Bacardi Limited, the world’s largest privately held international spirits company with a portfolio comprising over 200 brands and labels. In a conversation with Bhavya Desai on a podcast, Vinay Golikeri, Managing Director of Bacardi India explains why India is a key market for Bacardi and more. Excerpts:
The market opportunities in India, both from a macro-economics and spirits perspective, are huge. Substantiating this Golikeri said, “In the global market place, premium spirits account for 50% of brands, while in India it is 5 to 6%, which means there is ample headroom to premiumise.” In India, between 2020 and 23, premium spirits had a growth of over 40% while globally it was around 7 to 8%.
Adding 20 million LDA every year
As regards Bacardi, Golikeri mentioned that vast majority of products were premium and ‘we have a long runway of growth for premium’ aided by factors such as rising affluence, consumers are drinking better, the demographic dividend (every year India is adding 20 million coming in to the legal drinking age (LDA) bracket), sea change in the retail environment, top notch bars, trading up is happening across price points. “Put all that together, the premium plus segment is really accelerating.” The median LDA in India is 28 whereas in the US and China it is over 40. “The number of affluent households is expected to more than double from 77 million in 2020 to over 177 million by 2030.”
Inflation-linked price mechanism needed
However, he said that two things from the regulators were essential – ease of doing business and consistency in policy, both of which will go a long way in driving growth for the industry and revenues for the government. “Several States have not given price increases for years. There is inflation and cost of raw material has gone up, affecting investment capabilities. The government should introduce inflation-linked price mechanism.”
With the alcobev sector in India being a highly regulated and complex market, Golikeri said, “It is like dealing with 28 countries rolled into one, policies change every year, route to market changes every year.” Taxes and duties are about 65 to 70% of the MRP (maximum retail price) and the rest goes to each level of the chain – wholesale, retail and brand owners. “Our taxes are significantly higher than anywhere in the world. We need inflation-linked pricing mechanism. We need to invest to grow the brand and for that to happen, price becomes critical.”
Best 10 Strategy
Continuing on Bacardi’s plans in India, Golikeri pointed out, “We started out in India in 1997-98 with Bacardi rum, then in early 2000s with Bacardi Breezer, mid 2010 with Bombay Sapphire, Grey Goose and a few years back with Patron. It’s being a great run. Bacardi India is an engine of growth for Bacardi globally.
“We at Bacardi are going along with our Best 10 strategy… that is making the next 10 years the best ones yet. We want to grow our India business six times by 2030. We have been having strong double-digit growth and we are on track. Experiential marketing is key for us. It is going to continue in importance as a growing number of consumers are experience-seeking. It is going to be equally about experience as much as the product.”
Cocktail Culture Evolution in India
“The bar scene in India has changed considerably, not just in metro, but also in Tier 2 cities. There is a lot of experimentation and we are seeing real evolution of the cocktail culture. It is not just Mumbai or Delhi. Recently, I had been to a bar in Guwahati and If I showed you their cocktail menu, you would think it was some bar in London or New York. Our products are positioned at half of the cocktail culture. This is an interesting opportunity for us to leverage the cocktail culture.”
Golikeri cited the sixth annual Bacardi Cocktail Trends Report, which identifies the five key trends poised to reimagine cocktail culture and the spirits industry in 2025. The report, created in collaboration with The Future Laboratory (TFL), draws on data from Bacardi-led and external research, consumer surveys, bartender interviews and TFL insights to reveal the movements that are influencing cocktail experiences, flavour profiles, and culture the coming year.
Quoting Mahesh Madhavan, the Bacardi CEO, Golikeri said the company has embraced the shift from consumption to curation, where consumers are not just seeking drinks, but meaningful experiences enjoyed over a cocktail.
Do What Moves You
Bacardi has launched a marketing push to launch its brand purpose ‘Do What Moves You’, which aims to “shine a spotlight on the brand’s belief in the power of self-expression”. “It has music experience, delicious cocktails, wonderful merchandise, its 360 degrees, bringing all together to a compelling experience. We amplify that digitally where a few experience, but gets seen by many.”
Legacy, Made in India
Talking about ‘Legacy’ whisky, the make-in-India product, Golikeri said its ‘tested, researched and produced in India’. “We have put the consumer in the heart of it. We have had strong results from the consumer to the product. We initially went into three States – Maharashtra, Uttar Pradesh and Telangana and we know we have a winner on hand. We will be rolling out in other states too and Legacy is a response to vocal for local.” The roll out plans include Goa, Pondicherry, Jharkhand, Odisha, Meghalaya, Assam, Tripura, Arunachal Pradesh, Kerala, and Rajasthan. The focus, Golikeri said, is going to be on Legacy, Irish whiskey brand Teeling; tequila brand Patron El Cielo, and vodka brand Grey Goose Altius.
However, he said that Bacardi rum which was introduced in 1997-98 continues to be popular. “For Bacardi Breezer, the main player in the RTD (ready to drink) segment, the market share in India is 90%. Launched in 2002-03, it is a great liquid and has had good activations. We had the winning recipe. We were an early entrant and we have cemented the product.”
Three F’s that Drive Bacardi culture
Asked about his experience so far in India, he said, “I came from Dubai in early 2023 and the first few months, I just travelled across the country, visiting almost all states, meeting with our teams, stakeholders and also consumers. It was an exercise to understand the challenges, the market and to help shape our strategy. I put all this on paper and took it to our board of directors. One of the learnings from the travels has been there is incredible opportunity for Bacardi to grow here.”
The company, he adds, encourages entrepreneurial mindset and helps in taking bold decisions, all coming from Bacardi’s focus on three F’s – Family; Founders and Fearless. “In Bacardi everyone is treated as family. We are all ‘Primos’ (cousins in Spanish), where we care for each other and help in making bold decisions. We are all a passionate team of Primos.”
India, Golikeri adds, contributes hugely not just in terms of business, but also as a global talent hub. Bacardi has so many career programmes and India is a key pillar when it comes to talent sourcing.
The Kerala government has announced that it would allow for the establishment of distilleries, breweries and spirit manufacturing units as to check import of liquor from other states. The new policy has several concessions for production and distribution of liquor, in the state’s bid to increase revenues from excise.
Under the new policy, now liquor sale can happen in industrial parks. In 2022-23, the Kerala government had allowed liquor permits in IT parks. Another concession it has granted is to give a special one-day permit on dry days. Hotels with three stars or more, along with heritage and classic resorts, now can apply for a one-day permit to serve liquor on the first day of the month for business meetings, international conferences, and other gatherings. No permission is granted on other dry days.
