With more and more celebrities entering the alcobev industry, former England Cricket Captain, Kevin Pietersen has made his debut in the Indian Alcobev market with his Dram Bell Scotch Whisky. Bhavya Desai spoke to him about his investment, why India and more.
Excerpts: First things first, it is not always that you see a cricketer enter the alcobev market and that was the first question in my mind – why did Kevin Pietersen (KP) enter this industry? He states that his decision to enter the liquor industry, particularly the Indian market, stems from a combination of personal connections and a keen eye for opportunity. “Over the past decade, I have closely observed India’s incredible growth across various sectors, including its evolving consumer market. India is one of the largest and most dynamic whisky markets in the world, presenting a unique opportunity to cater to its growing demand for premium, high-quality spirits.”
And it is his zeal to create something meaningful and impactful is what drew him into this opportunity. KP is a marquee investor in the product, which is made by Ardent Alcobev Pvt. Ltd., a JV between Rajasthan Liquor Ltd. (RLL) and Industry veterans, Debashish Shyam and Jatin Fredericks.
And his involvement in the company isn’t just as an investor, he is looking to be more involved beyond financial investment. “I actively contribute to shaping the brand’s vision and consumer experience.” He works closely with the team to curate unique drinking experiences for Indian whisky lovers ensuring that every aspect of Dram Bell reflects authenticity and modern sophistication. “For me, Dram Bell is more than just a brand – it represents my values of quality, dedication and excellence.”
But for a cricketer – what resonates with a whisky? KP says that it aligns with his philosophy of striving for excellence and celebrating craftsmanship. It is a distinguished blend that embodies heritage, authenticity and meticulous attention to detail – qualities that were integral to his journey as a professional cricketer.
Now Ardent has been really smart on not just replying on the star power of KP. They’ve found themselves a company that has indebt experience in blending, bottling and distilling whiskies. The whisky is produced by Robert Castle, a wholly owned subsidiary of Angus Dundee Distillers and also holds one of the largest reserves of Scotch whisky in Scotland.
The blend involves using Generation 1 and Generation 2 casks, which mature both grain and malt whiskies to create a multi-layered flavour profile. The whisky made by Iain Forteath, Dram Bell’s Master Blender and Global Brand Ambassador.
But in an already saturated market, with opportunity, Dram Bell’s mantra for success is a combination of factors. Understanding the consumer’s preferences and offer something premium, like a bottled-in-origin whisky. And pricing, the makers have positioned Dram Bell strategically to bridge the gap between IMFL whiskies and high-end imported brands.
“Dram Bell is driven by three key factors, Craftsmanship & Quality – Blending Tradition with Innovation, Consumer-Centric Pricing and Value Proposition and Widespread Distribution & Consistency,” says the former cricketer.
Pietersen’s experience with the Indian market has been positive thus far. The shift towards premiumisation and the increasing demand for high-quality spirits reflect the evolving preferences of Indian consumers. The initial response to Dram Bell in Maharashtra has been overwhelmingly positive, with over 80-85% distribution in key retail outlets within the first two months. This reinforces the potential and growing appetite for premium Scotch whisky in India for him.
I’ve always admired India for its diversity and progressive consumer mindset, and this venture has only deepened my belief in the market’s immense opportunities.
Dram Bell is available in two variants currently – Dram Bell Premium (₹1,750) is positioned just ₹200 above premium IMFL and Dram Bell Reserve (₹2,450, aged 5 years). Ardent is upbeat about the Reserve since most products in its segment feature a 3-year-old Scotch, whereas they are offering a 5-year blend.
Currently the makers are looking to expand their footprint across India with its launch in Maharashtra. They are now key northern states such as Haryana, Rajasthan, Punjab, and Delhi. “Over the next 12 months, we aim to establish a presence in most of India’s major liquor markets.”
Two celebrated wheated bourbons from Buffalo Trace Distillery make India debut
Weller Special Reserve and Weller 12 Years Old, to create unique drinking experience
Weller Kentucky Straight Bourbon Whiskey, the World’s original and one of the most awarded Wheated Bourbon Whiskeys, made its grand debut in India with a celebrated launch event in Mumbai. Hailing from Buffalo Trace Distillery, said to be the World’s most award-winning distillery and oldest continuously operating distillery in the USA, Weller exemplifies craftsmanship, innovation and storied American whiskey-making tradition. Renowned for using wheat instead of rye in its recipe, Weller boasts a soft, smooth and complex taste profile, and will be available in two distinct expressions: Weller Special Reserve and Weller 12 Years Old, the oldest andone of the first age stated bourbons in India.
The Weller brand is named after William Larue Weller who revolutionised bourbon in America in the early 1800s by replacing rye with wheat in the whiskey’s mashbill, a process that resulted in a much softer, yet still elegant and refined, drinking experience. Over the years Weller Bourbon has gained international acclaim with hundreds ofaccolades to its name. The arrival of Weller Bourbon is expected to appeal to Indian spirits connoisseurs who crave flavour depth and complexity and a unique drinking experience.
“India is one of the world’s leading whisky markets and until now it has not had the opportunity to round out its category with a super-premium wheated bourbon. Weller is a bourbon unlike anything in the Indian market, offering a unique and premium drink experience that stands apart from typical bourbons and other whiskies available today. Wheated whiskey, including Pappy Van Winkle, which is also proudly made at Buffalo Trace Distillery, has long been renowned as some of the best and most premium bourbon in the world. As India continues to embrace more varied premium spirit offerings, we believe Weller will resonate with those seeking an unparalleled drinking experience – one that reflects quality, craftsmanship, and distinction,” said Diego Bianchi, General Manager, Emerging Markets & Barrel Select, Sazerac Company.
Vijay Kauthekar, Executive Vice President, John Distilleries Ltd
Vijay Kauthekar, Executive Vice President, John Distilleries Ltd, part of the Sazerac Company family of brands and distilleries, added, “India is the largest whisky market in the world, and we believe the country is ready for high-end, luxury spirits like ultra-aged bourbons. Weller is the perfect brand to pave the way for the category. The whiskey’s smoothness and complexity, combined with its rich history, will surely appeal to the modern Indian spirits consumer who values both tradition and innovation. While historically Indian consumers have been more familiar with other global whiskey categories, Weller provides a new, unique and expertly crafted American Whiskey for consumers to enjoy with friends and family. We’re excited to offer this award-winning bourbon to those ready to explore something truly distinct and exceptional.”
Weller 12-Year-Old is the oldest age stated bourbon distributed in India. Aged for far longer than most wheated bourbons on the market, this offering is a smooth, easy-going and balanced bourbon with a beautiful deep bronze colour best enjoyed neat or on the rocks. Weller Special Reserve stands out with its burnt orange colour and subtle, sweet profile. Its softer flavour notes make this bourbon great for cocktails, such as the classic Paper Plane recipe.
