Author Archives: Janhavi Panani

Suntory Global Spirits Underlines Strong Presence in Indian Travel Retail

Suntory Global Spirits is deepening its imprint in India’s thriving travel retail sector with a clear focus on premiumisation and experiential retail. Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits, outlines the group’s strategic expansion and growing resonance among discerning Indian consumers, especially with the launch of the Bowmore Appellations Collection, now exclusively available at Delhi Duty Free and Ospree Duty Free, Mumbai (Arrivals).

Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits

This exclusive single malt series features four rare, age-statement expressions, each finished in casks from celebrated European wine regions, fusing Islay’s signature smokiness with rich global terroirs. “The Bowmore Appellations Collection reflects our commitment to premium storytelling and innovation in the travel retail channel,” notes Thukral.

Expanding Footprint with Premium Spirits

India’s travel retail market is on a growth trajectory, propelled by surging international and domestic passenger movement and a strong appetite for luxury offerings. Suntory Global Spirits has positioned itself strategically with a comprehensive portfolio that spans across iconic Japanese whiskies—Yamazaki, Hibiki, Hakushu, Chita, and Toki—under The House of Suntory. This is complemented by American legends Jim Beam and Maker’s Mark, Islay favourites Bowmore and Laphroaig, and premium white spirits Roku Gin and Haku Vodka. Notably, Suntory’s portfolio also includes India-specific expressions tailored to local tastes, underscoring a nuanced and market-sensitive approach.

Creating Awareness Through Immersive Experiences

Suntory Global Spirits is not only selling bottles—it’s offering experiences. At the flagship Delhi and Mumbai duty-free outlets, the company has curated immersive shop-in-shop boutiques. These spaces feature Kigumi-style wooden lattice architecture, Marumado-inspired digital screens, Zen garden podiums, and interactive digital panels exploring artistic collaborations, including with Japan’s Chiso Kimono House.

A dedicated section on The Art of Japanese Gifting, complete with customisable Kandji cards, further enhances the shopping journey, reflecting the Japanese spirit of Omotenashi—wholehearted hospitality. “These installations aim to educate and engage, turning a duty-free visit into a meaningful cultural moment,” adds Thukral.

Capitalising on India’s Single Malt Surge

Recent data from the IWSR shows Indian Single Malts (ISMs) overtaking Scotch Single Malts in domestic sales for the first time in 2024, growing by over 25% this year following 75% growth in 2023. This transformation signals a distinct consumer pivot towards premium, character-rich whiskies.

“Such growth validates our long-term investment in India,” says Thukral. “While our Japanese whiskies continue to lead with global prestige, our Scotch single malts—including Bowmore and Laphroaig—are also seeing increasing demand.”

The introduction of travel retail exclusives like Bowmore Appellations is a strategic move to capture this discerning customer base.

Beyond India: Global Footprint with Local Relevance

The same emphasis on curation and premium offerings applies across other key travel retail markets like Dubai International Airport and Singapore Changi Airport. While the core lineup remains consistent, each market receives tailored activations and launches to cater to regional preferences.

The Kogei Collection – Japanese Kimono Edition (2024) and the Bowmore Appellations Collection, both GTR exclusives, have been rolled out in these locations, amplifying global brand synergy while respecting local consumer nuances.

Market Share and Future Pipeline

With a 5.5% share in the Indian market, Suntory Global Spirits is seeing robust growth—particularly at international airports, where average basket sizes and conversion rates are significantly higher. “It’s not just about volume, but the quality and aspiration behind each purchase,” says Thukral.

Looking ahead, the brand promises a pipeline of innovative, limited-edition expressions designed exclusively for travel retail. These are aimed at travellers who seek more than just a purchase—they seek a story.

“Our mission is to offer travellers a deeper connection to our brands—be it through craftsmanship, cultural heritage, or exclusive taste journeys,” concludes Thukral. “And India remains central to that vision.”

Abhishek Modi Works Off His Own Manual. And That’s Exactly Why Rockford Works.

