Author Archives: Sanchit Mishra

KALS launches Foster’s nationally post Acquisition

As a company KALS has been growing organically and inorganically acquiring breweries and distilleries along the way. With the acquisition of Foster’s in India, the company has added a new dimension to its growth plans. A report.

KALS is looking to brew a new vision in the Indian beer industry with its acquisition of Foster’s Beer and three breweries from ABI, which include the East Coast Brewery in Odisha, SICA in Pondicherry and Malabar in Kerala, all formerly SAB breweries. The company has acquired a package deal from ABI which includes three breweries, Kerala, Pondicherry and Odisha along with the Foster’s brand.

The brand has been purchased on an outright ownership basis for India, in other words, KALS now owns Foster’s, it’s variants and all IP related properties for the territory of India. The acquisition fits very well into KALS premium growth vision and they believe that the brand is vibrant with high consumer brand recall.

Not long ago Foster’s was a Pan India brand that was well accepted and this belief has been reaffirmed by the consumers and market since its relaunch few weeks ago. KALS has also acquired a brewery in Rajasthan, formerly Mount Shivalik, with brand rights of Thunderbolt, Golden Peacock amongst others for the state of Rajasthan.

All these acquisitions have given KALS a combined brewing capacity of 3 Million HL, putting KALS as the largest standalone Indian brewer in the market.

Foster’s, the famous Australian beer, is an internationally-distributed brand of lager. It is owned by the international brewing group Asahi Group Holdings, and is brewed under licence in a number of countries, including its biggest market, the UK, where the European rights to the brand are owned by Heineken International.

KALS is in the process of rolling out Foster’s Nationally and as part of the process, the brand has been launched in Pondicherry, Odisha, Uttar Pradesh and Karnataka with plans to roll out in the other markets in the next few weeks.

In last 24 months KALS has created a solid foundation, especially in creating brewing capabilities across the country with five breweries located strategically making them the largest, stand-alone Indian brewing company.

According to spokesperson of the KALS group, the promotional strategy is currently a work in progress, and we are getting ready for the oncoming season. Plans are also afoot to launch a vodka brand which is a new segment for KALS.

KALS Distilleries and KALS Breweries was launched in one of the most backward districts of Tamil Nadu in the year 2010 and 2013 successively. Both these manufacturing units have become one of the largest players of alcoholic beverages to TASMAC, a Government run wholesale-cum-retail undertaking in Tamil Nadu. The products of KALS Distilleries and KALS Breweries have already made their imprints in the

States of Kerala and Puducherry and Karnataka.

KALS Breweries, a state-of-the-art and automated plant with its own dedicated system software, was set up with German know-how. It has also entered into a tie-up with VLB, Berlin for talent infusion and development of brewing. KALS also has exclusive manufacturing facility to produce canned beer is already installed and the products are being sent to Kerala, Puducherry and other states.

The Management of the KALS Group of Companies are particular about ensuring compliance with high standards of quality keeping the consumer preference in focus. Legal compliances are given top priority. KALS Distilleries and KALS Breweries are the first alcoholic beverage manufactories in Tamil Nadu to obtain clearance from the statutory Site Approval Committee.

This drive towards ensuring quality and satisfaction of consumer preference enabled IMFS and beer products of KALS to record the second largest sales in Tamil Nadu. KALS Group of Companies occupy the top few sales in terms of performance of alcoholic beverage products in Tamil Nadu all through the year. La Martine VSOP Premium Brandy and 1848 Premium XO Brandy are the premium segment products highly cherished and sought-after by consumers in Tamil Nadu. Kolt Extra Strong Beer, Black Pearl Triple Super Strong Beer and Sterren 7 Premium Quality Lager Beer are among the most popular beer products in Tamil Nadu. Both KALS Distilleries and KALS Breweries have a wide range of products serving all sections of society.

UK wants to say Cheers with Scotch despite tariffs

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In a recent visit to India, UK Ex-Prime Minister Boris Johnson decided to push for a Free Trade Agreement. The idea was to have fewer trade barriers between the two countries. In other words, an agreement that would help both countries ship products and services without excessive taxes.

For the UK Scotch whisky is the elixir perhaps because of Brexit. UK voted to leave the European Union and perhaps what went unnoticed was third of the country’s whisky exports - £1.3 billion ($1.65 billion) worth actually, went to EU countries. Post-Brexit however, that isn’t the case. The move has cost the scotch whiskey industry £5 million ($6.3 million) every week. And now they’re being forced to work with every EU country independently. They have to deal with different shipping norms, separate customs requirements and a whole host of packaging regulations.

It turns out that all these issues have prompted the UK to think differently and find newer markets. First, they targetted Australia and struck a deal — to remove a 5% tariff on scotch whisky. Elsewhere the UK managed to obtain the coveted “protected status” for its whisky by inking separate deals with Japan, Norway, Iceland and Liechtenstein. This will protect their scotch whisky from imitation, misuse, or any other forms of intellectual abuse.

And the focus shifted to India, a country that consumes more whiskey than any other country in the world. One in every two bottles of whiskey is now sold in India and the UK wants to make up for the loss in sales in the European Union by growing its market in India.

The UK allows ALL imports of Alcoholic Beverages into the country to be taxed to NIL customs duty and this is not just from India, it’s from 70+ other countries, that supply AlcoBev to the UK. Similarly, the conditions about a minimum three-year maturity, type of substrate used, the absence of additives, etc. are all equally applicable to Whiskies from all supplying countries, including the UK. So, there are no India-specific barriers that some players are seeking removal of. On the other hand, India imposes customs duty of 150% on all imports of Alcoholic Spirits, from all countries including the UK (which has the largest share of such imports), says I P Suresh Menon, Secretary General, ISWAI (International Spirits and Wine Association of India).

But the whiskey definitely dominates the Indian market, almost contributing 60% of sales to the IMFL (Indian Made Foreign Liquor) segment. But if you’re a person who enjoys a glass every now and then, you’d know there’s a difference between Indian whiskey and Scotch whisky.

Scotch whiskey is typically of Scottish origin and made from grains - primarily barley. On the other hand, IMFL is made from molasses, a by-product of sugar production and grains. It is much cheaper. So in some ways, IMFL liquor outsells its foreign counterpart in a massive way. But there’s another roadblock for foreign manufacturers - Taxes! See, taxing liquor is a wonderful source of revenue for the Indian government. For instance, five southern states namely Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and Kerala generate 10% of their revenues from taxes on liquor sales alone. And you can see why they want to impose even higher taxes on imported liquor. In fact, import duties can go as high as 150% in some cases. And that means, even though Scotch Whisky imports in the country have risen 200% in the past decade, it still only commands a tiny 2% market share in the Indian markets.