Weller Bourbon will be available across select markets in India beginning early December. The Weller Special Reserve has a maximum retail price ranging from ₹2,500 (Haryana) – ₹4,500 (Mumbai) and the Weller 12-Year-Old has MRP ranging from ₹5,400 (Haryana) – ₹7,750 (Mumbai).
Bourbon, often referred to as America’s Native Spirit, represents the highest standard in whisky production, requiring products meet a stringent set of distillation and aging guidelines in order to enjoy the category distinction. Kentucky Straight Bourbon must be made from at least 51% corn, distilled in new charred oak barrels, crafted in the United States, and aged for a minimum of two years. Weller adheres to these guidelines but elevates the experience further by using wheat as the secondary grain and aging the whiskey longer than most other comparable options on the market today, resulting in a robust but smooth bourbon.
Weller Bourbon Eyeing India to be Second Biggest Market outside of US
Diego Bianchi, General Manager of Emerging Markets & Barrel Select, Sazerac Company
In the overcrowded whisky market in India (that India is the biggest whiskey consumer in the world), bourbon is a category which has not really developed, even awareness-wise. To grow bourbon as a category, which at present is less than 1% of the spirits segment, Sazerac Company is focussing on India as a priority market wherein it plans to roll out different brands going forward. Here in a brief interview with Ambrosia, Diego Bianchi, General Manager of Emerging Markets & Barrel Select, Sazerac Company and Vijay Kauthekar, Executive Vice President, John Distilleries Ltd, part of the Sazerac Company family of brands and distilleries, talk about growing bourbon category in India.
Bianchi said “In general, India is a huge whisky market having the youngest population and is the fastest growing economies. There is growing appreciation for quality products and premiumisation and we believe that bourbon as a category will grow in the long term in India. We will develop that and we will play our part in promoting bourbon.”
Explaining the unique selling proposition of Weller Bourbons, Bianchi mentioned the Barrel Select programme is unique in that the consumers can select three to four barrels and we bottle for them. Adding to that Vijay said, “When we went to the US and visited Buffalo Trace Distillery, one of the most awarded distilleries, we chose two barrels, after checking the taste profile of the liquid. It was an amazing experience and we are bringing bottles of that to India.”
Bianchi mentioned how the team visited India in May this year, checking out Mumbai, Delhi and Bengaluru and soon realised that bourbon is not very well developed here. “We have such a vast portfolio of bourbons, we realised that there is great opportunity in India which is the largest whisky market. We use wheat instead of rye and this gives the bourbon a more smooth, sweet and more approachable flavour which we believe will appeal to Indian consumers. That’s why we are launching Weller.” Bourbons have 51% corn and the second flavour ingredient is rye, but Weller instead uses wheat.
Oldest age-statement bourbon in India
Talking about the history of Scotch in India, Bianchi explained that age of the whisky is key in the Indian perspective, hence the company is introducing the Weller 12 Years Old and the Weller Special Reserve which is 6 to 7 years old, the latter offering versatility where it can be had neat or on the rocks or in a cocktail. “It is going to be the oldest age statement bourbon in India. We are super excited to bring this to India.” Confirming that it will be of the same quality as in the US, he opined that Indians would love the flavour profile.
Giving an insight into the market here, Vijay said the bourbon category is growing in India, though presently it is less than 1% of Indian whisky market. “It is a small pie but the category has got such a huge headroom as the whisky category is overcrowded, there is the trend of premiumisation and emerging cocktail culture. We will be taking a number of initiatives to push the category.”
Talking about the opportunities to grow in India, Bianchi said, “India will be the second largest market for Weller outside of the US. India is our priority. We will see how the two products perform in the market. We will continue to supply. We are confident that Indians will enjoy the product.”
Agreeing that any market has challenges, Bianchi singled out regulatory, but said they had a great partner in John Distilleries to help grow the category. Sazerac has 60% stake in John Distilleries. “I think as we grow, we will bring different brands and also constantly look at the organisational structure.” Sazerac has over 200 years of experience in the alcobev sector, with hundreds of brands at varying price ranges and the company would continuously assess ‘what will be the best fit in India’. Asked whether their bourbons would be bottled in India, both of them mentioned that there were endless possibilities, but would take a call only after seeing how the brands evolved over the years. At present, the price points, they believe, is win-win for both the consumer and the manufacturer. “In Mumbai, Weller 12 would be 10% premium than the luxury Scotch available in the market with the crossline competitor could be 18 years. We are offering a sweet spot to the consumer and that is one of the ways of opening the category.” Bianchi added, “It is of the highest quality at a fair price all over the world.” Its products are available in ASEAN and some of the key whisky markets around the globe. Going ahead, the company may look at full ownership of a distillery in India, but that depends upon on how the category is growing.
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”.
Avishek Bambii Das, CEO of Ospree Duty Free by MTRPL outlines the growth of Ospree, the marketing initiatives and expansion plans.
What was the rationale behind the creation of Ospree?
MTRPL operates across seven international airports in India, with future plans for global expansion. Our vision behind the creation of Ospree was to bring all existing duty-free stores under a single, unified brand identity.
The brand ‘Ospree’ represents a contemporary, customer-centric approach to redefining the shopping experience at duty-free outlets.
Ospree serves as MTRPL’s strategy to consolidate its duty-free operations across locations in Mumbai, Thiruvananthapuram, Amritsar, Lucknow, Jaipur, Ahmedabad, and Mangaluru under one cohesive brand. By doing so, we aim to create a seamless and consistent experience for travellers, whether they are flying from Mumbai or Jaipur.
The brand identity of Ospree is tailored to meet the evolving expectations of modern, discerning travellers. Our goal is to make Ospree the ultimate destination for global travellers seeking a premium and elegantly curated shopping experience. Ospree seeks to transform the duty-free shopping landscape, offering a mix of luxury and convenience. With its carefully curated range of premium products and its focus on customer satisfaction, Ospree strives to create a luxurious and approachable atmosphere, redefining duty-free shopping in India.
What is the retail strategy adopted to grow liquor duty-free sales at your duty-free shops?
Ospree Duty Free has developed a multi-pronged strategy to significantly increase liquor sales. This approach is built on four main pillars: premium assortments, immersive retail experiences, competitive pricing, and simplified pre-order system. Additionally, we have largely expanded our single malt category and now house over 250 brands under one roof. Other introductions include various Japanese whiskey brands, Teremana tequila, Ardbeg, Idaya Rum, House of Suntory, D’YAVOL and more.
Exclusive Product Curation:
Ospree collaborates with major global brands such as Diageo and Moët Hennessy to offer a wide selection of premium and rare liquors, including exclusive duty-free releases. These premium assortments are particularly attractive to international travellers who are often on the lookout for unique spirits that aren’t available in regular retail outlets. By curating a high-end selection, we drive both impulse buys as well as planned purchases by knowledgeable customers.
Immersive Shopping Experience:
Enhancing the customer experience is one of Ospree’s top priorities. We have designed our stores to offer an immersive shopping experience with interactive displays, expert-led product recommendations, and tastings.