As per media reports, the government had granted permission to set up a liquor manufacturing centre in Elappully, Palakkad and a controversy had erupted. Now the government is planning to be lot more liberal in allowing breweries and distilleries across the state. The new liquor policy builds on the previous year’s guidelines of allowing the establishment of distilleries and units for manufacturing extra neutral alcohol (spirits).
Kerala in 2023-24 had generated a revenue of ₹31,618.12 crore from alcohol and sale of lottery tickets, accounting for one-fourth of the total revenue of the state. Revenue from alcohol sales amounted to ₹19,088.86 crore, making it the larger of the two main sources. Income from lottery sales was recorded at ₹12,529.26 crore. These figures combined account for approximately 25.4% of state’s total income.
Great drinks aren’t made by accident. They take skill, patience, and someone who knows exactly what they’re doing. Akhilesh Sheoran is one of those people. Whether it’s crafting a cocktail that wins championships or introducing whisky lovers to some of the finest spirits, he knows his way around a bar… and a bottle.
His journey started behind the counter, shaking and stirring his way through some of the toughest global competitions. Now, as Brand Ambassador – Craft Spirits at Diageo India, he’s the face behind some of the most talked-about labels, including Godawan Single Malt, crowned the Best Single Malt in the World (2024), and United’s Epitome Reserve.
In this chat, he spills stories from his career, shares tips on spotting a great bottle, and even talks about disastrous food pairings. Whether you’re a whisky enthusiast or someone who just wants to sound smarter at the bar, there’s plenty to take away from this conversation.
From mixology to brand ambassadorship, your journey has been remarkable. What inspired you to enter the world of craft spirits, and how has your path evolved over the years?
Working with different styles of spirits and engaging with consumers, I realised there’s so much that goes into bringing these incredible spirits to the bar. This curiosity led me to explore the other side of the industry as a Brand Ambassador, a dynamic and challenging role that allows me to bridge the gap between brands and consumers.
Which of your victories holds the most significance for you and why?
All competitions hold their own importance, as any win comes with new insights and a responsibility to push the boundaries further. However, Diageo World Class India stands out as one of the most demanding and rewarding experiences. Its rigorous structure truly tests creativity, technical skill, and adaptability, making it an unforgettable milestone.
The alco-bev space is constantly evolving. What are some of the biggest changes you’ve seen in the industry over the last decade, especially in India?
India’s drinking culture is evolving, driven by a younger, growing middle class that’s showing a stronger preference for premium homegrown brands. More people are exploring craft spirits and beers, and embracing new flavours and experiences. This move highlights a greater appreciation for quality, creativity, and the narratives behind bottles, shaping a more sophisticated and adventurous approach to what we drink.
What makes a spirit truly “craft,” and how do you see India’s role in this global movement?
Craft spirits are defined by their small-batch production, emphasis on high-quality ingredients, and hands-on distillation techniques that prioritise authenticity over mass production. Craft producers often experiment with distinctive botanicals, innovative ageing techniques, and transparent but unique production methods. More than just a process, craft spirits are about the people, leaders who challenge conventional rules. India’s role in the global craft movement is growing rapidly, with a surge in homegrown distilleries that merge heritage with modern innovation.
With whisky gaining a younger audience in India, how do you see the preferences of Indian consumers evolving when it comes to single malts and premium spirits?
Over the past decade, Indian consumers, especially younger consumers have developed a refined taste for single malts and premium spirits. This shift is driven by rising affluence, global exposure, and a desire for more authentic, high-quality drinking experiences. What’s even more exciting is the growing appreciation for domestically produced single malts, which are now competing on the world stage, reflecting a sense of national pride and recognition of India’s craftsmanship.
What’s the best way to appreciate and savour a good single malt?
The best way is to explore different styles from various regions and find what suits your palate. However, the right technique makes all the difference.
Use a Glencairn or tulip-shaped glass to concentrate aromas.
Observe the whisky’s colour.
Nose the whisky gently, keeping your mouth slightly open to catch nuanced aromas like vanilla, spice, fruit, or smoke.
Take a small sip and let it coat your tongue, identifying layers of flavour; sweetness, spice, peat.
The finish, or how long the flavours linger, tells you a lot about its depth and complexity.
Adding a few drops of water can open up hidden notes, making the whisky more approachable.
Ultimately, whisky should be enjoyed slowly, in a relaxed setting, where each sip reveals something new.
There’s a growing curiosity about how to identify a high-quality whisky. What are the key characteristics one should look for while selecting a bottle?
For me, specifics matter; from the packaging to the liquid inside.
But key factors to consider include: cask type and ageing process (although older doesn’t always mean better), alcohol by volume (ABV), and distillery and production methods. Look for anything that talks about tasting notes and flavour profile, brand philosophy and heritage behind the whisky. A well-crafted whisky tells a story before you even take the first sip.
The second term of Donald J. Trump as the United States President which began early this year has disrupted the world economic order. Trump’s sweeping tariffs on imports from almost all countries, including the US’s allies, has led to an international trade war, the ramifications of which are being felt in the stock markets, in trade disruption and creating economic uncertainty globally.
However, on April 9, under severe pressure from the bloodbath in the global stock markets and world leaders criticizing his move, Trump has paused for 90-days most of his exorbitant tariff hikes to 57 countries but with a baseline tariff of 10% while going aggressive on China by imposing an astounding 125% tariff.
India termed ‘Tariff-King’
As regards India, which is one of the US’s biggest trading partners in Asia, Trump has imposed a ‘discounted’ reciprocal tariff of 26%, while calling India the ‘tariff king’. Trump has claimed that the reciprocal tariff is aimed at countering unfair trade practices. The 26% tariff came into effect from April 9. Though he claimed that the Prime Minister, Narendra Modi is a great friend of his, Trump said India was charging 52%, while the US was charging almost nothing.
India subsequently slashed duty on bourbon whiskey from 150% to 100%, making the Indian liquor manufacturers take up the issue. The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S. Iyer said the Indian alcoholic beverage industry is already at a disadvantage compared to manufacturers from developed countries due to high capital and operational costs, evaporation losses, and restrictive licensing regimes. He said, “The government needs to safeguard the interests of Indian liquor manufacturers when deciding on issues related to customs duty cuts and other concessions under FTAs.” The CIABC wanted the state governments to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts announced would harm Indian products in both the spirits and wine categories.
