7th edition of Christmas Edition Series. This exceptional unpeated expression, meticulously crafted from the finest Indian ingredients, continues the brand’s legacy of celebrating the festive spirit with unmatched elegance and flavour.
This limited-edition blend continues the legacy of its predecessors, which have consistently garnered international acclaim for their distinct profiles and complexity. Over the years, the Paul John Christmas Edition Series has earned a loyal following for its bold experimentation with cask finishes and vibrant flavour blends.
Each release is a testament to Paul John’s dedication to pushing boundaries while honouring the essence of Indian single malt whisky. The 7th edition stands out with its deep golden hue, exotic aromas of mango and pineapple, and flavours of coconut, candied orange, and toasted oak on the palate, leaving a finish rich in fruit tart and salted toffee.
With only 6,600 bottles for domestic and international markets, this latest release continues the brand’s tradition of crafting rare, collectible whiskies that celebrate the spirit of the season. The 7th edition is designed to rival the world’s finest aged whiskies, earning its place among distinguished shelves.
Since its inception in 2012, Paul John Whisky has established itself as a global icon, earning over 330 prestigious international awards. From being named the World’s 3rd Finest Whisky for Mithuna by Paul John with an impressive 97 points, to the Liquid Gold Award for Paul John Single Cask 161 Whisky, the brand’s accolades speak to its exceptional quality and innovation.
The Christmas Edition Series has become a symbol of Paul John’s ability to blend creativity with tradition, reflecting the vibrant culture of its Goan origins.
Experience the festive charm of Paul John’s 7th Christmas Edition, available now in select global markets. Crafted to be savoured straight or with a splash of water or ice, this limited edition promises to be a cherished gift for whisky connoisseurs and collectors alike.
The first direct Air India Express flight from Surat to Bangkok on December 20 ran out of liquor mid-air as the ‘alcohol-starved’ passengers gulped alcohol, reportedly worth Rs. 1.8 lakhs, in no time. The cabin crew seemed helpless answering the request for more liquor and had to make an announcement that they had run out of alcohol. The airline has not made any statement on the same.
The first direct flight between the two cities was a ‘picnic’ of sorts with Gujarati snacks such as thepla and khaman and what-have-you passing hands. Passengers have shared videos of the first flight which shows some of them enjoying the free liquor available on international flights. The videos have gone viral attracting social media attention and reflecting how Gujarat, a state where prohibition exists, is crying for lifting of the ban. According to unverified reports, passengers consumed approximately 15 litres of premium alcoholic beverages, including Chivas Regal, Bacardi, and beer.
Air India Express, the low-cost subsidiary of Air India, a Tata Group company, began operations to Bangkok’s Suvarnabhumi International Airport from December 20th, with nonstop flights from Surat and Pune, utilising Boeing 737Max 8 aircraft, the flying time being four and a half hours from Surat.
The incident reignited the need to review the prohibition policy in Gujarat which in December 2023 had relaxed rules just in the GIFT (Gujarat International Finance Tech) City. The state government partially relaxed its 63-year old liquor prohibition law in an attempt to woo foreign investors and corporates to invest in GIFT city. The state government has allowed alcohol consumption in hotels, restaurants and clubs offering ‘wine and dine services’ in the GIFT City. Such exemption has never been granted in any area of the state in the past.
Prohibition has been in place ever since statehood in 1960, originally in the purview of the Bombay Prohibition Act, 1949, but now under the Gujarat Prohibition Act, 2011, following several amendments. Gujarat has seen a number of deaths due to illicit liquor and in 2009, it claimed 150 lives. In 2022, over 40 people died due to consumption of spurious liquor. The law states that there would be death penalty for those found guilty of making and selling spurious liquor in case there are deaths. The law allows for temporary and long-term drinking permits to foreigners, NRIs and tourists, with outlets and purchase limits specified. A resident can get a permit only on health grounds. At special economic zones, the government allows consumption against three-year permits.
Though there are voices urging the government to lift prohibition in a State which introduced the same as a tribute to Mahatma Gandhi, the State Government is caught in a ‘Gandhian-bind’.
The makers of Greater Than Gin have announced the return of Juniper Bomb, the gin which was first launched in 2020 as India’s first ever limited-edition Gin. Juniper Bomb hit shelves in a new “black- out” avatar on December 10 in Goa and Mumbai.
A Flavor Born from an Unexpected Twist Juniper Bomb’s origins are as unique as its taste. This limited-edition gin was created by accident during a blackout at their distillery in Goa. In 2017, when Greater Than had just been launched, the distillery was hit by a power outage. Not ones to give up, the distillers continued the distillation 24 hours later by which time the Juniper and the other botanicals had steeped into the spirit three times longer than needed. The outcome? A radically bold and explosive version of Greater Than Gin—a happy accident that has since become a fan (and distillery) favourite! The Co-Founder and Master Distiller, Anand Virmani said “In this day and age with innumerable options on the Gin shelf, the Juniper Bomb stands well apart with its clean, yet explosive Juniper flavour. We think of it as a Gin with the volume turned up to the max! It may not be a Gin for beginners, but it’s certainly one for the proper Gin enthusiast.” Due to its intense flavor profile, it’s best enjoyed “naked,” meaning without any garnish, to allow its powerful, unapologetic juniper notes to take centre stage. This gin explodes in your mouth—not in your cup—delivering an unforgettable taste that will leave a massive impression, the makers state.
Tasting Notes: Electric! Like biting straight into a plump Juniper Berry. Bold and complex at first with a finish of ripe lychees.
Juniper Bomb is available in Maharashtra (Mumbai/Pune) and Goa and will soon be launched in Karnataka and beyond. The pricing is Rs. 1,450 in Goa; Rs. 2,400 in Maharashtra and Rs. 2,390 in Karnataka. Currently, Greater Than is available in 11 states and three union territories in India, as well as in 16 other countries globally.