These experiential elements elevate the shopping journey, transforming it from a transactional experience to a memorable one. Additionally, our personalised “White Glove Service” caters to high-spending customers, offering them tailored advice and ensuring a seamless, premium shopping experience.
Competitive Pricing and Promotions:
Ospree’s tax-free pricing offers significant value across its liquor portfolio, making it an attractive proposition for travellers. Furthermore, our ongoing promotions – such as “Buy More, Save More” and the “Shop and Win” contest, where travellers can win luxury prizes – have been highly effective in boosting customer engagement and driving larger purchases.
Digital Pre-Order Simplified:
Adani One’s pre-order service offers our customers an even more convenient and rewarding duty-free shopping experience. The platform makes it easier than ever for travellers to browse our wide variety of products, secure the best deals, enjoy ease of product selection, receive additional pre-order discounts, and skip the queues. This innovative partnership is a major step toward transforming duty-free shopping into a seamless and stress-free experience for all travellers.
By combining these strategies, Ospree has successfully established itself as a leader in duty-free liquor sales, strengthening both customer loyalty and sales growth.
Is there any pricing strategy in place? How cheap is it to buy in Indian duty-free than in the local market?
Yes, Ospree has a robust pricing strategy that emphasises the authenticity and originality of the products it offers. All products sold at Ospree Duty Free either come directly from the country of origin or are obtained through official brand channels, ensuring their authenticity.
Our pricing is highly competitive, with products available at an average of 20-30% lower than those found in downtown retail stores. This is a significant draw for international travellers who are looking to purchase premium products at better prices. By offering a combination of tax-free pricing and exclusive duty-free deals, Ospree provides an unmatched shopping experience.
How has Ospree Duty Free grown in the Indian Travel Retail Market?
Ospree Duty Free has experienced tremendous growth in the Indian travel retail market, driven by several key factors. First, we have launched over 100 initiatives aimed at accelerating growth by revisiting what we call the 7 Ps of Duty-Free Excellence: Product, Price, Premiumisation, Penetration, Presentation, Promotion, and People. Additionally, we have expanded into six seaports, including Mundra and Krishnapatnam (recently launched), with Kattupalli and Hazira set to open by the end of June, followed by Dhamra and Gangavaram by the end of July 2024. These new locations will cover a total retail space of 6,500 sq ft and serve over 600 vessels monthly. They will offer a wide selection of international duty-free goods, including imported liquor, confectionery, perfumes, travel accessories, and destination-specific products.
Second, our strategic expansion into major international airports has enabled us to capture a larger share of the travelling public. By focussing on creating a premium shopping experience, particularly with our diverse range of luxury products, we have successfully appealed to customers seeking a more sophisticated and refined retail experience.
Our attention to detail in product curation and customer service has translated into increased foot traffic and higher sales. By continually refining our offerings and focussing on customer satisfaction, we have been able to differentiate ourselves from competitors in the Indian duty-free market.
How are luxury spirits performing in the Indian duty-free market?
Luxury spirits have consistently outperformed other categories in the Indian duty-free market. Ospree’s commitment to offering a broad selection of over 275 single malts, paired with competitive pricing, has made it a go-to destination for liquor enthusiasts.
The demand for luxury spirits has been driven by several factors, including the rise in disposable incomes and the increasing number of international travellers. The appeal of exclusive, high-end brands, available at competitive prices, has ensured that luxury spirits remain one of our fastest-growing categories.
Aside from whisky, which other liquor segments are doing well in the Indian market?
In addition to whisky, other liquor segments such as vodka, gin, and tequila are performing well at Ospree Duty Free, collectively contributing around 4-5% of our liquor sales.
In recent months, Ospree Duty Free has seen remarkable growth in its tequila category, reflecting our commitment to offering a diverse and high-quality selection of spirits. Tequila was introduced at Ospree Duty Free Mumbai 12 months ago and now accounts for 7% of the total alcohol sales at that location. Don Julio 1942 has become one of our top three SKUs. High-end brands like Clase Azul, Patrón El Cielo, and the soon-to-arrive Avión Reserva Cristalino are further establishing tequila as a lifestyle statement in India.
One of the standout additions has been Teremana Tequila, which we are excited to introduce for the first time in India. This premium, small-batch tequila is crafted with a strong emphasis on sustainability and quality, and its arrival at Ospree underscores our commitment to offering unique, global products to travellers. By expanding our tequila selection, we continue to cater to evolving customer preferences and enhance the shopping experience at our stores.
Additionally, we have observed significant growth in our wine category, particularly with French and Australian wines, which are growing at a rate of 7-8% month-on-month.
Champagnes, along with red and white wines such as Bordeaux, Moët & Chandon, and Dom Pérignon, are among the most popular items. Overall, the wine and champagne category has experienced over 50% growth, further diversifying our liquor offerings.
Flemingo has a strong presence in the Indian duty-free market. How has Ospree leveraged its expertise?
Ospree has effectively leveraged Flemingo’s extensive experience in the Indian duty-free market to optimise its own operations. By incorporating Flemingo’s best practices in retail and customer service, Ospree has enhanced the overall shopping experience while customising it to meet the specific needs of its customer base.
How have Flemingo and Ospree grown in recent years?
Cannot comment on Flemingo’s growth. But Ospree has experienced significant growth in the Indian travel retail market. The rebranding has played a pivotal role in this growth, allowing us to expand our duty-free operations and offer a more diverse range of luxury and premium products. By focussing on creating a seamless, upscale shopping experience, we have been able to attract a wider range of customers and increase our market share in a highly competitive industry.
How many airports does Adani Enterprises operate in India?
Adani Enterprises currently operates seven airports across India. These include major airports in Mumbai, Trivandrum, Ahmedabad, Lucknow, Mangalore, Jaipur, and Amritsar. Additionally, Adani operates three seaports: Mundra, Krishnapatnam, and Hazira, further showcasing its extensive presence in India’s infrastructure sector.
How large is the Indian luxury spirits market in duty-free?
The Indian luxury spirits market within duty-free continues to experience impressive growth. Brands like Indri and Jaisalmer have become star performers at Ospree, while Indian liquor brands such as Paul John, Old Monk, Rampur, Amrut, and Stranger & Sons are gaining global recognition. These brands contribute around 5% of our total liquor sales.
As more Indian travellers venture abroad and their disposable incomes increase, the demand for luxury spirits continues to rise, creating favourable market conditions for Ospree to expand its footprint in this segment.
Does Ospree offer special promotions to boost Indian premium spirits at major international airports in India?
Yes, Ospree has implemented several promotional initiatives to highlight Indian premium spirits. These promotions include exclusive discounts, high-visibility promotional areas within stores, and limited-edition releases. Some recent highlights include the launch of Idaaya Rum and exclusive releases from Ardbeg Circus, which have garnered attention from travellers.