Now imagine if the tariffs were removed completely. What would that mean for the UK and Scotch Whisky industry. Well market sources contend that the market share could reach as high as 6%.

And so you can see why this makes total sense for whiskey manufacturers in the UK. But do Indians benefit in any way?

Well, for starters Scotch Whisky will likely become more affordable and more Indian whisky producers will use more Scotch in their IMFL and will premiumise their brands to an extent that the difference between Scotch and IMFL would not be much different. So it will mean that Indian consumers will get a product as good as Scotch at a favourable price. But cutting importing duties could also bump up revenues for the government. For instance, last year, the Maharashtra government slashed excise duty by 50% on imported liquor. And it now expects revenue to rise by ₹150 crores — from the sale of imported scotch annually.

And finally, with over 19 million new consumers coming of “legal drinking age” each year, India is definitely a market that liquor makers would like to tap into. Guess it will be a win-win situation for consumers. The Indian government may be tempted to go ahead with deal as the possibility of revenues rising in a sustainable manner is a good possibility.

According to Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC apex body for domestic liquor firms), Vinod Giri, this FTA also holds significant importance for India in the scope of future trade with the United Kingdom as trade competitors like Bangladesh, Sri Lanka, and Pakistan enjoy duty-free merits under the UK’s generalised scheme of preferences. Indian liquor producers are keen to enjoy newer markets for their products in the United Kingdom but are hindered by the stipulation that whiskey exported to the Brits should be Grain based and aged for three years. At the same time, liquor produced in India is not aged.

Refined Oil (9.7% of all UK goods imported from India)
Clothing (9.6%)
Medical and pharmaceutical Products (5.6 %)
Miscellaneous Metal Manufactures (5.1%)
Textile Fabrics (5.0%)

All these products were the primary imports to India from the United Kingdom, but as the pact stands on the brink of either collapse or being executed after several reconsiderations. A recent list had brought forward 240 odd items which would face trade duty deductions once the agreement is executed. From this pool of 240 things, a few that stand out are whisky, cars, vaccines, basmati rice, wool, and tea premix. As of now, no indication has been released about the possible way out of the situation, but in the coming future, it’s possible that the pact might be passed with several reconsiderations and follow-up procedures. Currently, diplomatic negotiations of the highest level are going on between the countries.

Amid reports of the UK seeking massive tariff concessions on imports of scotch whiskey during ongoing free trade agreement (FTA) negotiations, liquor sector association Confederation of Indian Alcoholic Beverage Companies (CIABC) has written to the government strongly objecting to any plans to slash Basic Customs Duty (BCD).

A reduction in BCD, it said, will adversely affect Indian Made Foreign Liquor (IMFL) brands since imports already dominate the Indian alcoholic beverages market. CIABC has been part of several recent meetings hosted by the Ministry of Commerce with stakeholders before the trade talks with the UK.

“India exports just ₹5 crore worth of alcoholic beverages annually to the UK against an import of ₹1,300 crores. Exports to the UK constitute only 0.2% of India’s total exports of alcoholic beverages whereas imports from the UK are 24% of India’s total import of alcoholic beverages,” said Vinod Giri, DG, CIABC.

Giri further noted that “restrictive” trade policies are also hampering the growth of Indian exports. “While the export of alcoholic beverages from India stood at 7.3 million cases (9 litre each) in the year 2019-20, exports to the entire EU (including the UK) were less than 30,000 cases which consisted of Indian super premium malt whiskies,” he pointed out.

CIABC said that the United Kingdom should also remove restrictions such as a minimum three years’ maturation period for whiskey and rum, since it has been scientifically established that in warm Indian conditions, spirit ages 3-3.5 times faster than in the UK. Giri added that a BCD cut would skew the balance of trade.

A notion worth dispelling is that Scotch whiskies are costlier to produce; it is 50% more expensive to produce it in India than in Scotland.

In wake of the Indo-UK trade discussions, many ‘experts’ argue for reduction in tariff, particularly slashing custom tariffs on imported Scotch and on ‘Intermediate’ products which they say are nothing but high-strength, potable, undenatured ethyl alcohol used for bottling and blending in India.

They argue on three main grounds. One, that India has a large trade surplus in the category and can afford greater imports; two, customs duty reduction on intermediate products will encourage ‘Make in India’; and three, even if tariff is reduced the bulk of consumption will remain locally produced whiskies — so why bother.

This industry contributes nearly ₹250,000 crore in taxes and for most states it constitutes 15-30% of revenue. Customs duty is not even ₹5000 crore in comparison. Second, this industry uses agricultural products as primary raw material and nearly 50 lakh farmers depend on it. It provides employment to 20 lakh people. Any disruption will have widespread ramifications for the government, farmers and labour market.

The problem with the first argument is that it hides the true balance of trade on alcoholic beverages using a wider head of ‘Food and Drinks’. If one separates alcoholic beverages/products for human consumption from the wider clubbing of ‘Food and Drinks’, a very different picture emerges.

As per DGFT data for 2018-19, India exports only ₹5 crore worth of alcoholic products/beverages to the UK, against import of ₹1300 crore. Clubbing alcohol under a much bigger ‘Food & Drink’ category to claim favourable balance of trade is highly misleading.

The second argument is also a misconception. Scotch Whisky goes through two major stages of productions — distillation and bottling. The ‘Intermediate’ Scotch whisky is actually the output of the first stage, it has been produced and matured in Scotland. What happens in India is only bottling. Therefore, while incentivising intermediate products through reduced or zero duty will lead to an increase of usage of bottling plants in India, which will be a big loss for Indian farmers and manufacturers.

The third argument misses out on three vital points. One, in product categories with multiple price segments like whisky, consumers seamlessly shift to the next category up or down depending on affordability.

So, when a Scotch whisky is sold at a lower price it takes away consumers from products in the price segment, starting a domino effect that makes the domestic industry the net loser. Two, introduction of Scotch whisky at lower price attacks the profit driving end of portfolio of Indian companies, thus jeopardising their viability. Third, Indian premium whiskies like Amrut, Paul John or Rampur are now regarded amongst the best in the world but are unable to make the same headway in the domestic market due to an unsupportive regime and reducing customs duty further just will not help.

Another notion worth dispelling is that Scotch whiskies are costlier to produce. Rather, it costs at least 50% more to produce a whisky of similar quality in India than in Scotland. This is primarily on account of a higher cost of capital and higher taxes in India, interstate restrictions and higher evaporation losses.

Also, many states offer concessionary taxes on imported products, but reduction in customs tariffs cannot be done without removing compensatory state-based concessions as otherwise it will create a hugely discriminatory tax regime against Indian products.