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Walk into a liquor store today and you’ll spot it: the distinctive label, the sleek bottle, the growing shelf space. Rockford has carved its own path in the premium whisky segment. Behind it is Abhishek Modi, Executive Director of Modi Illva India Pvt. Ltd., a third-gen entrepreneur with a sharp instinct for what works, what sells, and what sticks. He has got degrees in chemical engineering and business, sure, but what drives him is an eye for detail and a taste for building things that last.

Modi Illva is a 50:50 joint venture between the Umesh Modi Group—whose businesses span pharmaceuticals like Betadine, cosmetics like Revlon, and large-scale distilleries—and Italy’s Illva Saronno, the makers of global staples like Disaronno and Tia Maria, with a presence in over 160 countries. Together, they’ve built a spirits company that continues to expand its footprint across India, with flagship labels Rockford Reserve and Rockford Classic at the forefront.

The company has recently announced an INR 100 crore investment in a dedicated malt distillery at its Modinagar facility, scheduled to go live by December 2025; a move that will support its ambition to produce premium single malts and scale up existing production.

In this conversation with Ambrosia, Modi shares insights on scaling distribution, why Tier 2 cities are key to their strategy, what shapes consumer loyalty in premium segments, and how the company is building for long-term relevance in a competitive alco-bev market.

Modi Illva’s growth in the premium spirits segment has caught the industry’s attention. What factors do you believe are driving this momentum today?

Several elements have contributed to this momentum, both within the company and in the broader market. A key reason is the change in buyer behaviour; particularly among younger, aspirational drinkers, towards quality and authenticity. At Modi Illva, we’ve responded by creating products that match these evolving tastes. Consistency remains central to our production philosophy. We’ve also developed a strong brand narrative rooted in our heritage while incorporating innovation. This blend has helped us connect with audiences, even in areas where brand loyalty is hard to earn. Our long-term investment in regional markets and ongoing relationships with customers has played a crucial role in maintaining this trajectory.

What’s your roadmap for the House of Rockford over the next few years? Can we expect new variants or entries into different whisky sub-segments?

Innovation continues to shape our direction at the House of Rockford. We’re not only working on new expressions but also rethinking how premium whisky can evolve for Indian palates. The coming years will bring considered portfolio additions and renewed trust-building. While Rockford Reserve and Rockford Classic are already well-established, we are examining avenues in craft, blended segments, and age-specific offerings. Collaborations with select distilleries are also being explored for limited releases that appeal to both existing patrons and first-time buyers. All future launches will uphold the standards Rockford is known for.

You’ve built a premium whisky portfolio that resonates with a discerning audience. Which markets or cities are you focussing on currently and why do these matter in your expansion strategy?

Tastes across the country are becoming more sophisticated, and whisky is increasingly tied to individual identity. While major metros such as Mumbai, Delhi, and Bengaluru remain integral, there’s substantial growth in locations like Jaipur, Indore, and Lucknow. These cities are seeing a rise in purchasing power and interest in elevated options. Our attention on Tier 1 and select Tier 2 hubs stems from the pace at which these regions are transforming. Early engagement helps us decode local nuances and develop meaningful connections with new audiences.

Distribution often makes or breaks a brand in the alco-bev space. What is your current approach to building a strong, scalable distribution network and how are you aligning it with consumer demand?

Ensuring availability across the right retail formats, pricing tiers, and channels is essential. We’ve already secured placement in 80% of relevant outlets nationwide. Our framework is structured to be both agile and robust, enabling us to respond to demand patterns swiftly. We rely on trusted partnerships across distribution and retail, built over time. As we continue expanding, our supply chain is being reinforced to maintain visibility without compromising on the aspirational nature of our labels. The system is designed to progress alongside the audiences we serve.

Is there a conscious push towards investing in marketing to strengthen brand recall, especially in newer or emerging markets? How do you measure that impact?

Our campaigns prioritise building real-world resonance rather than chasing volume alone. In newer geographies, we’ve increased our digital presence and local outreach—particularly in Tier 2 and 3 areas—where authenticity and regional relevance shape perception. We measure success through repeat sales, brand stickiness, and customer feedback loops. Meaningful interaction outweighs visibility metrics, and our approach reflects that principle.