These initiatives have not only increased awareness of Indian premium spirits, but have also encouraged travellers to explore the rich heritage and craftsmanship behind these products.
What are your expansion plans for the Indian market?
Ospree is actively pursuing expansion plans, which include increasing its portfolio of luxury brands and exploring opportunities to acquire non-Adani airports for duty-free operations. Our goal is to further establish Ospree as a premier destination for luxury shopping, both within India and globally.
What are your sales in terms of volumes and value?
Ospree primarily focusses on value over volume, as sales vary based on the demand for specific categories. Ospree Duty Free has achieved unprecedented growth (almost twice pax growth) in the last FY 23–24.
Ospree Duty Free FY 24 Business Highlights:
YOY Sales Growth: 44%, YOY Pax Growth: 23% and SPP Growth: 15%.Additionally, departure sales grew three times the PAX growth. We also have observed a 30% increase in the average sales per passenger. Our luxury sector has also expanded, growing from 7% last year to 20% this year.
Incorporated in 1943, Radico Khaitan is one of the most recognised Indian Made Foreign Liquor (IMFL) brands in India, scaling new heights every year. It has achieved many milestones in its over eight decades of existence. One of the milestones is that seven of its brands are recognised as million-dollar successes. Its vodka brand – Magic Moments – is making waves, having captured an impressive 60% of the market share. In the luxury gin category, Jaisalmer has garnered 50% market share and is blazing guns. Ambrosia spoke to the Chief Operating Officer at Radico Khaitan, Amar Sinha giving insights into how the company is looking at future growth.
Since rejoining Radico Khaitan, what changes have you brought in the company?
When I rejoined Radico Khaitan, the aim was crystal clear – we were focussing on our strategic goals of strengthening market position and driving long-term growth. To align with our core business strategy, my team and I worked extensively on developing operational excellence. From product development to market expansion, the idea was to go all out, and that’s exactly what we did – We streamlined operations, introduced new brands and innovated new variants while catering to the growing trend of premiumisation. Massive efforts were made to expand the company’s market presence, and we worked on integrating advanced technology across business operations, smoothening our manufacturing prowess.
What was the thought process and strategy behind these changes?
The idea and the objective were clear – Making Radico the largest, most successful and a profitable IMFL company of India.
Distribution is the key to this business apart from the quality product and pricing, how was this achieved?
Distribution is indeed a crucial component of Radico’s success, and the company has implemented several strategies to optimise its distribution network. Our distribution strength is underpinned by a robust network of over 80,000 retail outlets. We have systematically categorised our Off-Trade and On-Trade outlets, allowing for tailored strategies that address the unique needs of each category.
Our on-ground sales team undergoes regular and comprehensive training programmes. These initiatives are designed to enhance their skills, ensure they remain abreast of industry best practices, and effectively represent our brand.
What is the current overall volume for the company and what is the company turnover?
In FY2024, we reported a gross turnover of 15,483 crores. Our net sales went up to 4118 crores, out of which our Prestige & Above brands showed a significant volume growth of 20.3% (Y-o-Y) garnering sale of 11.26 million cases reaching a 68.5% in value.
How have the brands performed over the years, under your leadership?
We have achieved significant milestones, with seven of our brands now recognised as million-dollar successes, many of which have attained notable global rankings across various segments.
Our flagship brand, Magic Moments, has captured an impressive 60% of the market share in the vodka category, establishing itself as a dominant force. Similarly, Morpheus has risen to command 65% of the super-premium brandy segment, reinforcing our position in the high-end spirits market. Jaisalmer has also made remarkable strides, securing a substantial 50% market share in the luxury gin category.
Additionally, Royal Ranthambore has achieved extraordinary 2X growth, becoming the fastest-growing brand in the semi-luxury whisky segment. Notably, it is the first Indian brand to be priced above the best-selling Scotch whisky in India, a testament to its rising prestige and consumer appeal.
These accomplishments reflect our unwavering commitment to excellence and our strategic vision for expanding our brand portfolio on a global scale.
Radico has been able to successfully create wealth for its investors, what reason would you attribute to that?
Our growth is a testament to the strength of our brands, the exceptional quality of our blends, and the strong acceptance by our customers. These factors have not only driven our business success, but have also created substantial value for our stakeholders. Central to this success is the excellence of our team, whose dedication and professionalism have been pivotal in achieving our goals. Their unwavering commitment to high standards and continuous improvement has set us apart in a competitive market.
Additionally, the support and visionary leadership of Abhishek Khaitan, Managing Director Radico Khaitan Limited, has been instrumental in guiding our strategic direction and fostering an environment where innovation and collaboration thrive. This cohesive effort has propelled us forward and solidified our position as a leader in the industry.
Plan to launch exceptional Single Malt from India, date not finalised yet
The Ian MacLeod family, known for their unwavering commitment to excellence, is on the brink of launching a Single Malt from India. Although the launch date remains undecided, the legacy that has driven four generations of the Russell family—the principle that there can be “no compromise on quality”—continues to guide the company. This dedication has positioned Ian MacLeod as the 10th largest Scotch whisky company globally, boasting some of the world’s most renowned brands.
During a recent visit to their distillery in Scotland, I had the opportunity to sit down with Leonard Russell, Managing Director of Ian MacLeod. Our conversation revealed the company’s ambitious plans for India, highlighting the country’s rapidly evolving market, the impressive talent pool, sustainable practices and the exciting new distillery in Una, nestled in the Himalayas.
Trilok Desai in Edinburgh
A Glance Back: The History of Ian MacLeod
Before diving into our conversation, it’s essential to understand the history of Ian MacLeod. Founded on October 1st, 1933, the company traces its roots to Leonard Russell Senior, who established his whisky brokerage in 1936. Three decades later, the Russell family acquired Ian MacLeod & Co Ltd, with Peter Russell taking the helm as Chairman and Leonard Russell as Managing Director. The Russell family’s pursuit of perfection soon earned Ian MacLeod a reputation for producing whisky of exacting standards — because great whisky doesn’t come easily.
Today, after more than 80 years, Ian MacLeod has expanded its footprint to include five distilleries in Scotland, with a sixth under construction in Una, Himachal Pradesh, India. Under Leonard Russell’s leadership, the company has charted a meticulous roadmap for global expansion, focusing on carving a niche rather than pursuing mass production.
Peter Russell, the company’s visionary Chairman, passed away last year, leaving behind an enviable portfolio of 34 products, including Glengoyne, Tamdhu, Smokehead and Edinburgh Gin to name a few. Each of these award-winning brands, though distinct in flavour and character, is crafted with the same passion and commitment to quality.
Passion and Precision
Leonard Russell, who joined the family business in 1989, exudes passion and an unwavering commitment to quality. Under his stewardship, Ian MacLeod has transformed from a spirit blender and whisky broker into a fully integrated distiller, blender, and bottler, acquiring three distilleries—Glengoyne in 2003, Tamdhu in 2011, and Edinburgh Gin in 2016.