Bilateral Trade
The bilateral trade between India and the US was pretty balanced at 10.73% till the Trump disruption. America accounted for about 18% of India’s total goods exports, 6.22% in imports with about 30 sectors (6 in agriculture, 24 in industry) exporting to the US. As regards alcohol, wine and spirits, the tariff hike at 122.10% has come into effect. As per the data from the Export Import Data Bank (EIDB) of the Ministry of Commerce & Industry, in FY24, India imported spirits worth $23.09 million against exports of only $8.03 million with companies such as Radico Khaitan, Amrut Distilleries, Piccadilly Industries, being the prominent ones.
The concern among Indian companies is that lower import duties might push the prices of premium liquor down, thus making Indian premium liquor face stiffer competition. However, at a panel discussion organised by Ambrosia during INDSPIRIT 2025, the Secretary General of the International Spirits and Wines Association of India (ISWAI), Suresh Menon clearly stated that there was need to rationalise the tax structure, while agreeing that the Indian import duties on spirits was exceptionally high.
Scotch Whisky Association ‘disappointed’
Globally, the tariff war is impacting almost all sectors, including the alcobev sector. The Scotch Whisky Association expressed disappointment with Trump’s tariff moves. With Trump announcing import duties, including a 10% levy on all UK goods and a steeper 20% rate for imports from the European Union, taking effect on April 5, the alcobev sector was going to be adversely impacted. “The move, one of the most aggressive protectionist measures in recent years, has sparked concern across multiple sectors, including scotch whisky producers. A spokesperson for the Scotch Whisky Association said,”The industry is disappointed that Scotch Whisky could be impacted by these tariffs. We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”
Wine sector concerned
It is not just the Scotch whisky producers who are worried, even the bourbon industry from the US is. The bourbon industry which is the backbone of Kentucky economy fears that it may get caught in the crossfire of the trade war, if other countries impose tariffs on American whiskey. There has been a lot of noise on how in the short-term Scotch whisky and European wines may become that much costlier. France’s Bourgogne Wine Board (BIVB) has said that the levies have “pushed our wines past a psychological price threshold”. French wines are subject to 20% tariffs under the new tariff rates.
The IWSR, in its analysis, has said that the new import tariffs will have serious consequences for beverage alcohol in the US, but the exact picture is complex, nuanced and subject to a host of uncertainties.
The IWSR said that with tariffs introduced on imports from Canada and Mexico and potential EU tariffs in discussion, a number of single origin beverage alcohol categories are most at risk – products with a legally protected designation of origin, meaning that they cannot be “re-shored” and produced in the US. These include agave spirits, Canadian whisky, Irish whiskey, Cognac, Champagne and Prosecco. Mexican beer imports would also be affected. The UK is trying to negotiate a separate trade deal with the US to head off tariffs to cover categories such as Scotch whisky.
“The second Trump Administration’s policies on tariffs will almost certainly be net negative for total beverage alcohol (TBA) in the US market, with global implications likely to be more limited, but there is major uncertainty about the extent of the impact,” says Marten Lodewijks, President IWSR US.
The alcobev sector flourished in 2024, balancing growth with challenges. Premiumisation, innovation, and sustainability stood out as key drivers of success and future opportunities.
India’s alcobev industry has grown to become one of the fastest-developing sectors in the country, showcasing its transformation from tradition to modernity. Over the past few decades, this sector has emerged as a dynamic force, fuelled by changing consumer preferences, increased disposable incomes, and a rising affinity for premium and artisanal beverages.
Per capita alcohol consumption in India has risen significantly, growing from 1.3 litres in 2005 to approximately 3.1 litres in 2022, reflecting the country’s evolving consumer base and expanding market. In 2024, the alcobev sector reached a valuation of $55 billion, driven by a compound annual growth rate (CAGR) of more than 6%. Analysts project that by 2025, the sector will see further growth, with an expected CAGR of 8-10%.
This growth trajectory has been supported by increased urbanisation, a young population eager to explore global trends, and a shift toward mindful indulgence. However, the industry faced its share of challenges, including escalating production costs, supply chain inefficiencies, and regulatory complexities. To better understand the highs and lows of 2024, key industry players provided their perspectives on consumer trends, innovations, and the future outlook.
Consumer Preferences Shape the Market
The year was largely defined by the shift in consumer preferences, with buyers driving the industry toward greater innovation and authenticity. Modern consumers demand products that resonate with their values and provide unique experiences, prompting brands to innovate across production, marketing, and packaging.
Vikram Damodaran, Chief Innovation Officer at Diageo India
Vikram Damodaran, Chief Innovation Officer at Diageo India, attributed much of the year’s success to this change. “Today’s consumers are looking for more than just a drink; they seek experiences rooted in quality, authenticity, and sustainability. We have embraced this change by leveraging our heritage, incorporating locally sourced ingredients, and celebrating artisanal techniques. This approach has not only strengthened our connection with audiences, but has also earned us over 70 national and international awards,” he explained.
Tarun Bhargava, Proost’s Co-Founder and CEO
Proost’s Co-Founder and CEO, Tarun Bhargava, shared how their brand remained focussed on balancing quality with environmental responsibility. “While trends like IPAs and craft beers dominated the market, we stayed true to our core identity, producing beer with consistently unique flavours. Consumers appreciate our mature, well-crafted beers free of off-notes. Also, we’ve adopted practices such as reusable packaging to align with the expectations of eco-conscious buyers,” he said.
Shekhar Swarup, Joint Managing Director at Globus Spirits Ltd.
Shekhar Swarup, Joint Managing Director at Globus Spirits Limited, stressed that sustainability and authenticity extend beyond production. “We’ve implemented advanced water management systems and effluent treatment technologies to significantly reduce our environmental impact. Each bottle tells a story of authenticity, showcasing top-quality ingredients, time-honoured distillation methods, and artisanal techniques. This ensures that sustainability and authenticity are central to both our products and operations,” Swarup shared.
Premiumisation Gains Momentum
The move toward premium offerings was another defining trend of 2024, with younger consumers showing an increased preference for high-quality, craft, and luxury beverages. This trend highlights a growing demand for exclusivity, innovation, and elevated drinking experiences.
Rupi Chinoy, Director of South Seas Distilleries
Rupi Chinoy, Director of South Seas Distilleries, spoke about the success of their Crazy Cock Single Malt. “Crazy Cock is a journey. The name reflects the founder’s bold vision, resilience, and passion for creating something extraordinary. Our mascot, the cock, symbolises a new dawn for South Seas Distilleries and the Indian single malt category. This spirit represents decades of dedication and meticulous craftsmanship,” Chinoy explained.