If we talk about reciprocal duty concessions, the problem is that barriers put up by the UK are not tariff based but non-tariff ones. India, being a sugar producing country, has evolved whisky recipes based on spirit distilled from molasses. The UK does not accept this as it is not “recipe standards”. The result of these non-tariff barriers is that of the 70 lakh cases of whisky exported from India every year, the whole of the EU including the UK accounts for less than 30,000!

Indian industry is not against reducing customs duty on alcohol, but it should be in a phased manner and up to a point where it creates a level playing field.

Accordingly, it has put forward its recommendation to reduce import taxes, aggregate of customs duty and AIDC, from 150% to 100% now and to 75% in five years’ time. It has also recommended a threshold import price for taxation at $5 per bottle, and reciprocal concessions from the UK allowing whiskies from India to be allowed in the UK market as ‘Indian Whisky’ without minimum maturity conditions.

Anheuser-Busch InBev launches Budweiser Magnum whiskey in India

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For a numero uno beer brand to become a whisky brand is step in the right direction especially if the country is India which is a whisky drinking country.

The world over, whiskey has been seeing a renaissance. Bourbons, Scotch, craft distillations are all riding a wave of popularity among millennials. There has never been a better time to be a whiskey lover. The brown liquor is now more popular, more diverse and, most importantly, more delicious than ever.

The Indian alcohol market has been dominated by darker liquids, with 72% of total spirits’ consumption in the country being whiskey. According to the research report – ‘India Whisky Market Outlook, 2027-28’ – India consumed 237.22 million cases of whiskey in 2021 and the consumption is to reach 289.49 million cases by 2027-28, which would generate revenue of over ₹287000 crores.

In a first, brewing company Anheuser-Busch InBev or AB InBev, which has a diverse portfolio of global beer brands, including Budweiser, Corona, Hoegaarden, Stella Artois, among others, entered the spirits market in India with the launch of blended American whiskey under its brand Magnum Double Barrel in select markets. The move is part of the company’s Beyond Beer portfolio. It also is in line with its strategy to tap the trend towards premiumisation in the alcoholic beverages market in the country, while keeping consumer centricity at the core.

Artfully curated for the Indian palate but distinctively global in manufacturing craftsmanship, Magnum Double Barrel whiskey is a combination of American corn whiskey aged in white oak barrels in Kentucky and the finest of Indian single malts aged in ex-Bourbon casks, in Goa. The company is sourcing and blending Magnum Double Barrel whiskey in partnership with Sazerac and their Indian subsidiary JDPL; which has resulted in a blend of signature flavours that are silky soft with a malty and complex, creamy finish.

Commenting on the Beyond Beer portfolio and product launch, Vineet Sharma, Vice President Marketing – South Asia, AB InBev said, “Beyond being the 2nd largest spirits’ market in the world (10% of global spirits consumption) and the biggest whiskey market by volume / consumption — India also enjoys the benefits of favourable demographics, trends complimentary to premiumisation, a positive outlook on ease of doing business (EODB), and policy. We see a huge opportunity for premium offerings across the beverage category, in line with our overall premiumisation strategy. For Indian consumers, the attitude towards premiumisation is category agnostic making the country a lucrative ground for innovations across price points and categories. As a consumer-first organisation, we are actively listening to our patrons and tracking trends, behaviours and the launch of American blended whiskey — Magnum Double Barrel — is an effort to energise, reinvigorate the category, adding much-needed newness, fereshness to it. It is a true homage to the collaboration and exchange between continents, countries and cultures. The unique concoction of American corn whiskey with the finest Indian single malt is a first for the Indian audience.”

For most Indian drinkers, whiskey is an aspirational drink and the elemental choice. Widespread up-trading was evident pre-pandemic; 2021 has seen the trend accelerate significantly. As the second-largest importer of Scotch after France, India has the necessary expertise and skill to distil superior quality, globally admired, critically acclaimed liquids and ready audience in the country’s LDA (legal drinking age) + millennial consumers with disposable income that allows them to experiment. Thus, it’s a lucrative market to tap.

Taking us through their distribution strategy, Sharma said, “India is now amongst the top five markets for Budweiser globally and holds steadfast in its position as the country’s fastest growing premium brand. Over the last few years, we have gone from strength-to-strength and have an established distribution network across the nation. At present, Magnum Double Barrel will be available at select alcohol retail outlets, premium pubs, bars and leading restaurants. The plan is to listen, learn and expand.”

The company has already introduced the product in leading alcohol retail outlets in Maharashtra at ₹2,800, Goa at ₹1,800 for a 750ml bottle, and soon will be available in Karnataka, Haryana, West Bengal, Uttar Pradesh, and Punjab.

Further revealing the plans to promote the brand, Sharma informed that Magnum Double Barrel’s launch campaign — Make New Happen — delivers on the spirit of innovation and originality. “The objective of the campaign is to liberate whiskey by creatively tapping the cultural nerve of consumers who are rewriting the rules of its consumption and breaking perceptions around it. The communication caters to the ever-evolving, diverse tastes and preferences of consumers above legal drinking age who emphasise savouring their drinks by experimenting with flavours and discovering premium alternatives to classic blends. We also have long-standing relationships with music festivals, events, and allied partners, and we will be sampling across to get feedback from consumers. We really want the unique blend to take center stage and let the product speak for itself. We will continue to spotlight people, places, and passions by expertly crafting experiences for contemporary India,” he added.

Air India Pee Gate, Review of in-flight Alcohol Service

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The horrific incident of an inebriated passenger urinating on a fellow passenger in an Air India flight from New York to Delhi recently has shaken the world. The drunken passenger – Shankar Mishra – has been arrested, albeit after enormous media pressure, and the airline has been pulled up by the Directorate General of Civil Aviation (DGCA). Air India’s apology for not handling the incident properly and for being insensitive to the woman passenger, came a bit late and with the Air India Chief Executive Officer, Campbell Wilson adding that it would review the ‘policy on service of alcohol in flight’.

This was not just one incident. On December 6, 2022 on a Paris-New Delhi flight, a drunk passenger was caught smoking in the lavatory, ignoring the crew’s admonition. And another passenger allegedly relieved himself on a vacant seat and blanked of a fellow female passenger when she had gone to the lavatory. Disgusting, to say the least.

IATA says offenses often go unpunished

The International Air Transport Association (IATA) has said that there is growing concern from airlines, governments and passengers at the increasing frequency and severity of these incidents that involve violence against crew and other passengers, harassment and failure to comply with safety and public health instructions. Committed by a minority of passengers, unruly incidents have a disproportionate impact, threatening safety, disrupting other passengers and crew and causing delays and diversions. However, due to loopholes in existing international air law, such offenses often go unpunished.