So, why is Ian MacLeod venturing into India, especially when they’re already thriving? Russell’s vision is clear: to create a Single Malt brand that will make India proud on the world stage. This venture is not about capturing the mass market but about delighting the discerning Indian consumer who appreciates the unique offerings that India can bring to the table.
Tamdhu Single Malt
India’s Growing Thirst for Single Malt
“India has a large population that favours branded spirits, unlike the Chinese and other Asians who prefer white spirits,” Russell explains. “As the Indian economy develops, so does the taste for Single Malts. India is crying out for the very best single malt whisky, and with our expertise from Scotland, we are poised to meet that demand.”
Although it may seem that Ian MacLeod is a newcomer to India, the company has actually been present in the country for two decades. Now, Russell believes, the timing is perfect. “The demand for the very best is there, and it’s our intention to deliver just that. We’re committed to creating a Single Malt whisky in India, using local ingredients, to satisfy the growing number of consumers who are genuinely interested in quality.”
Russell’s confidence in their India plans is palpable. “We’ve begun distilling some of the finest Single Malts in India, leveraging our expertise in oak casks and warehouse design to ensure that the maturation process is perfect.”
The Road Ahead: Quality Over Speed
When asked about the timeline for launching the new malt, Russell is clear: “We have no plans to reveal a brand launch date just yet. Our priority is to perfect the quality of the whisky. We’re sampling different casks, monitoring the maturation process, and comparing it to our Scotch maturation in Scotland. We’re not in a rush — we’ll launch when the whisky is at its peak.”
While the focus on quality is understandable, there’s no denying the market potential waiting to be tapped. Russell notes, “It’s incredible to see the growth of Indian Single Malts. There are some very good brands emerging from India, and it’s encouraging to see the market develop both domestically and internationally.”
A Distillery in the Himalayas: The Perfect Location
Though tight-lipped about investment figures, Russell expresses his satisfaction with the company’s investment in India. “It went over budget, but if you’re going to do it, you have to do it right.” The distillery in Pandoga, Una, Himachal Pradesh, is nearing completion, and as for the malt, no brand name has been chosen yet. Russell reiterates that their focus is on creating a Single Malt that will make India proud on the world stage.
The distillery’s location aligns perfectly with Ian MacLeod’s sustainable practices as well. “Though small, it’s perfectly formed,” says Russell. “We’re using hydropower from the Sutlej River, and we have access to excellent water sources. My dream is to open the distillery to visitors so they can see how we create exceptional brands.”
Glengoyne Single Malt – Aged 30 Years
A Niche Strategy: Quality Over Quantity
When pressed about the distillery’s capacity and market ambitions, Russell draws an analogy: “Our capacity will be similar to our distilleries in Scotland, like Glengoyne and Rosebank — enough to supply the discerning market, but not too large. We’re not aiming to be mass producers; we’re focused on creating a premium, luxury Single Malt for India that can compete on the world stage.”
Ian MacLeod’s strategy in India is clear and measured. “We’re not going to produce a million cases. If we reach 100,000 or 200,000 cases, we’ll be very happy. For us, it’s not about volume — it’s about ensuring the product is exceptional and winning the confidence of consumers, step by step.”
The Whisky and Scottish Lobsters Analogy
Russell offers a fascinating comparison between whisky maturation and the growth of Scottish lobsters. “A Scottish lobster from the cold northern waters, weighing one kilo, is likely 7 or 8 years old. In contrast, a lobster from warmer southern European waters will be only 1.5 years old at the same weight. Scottish lobsters, like well-matured whisky, develop a deeper, more complex flavour over time. Similarly, our distillery’s location in the cooler Himalayan climate is ideal for slower maturation, which results in a more rounded and complex whisky.”
When I mentioned Pernod Ricard’s construction of Asia’s largest distillery in Nagpur and Diageo’s two Single Malt brands in India, Russell was emphatic: “We’re not looking to be that big. We’re not interested in competing in the IMFL (Indian Made Foreign Liquor) market. We’re focused on creating the best Single Malt, and we have the expertise to do just that.”
Exports and Three Year Maturation
Ian MacLeod has clear plans to export their Indian Single Malt. “Indians love to travel, and there’s a large expatriate community around the world. We certainly have plans to export.”
Russell also emphasizes the importance of adhering to the three-year maturation requirement. “We won’t launch by this Christmas. We’re committed to the legal requirement of three years of maturation, which is standard worldwide. I can wait three years — after all, we wait 12 years for Single Malts in Scotland.”
Russell praises the talent in India, noting that the company is recruiting the best local distillers from Himachal Pradesh. “We’re excited to share our knowledge from Scotland with the team in India, and we’re eager to learn from each other.”
Copper Pot Stills at the Ian MacLeod distillery
Craftsmanship from Scotland, Tailoured for India
Regarding production equipment, Russell mentions that the stills, which are crucial for creating the flavour in the new spirit, are being precisely crafted in Scotland and shipped to India. “The rest of the production equipment is being made by craftsmen in India to our exact specifications,” he adds.
Russell also stresses the importance of the three-year maturation rule, which is universally accepted in the Scotch Whisky Act and in the US. He expresses a desire to see similar standards applied in India to protect consumers and maintain the integrity of the whisky industry.
Looking ahead, Russell is hopeful that Indian Single Malt distillers will form an association and establish a voluntary code to safeguard consumer trust and the quality of the product.
As our conversation wrapped up, Russell reflected on the challenges and opportunities ahead. “We’re here to create something special—something that will make India proud. And I’m confident that with our experience and commitment to quality, we’ll do just that.”This journey from Scotland to India, steeped in tradition and driven by innovation, is set to bring the world a new Single Malt that reflects the best of both worlds.
As the Indian whisky market evolves with the introduction of newer and more premium products, Indian consumers are increasingly gravitating toward ultra-premium spirits. Whyte & Mackay (W&M), originally acquired by USL (later Diageo) and eventually sold to the Philippines-based Emperador Distilleries, has made its offerings available in India through VBev. In a conversation with Bhavya Desai, James Cordiner, International Malt Specialist at W&M, and Sumedh Singh Mandla, CEO, AWS Global and VBev, shared perspectives on their portfolio, market strategy and future plans. Excerpts:
Whyte & Mackay’s current portfolio in India spans both the ultra-premium and premium segments. The lineup includes the renowned Dalmore single malt, available in age statements of 12, 15, and the Port Reserve edition, while the premium range features Jura single malt, offered in 10- and 12-year-old variants.
James Cordiner, International Malt Specialist at W&M
In addition to Dalmore and Jura, the company plans to launch the Tamnavulin single malt at the end of this year or early next year, with Fettercairn single malt also in the pipeline.
James Cordiner, who recently joined W&M, is no stranger to the Indian market, given his previous tenure at Bacardi. He is impressed by India’s passion for whisky. “It’s a huge whisky market and one that’s growing rapidly as consumers become more adventurous and curious,” he observes.