Adding to their accomplishments, Rupi highlighted the launch of Six Brothers Mahura (Mahua), a unique spirit firmly rooted in Indian heritage. “Our Six Brothers Mahura, crafted from 100% Mahura flowers native exclusively to India, revives a legacy long overshadowed during colonial times. As the country’s first commercial distillers of Mahura, we see it as our mission to bring this category to global prominence. Mahura has the potential to become India’s ambassador on the international stage, standing shoulder to shoulder with spirits like Tequila from Mexico and Cognac from France,” she shared.
What distinguishes Six Brothers Mahura is its unparalleled authenticity. “This is a spirit no other country can replicate. Distilled in the same copper pot stills as Crazy Cock Single Malt and platinum-filtered for an exceptionally smooth finish, Mahura is versatile…ideal for sipping neat, on ice, or as a cocktail base. Its reception in the bar scene has been phenomenal, with establishments like Bandra Born hosting the world’s first dedicated Mahura bar, exclusively serving Six Brothers cocktails that have quickly become a sensation,” Chinoy elaborated.
Globus Spirits took advantage of the premiumisation wave by introducing DŌAAB India Craft Whisky. The first edition, Six Blind Men and the Elephant, was designed to appeal to discerning drinkers who value creativity and tradition. This product showcased the growing appetite for unique offerings that bridge the gap between heritage and modernity.
Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura
The agave-based spirits segment also gained traction in 2024, with many referring to it as the “Year of Agave”. Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura, highlighted the category’s growth. “Agavepura is a 100% pure agave spirit that stands apart from tequila and mezcal. It reflects our homegrown roots while appealing to the global palate. As cocktail culture evolves and celebrity endorsements grow, agave-based menus are becoming more prominent in bars across India. We are proud to lead this movement, fostering greater appreciation for authentic, well-distilled agave spirits,” Pereira said.
Leti Blagoeva, Co-Founder SLAB Ventures
SLAB Ventures tapped into the premium spirits market with a lineup that has garnered global recognition. Co-Founder Leti Blagoeva detailed their offerings, saying, “Our Single Estate Vodka is made in Poland, the birthplace of vodka, exclusively from winter wheat and filtered through rare black pearls, ensuring unparalleled smoothness. Meanwhile, our whiskies, INCEPTION and VORTEX, are crafted in Scotland and have received gold medals at several prestigious international competitions. D’YAVOL INCEPTION was even named the ‘Best Overall Scotch’ at the New York World Spirits Competition.
“Looking ahead, we are excited about expanding our range of spirits. In 2025, we plan to launch an Anejo Tequila crafted in Jalisco, Mexico, in keeping with our commitment to authenticity. Moreover, we are broadening our global reach; D’YAVOL will soon be available in the UK and the US. For us, it’s still the beginning, and there’s much more to come from the brand in the coming years,” Blagoeva commented.
The Experiential Turn
The year 2024 also marked the rise of experiential marketing, as brands sought to create deeper connections with consumers by offering immersive experiences. These efforts went beyond traditional marketing, emphasising storytelling, creativity, and meaningful engagement.
Swarup enlightened how Globus Spirits leveraged this trend. “With Six Blind Men and the Elephant, we offered an experiential journey. This limited-edition release allowed us to involve with consumers who value exclusivity and creativity, encouraging a stronger bond with our audience,” he said.
Similarly, SLAB Ventures leaned into experiential marketing through its D’YAVOL AfterDark platform. Blagoeva described the initiative, saying, “Consumers today look for more than good products; they want to engage with the brand’s story. D’YAVOL AfterDark combines exclusive artists, signature cocktails, and a vibrant nightlife atmosphere. This initiative has reverberated not only in India, but also in international markets like the UAE and Australia.”
Varun Jain, Founder and CEO of Smoke Lab
Varun Jain, Founder and CEO of Smoke Lab, explained how their premium events brought the essence of Smoke Lab Vodka to life. “We curated a series of events that embodied our brand ethos, from art-infused cocktail evenings to sensory experiences like Smoke Lab Nights, where guests explored our vodka variants paired with music, visuals, and gourmet cuisine. Collaborations with leading mixologists, chefs, and lifestyle brands helped us to deliver unique experiences,” he stated.
He also highlighted partnerships with sustainable fashion and design brands to reflect Smoke Lab Vodka’s commitment to modern luxury and environmental responsibility. “To enhance exclusivity, we introduced limited-edition bottles featuring bespoke packaging inspired by contemporary art and design. These bottles were accompanied by curated tasting notes and recipes, encouraging consumers to celebrate with elegance and creativity,” Jain added.
Vikram Achanta, Founder & CEO of Tulleeho
Vikram Achanta, Founder & CEO of Tulleeho and Co-Founder of 30BestBarsIndia and India Bartender Week, shared his perspective on the growing importance of experiential drinking. “Experiential events have become a central aspect of consumer engagement, offering meaningful opportunities to connect with the beverage community. This year, Tulleeho participated in marquee events like ProWine, Bar Convent Berlin (BCB), and exclusive masterclasses highlighting Sake, among others,” he noted.
Achanta also underlined the growing popularity of travel-inspired events, with consumers seeking pop-ups and bar takeovers by world-renowned establishments. “The recent takeover by Handshake Speakeasy, crowned the world’s #1 bar in 2024, in Jaipur is a prime example. We anticipate immersive drinking experiences gaining even more momentum in 2025. To prepare for this, we are exploring new opportunities, including events with Tulleeho Tequila Club,” he added.
Challenges and Adaptation
Despite the successes, the alcobev industry faced significant hurdles. Mounting raw material costs, supply chain disruptions, and regulatory changes created obstacles that required companies to remain agile and innovative.
Bhargava outlined these challenges, saying, “We faced price pressures due to intensifying costs, logistical delays in obtaining permits, and changing excise policies. Adapting to these circumstances demanded a proactive approach and collaboration across teams to ensure smooth operations.”
Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd
Adding his perspective, Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd., reflected on the complexities of managing these challenges while launching a new premium offering. “As leaders in the brandy category, we recognised the need to elevate its perception. This led to the launch of Monarch Legacy Edition, our first luxury brandy, in November 2024, aimed at redefining the category and spotlighting the depth and complexity of brandy. However, navigating volatile commodity prices, particularly ENA and packaging materials, was a major obstacle. We overcame this by strengthening our asset-light model, ensuring robust cash flows, and focussing on premiumisation to improve margins. Agility and staying attuned to consumer needs allowed us to turn challenges into opportunities,” he mentioned.
Nevertheless, the industry’s resilience shone through as brands implemented strategic solutions to navigate these difficulties. Investments in technology and sustainable practices helped mitigate challenges, ensuring continued growth.