One Too Many

IATA is also working with airports, duty-free retailers and other groups to ensure the responsible sales and marketing of alcohol to avoid unruly passenger incidents resulting from intoxication. In addition, IATA is participating in public awareness campaigns that encourage responsible consumption of alcohol before traveling by air such as the Fly Safely, Drink Responsibly in Norway and the One Too Many in the UK, IATA is also working with partners to highlight the types of prohibited conduct onboard flights and is supporting the #notonmyflight campaign launched by the European Union Aviation Safety Agency (EASA).

27% alcohol use, 24% smoking violations

IATA said that incidents involving unruly behaviour in airlines are on the rise. Alcohol use is involved in 27% of these cases while 24% cases related to noncompliance with smoking regulations. IATA said the solution seems obvious. “If too many airline passengers are abusing alcohol and acting violently, airlines can limit alcohol sale to solve the problem. However, airlines are looking for a regulatory fix, showing their reluctance to lose the alcohol sales profit despite the harm alcohol is causing.

IATA said that passengers using alcohol as an excuse to create havoc in airplanes is rising. To find a solution, several agencies which oversee in-flight regulations are working with commercial airlines. They are reviewing the current alcohol sale and consumption practices in airport bars as well as in-flight.

In the US, federal law prohibits flight crews from allowing “obviously intoxicated passengers” to board aircraft, and it doesn’t allow flight attendants to serve alcohol to anyone who appear intoxicated. Another regulation prohibits passengers from “assaulting or intimidating” crew members and interfering with their duties. Doing so carries a fine of up to $35,000 and a prison sentence of up to 20 years.

No liquor on domestic Indian flights

On Indian domestic flights, no alcohol is served, but on international flights airlines do. This rule was implemented in 1994 after the Ministry of Civil Aviation received several complaints of flyers getting inebriated and misbehaving with the airline staff and other passengers.

Presently, Air India has a policy on serving liquor on international flights as per which a passenger can’t be served more than two drinks on a flight that is less than four hours. However, the amount of alcohol served differs from business, first and economy classes with the last mentioned just getting one drink, whereas getting more, but not unlimited.

IndiGo which also operates on international routes serves alcohol on these routes and passengers can purchase on-board. However, consumption of liquor bought from Duty Free shops is prohibited on board.

Many airlines don’t serve alcohol

These are some of the airlines which do not serve liquor on flights – Air Arabia; Egyptair; Iran Air; Iraqi Airways, Kuwait Airways; Pakistan International Airlines,; Royal Brunei Airlines; and Saudia. Not all Middle Eastern airlines prohibit sale and consumption and the best example of service is Emirates Airline which has a lounge on board with the most exotic cocktails to be had at 40,000 feet.

One black sheep such as Shankar Mishra can mess up the entire inflight experience. Stricter punishments may be deterrent. Nevertheless, it is for the cabin crew to be trained, first in serving alcohol to passengers and secondly on dealing with unruly passengers, irrespective of whether the passenger is inebriated or not.

AA says growing number of disturbing incidents

While the nation was aghast with such appalling incidents, Alcoholics Anonymous (AA), India reacted by saying it was not an uncommon incident. In a report which appeared in the Times of India, a frequent flyer and member of AA said “As soon as we heard of the in-flight incident, we thought he is one of us! This is something we have all done, either mistaking our puja rooms, bedrooms, balconies or neighbour’s doorstep for the lavatory. Our mothers, wives and sisters have cleaned up after us.”

AA explained “Just three-four pegs at lunch will not do much harm to a habitually hard drinker. It is possible that he availed of the free alcohol in the lounge as well,” the spokesperson said. AA does not resent airlines offering free or unlimited liquor though, by its same non-judgemental code.

The AA spokesperson explaining the possible scenario behind the November 26 mishap said, “It is possible the passenger was so sozzled he got up from his seat only at the last moment to relieve himself, was wobbly due to cabin pressure, already disoriented by too much drink. He may have failed to judge the distance to the washroom and committed the offence owing to a combination of these factors. But by no means do we defend him or condone the act”.

Dubai slashes 30% tax on Alcohol

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What that means to an Indian Tourist or International Traveler?

In a landmark announcement, starting 1st January 2023 Dubai has scrapped their 30% municipality tax on all alcoholic beverages as well as the personal liquor licence fee. This means that alcohol will now be free-to-obtain for those eligible to legally purchase alcoholic beverages in Dubai.

A valid Emirates ID, or Passport for tourists, will still be required to apply for the same. But the reason why this is an important development, especially for travellers that flock Dubai from India, they can now enjoy buying alcohol at reduced rates at restaurants and also off the counter using their passports.

Most travellers from India or elsewhere aren’t always aware that they can buy alcohol from designated retailers or wine shops (as Indians know it) in Dubai using their passports if they are off legal age. And due to this lack of awareness, most travellers often leads for them to consume alcohol at restaurants, hotel bars, etc which often charge mark up of 4-5 times on alcohol.

Such instances were recently also observed during the FIFA World Cup as well when global tourists visited Dubai due to its close proximity to Qatar. But it is also obvious that Dubai is not only looking to make things easier for expats working in the country but also looking to become an even more attractive country for professionals and tourists for the future, especially with its Emirati neighbours like Saudi, Qatar, etc becoming more aggressive to attract professionals and tourists.

What is also important to note is that this ruling is currently being implemented on a trial basis for a period of one year with further decisions to make it permanent to be taken later.

Will alcohol be cheaper in restaurants and duty free though?

Although the taxes have been reduced, experts are unsure whether this tax break will be passed onto the consumer or not, especially in restaurants.

Tourists also expecting for the prices to reduce further at duty free will have to wait since there isn’t any clarity if this reduction on tax will prompt manufacturers to drive the prices lower further. If you thought that this tax break will make alcohol cheaper in duty free as well – then no – the liquor supplied in duty free is already without the taxes which means it will still continue to be at similar prices, although there are subsequent drivers that do allow distributors to drop prices further.

So if you are planning to visit Dubai in 2023 and enjoy the tipple, then things got more interesting for you.

30 Best Bars India announces new category – Best Sustainable Bar

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A jury of over 50 industry professionals and bar enthusiasts from across the country are currently at work to create the long list of Top 100 Bars for 2022. Starting early November, a larger pool of more than 200 jurors will vote to rank the country’s 30 Best Bars, and also pick winners in 10 jury-nominated categories including Best Hotel Bar, Best Restaurant Bar, Best Independent Bar, Best Cocktail Menu, Best Bar Team, Best Bartender, etc.