If you are a globe trotter or a connoisseur of wine, then you sure would have heard of Tokaj or how the Hungarians pronounce ‘toe-kay’. It is the signature wine of Hungary and one of the most important wines of the world. Tokaj has a rich historical tradition and has had royal connections with noblemen, Ferenc Rákóczi II, Peter the Great, King Louis XIV, Catherine the Great, and many others cherishing it.
Now, Hungarian wine producers and the Hungarian government want to take it to the world more than ever before, the way the French, the Italians and the Australians have done it. And India, an emerging market, is very much on their list.
Aggressive Marketing Plans
Ferenc Jari, The Consul General of Hungary in Mumbai
Independent Hungarian wine producers and the Hungarian government have been participating in various wine related events in India and understand that they need to go ‘aggressive’ in their efforts. Speaking to Ambrosia, the Consul General of Hungary in Mumbai, Ferenc Jari; and wine producers Nicholas Jelasity, Export Manager of Grand Tokaj Ltd and Tamas Duzsi of Duzsi Family Winery highlighted the wines of Hungary, coming from 22 regions, and the challenges of entering the Indian market. In the recent past, they have had two small shipments entering India and find they could do better with communication, education, wine tasting sessions and ‘aggressive’ marketing.
Awaiting FTA to Boost Trade
The Consul General mentioned that the Hungarian government was keen on promoting various industries, including winery, to the world. Most of the wineries in Hungary are small and medium enterprises and have challenges entering the Indian market as the duty rates are high, he said and hoped that the Free Trade Agreement (FTA) between India and Europe would materialise such that it would give a boost to trade, part of that beneficiary would be Hungarian wines. Within the European Union there is free trade and that has helped majorly the wine producers, he averred.
Nicholas said that after protracted negotiations, he has had the first of the two small shipments into India. “It has been crazy, but in a positive way. There is a lot of curiosity about Hungarian wines. There are two kinds of customers for Tokaj, one who has heard about it and happy to get hold of a bottle in India and other is the curious customer who is excited once he or she has tasted it. The challenge is about communication and we are addressing that.”
Tamas Duzsi of Duzsi Family Winery
Tamas who is in India for the third time and has been part of the delegation chalking out finer details of the FTA, said ‘education was the key’. Mentioning how one Indian student by name Kaushal came to Europe, studied about European wine making came back to India and promoted European wines. We need more people like him to explain the process of wine making and the benefits of wine drinking. The Hungarian tourism promotion agency has to invite people from India and that is a good platform to begin with, he said and mentioned how tourists from the USA came to Hungary and few of them established importing companies, thus making Hungarian wine available. “We need to do that in India.”
Pricing Strategy
Agreeing to the suggestion that Hungary needs to make substantial investments in the price sensitive Indian market, they said, ‘We fully agree. If we want to be aggressive with prices in India, we should have better pricing than in Hungary itself. We understand the duty structure here.”
Nicholas said his company has a capacity of 8 million cases and is presently doing 6 million cases. “We have the elasticity, the capacity and the rotation to produce good quality wines for the world. We will be competitive. We are competing with the likes of South Africa, Australia and others who have large-scale vineyards and mechanised operations. We will be aggressive in pricing.”
The company exports between 60 and 70% of its wines in about 150 countries, he said and mentioned that it does not mean they sell large quantities. “However, we want to continue to grow exports.”
Nicholas Jelasity, Export Manager of Grand Tokaj Ltd
Explaining how local Hungarian companies had to compete in the export market with Spanish, French and British who owned Hungarian wineries, Nicholas said, “A Spanish company which bought a Tokaj company in Hungary does everything to export Tokaj in Spain, so do the French and the British, focussing on their markets.” After the Union of Soviet Socialist Republics (USSR) disintegrated in the 1990s, a lot of investment came into Hungary and many of them invested in wineries.
3 Million Hectolitres From Hungary
Hungary now produces about 3 million hectolitres of wine and had 22 wine regions in the country, the Consul General said but added that after the two World Wars and Hungary losing territory, the area under wine cultivation had come down from about 200,000 hectares to about 50,000 to 60,000 hectares. “Hungary is like little France. We have all kinds of wines, except fortified wines which are not allowed. We have a big company producing sparkling wines.”
Presently, Hungarians are also consuming wines from other countries, unlike the Portuguese who consume 98% of their own produce. “Earlier, we were protective of our wines.”
When it was pointed out that Rose and Red wines were growing in India, Tamas said, “Rose is our main product. We use high quality grapes. Of course, we have Red wines. Grapes that we use for Rose, we can use it for Red wine. Our Rose is bone dry, having higher alcohol content, gives a bit of sweetness, but not from sugar.”
Further, he said his company’s main export market is the US. “We started with two cases, now we sell in containers. We started by organising wine tasting. Recently I did 15 wine tastings in six days. We can boost sales with such strategies.” Tamas in the last event in Delhi presented Rose and this time in Mumbai offered red wine at the event.
They concurred that Hungary with a population of about 10 million had to but look at export markets. “Consumption is on the decrease and we need to make efforts to get to world markets. We need story-telling that Tokaj is one of the oldest wines in the world.” In 1737, Tokaj was declared an appellation, a delimited wine region with borders. This was the foundation for the first protection of origin in the world. Tokaj was the very first in the world to introduce a whole system of appellations controlled, 120 years before Bordeaux classification which took place in 1885 only.
French king Louis XIV said of Aszú Tokaj wine he received from Francis II Rákóczi: “C’est le roi des vins, et le vin des rois” – “The king of wines, the wine of kings”.