Urban and Rural Synergies
As the alcobev sector looks ahead, balancing urban sophistication with rural potential has become a critical focus. While metropolitan regions continue to demand premium products, rural areas present untouched opportunities for growth through tailored offerings and localised strategies.
Bhargava described Proost’s approach to addressing this divide. “In cities like Delhi and Gurgaon, we are concentrating on launching lagers that cater to refined tastes. For rural markets, the weight is on deeper penetration and affordable products that resonate with local preferences,” he shared.
Simba Beer and ZigZag Vodka, co-founded by Ishwaraj Singh Bhatia, are also pursuing a dual-market strategy. “Rural and urban audiences require distinct approaches. By combining innovation with eco-conscious practices, we’re catering to the needs of both markets effectively. Plans are underway to introduce new flavours and experiences that further immerse consumers in our vibrant world,” Bhatia noted.
Future Outlook
Looking ahead to 2025, the alcobev industry is poised for further growth, with estimates suggesting a valuation of $60 billion and annual sales exceeding 1.2 billion cases. The focus on innovation, sustainability, and health-conscious options is expected to drive this expansion.
Jain shared his company’s plans for the upcoming year. “We are introducing vodka flavours inspired by regional and global culinary influences, launching limited-edition artisanal vodkas aimed at connoisseurs who value exclusivity, and enhancing our presence in emerging markets like Europe, Australia, Asia, and Latin America. We will also strengthen our reach in established regions such as the U.S. and the Middle East by forming partnerships with premium distributors,” he said.
Ishwaraj Singh Bhatia, Co-founder and COO, Simba Beer and ZigZag Vodka.
Bhatia accentuated the importance of aligning with evolving trends. “We foresee 2025 as a year of experiential consumption, eco-friendly practices, and personalised premium offerings. At ZigZag, we will focus on creating immersive brand experiences, implementing sustainable methods, and collaborating with mixologists to craft innovative, trend-driven products that resonate with today’s consumers,” he conveyed.
Damodaran pointed to two critical trends expected to shape the future of the alcobev industry. “Affluent consumers are seeking bespoke, exclusive experiences, while younger demographics are driving the demand for low- and no-alcohol options,” he observed.
Damodaran also talked about plans for Indian craft spirits. “We are closing 2024 on a high note with Godawan’s entry into the UK market. In 2025, we aim to build on this momentum through The Good Craft Co.,” he added.
Tilaknagar Industries Ltd. has ambitious goals for the year, particularly in the brandy segment. “In 2025, our aim is to increase brandy’s ‘share of voice’ in the market,” stated Dahanukar. “Following the launch of our luxury brandy and whisky portfolio, we plan to drive further marketing investments. Monarch, in particular, has already seen strong pre-order interest from export markets in Asia and the Middle East, and we intend to deepen our reach in southern India. Alongside this, we are preparing to expand our portfolio across both local and international markets,” he informed.
As the industry evolves, driving change and nurturing creativity will remain essential for long-term success.
Cheers to 2025! Tipplers across the country have given the liquor trade a good enough reason to be cheerful. Liquor sales have hit the roof, just in the two days as revelers rang in the new year. The southern states of Karnataka, Andhra Pradesh, Telangana and Kerala have shown robust sales. According to estimates, Telangana has broken all records with liquor sales of over ₹800 crores on December 30 and 31, eight times the usual daily sales of around ₹100 crores.
The Telangana State Beverages Corporation Ltd (TSBCL) sources have told some media that last year the sales were around ₹700 crores on December 30 and 31 and this year the increase was phenomenal. Telangana registered liquor sales of about ₹402 crores on December 30 and ₹401 crores on New Year’s Eve night as revelers flocked to bars and restaurants; liquor stores and enjoyed at home drinking. There were hundreds of parties that rocked the city of Hyderabad which had the most sales, followed by surrounding districts of Ranga Reddy and Medchal.
Telangana has overtaken its previous record of liquor sales in the month of December. This year the government raked in a revenue of ₹3,523.16 crores, compared to ₹2,764 crores in December 2023. With Sankranti round the corner, excise officials expect the momentum to continue, though not on the same scale as year-end celebrations. The Telangana government has set a target of ₹45,000 crores from excise for 2024-25.
As per media reports, Uttar Pradesh came next in sales, having done a business of nearly ₹600 crores, breaking its previous record.
Karnataka rakes in nearly ₹1,000 crores in end December
Karnataka, more so Bengaluru which is known for its pub and cocktail culture, witnessed its highest single-day liquor sales of ₹409 crores on December 28 as residents and bars stocked spirits. The Karnataka State Beverages Corporation Limited (KSBCL) reportedly sold liquor worth ₹308 crore during New Year celebrations in the state against the target of ₹250 crores. At least 4.83 lakh boxes of Indian-made liquor (IML) were sold generating revenue of ₹250.25 crore. Around 2.92 lakh boxes of beer bottles were sold for ₹ 57.75 crore. In total 7,76,042 lakh boxes of liquor were sold.
December has been an exceptional month as during Christmas too there were good sales. On December 27, ₹408.58 crore liquor sale was registered. Around 6.22 lakhs of IML boxes and 4.04 lakh beer boxes were sold, generating business of ₹327.50 crore and ₹80.58 crore.
Andhra Pradesh sales hit a new high
Tipplers in Andhra Pradesh gulped down liquor worth nearly ₹300 crores on New Year’s Eve, double the amount of liquor sales during the previous year (₹147 crores). To encourage sale of liquor, the Andhra Pradesh government allowed the retail vends to be open until midnight, while bars were permitted to dispense liquor till 1 am.
The port city of Visakhapatnam registered sale of liquor worth ₹11 crore on December 31 alone with around ₹ 8.89 crores sales happening through 145 liquor outlets in Visakhapatnam district; ₹ 1.55 crores from 119 bars; ₹17 lakh sales from 12 star hotels; ₹8 lakh sales from six clubs and ₹ 7.5 lakh from four tourism hotels, according to the Superintendent of Excise, R. Prasad. Visakhapatnam average daily sales is ₹ 5 crores.
Delhi touches ₹400 crore sales
Delhi also saw liquor sales worth ₹400 crore, with hotels, bars and party events consuming the most alcohol, while Noida had sales touching ₹16 crores on December 31 and January 1, 2025, boosted by the extended hours of vending.
Kerala sees more sales during X’mas
In Kerala, it was Christmas season which saw Keralites guzzle more beer and liquor than during New Year’s Eve. On December 24-25, beer and liquor sales in Kerala was about ₹152 crores (₹94.72 on December 24 and ₹54.64 crores on Christmas day) while on New Year’s Eve it was ₹108 crores, nevertheless ₹13 crores more than the previous year.