The 2022 Jury Chairs for the 30 Best Bars ranking across various cities include names like Sanjay Ghosh (YouTuber and Director, Cocktails India), Rohan Carvalho (Founder and Partner, Bar Square India), Harinath Shanker (Director, Bar Masons), Puru (Drinks Enthusiast), Shatbhi Basu (Author, Managing Director & Owner, STIR Academy), Shreya Soni (Founder and CEO, DSSC), Minoti Makim (CEO, Carpe Diem), Karthik Setty (Founder of Hyderabad Thirst Club), Kimberley Pereira (Marketing Director at Kade Communications), Nolan Mascarenhas (Photojournalist, UpperCrust), Vaniitha Jain (Founder, The Perfect Pour) and Karina Aggarwal (VP, India Craft Spirits Co).

Incredible resurgence of bars

Speaking on the occasion, Vikram Achanta, Co-Founder of 30 Best Bars India, said, “India’s bar industry has been remarkably resilient over the past two years, and we are now witnessing an incredible resurgence – as new ventures are transforming the bar scene every day. We are incredibly excited to open applications for our third edition, with a new award category introduced to applaud sustainability innovations. We look forward to working with leading alcobev industry members to unveil our 2022 rankings.”

This year the Best Bar Design Award, which commends bars that set new standards of excellence in design, interiors, and bar ergonomics will be voted on by experts of the bar design industry. Bar owners who feel they may have been missed out from being included in the 30 Best Bars India long list can self-nominate themselves on https://www.30bestbarsindia.in/enroll-your-bar/, with required information and photographs.

“When we started, we wanted to honour the country’s best bars and bartending talent. Today, 30 Best Bars India is on every bar’s radar, and they are constantly upping their game to be featured on our Top 100 and Top 30 lists. With our masterclasses, workshops, and cocktail carnivals, we are rapidly shaping India’s cocktail culture, and aim to be the go-to list for consumers to find the best watering holes in their cities,” added Radhakrishnan Nair, Co-Founder of 30 Best Bars India.

Prior to the finale, 30 Best Bars India will also host immersive Masterclasses for the bartending community, cocktail workshops by renowned mixologists, and first-of-its-kind cocktail carnivals with specially curated cocktail menus from the world’s best brands across India.

Co-founded in 2019 by Vikram Achanta and Radhakrishnan Nair of Bar 30 India LLP, 30 Best Bars India aims to raise awareness about the rising standards of Indian bars and beverages nationally, and on international platforms. 30 Best Bars India ranking of the country’s best bars in the previous two editions in 2019 and 2021 have included well known bars that have gone on to be part of international bar ranking lists over the last three years. To see the full list of bars and their rankings in 2019 and 2021 please visit: https://www.30bestbarsindia.in/.

Raising the bar, indeed

Indian bars are stoked that some of them are making it in international rankings, something to cheer about. Some of the Indian cities have a vibrant cocktail culture, but never did they vie for international recognition. There are a couple of reasons for this trend, the first being those founding these heady bars are young, spirited, innovative and above all daring to dream. They are certainly raising the bar. Then there is the customer who is sipping his or her drink with finesse, with a lot of understanding and responsibly. The well-heeled traveller is one of the profiles of the customer, but then the internet of things, so to say, has given birth to a new breed of connoisseurs.

And when Delhi’s chic bar – Sidecar makes its entry into the World’s Best Bars with a ranking of 26, it certainly warms the cockles of one’s heart. Goa’s go to bar Tesouro which opened during the pandemic has just sneaked into the top 100 with a ranking of 99 in 2021.

In Asia’s Best Bars, Tesouro has taken the fourth place. The capital has three ranks in Sidecar – 14th; Hoot – 26th; Home – 30; and Bengaluru’s Copitas is at 44. And the industry believes that the number is going to swell.

Tesouro makes a splash

Tesouro, meaning treasure in Portuguese is a treasure trove in the coastal state of Goa which prides itself of the local brew – Feni. Tesouro in South Goa is a cool bar with Goan-Portuguese design elements and a very impressive bar and bar tending aficionados. The cocktail menu is a showcase of the bar team’s creativity with drinks such as Midnight Brekkie (gin, bianco vermouth, peanut butter, watermelon, strawberry) topping the ranks as the most popular drink. Tesouro certainly has made a splash as a new entrant in the international bar scene.

Sidecar – Racing away to glory

Delhi’s Sidecar has been winning accolades, thanks to the bar legend Yangdup Lama and business partner Minakshi Singh. The duo has positioned Sidecar as a ‘friendly neighbourhood bar’ in a happening place of Greater Kailash. The signature cocktails are something to toast too and Rohan Matmary has dished out amazing iterations of their namesake – the Sidecar.

Hoots – One might as well say ‘I care two Hoots!!’

Ranked 26, Hoots which is tucked away in Vasant Vihar in New Delhi is kind of pivot in the capital’s cocktail scene, kind of a pioneer having introduced a world-class cocktail programme, attracting the globe trotter and haute monde and who know what a fine cocktail is.

Home – Is where the spirit is

Ranked 30th, Home was previously a member’s club and only recently it opened its doors to the public at large who seem to be heading home, just by the whiff of it. The bar reminds one of a Parisian jazz clubs, but some of the offerings have a local flavour to it, making it a perfect fusion. Like a typical home, one can nurse one’s drink with a book in hand or just enjoy the music which wafts through without being loud.

Copitas gives a different flavour to Pub City

It is said to be Bengaluru’s watering holes, besides the many places such as Toit, Byg Brewsky etc. which have elevated the IT city to another level. Copitas is located on the 21st floor of the Four Seasons hotel and come rain or shine, the well-stocked bar leaves one tingling for more. Looking down at the city from that level has got more to do with the bartenders’ artistry than the city lights.

The cocktail culture is fast evolving in not just the Indian metros, but other cities and towns too. Yes, albeit a bit late on the international scene, but sure enough the bars are making waves.

India and Australia seek boost in wine trade and access

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India and Australia have maintained a cordial relationship for many years, with bilateral trade between the two nations valued at $27.5 billion in 2021. The Economic Cooperation and Trade Agreement (ECTA) signed earlier this year has seen both nations looking to boost bilateral trade to as much as $45 billion by 2027. As Australia’s 9th largest trading partner, with a share of 43% of all wines imported from the Pacific region, stakeholders in the wine sector are now looking for avenues to introduce more premium Australian wines into the country.

Mr. John Southwell, Trade and Investment Commissioner and Consul, Australian Trade and Investment Commission (Austrade)

The recent lunch hosted by Austrade and Wine Australia at the Australian High Commission in India was the latest in a series of efforts to showcase the best of premium Australian wines to Indians. The lunch came as part of the Australian-Indian Business Mission 2022, featuring insightful interactions between crucial stakeholders, including Sarah Roberts, Regional Manager Asia Pacific, Wine Australia; John Southwell, Trade and Investment Commissioner for Agribusiness, Food and Beverage, Austrade, as well as wineries and other crucial stakeholders.