We’ve seen an increased interest in Indian single malts, both locally and globally. Is that a category you’re actively exploring or building towards?

The traction around Indian single malts is undeniable, and we’re observing the space closely. Rockford has firmly established its place among premium blends, and we continue to track shifts in craft spirit preferences. Introducing a single malt would require a label that mirrors the quality benchmarks we uphold. For now, we’re expanding our existing portfolio while evaluating future entry points with care.

Production scalability becomes critical when a brand starts accelerating. Are there any backend developments or facility expansions in the pipeline to support your growth goals?

Yes, we are actively upgrading infrastructure to support upcoming requirements. This includes capacity enhancement, improved distillation technology, and streamlined logistics. Environmental responsibility is built into these upgrades. We’ve also fortified our quality assurance systems to deliver consistency, whether the batch size is small or scaled up. These steps are essential as we look to meet rising domestic demand and enter additional global territories.

From a consumer trends perspective, what shifts are you observing in India’s premium alco-bev consumption and how is Modi Illva adapting to meet those expectations?

There’s a marked movement among younger drinkers toward experiences tied to cultural connection, storytelling, and identity. At Modi Illva, we’ve responded with offerings such as Singhasan, a 100% Indian whisky designed for those seeking local relevance. The goal is to create products that reflect this mindset, while maintaining brand integrity and delivering a richer journey for the buyer.

Sustainability is no longer optional. Are there efforts underway at Modi Illva to make production, packaging, or sourcing more environment-conscious?

Yes, ecological responsibility remains a key area of action. We’ve taken steps to reduce our carbon footprint during distillation, introduced recyclable packaging solutions, and engaged with suppliers aligned to our sustainability goals. These initiatives are reviewed regularly to ensure alignment with industry benchmarks. As operations scale, these commitments will remain embedded in our practices.

With AI and digital tools reshaping every sector, do you see them influencing the alco-bev industry? If yes, how are you integrating tech into operations or consumer engagement?

Digital tools and artificial intelligence are helping brands operate with sharper insight and responsiveness. We use these to assess buying patterns, optimise supply logistics, and fine-tune campaign strategies. Real-time input enables us to test new formats and strengthen distribution agility. Whether through customisation, product planning, or service, tech is infused into our everyday decision-making.

You belong to a legacy known for building bold, category-defining ventures. What’s your approach to balancing tradition with modern disruption in your current role?

I work to retain the values that have shaped our foundation, while introducing newer methods suited to today’s context. We combine legacy knowledge with contemporary tools. This mix allows us to evolve while holding on to the consistency and ethics that define us. Progress doesn’t require replacing the past; it calls for building on it thoughtfully.

India’s position in the global alco-bev map is evolving fast. Are you seeing opportunities to export Indian premium spirits? Is that part of Modi Illva’s next phase?

Absolutely. India is gaining attention globally for spirits with character and quality. We believe our brands have the depth to connect with international audiences. Regions like Southeast Asia, Europe, and the Middle East are receptive to well-crafted Indian whisky. We’re actively assessing overseas entry points and see this as a natural extension of our domestic progress.

Looking ahead, what are the biggest milestones or breakthroughs you’re hoping to achieve, either as a business or personally as a leader?

Our target as an organisation is to become India’s third-largest alco-bev player. I would like to shape a label that delivers clarity, originality, and high standards. Rockford has established itself among premium blends, but the journey ahead involves stronger global recognition. This next chapter is an opportunity to contribute to India’s presence in the world of whisky.

Rapid Fire

Blended whisky or single malt: what’s your go-to?

Blended whisky.

One Indian city where you would love to launch an exclusive limited edition?

Keeping state policy in mind…maybe Goa or Gurugram.

Big branding campaign or silent disruptor, what’s more your style?

Definitely silent disruptor. I believe in the product to speak for itself.

Your favourite bar anywhere in the world?

The Connaught in London

If you weren’t building spirits, what would you be doing?

Building a disruptive retail brand in grocery business

What’s one thing people would be surprised to learn about you?

I am quite an open book. What you see is what you get!