The Kerala State Beverages Corporation (KSBC), the sole wholesaler of alcoholic drinks in the state, released these figures. It said that the sale of liquor and beer was about ₹19,088.68 crores in 2023-24, up from ₹18,510.98 crores in 2022-23. The profile of liquor consumers in Kerala reveals that around 32.9 lakh people out of the 3.34 crore population in the state consume liquor, which includes 29.8 lakh men and 3.1 lakh women. Around five lakh people consume liquor on a daily basis. Of this, as many as 83,851 people, including 1,043 women, are addicted to alcohol.
INDSPIRIT 2024 and Ambrosia Awards 2024 was held recently in Gurgaon, Haryana in front of a packed audience.
Dive into the heart of the alcobev industry with the inaugural address of INDSPIRIT 2024, delivered by Trilok Desai, the visionary Publisher & MD of Ambrosia & SAP Media Worldwide. As we celebrate the 16th edition of this iconic event, get ready to explore the dynamic shifts and growth trajectories shaping the future of alcohol beverages in India and beyond.
Don’t miss out on this comprehensive overview of today’s alcobev landscape, filled with expert analysis, future forecasts, and a celebration of industry achievements. Whether you’re a professional in the field, an enthusiast, or simply curious about the evolving world of alcoholic beverages, this video promises insights and inspirations aplenty.
Stay Tuned: Subscribe and hit the notification bell to get updates on all things INDSPIRIT 2024. Share your thoughts and questions in the comments below, and let’s engage in enriching discussions on the future of the alcobev industry. 🔗
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Jim Murray stands as a prominent figure and key player in the global whiskey scene, having held the title of the world’s first full-time whisky writer for over three decades. The 2024 release of his widely successful “The Whiskey Bible” marks the 20th anniversary of the publication. Maintaining a staunch commitment to independence, Jim fearlessly critiques those deserving of scrutiny and advocates for whiskies that were once overlooked or unfamiliar.
In the present day, the likes of Ardbeg, Pure Irish Pot Still, and Canadian and Japanese whiskies such as Yoichi and Yamazaki have gained widespread popularity, thanks in no small part to Jim’s daring efforts to bring them into the public eye. Despite facing criticism and occasional attempts at character assassination, Jim’s bold choices have significantly shaped the current whisky segment.
In a conversation with Ambrosia, Jim shared insights into his passion for the spirit, details about his personal life, encounters with setbacks and comebacks, and perspectives on emerging whisky trends and Indian distilleries.
What led to your transition from journalism to becoming the world’s first full-time whisky writer, and are there any interesting stories or experiences from your journey you’d like to share?
I began my career in journalism covering sports and general news, gradually diving into more intense subjects like murders and special investigations while working for national newspapers. Amidst these experiences, my first encounter with a distillery occurred in 1975 during a hitchhiking expedition across Scotland. Boarding a boat bound for Skye, I visited the Talisker distillery, and it literally changed my life.
The vibrant sensory details of the distillery – the colours, smells, sounds, and the meticulous process – left a lasting impression on me. As a journalist, I used to get to travel a lot. Tasting whisky straight from the barrel with its 60% alcohol content was a revelation, and it sparked a personal interest. From the age of 17, during my spare time, I started making personal notes on whiskies, differentiating their unique qualities. By 1989, I began writing and selling articles about whisky globally, all while maintaining my role as an investigative journalist.
In media publications, I noticed a gap in whisky coverage. Wine writers were handling whisky topics with incorrect terminology and descriptions. Convinced I knew more about whisky, I considered transitioning into whisky writing. This decision faced resistance, especially as it meant giving up a stable income. Despite the initial resistance from my wife, in 1992, I took the leap, becoming the world’s first full-time whisky writer.
Back then, there were no whisky festivals or visitor centers, maintaining a sense of mystique around the industry. Breaking into the scene was tough. For years, I earned little, even became a single parent. Despite financial challenges, I persevered, creating fresh content for the emerging market. The books I wrote brought in money, but research costs were high due to the lack of prior literature on the subject. Believing in the cause, I endured the financial strain, comparing it to the pain barrier in athletics. It’s been a journey with continuous challenges, drawing parallels to my days as a long-distance runner facing a tough race.
A pivotal moment occurred during a meeting with Jim Milne, a J&B revered blender, who has been blending since the 1950s. In a seminar he conducted, whiskies labelled X, Y, and Z were presented without disclosing the distillery names. Upon nosing one of the whiskies, I asserted, “This doesn’t belong in your blend; it’s Fettercairn.” To this, he acknowledged, “Indeed, that is Fettercairn, and it’s included here only because of an oversight.” By identifying a misplaced sample, I earned the blender’s respect and was urged by him to share my opinions on whisky. This encounter led to a realisation – my extensive self-guided apprenticeship in studying whiskies positioned me uniquely.
Unexpectedly discovering my heightened olfactory senses (got to know I had a unique skill set, ranking in the top 2% for sensitive noses), this breakthrough moment changed my perception, realising I could sense and appreciate whiskies in a distinctive way. I ventured into consulting as a blender, complementing my role as a writer. This unforeseen skill set, acknowledged by one of Scotland’s most respected blenders, allowed me to contribute to the whisky industry in ways I had never imagined.
What is your typical approach to whisky tasting? Are there specific methods or techniques you adhere to during the process?
My approach to whisky is akin to that of a blender. I first identify any flaws in the whisky before acknowledging its merits. This involves deducting points for aspects like added caramel, an imbalance of oak flavours that overpower the malt, and any weaknesses that detract from the overall quality of the whisky. I can discern whether a whisky has been meticulously crafted or hastily put together.
When it comes to public awareness, blind tastings are crucial to eliminate biases. People often have preconceived ideas about certain whiskies, which can influence their perception. Therefore, I conduct blind tastings to remove any biases and judge the whisky solely on its merits. When compiling my Whiskey Bible, I don’t taste blind as I need to consider the distillery’s style and whether the blender has captured its essence. I assess the whisky’s complexity and intended profile before making judgments.
My tasting method, dubbed the “Murray Method”, involves avoiding strong perfumes, water intake, and spicy foods to keep my senses sharp. Strong perfumes can interfere with the senses, affecting the ability to discern aromas accurately. Additionally, I avoid consuming spicy foods while working, ensuring my taste buds remain undisturbed and receptive. However, recognising the cultural practices, I understand that asking Indians not to eat spices isn’t practical, given their culinary preferences. In 1997, I authored “Jim Murray’s Complete Book of Whiskey: The Definitive Guide to the Whiskeys of the World”, which gained significant popularity, selling over a quarter million copies. While discrepancies in numbers and subsequent editions may have altered the count, the book’s success is evident.