At the event, premium brands such as the Three Lions Cabernet Merlot, D’arenberg Stump Shiraz, Brown 1889 Chardonnay, and Shaw Smith Sauv Blanc were served. The aim was to showcase how these wines can become a household staple in homes because of their unique and rich tastes.

Australia’s strategic advantage as an isolated continent surrounded by the ocean lies in the fact that it has a diverse wine ecosystem, with more than 100 grape varieties and legacy vines aged 200 years and beyond because it was able to escape the devastation caused by phylloxera. One of the main highlights of the event was the video presentation by Sarah Roberts wherein she shared details of demographics and the profile of Indian wine drinkers.

Sarah Roberts, Regional Manager – Asia Pacific, Wine Australia

According to Tejaswi Rathore, Director, Communications, Austrade-South Asia, if there is one thing you can’t take away from Australian wine, it is variety and diversity. “Australian wineries work with so much freedom and innovation, resulting in a multiplicity of tastes and profiles. What this means is that each wine serves specific purposes. While the reds, especially the shiraz will go very well with Indian food, the consumer has a freedom to choose what works for him from one particular dish to another. This is why Australian wines are highly rated across the globe,” she says.

However, as much as Australia’s wine scene is diverse, it is not restrictive. There’s a conscious effort to continue to learn and adapt new ideas, knowledge, and technology from all over the world, fusing the experiences, and flavours from microclimates to create a truly rounded wine ecosystem. To adequately satisfy the tastes and cravings of Indian wine consumers and understand the best way to position their brands, a research team was put together to understudy the profile and demographics of Indian wine drinkers, and the result has been helpful in curating choice wines for the identified groups.

“What we need right now is for the ECTA agreement to come into force, so that Indians can gain access to these array of choice wines. Although our main focus is the tier one cities, we hope that every Indian that wishes can have a bottle of our finest wines whenever they please. We’re taking our awareness strategy across the supply chain to enhance visibility. There’s also the advantage of having great value for money without compromising the premium quality that the wine offers,” commented John Southwell, Trade and Investment Commissioner for Agribusiness, Food and Beverage, Austrade.

As the Indian population continues to make wines a part of their daily life, there’s confidence that there will be more Australian quality wines filling the cellars, bars, and cabinets in homes and bars across the nation.

Pent up demand in Global Duty Free markets, but there is caution

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The global duty free retail market size was valued at USD 35.87 billion in 2021. The market is projected to grow to 72.23 billion by 2029, exhibiting a CAGR of 9.17% during the forecast period. The global Covid -19 pandemic saw the Duty Free Retail experiencing lower-than-anticipated demand across all regions compared to pre-pandemic market exhibited a decline of 42.38% in 2020 as compared to 2019.

This market generates significant revenue for airports, airlines, tourism, and other travel-related industries worldwide. Total income from duty free and travel retailing. Duty free goods’ sales typically happen within international zones, and these goods can also be sold on ships or onboard aircraft with shoppers/travelers in transit.

The duty free retailing market is majorly driven by increasing growth of travel and tourism industry coupled with rising penetration of low cost airlines. Increasing sales alcohol and confectionery is a major factor driving the growth of the global market.

Travel retail revenues make a functionally important influence to the overall financing of airports, the maritime companies as well as their infrastructure. All in all, these physiognomies of duty free retailing pose distinctive offerings for the travelers by meeting their needs, generating revenues and in turn supporting the maritime and aviation transport infrastructure and their services. Duty free retailing has emerged in parallel with the expansion of sea and air travel.

Although, the use of perfumes and cosmetics has a long history, increasing demand for premium fragrances and cosmetic products has raised the growth of the global duty free retailing industry. Rising investments by the governments of several economies to set up duty free retailing centres to cater to international tourists is another key factor driving the global market. Perfumes and cosmetics as well as tobacco goods are expected to register the fastest growth over the forecast period owing to increased demand for international tobacco and cosmetic products. Travellers prefer tasting tobacco and other products of different countries and prefer purchasing them from duty free retailing shops. This is expected to drive the overall market growth.

According to the research, in 2021-22 lower prices vs the domestic market and value for money are consistently quoted across all segments, whether age groups, genders or travel purposes. Good value for money is a particularly significant purchase driver for seniors at 49% and millennials, 34%.

Convenience is also an important purchase driver for both seniors, 36%, Gen Z shoppers and leisure travellers (both at 23%). Another common purchase driver in travel retail in 2021-22 is loyalty to the brand, especially for seniors (30%) and females (26%).

Travel retail revenues make a functionally important influence to the overall financing of airports, the maritime companies as well as their infrastructure. All in all, these physiognomies of duty free retailing pose distinctive offerings for the travellers by meeting their needs, generating revenues and in turn supporting the maritime and aviation transport infrastructure and their services. Duty free retailing has emerged in parallel with the expansion of sea and air travel.

The research also analyses the importance of sales staff in influencing shopper behaviour. Sales associates have a significant impact on the decision to purchase and this varies quite considerably by customer segment as well as by region. The research reveals that the impact of the interaction has increased considerably in the wake of the pandemic as travellers set to the skies again.

Recent years have witnessed considerable demand for duty free alcohol across countries, notably in Asia. The diversifying consumer buying habits, rapidly increasing international tourist arrivals, and rising spending among the rising demand for premium liquor is creating heightened consumer interest in duty free alcohol worldwide at a macro. The alcohol category has also witnessed significant developments, most notably product launches, in recent years. At a macro level, the growing demand for retail will boost duty free alcohol sales and other product types during the forecast period. Furthermore, the alcohol category is likely to encourage market key players to offer luxury and premium products.

The proliferation and introduction of new international airports across countries are creating lucrative business opportunities, in February 2021, the Airport Authority of India (AAI), an Indian governmental body that operates 125 airports saw revenues of USD 135.07 million (`987 crore) for the first phase of an international airport named ‘Dholera’ in Gujarat. According to Civil Aviation Ministry’s ‘Indian Aviation’s Vision 2040 claims that by 2040, India will have 190-200 operational international airports, while the top 31 Indian cities will have two operating airports. The fleet of 622 airliners to more than double to 2,359 aircraft by March 2040.

Numerous airlines across countries are expanding their international networks and establishing new airports as post the Covid-19 crisis.

Duty free markets are sensitive to exchange rates among countries. Although they operate in several countries with currencies including Euros, Dollars, and Pound, which have specific exchange rates, they are subject to global market changes exchange rate of a particular day. The currency exchange fluctuations in the global market may positively or negatively including retail chains that offer luxury goods, depending on the fluctuating exchange rate.