Sumedh Singh Mandla, CEO, AWS Global and VBev
Both James and Sumedh recognize that while Indian consumers are leaning toward premium spirits, Dalmore is positioned at a higher price point (₹14,300 per bottle in Mumbai). Nevertheless, they are optimistic that consumers will connect with the brand’s heritage, craftsmanship, and royal legacy dating back to 1839. James emphasizes that the cask selection and meticulous production process are what set these whiskies apart.
Despite the competition in the segment, Sumedh is confident that W&M’s products can carve out their own niche, particularly with the rise in consumers’ purchasing power. For those who find Dalmore’s price point steep, Jura offers a more accessible option.
Currently, the brand’s strategy includes advocacy and education initiatives targeted at on-trade establishments, with activities expected to commence soon. W&M products are now available in approximately 20 tier A and B cities, and they are also looking to go more vertical in the States that they are already available in. For instance, in Maharashtra – expanding to other cities like Nagpur, Pune, Kolhapur etc apart from Mumbai. Although the top line products might not be made available in these markets, but they tend to surprise W&M in terms of aspiration and growth.
But growing that market comes with its challenges and fluctuating price points, shifting regulations in each State hamper the expanding market reach. Additionally, securing sufficient supply quotas for wider distribution also remains a concern, which a more streamlined regulatory framework could address.
Sumedh mentions an example: if a regulator requires a barcode to be repositioned on the bottle, it’s difficult to implement such changes after the labels have already been customized. A standardized policy would simplify these processes and accelerate growth across the segment.
James admires the progress of Indian single malts, noting, “You’ve got some fantastic whiskies being produced in India.” He points out that Scotland’s cold climate allows for extended maturation periods, resulting in more complex and nuanced flavour profiles that can develop over decades. By contrast, India’s warmer climate accelerates maturation, but might limit the depth of flavours that can be achieved within 10 to 12 years. Nonetheless, he believes that India’s single malt journey will play a key role in shaping the country’s luxury whisky market for the future.
Interestingly, the demand for luxury products is surging in smaller cities, with on-trade partners requesting more stock of premium offerings like Dalmore. Clearly, Dalmore is being positioned as an aspirational brand, catering to discerning consumers who appreciate fine spirits. But interestingly, their messaging isn’t solely targeted at men, but also at women who have reached a certain level of accomplishment in their professional and personal journeys. Moving forward, the brand plans to conduct more high-profile events to engage with affluent consumers and reinforce brand loyalty.
For those already familiar with single malts and seeking an elevated experience, W&M aims to meet their expectations. Even with Dalmore’s luxury pricing, Sumedh doesn’t see this as a major hurdle. He anticipates that as duties gradually decrease over time, products like Dalmore will become more accessible to a broader audience, growing India’s journey further.
It is clear that Whyte & Mackay’s legacy, which is built on over 175 years of whisky-making expertise, steeped in tradition and a pursuit of quality, has grown into one of the most respected names in Scotch whisky, renowned for its craftsmanship and innovative blending techniques. From the luxurious Dalmore with its rich heritage dating back to 1839, to the adventurous Jura and the approachable yet complex Tamnavulin, their current whisky portfolio offers whisky enthusiasts an option at every stage.
As the Indian whisky market continues to evolve, W&M’s commitment to delivering exceptional products, combined with its focus on storytelling and education, positions it in a strong footing for the future.
With the Government of India going aggressive in the E-20 blending target, availability of maize will be critical as presently India has limited maize production, needing a paradigm shift in quality upliftment, states the Secretary General of UP Distillers’ Association, Rajneesh Agarwal.
Mr. Agarwal mentioned that the Union Ministry of Agriculture had advised State Governments to plan and promote cultivation of maize in areas around 50-100 km of distillery through ‘special projects’ under the Rastriya Krishi Vikas Yojana (RKVY)/ Public–Private Partnership for integrated Agriculture Value Chain Development (PPPAVCD) scheme.
The UP Government, he added, has been in the forefront to increase maize production, allocating the budget for the same. The UPDA, he reiterated had extended its support and cooperation to the government programme and had decided to chalk out a roadmap together to take the campaign forward involving all stakeholders namely Farmers Producers Organisations (FPOs); seed manufacturers; sowing & harvesting machine manufacturers and all other concerned in developing the eco-system.
Mr. Agarwal pointed out that the key areas to work on in UP included increasing crop intensity; developing high yielding varieties; crop diversification with special incentive & subsidy for machinery in maize cultivation / harvesting; incentives to farmers in catchment areas; replicating the model prevalent in Gujarat; technology infusion initiatives; developing a dedicated online market like e-NAM for maize growers to ensure better pricing; and direct contact between farmers and industries.
As regards the efforts of UPDA, the Secretary General mentioned that the apex state body has been representing the distillery industry since 1983, rendering advocacy role on policy & regulatory matters and getting official recognition from numerous state & central government bodies.
Mr. Agarwal stated that as an active participant in the UP liquor growth story, UPDA would stand tall with unwavering dedication to quality and innovation. Recently, UPDA signed a Memorandum of Understanding (MOU) with the Indian Agricultural Research Institute (IARI) and with the Indian Institute of Maize Research. The prime objective is to undertake large-scale evaluation of newly developed hybrid maize varieties which promise higher ethanol recovery and improved protein quality in Distillers Dried Grains with Solubles (DDGS). “We are glad to know that the UP Government has initiated steps on maize production allocating around ₹30 Cr. budget.”
The Secretary General also mentioned that the UPDA’s leadership team attended the Global Ethanol Summit in Washington in Oct’2023 organised by the US Grains Council a premier body under the US Department of Agriculture. USA is a leader in corn and ethanol production. Given the importance of maize as a potential future feedstock in India, the USGC, he said, was keen on partnering with UPDA for development of the corn programme. Following up on that a groundbreaking MoU was signed between UP Distillers’ Association (UPDA) and the U.S. Grains Council (USGC) in New Delhi on April 24, 2024.
Mr. Agarwal said the future vision of this understanding is to take a deep-dive in to the Indian agrarian space & ecosystem to, establish innovative farming & logistical practices from latest US / Global Technologies for integration of higher ethanol blends into the ecosystem, training for maximisation of Corn value ethanol co-products, leveraging digital platforms etc.
With an evolving Indian consumer and alcobev market, William Grant & Sons has one of the most enviable portfolios in the industry. From award winning whiskies to popular gins, the company has been enjoying a healthy growth for the past few years. Sachin Mehta, Country Director, William Grant & Sons spoke to Bhavya Desai about the Indian market and the future roadmap for the company. Excerpts:
The overall business has been good for William Grants & Sons (WGS). It’s been growing at a healthy pace informs Sachin Mehta, the Country Director of WGS. The past 3–4-years have been particularly positive as Indian consumers are seeking and appreciating more premium and high-quality and prestigious products. “Our portfolio allows for a great fit to this trend of growing premium and luxury consumption growth in India,” he adds.