I’ve come across articles critiquing the book “Whiskey Bible”, accusing it of being sexist. However, generally, I’ve noticed that descriptions of food in a sensual manner are common in many publications. How do you respond to this perspective?
You need to grasp the immense impact of this book. It sparked the rise of Indian whisky and catapulted Japanese whisky to new heights. I awarded World Whisky of the Year to a Japanese whisky, leading to a whopping 3 billion dollars in revenue for them. Despite this success, I personally didn’t gain financially because I don’t accept kickbacks. I maintain complete independence. However, there’s a phenomenon known as industrial espionage, where some individuals might see the power of this book as a threat.
This book is pivotal because, like food and drink share common ground: sight, smell, taste, and touch. These senses, when combined, create a sensual experience. If people in the industry argue that whisky isn’t sexy, they probably shouldn’t be part of it. As a writer, honesty is of utmost importance. The motto of the Whiskey Bible is “the truth, always above all”. Criticism requires integrity and candour.
Some distilleries hold a grudge against me because I refuse to engage in their marketing tactics or succumb to their influence. Despite my disdain for those attempting to control me, I remain impartial in assessing the quality of their whisky. I won’t conform to the prevailing trends, particularly the notion of labelling everything as an anti-feminist crime. Personally, my marriage met its demise when I embraced the role of a whisky writer, a sacrifice I made for my career. The constant globetrotting has hindered the possibility of forming lasting relationships. I’ve never remarried, but it’s not due to a lack of romantic inclinations. Unfortunately, my genuine love for others has been weaponised by jealous individuals aiming to undermine the influence of the Whiskey Bible. Frankly, I feel sorry for these people, in their pursuit to tarnish my reputation, reveal a certain poverty in their character.
During a recent visit to Kentucky, a woman expressed admiration for my writings on whisky, considering it one of the most beautiful things ever shared with her. The hypersensitive woke culture on certain social media platforms seizes any opportunity to unleash their destructive tendencies, fuelled by baseless hatred. Many of these individuals are familiar with my identity and knowledge of whisky, yet they target me simply because I’m a convenient male figure to attack. This trend reflects the fragility of Western society.
Watching a stunning sunset often sparks a longing for someone to share the experience. Similarly, I take pleasure in sharing my love and passion for whisky with the world. I want to introduce people to the finer things in life.
Jim Murray at the launch of Amrut Bagheera and Portonova
When comparing Indian whisky to traditional whisky-producing nations, do you observe any notable differences?
The primary distinction lies in the heat when comparing it to traditional whisky-making countries. The maturation process in cooler climates allows for an important element: time. This time factor plays a vital role as tannins and other components from the environment have the opportunity to integrate and blend seamlessly. In contrast, hotter countries face a more accelerated maturation process, making it challenging to achieve the desired balance. Balancing whisky in warmer climates requires more effort and skill. While some argue that water quality influences whisky, the key is ensuring water is free from contaminants like pesticides and iron deposits, which can discolour the whisky. Interestingly, despite the romanticised notions surrounding water sources, many Scotch whiskies use tap water.
Unlike the present era filled with marketing gimmicks, the industry in the late ’80s and ’70s was less saturated with such tactics. Kentuckians, for instance, boast about having the best whiskey due to their water source originating underground, having been there for centuries, dissolving limestone and aiding fermentation. This stands in contrast to other Scottish distilleries, although not Glenmorangie and Highland Park, two renowned Scottish distilleries, which also derive their water from limestone, similar to the Kentuckians. I advocate for focussing on the contents of the glass rather than getting swayed by marketing claims on labels.
What trends do you perceive in the whisky industry, in your view?
Looking back at the whisky industry’s history, it’s been characterised by cycles of growth and decline. In the 1980s, whisky consumption dwindled as it was perceived as a drink of the older generation, with younger drinkers favouring lighter spirits. A common joke was that one could spot a whisky drinker by looking at the obituary column, as they were diminishing in number. This decline in blended whisky consumption led to an excess of single malt whisky sitting idle in distillery warehouses. It was during this time that efforts to promote single malt whisky, spearheaded by individuals like Michael Jackson, began to gain traction, revitalising interest in the category.
Similar to the boom in distillery construction in the 1890s, the recent surge in new distillery openings has created a crowded market. However, the current global situation introduces uncertainty, making it challenging for new distilleries to establish themselves and sell their products. Despite these challenges, smaller distilleries are poised to thrive, although they will face significant pressure. Nevertheless, it’s crucial for them to remain authentic and transparent in their approach to whisky production.
A concerning trend observed among some Irish distilleries is the practice of finishing whisky in various casks, obscuring the true character of the spirit. This approach detracts from the whisky’s identity, akin to wearing excessive layers of clothing that mask one’s true self. Moving forward, distilleries should prioritise honesty and authenticity to attract discerning consumers. The road ahead may be arduous, but it presents an opportunity for distilleries to redefine themselves and engage with consumers on a more genuine level.
Jim Murray at the launch of Amrut Bagheera and Portonova
How can Indian distilleries enhance their quality and global standing?
When considering the steps Indian distilleries can take, it’s important to acknowledge the unique dynamics in the Indian market. Unlike Scotland, India has a massive population of over a billion people, with a growing middle class. Over the past 30 years, I’ve witnessed significant changes in India, particularly in terms of economic growth and an expanding consumer base. The challenges faced by Scotch whisky in India may not be as pronounced, given the increasing number of people who can afford high-quality whisky. Notable distilleries, like Amrut and Paul John, have set a commendable standard, maintaining their commitment to excellence. In my early involvement with Paul John, I assisted in training their blender and witnessed their staunch dedication to quality. Several other Indian companies are also making strides in improving their whisky, demonstrating a continuous pursuit of excellence. While there is always room for improvement, the progress made in all these years is remarkable.
Comparing the whisky from three decades ago to the present would reveal a staggering leap in quality. This positive trajectory showcases the dedication and attention to detail exhibited by Indian distilleries. The success of Indian whisky on the global stage can be attributed to the determination of distilleries to make a lasting impression. Unlike some companies that may compromise on quality when relying solely on their brand name, Indian distilleries have prioritised maintaining high standards. The meticulous attention to detail is a driving force behind the success of Indian whisky. Even distilleries that were once considered mediocre have elevated their standards, while new entrants to the market are setting the bar even higher.