Based on type, the global market is segmented into perfumes, cosmetics, alcohol, cigarettes, and others. Internationally reputed distribution channels offer luxury perfumes worldwide. Affluent global travellers typically visit duty free retail chains that offer perfumes of internationally reputed Gucci, Giorgio Armani, Al Haramain Dazzle Intense, Belle, Signature Rose, Signature Silver, and Khulasat Al Oud. Perfume types, including Perfume or De Perfume, Eau De Perfume (EDP), Eau De Toilette (EDT), and Eau De Cologne.

Based on sales channel, airports, onboard aircraft, seaports, train stations, and others constitute the market segment worldwide. The mushrooming number of domestic and international airports across countries is favouring products. Various developments within the ‘airports’ category highlight the increasing number of duty free stores across airports in 2022, Flemingo, a Dubai-based global travel retail operator, and Adani Group, an Indian integrated business establish a duty free shop at the Thiruvananthapuram International Airport by mid-May 2022. This strategic move intensifying competition in the Indian market.

As the duty free & travel retail industry had hoped, 2022 has so far brought real signs of hope that the recovery in international travel is under way. The pent-up demand for travel, so often alluded to during the darkest days of the pandemic, is evident in all markets. But that demand is putting severe pressure on airport and airline capacity. And the reopening of some countries, notably in Asia, is only taking place at a gradual, even glacial, pace.

The duty free and travel retail market was hit hard in 2020 due to the sudden fall in tourism amid the Covid-19 pandemic. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. Globally, travel restrictions and measures started as early as January 2020. Domestic and international tourists limited their travel due to fear of contracting Covid-19, which reduced the number of domestic and international customers for this retail channel.

Duty-free and travel retail comprises a category in a growing list of ancillary offerings by airlines. For some low-cost and ultra-low-cost carriers, the growth in the scope and magnitude of ancillary revenues has become key to their operations, allowing them to offer lower ticket prices and stimulate the overall demand for air travel as a result. Furthermore, when compared to airport duty-free and travel retail, the duty free and travel retail sales generated by airlines are substantially smaller, both in magnitude and relative to the financial performance of the respective recipient.

Chandon India says cheers to celebrations and experiences

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What is the current portfolio of brands that the company is marketing in India?

In India, the company is involved in the import, sales, and marketing of Moët Hennessy’s luxury portfolio of wines and spirits, besides operating the Chandon winery in Nashik. Apart from Chandon, the current portfolio in India also includes brands like Moët & Chandon, Dom Perignon, Glenmorangie, Hennessy, and Belvedere that have helped in driving revenue for the country’s overall sales. There is also a larger portfolio of wines, champagnes, and still wines that we sell in India. Moët Hennessy as an organisation is also introducing experiences among all our brands. Based on our understanding of the consumer mindset of trends that are happening, and also the quality of experiences that the consumers are looking for, but also elevate it to something that they may not have seen.

Are all marketing initiatives directed to the Indian market or also to the export market?

Moët Hennessy India is focussed on building desirability for consumers residing in India whether they purchase Chandon during their international or domestic travels, while our core goal is still building brand love for consumers in India.

What new brands do you plan to add to your portfolio?

Moët Hennessy has deep innovations in the pipeline. In the last year, we have introduced three to four new brands in the wine space and continue to build our portfolio of imported wines. There are also some spirits tested internationally that we plan to introduce in the Indian market by introducing it via the airport channel and continue to build that space for Moët Hennessy India in the years to come.

What has been the cornerstone of your pricing strategy for the Indian market?

Moët Hennessy uses retail selling price which is established for the consumer in the positioning of the product as well as our comparative strategy. We plan to use the retail selling price as the key driver in how we price our products in various markets. Having said that, India has multiple layers in pricing due to state policies and excises, and the strategy of pricing varies from state to state.

How are your different brands faring in the Indian market?

In the Indian market, we are market leaders for Cognac and Champagnes. When it comes to the other brands we have an aggressive strategy to continue to build on our single malts and vodka portfolio in the market and there is a large portfolio of wines that we are aiming to build and are loved by consumers and introduce them in tier 1 & 2 cities as well.

Which are your marquee brands and how do you plan to boost their growth?

Each of the brands under the Moët Hennessy India portfolio has a unique strategy set in place owing to various factors like the consumer target group, market availability, growing trends, etc. We aim at building awareness and top-of-mind recall for our brands through creative campaigns and the right partnerships, as we did with Chandon for the Rosé O Clock and Own The Sunset campaigns. The Rosé O Clock campaign solely focussed on celebrating moments with friends and family while featuring the Rosé variant which is growing the fastest among wines, which has resulted in an increase in sales in the Rosé variant within the portfolio mix. Own The Sunset campaign positions Chandon Brut and Chandon Rosé as the perfect drink to celebrate with your close circle while enjoying picturesque sunset moments.

What new sparkling wine moments do you plan to create to increase sales of your brands?

Sparkling wine, as a category has really grown over the last year, because of the occasionality of that product, or that category has really gotten expanded. We’ve seen during the pandemic, people occasionally picking up a glass of wine during the day, we’re seeing people celebrating small occasions at home and small celebrations, milestones if you might. So with that, we feel like the occasionality of sparkling wine is becoming more diverse. And, you know, our campaigns, especially on Rose o’clock, which we spoke about, allowed us to sort of capture those consumer occasions and build brand law in those locations. Leaders from various fields of life while showcasing their unique sunset moments distinct to their own personalities.

Do you plan to take the cocktail route more aggressively?

The emergence of the Indian bartenders in the global cocktailing scene is representative of consumers becoming more open-minded and experimental with their drinks. In our survey, nine out of 10 Indian drinkers said that they’re willing to try more categories. With that context, earlier this year, we hosted Hanky Panky from Mexico, the 8th best bar in World’s Best Bars in a 2 city bar takeover tour. Moet Hennessy will continue to build unique experiences for Indian consumers focussed on global trends.

Any new marketing tools you plan to introduce in your marketing process to grow your brands?

We use consumer insights and focus group discussions quite actively, alongside various digital tracking mechanisms to check the effectiveness of campaigns, and share of voice in a digital space.

What kind of brand growth are you looking at?

The consumer is drinking better and the premiumisation trend is here to stay. With that, Moët Hennessy’s has a large portfolio of luxury wines and spirits which allows us to build a unique relationship with consumers.

Alcohol Market Insights Report 2022 and Future Growth Analysis by 2026

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The number of alcohol consumers in India continues to rise on the account of rising urban population. Consuming alcoholic beverages has become a customary tradition for a majority of people residing in India’s urban cities. Changing lifestyles and increasing incomes are compelling them to consume alcohol on a frequent basis.