And if this trend is anything to go by then the future surely looks bright, with the Indian consumer looking towards more premiumisation, especially since WGS’ portfolio includes some of the most popular brands on the global stage. This includes brands like Grant’s Scotch Whisky, Monkey Shoulder Blended Malt Scotch Whisky, Hendrick’s Gin, Glenfiddich Single Malt Scotch Whisky and The Balvenie Single Malt Scotch Whisky. Sachin is also delighted to see brands like Hendrick’s, which has led, created and established the premium gin category, on the other hand, Monkey Shoulder has trended very well with its unique premium offering for the young and aware consumer. “We are blessed that our brands and quality liquid is loved by consumers here.”
Despite the popularity and the evolving pallet of the Indian consumer, WGS has no plans of creating specific products for the Indian pallet, not for the near future at least. “Our products have found a good preference to the Indian consumer’s pallet. The Indian consumers now have an evolved preference in line with the most developed in the world. At William Grant & Sons, we are committed to quality premium offerings to consumers and our current portfolio fits well to the evolving preferences of consumers.”
What’s interesting is that despite have a more premium portfolio, WGS has been successfully targetting the more affluent consumer, and the strategy is simple, with the Indian consumer evolving and seeking premiumisation across categories, from watches to cars to high-end spirits etc. – their brands cater to this growing demand for luxury products with their quality liquid.
Combine that with special liquids like the limited-edition releases and aged expressions, offered to collectors and explorers, better availability, an increasingly aware premium consumer and the retail experience have been key drivers in the recent past.
At the company’s UP bottling plant, the company bottles the two variants of Grant’s currently in India – Grant’s Triple Wood and Grant’s Distinction, in the blended scotch whisky category. Overall Grant’s continues to grow with a positive momentum with a dynamic play between the variants depending on the RTM of the state. “We are committed to continue to offer more variants to our consumer on Grants in the future.”
Undoubtedly, India is an important market for WGS not only because it’s growing, but also from the economic front and consumers preferences, tastes and premiumisation. India is now an important part of the global plans across categories and brands. “For example, we recently introduced the Grand Series, with Glenfiddich 21-year-old “Gran Reserve” and Glenfiddich 26-year-old “Grande Couronne”, Glenfiddich 29-Year-Old “Grand Yozakura” and the Time series with Glenfiddich 30-Year-Old – some of them limited editions and some of them rare and unique variants.”
Similarly, there are additional variants being introduced on The Balvenie Range as well. While many of these are still limited and allocated quantities – such variants now being offered to India reflects their commitment and focus on India as a market.
“We have also introduced Smokey Monkey, a new variant of Monkey Shoulder Blended Malt Whisky which was highly appreciated for its Smokey taste amongst our consumers. Similarly, Hendrick’s brings its limited-edition variants from the “Cabinet of Curiosity” to explore some curious offerings in India. Starting with Hendrick’s Midsummer Solstice in 2021, followed by Hendrick’s Lunar, Hendrick’s Neptunia, and, most recently, Hendrick’s Flora Adora.”
Taking over the reins of one of the biggest companies in the market, can never be an easy task, especially when the daunting objective is to ensure double-digit growth, drive revenue and increase profits. Add to that, the first woman to lead the business, but Hina Nagarajan, Managing Director and CEO, Diageo India has not only successfully achieved this, but also surpassed many other feats. She speaks to Bhavya Desai about her journey, future objectives and more. Excerpts:
Since you took over, you’ve made incredible strides towards ensuring that the company becomes net debt free. How have you managed that?
The task ahead of me when I took charge in 2021 was to bring our Diageo India business on a sustained double-digit growth path, especially driving revenue and profitable share in the premium and prestige segments of the Indian alcohol market. Together with my leadership team, we made some strategic choices to win in this decade and beyond.
I led the execution of our portfolio reshape with the objective of accelerating premiumisation-led growth while delivering our guidance of mid to high teens margin. We completed the strategic review of our Popular brand portfolio, resulting in the sale of 32 mass brands and franchising of 11 brands in September 2022.
Our commitment to premiumisation is evident in our investments over the past years. We’ve introduced new products and innovations such as Royal Challenge American Pride, Epitome Reserve’s second limited edition of Peated Indian Single Malt in Goa, and Godawan, a unique single malt from Rajasthan. Additionally, our minority stake in Nao Spirits, the makers of Hapusa and Greater Than, underscores our strategy to grow in the luxury and premium segments, particularly in scotch, where we lead the market.
We also redefined our offerings in the Upper Prestige segment with unique products that resonate with new consumer trends. Furthermore, our efforts to premiumise and reposition brands in the Lower & Mid Prestige segments, such as McDowell’s No.1 Whisky and Royal Challenge Whisky, are part of our strategy to respond to evolving consumer needs.
With the consumer at the heart of our business, the strength of our reshaped portfolio, and the investments we are making to accelerate our strategic priorities, we have been able to deliver our mission of profitable double-digit growth for our business and in the process, wiped out our cumulative losses and declared dividend for the first time since acquisition a decade ago.
Having set on this path, what is Diageo’s next objective – in the coming years?
We feel extremely positive and excited about the future of the alcobev industry in India. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. India is in the middle of deep societal change led by women, youth and boom towns. This along with a massive growing need to ‘drink better, not more’ across all segments, is in line with our vision for the category.
The premiumisation trend will continue to stay strong with rising affluence. By 2030, 45% of Indian households (approx. 175 million households) will be in the upper mid and high-income groups. We see a big opportunity, not only to leverage this trend through our incredible portfolio of global and IMFL brands, but also to position Indian whisky as a characterful, distinct, high-quality offering by bringing the best of people, processes, and ingredients together to create bespoke liquids that are ‘Made in India’ for the world.
Our mission is to be a top CPG (Consumer Packaged Goods) company in India delivering sustained double digit topline growth with mid to high teen margins and long-term value to all our stakeholders. With this new strategy, we aim to deliver our Mission through 3 pillars that form the essence of our mission:
Reshaping our portfolio with a focus on accelerating premiumisation-led growth, while delivering our guidance of mid to high teens margins.
Creating an Organisation of the Future – We are building a future-ready organisation by investing in our talent, introducing market-leading policies and driving digital capabilities.
Defining and executing an ambitious role for Diageo in Society 2030 focusing on promoting responsible consumption, championing inclusion & diversity, and pioneering grain-to-glass sustainability which includes preserving water for life, accelerating to a low-carbon world and lastly, becoming sustainable by nature.
Keeping our customers as our main focus, along with the reshaped portfolio of our products and the investments we’re making to accelatate our strategic goals forward, we are confident of growing our business in a steady and sustainable way.
How has the consumer landscape changed over the years in the industry?
India is in the middle of deep societal change led by rising affluence, women, youth and boom towns. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. This trend expands to middle India and boom towns which are undergoing a remarkable transformation, fuelled by high aspirations and digital revolution where consumers are looking for premium brands, products, and experiences. The new consumer cohorts are driven by values of authenticity, individuality, local pride and collaboration with women building a more inclusive consumption narrative.