Keep an eye out for European Wines with Sommelier Devati Mallick
The stage is all set for VINEXPO Delhi 2023 to get underway tomorrow. While there is much to look forward to for the visitors, with many foreign producers gracing the event, the European Union (EU), located at Booth F50 in Hall 1B is expected to have a strong showing as the Region of Honour. The fair will be held from 7th– 9th December, 2023.
European wines, beers and spirits are more than alcoholic beverages, thanks to exceptional raw materials, timeless craftsmanship and unwavering safety standards. Europe is the birthplace of the world’s wine industry, and traditions of winemaking are proudly passed from generation to generation; they have defined European rural landscapes for centuries. Nowadays, the EU accounts for 45% of world’s wine-growing areas, 65% of wine production, 57% of global wine consumption and 70% of exports, making it the world leader in each of these categories.
A tradition of quality and excellence
More than 1700 European wines have Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) protections, serving as a guarantee of their authenticity and quality. The consumers can enjoy these products in the knowledge that they have been produced to the highest quality and safety standard. Whatever your preference, you will find something to delight you among the wines of Europe. Red, white, rosé or sparkling wines from Europe can help make any occasion special.
European Union: The Region of Honour at SIAL and VINEXPO in New Delhi
What makes this year’s VINEXPO particularly noteworthy is the presence of over 50 company representatives, including 14representing wines and spirits sector, facilitating B2B matchmaking sessions on December 7 and 8. These sessions offer invaluable opportunities for Indian buyers, retailers, and distributors to connect with European businesses across various food and drink sectors
Moreover, the European Union’s VINEXPO booth will host a series of enlightening masterclasses on wines, beers and spirits. Each Masterclass, lasting 30 minutes, will feature a selection of beverages for tasting. Among these, the EU Masterclasses, led by renowned sommelier Devati Mallick, promises to be a highlight. As you sip and savour the wines, you’ll embark on a journey through Europe’s finest vineyards, guided by the expertise of a true connoisseur.
As we gear up for VINEXPO Delhi 2023, we invite you to join us in celebrating the union of tradition and innovation in European winemaking. Stay tuned for an unforgettable wine experience that promises to captivate your senses and leave you with a deeper appreciation for the world of wine.
Let’s raise our glasses to VINEXPO Delhi 2023, where European wines and spirit drinks will take center stage, and the EU’s commitment to vinicultural excellence, along with the expertise of Devati Mallick, will shine brighter than ever before.
The EU’s participation in SIAL and VINEXPO 2023 is part of its ‘More than Food’ campaign, actively promoting outstanding European agricultural products on a global stage. For the latest information and updates, visit the official ‘More than Food India‘ webpage.
For media inquiries, please contact: sial2023@agripromotion.eu
The International Spirits & Wines Association of India (ISWAI), the apex body of the premium alcobev sector, unveiled its report titled “Economic Value of the Indian Alcoholic Beverage Industry”, presenting it to Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog. This comprehensive report is a first-of-its-kind and takes an in-depth look at the vital elements and the significant roles played by the Indian alcobev sector.
The report offers valuable perspectives on the alcoholic beverage industry, highlighting its economic impact, patterns of consumption, and its positive effects on related industries like agriculture, tourism, and more.
Expressing her gratitude, Nita Kapoor, CEO, ISWAI, said, “I extend our heartfelt thanks to Shri Amitabh Kant, G20 Sherpa, on behalf of ISWAI for allocating the time to receive this crucial report. This is a significant moment for ISWAI and the broader industry, affirming the sector’s substantial relevance to the nation. The alcobev Industry serves as a pivotal economic engine, making it imperative for pertinent stakeholders to recognise and value our sector’s economic contributions.”
Nita Kapoor further emphasised, “The alcohol industry holds a vital position within the national economy, presenting opportunities for growth, job creation, and revenue generation. As we look to the future, the importance of the alcohol industry in India is poised to expand. Therefore, it is crucial to simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full potential for growth.”
Shri Amitabh Kant, G20 Sherpa and former CEO, NITI Aayog, being presented a copy of the Report titled ‘Economic Value of the Indian Alcoholic Beverage Industry’ by Nita Kapoor, CEO, and Suresh Menon, Secretary-General of the International Spirits and Wines Association of India (ISWAI) at his office in New Delhi.
Key Highlights:
With an estimated market size of $52.4 billion in 2021, roughly 2% of the country’s nominal GDP, the Indian alcobev industry is significant and burgeoning (₹3.9 lakh crore, including country liquor).
Projections suggest the Indian alcoholic beverage industry could reach an astounding $64 billion over the next five years, ensuring India’s position as the fifth-largest contributor to global market revenues in the near to medium term.
In the fiscal year 2021, the industry contributed a significant ₹2.4 lakh crore in indirect taxes to the state governments, representing many income streams. Customs duty on alcoholic beverages alone accounted for ₹2,400 crore.
The alcohol revenues represent 1.2% of India’s nominal GDP, 7.7% of the total tax collection, and 11.7% of the nation’s indirect tax revenue. The sector contributes a significant 24.6% of the overall own tax revenues of the states.
Around 1,235 million litres of extra neutral alcohol (ENA) were used to produce Indian-made foreign liquor (IMFL) and ready-to-drink alcoholic beverages in 2021. It is estimated that to produce 741 million litres of extra neutral alcohol for IMFL, 1.9 million tonnes of grain are required. This amounts to 0.6% of India’s total grain production of 316 million tonnes in 2021-2022.
Approximately 724,611 farms and 36,23,057 farmers are involved in grain production for ENA. 2.9% of the persons employed in the agriculture, hunting, forestry, and fishery sectors are engaged in the production of grain/sugarcane/grapes utilised for ENA for spirits and wine.
The scope of the alcohol industry in terms of employment is remarkable at a staggering 79 lakh individuals, both directly and indirectly. This accounts for 1.5% of the total manpower employed in the country.
About 14-19% of the overall revenues of the organised F&B industry are dependent on the ₹28,000 crore sales of alcoholic beverages.
An enabling policy environment for the alcoholic beverage industry can thus drive investments, jobs, and exports. India-manufactured alcoholic beverages have large untapped export potential and should be treated like any other industry.
On the occasion, Suresh Menon, Secretary-General, ISWAI, remarked, “Beyond its substantial tax contributions, the industry plays a vital role in supporting farmers’ livelihoods. It is also intricately linked to the food and beverage, hospitality, tourism, and packaging sectors. With India’s demographic shift, the growth of the young and expanding middle class is projected to persist for several more decades, driving an increase in per capita consumption of various goods and services. Constructive governmental policies can streamline the ease of business in this sector, fostering a more conducive operational climate. By addressing and removing certain barriers, we can propel the sector’s growth to the advantage of all involved parties.”