Future Market Insights recently published its study on India’s alcohol market, which estimated that more than `2.5 trillion worth of alcohol was consumed in 2016. The study further projected that consumption of alcohol in India is less likely to decline in the years to come. By the end of 2026, more than 14 billion litres of alcohol will be sold across India.

According to the report, revenues amassed from sales of alcohol in India will soar vigorously at 7.4% CAGR, and reach `5.1 trillion value by the end of 2026. In terms of volume, India’s alcohol consumption in 2016 has been estimated to have surpassed 8 billion litres and will grow at 5.5% CAGR in the due course of forecast period. An in-depth analysis on India’s alcohol distribution indicated that just above three-fourth of alcohol consumed in the country is government controlled. In 2016, alcohol distributed in India through open market sales made revenues worth over `400 billion. Meanwhile, about 550 million litres of alcohol was auctioned in India by the end of 2016.

The wine market in India is set to grow by USD 274.00 million from 2021 to 2026 as per the latest market report by Technavio. The report projects the market to decelerate at a CAGR of 19.78%. Also, the market to record a 29.30% Y-O-Y growth rate in 2022.

The wine market share in India is expected to increase by USD 274.00 million from 2021 to 2026, and the market’s growth momentum will decelerate at a CAGR of 19.78%.

The wine market share growth in India by the domestic segment will be significant for revenue generation. The demand for premium wine brands is increasing among consumers in India. Rising consumer preferences for smooth, rare, and innovative flavours of wine have increased, which has fostered the domestic production of wine. The rising demand for premium wine in recent years has led to an increase in the launch of innovative products.

India’s Alcohol Market: Report Highlights

Nearly two-third of India’s alcohol revenues will be accounted by sales of Indian-made foreign liquor (IMFL)
In 2016, more than 1,800 million litres of strong beer was consumed in India
By the end of 2026, white wine sales in India will have brought in an estimated `16.8 billion in revenues
Revenues amassed from sale of country liquor in India will have soared at 5.5% CAGR
Whisky will be the most-preferred type of alcohol in India, while sales of white spirits will grow at more than 11% CAGR
Key findings of the report, titled “Alcohol Market: India Industry Analysis and Opportunity Assessment, 2016-2026”, projected that Southern and Western states of India will continue to contribute to more than 80% of alcohol revenues through 2026. Bangalore’s SAB Miller India Ltd. and United Spirits Ltd., and Mumbai-based Tilaknagar Industries Ltd. and Allied Blenders & Distillers Pvt. Ltd. are key players partaking in the growth of India’s alcohol market.

Meanwhile, the consumption of alcohol will witness a considerable dip in India’s northern and eastern zone. Even still, a majority of alcohol manufacturers and suppliers in India are originating from New Delhi. Companies such as Carlsberg India Pvt. Ltd., SOM Distilleries & Breweries Group, Radico Khaitan Limited, Globus Spirits, and Jagatjit Industries Ltd. are based in and around the country’s capital. Shimla’s Mohan Meakin Ltd. and Daman’s Khemani Group are also recognised as some of the leading alcohol manufacturer in India.

Among every ten alcohol consumers in India, nine of them will most probably be men; leaving a slight chance that the tenth one is a woman. With more than 90% stake in India’s alcohol revenues, the country’s men will be offering over `4.7 trillion for consuming alcohol by the end of 2026. Likewise, Indian women are also likely to increase their contribution to the Indian alcohol market. During the forecast period, revenues accounted by sales of alcohol to Indian women will have soared at the fastest pace, registering a stellar CAGR of 8.6%.

The availability of online stores and online specialty retailers provides a wide range of choices to consumers in addition to online shopping conveniences.

The increasing use of online channels for purchasing products is likely to drive the growth of the wine market in India. The presence of strong online distribution channels and platform providers is expected to boost the growth of online sales.

The increase in the use of online sales channels is expected to create new opportunities for vendors where they can target customers without geographical boundaries, improve operational efficiencies, and provide customised products to consumers. Thus, the growing adoption of online sales channels will increase the profit margins of wine vendors, which, in turn, will drive the growth of the wine market in India.

The increasing preference for non-alcoholic beverages, such as health drinks, is also affecting the growth of the market in the country.

The stringent advertising restrictions on alcoholic beverages, along with increasing campaigns against alcohol consumption in India, can hamper the growth of the wine market in India.

Consumption of alcohol containing molasses as key ingredients will remain higher in India. Grains will also serve to be a preferred raw ingredient used for producing alcohol in India. Although, production of alcohol through agricultural produce such as fruits and vegetable will remain negligent till the end of 2026. The report also anticipates that consumers will be more inclined towards buying Indian-made liquor – regardless of it being a foreign or Indian brand. Consumption of foreign liquor bottled in India is also likely to grow, but showcasing a marginal degree of increment.

Wine Market in India: Key Drivers and Trends

The increasing use of online sales channels is notably driving the wine market growth in India, although factors such as campaigns against alcohol consumption may impede the market growth. The research analysts have studied the historical data and deduced the key market drivers and the Covid-19 pandemic impact on the wine industry in India. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Wine Market Driver in India

The availability of online stores and online specialty retailers provides a wide range of choices to consumers in addition to online shopping conveniences. The increasing use of online channels for purchasing products is likely to drive the growth of the wine market in India. The presence of strong online distribution channels and platform providers is expected to boost the growth of online sales. The increase in the use of online sales channels is expected to create new opportunities for vendors where they can target customers without geographical boundaries, improve operational efficiencies, and provide customised products to consumers. Thus, the growing adoption of online sales channels will increase the profit margins of wine vendors, which, in turn, will drive the growth of the wine market in India

Key Wine Market Challenge in India

The growing incidence of alcohol abuse and alcohol-related accidents, especially among the younger population, has led to many regulatory and social organisations launching campaigns against alcohol consumption and players to prevent this. The increasing preference for non-alcoholic beverages, such as health drinks, is also affecting the growth of the market in the country. The stringent advertising restrictions on alcoholic beverages, along with increasing campaigns against alcohol consumption in India, can hamper the growth of the wine market in India.

This wine market analysis report of India also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

This statistical study of the wine market in India encompasses successful business strategies deployed by the key vendors. The wine market in India is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from post Covid-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The wine market in India forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

The wine market share growth in India by the domestic segment will be significant during the forecast period. The demand for premium wine brands is increasing among consumers in India. Rising consumer preferences for smooth, rare, and innovative flavors of wine have increased, which has fostered the domestic production of wine. The rising demand for premium wine in recent years has led to an increase in the launch of innovative products.