Digital has also been a big game changer. Most consumer journeys begin on digital with discovery, information, inspiration – informing them of their choices and behaviour and most of all aspiration and desire for what they want. If we look at the alcobev category, consumers are choosing different products for different occasions and need.
This means that repertoires are expanding from whisky to gin, vodka, rum, aperitifs, cocktails, etc. Consumers today choose to drink better, not more, leading to premiumisation of the alcobev category. At Diageo , we are responding to these structural shifts in consumer choices and behaviour, pivoted around premiumisation, wellbeing and sustainability. This new, changing, and vibrant India presents a huge opportunity for us.
You are the first woman to lead the business at the company. How do you think this encourages and inspires others across industries?
My appointment sparked interest and garnered positive attention, which reflects the breaking of traditional barriers especially in the alcohol beverage sector. As a woman CEO in alcobev, traditionally a male dominated industry, I see this as an opportunity to change the paradigm of this industry to make it more inclusive and normalise the narrative.
Our efforts are making a difference, leading to an environment where joining our sector feels no different from any other industry for women. At Diageo India, our commitment lies in building a workplace where everyone feels included. 50% of our Executive Committee and 35% of our senior leadership team comprises of women. We believe that a diverse leadership helps create a more balanced and well represented workforce. We’re making this happen by welcoming women into various leadership positions, ensuring we drive change right from the top.
Seeing more women in our company is truly encouraging. Their presence brings fresh ideas and perspectives on how we approach our products, market them, and innovate. This enriches our connection with customers and broadens our talent base, helping us to stand out and succeed in a competitive market. And hopefully, this encourages and inspires others to do more.
With sustainability being a rising factor amongst consumers today, how is Diageo moving towards a more sustainable tomorrow?
We at Diageo strongly believe that social and environmental impact and profitability are not two separate goals but rather interlinked. As one of the world’s largest beverage alcohol producers, we believe that we are ambassadors of our industry and aim to be the best we can – at work, at home, with friends, and in the communities we serve.
Sustainability is at the heart of our business strategy and is outlined in our Society 2030: Spirit of Progress ESG action plan. Our Society 2030 agenda is focussed on pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting responsible consumption.
Pioneering grain-to-glass sustainability plays a pivotal role in our Society 2030 goals and is embedded throughout the process and focusses on three key aspects; preserving water, lowering carbon emissions, and becoming sustainable by design.
In terms of preserving water we have overachieved our water replenishment target by 25% and three years ahead of our 2026 goals. We have improved our water use efficiency by 44% in our distilleries and 30% in our packaging processes, against the 2030 goal of 40%.
Women and girls are disproportionately affected when communities don’t have access to clean Water, Sanitation and Hygiene (WASH) facilities. We’re investing in such projects to empower women by providing sustainable water access and rebalancing their societal roles in more than 30 villages.
At the state level, we have partnered with Forest Department in Rajasthan and Maharashtra for mass plantation projects to improve green cover, protect soil, improve percolation and support biodiversity. In Alwar we have initiated efforts for desilting ponds, constructing check dams, improving drainage systems, to name a few. Measures like maintaining Zero Liquid Discharge status, rainwater harvesting pits, and others were adopted. We have also launched an afforestation drive to plant 2 lakh trees to offset residual greenhouse gas emissions.
We are making good progress in reducing our carbon emissions, and have committed to becoming Net Zero by F26 in our direct operations by mitigating our Scope 1 & 2 emissions and reduce 50% of our Scope 3 emissions by 2030. Our sustained efforts have resulted in industry-recognitions by Sustainalytics recognising the company as a “Top-Rated ESG Performer for 2022 and 2023” and our Alwar unit in Rajasthan,
has achieved the Alliance for Water Stewardship (AWS) certification, making it the first distillery in Asia to attain this certification.
In our efforts to becoming sustainable by design, we have removed mono cartons from 90% of our portfolio. In addition, we have introduced biodegradable packs as well as recyclable PETs in some of our brands and continue to expand it to others. This is aligned to our global mission to ensure 100% of our packaging is widely recyclable or reusable/compostable by 2030. Over 99% of materials used are recyclable. On glass, we have initiated light weighting of our bottles.
Our brands like ‘Signature by Nature’ uses 40% recycled glass for the glass bottle and is associated with Mangrove Plantation in Puri, Orissa where 30,000 Mangroves seedlings are being planted in five villages. These mangroves can sequester carbon up to 2-4 times faster than a mature tropical forest.
Our ESG agenda is owned by senior leadership levels including the board, which monitors the same through a CSR and ESG Committee. The ESG Index report we release annually highlights our progress mapped against each of the three pillars and we have witnessed remarkable achievements.
Our ambition is to be the forerunner in the Indian Consumer Product Goods (CPG) industry on ESG and create enterprise value.
What is Diageo’s roadmap for India with most companies betting big on the Indian markets? What is the next big product category that Diageo is focussing on for the coming years?
Diageo India is responding to structural shifts in consumer choices and behaviour, pivoted around growing affluence, premiumisation across categories, and quest for experiential and experimentation, through its refreshed business strategy focussed on premiumisation and focus on transformational innovation and renovation. We have a future back approach to our innovation pipeline and use a proprietory framework called Foresightto determine where trends will go few years from now.
It is for this reason that we have launched Royal Challenge American Pride which caters to the growing consumer preference for bourbon, renovated Signature to be the most sustainable brand in its segment , developed the Naya Sher campaign encouraging youth to take bold , confident steps forward for our Royal Challenge packaged drinking water as well as launched Walkers & Co – a platform to celebrate bold boundary pushers. We launched Don Julio tequila in the country in response to the growing traction for Tequila consumption in the country. We are also scaling up Baileys given the affinity for desserts in India.
We will continue to use Foresight to guide us on innovations for the future and bring the best of both our global, as well as Made in India portfolio, to cater to the evolving needs of Indian consumers.
While your association ISWAI has been representing centre and states for rationalisation of taxes including GST/Excise etc., do you expect centre to bring reform in the alcobev sector? How do you think this move will be beneficial?
ISWAI has been in talks with State Governments to rationalise high excise duties. It has made representations to the authorities time and again as manufacturers of alcohol beverages (Alco-Bev) continue to face shrinking margins due to high taxes, along with soaring inflation and import tariffs. The biggest barrier faced by the industry is freedom to price its brands. ISWAI continues to advocate for pricing freedom, especially for premium brands, as this will help the industry to overcome inflationary pressures. There are also several other regulatory and operational barriers which hamper ease of doing business for the industry. We have seen positive steps from the government on resolving some of these issues. ISWAI will continue to work proactively with various government bodies on these matters and is hopeful that the state governments will consider a harmonised tax structure as well as an acceptable annual pricing mechanism for the sector and continue to support ease of doing business for our industry.