Gadkari unveils Praj BioVerse, Charts India’s Green Energy Future at World Biofuel Day 2025

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The Union Minister for Road Transport and Highways, Nitin Gadkari, set out an ambitious vision for India’s energy and mobility transformation at the launch of Praj BioVerse, an integrated bioeconomy platform, in Pune. The event coincided with the 10^th anniversary of World Biofuel Day celebrations in India and brought together industry leaders, policymakers, and innovators. Ambrosia was invited to this special event. Excerpts:

The gathering saw the presence of Dr. Pramod Chaudhari, Founder-Chairman of Praj Industries; Sanjay Kirloskar, CMD of Kirloskar Brothers; and Vikram Gulati, Country Head of Toyota Kirloskar Motors, among other dignitaries.

100% ethanol-powered generator

Praj BioVerse is positioned as a hub to integrate innovation, industry, research, and policy to accelerate India’s transition to a sustainable, low-carbon economy. The event’s highlight was the unveiling of Kirloskar’s 100% ethanol-powered generator, a milestone in India’s green energy innovation.

Dr. Chaudhari also released his memoir, ‘Horizons Beyond Dreams… As Is What Is’, chronicling his entrepreneurial journey and Praj’s role in advancing circular economy principles.

Farmers as Energy Providers

Gadkari in his address underscored a shift in the agricultural paradigm, from food-only production to fuel and energy generation, highlighting how ethanol blending has already transformed the fortunes of farmers. He cited the surge in corn prices from ₹1,200–1,800 per quintal to ₹2,600–2,800 in Bihar and Uttar Pradesh.

“This is not just an energy policy; it is rural economic empowerment,” Gadkari said, pointing out the dual benefit of reduced fossil fuel imports and increased farmer incomes. “Our farmers will not just grow food, but also fuel for aviation, construction equipment, and vehicles. The day we stop importing fossil fuels will mark a historic transformation.”

The Minister noted that India had overtaken Japan to become the third-largest automobile market in the world. He said the auto sector was also a significant contributor to GST, underlining its economic importance. However, he pointed out that 40% of the country’s air pollution came from automobile emissions, making it essential to adopt cost-effective, import-substituting policies focussed on alternative fuels.

He spoke about isobutanol, biodiesel, green hydrogen, and bamboo ethanol as promising alternatives to conventional fuels. He mentioned that India was on track to become the world’s leading automobile manufacturing hub and revealed that plans were underway to export Mercedes electric vehicles from the country. He envisioned a future in which India evolved from being an energy importer to a net exporter of clean fuels such as biofuels and green hydrogen.

Gadkari urged Indian industry to accelerate the shift to biofuels, emphasising their multiple benefits—reducing crude oil imports, boosting rural incomes, cutting emissions, and transforming agriculture. He added that the ethanol push had helped corn farmers secure better prices for their produce.

Transition to Biofuels

He reiterated that the transition to biofuels was also a key strategy for rural employment generation. He stressed that agriculture must become more economically viable and that the agricultural GDP needed significant growth. He recalled that the idea of producing ethanol from maize had initially faced criticism due to the “food vs fuel” debate, but noted that ethanol production had positively impacted the sector—raising corn MSP, increasing corn acreage, and resolving longstanding payment delays in the sugarcane industry.

Highlighting the future of sustainable energy, Gadkari said that isobutanol was emerging as an alternative to traditional diesel and spoke of ongoing efforts to develop and scale biodiesel as a cleaner substitute for diesel engines. He added that the burning of rice straw had reduced significantly thanks to its use in biofuel production, helping to combat air pollution in several regions.

He further stated that India was on track to become an energy-exporting nation, driven by biofuels, green hydrogen, and other alternative energy sources. He called for greater focus on bamboo cultivation and urged Praj Industries to explore its potential in bioenergy applications.

Referring to flex-fuel technology, he mentioned that he had been using a Toyota flex-fuel vehicle for a year, describing it as both fuel-efficient and environmentally friendly. He expressed confidence that construction equipment would also transition to FFVs in the near future.

Looking ahead, Gadkari envisioned a future in which green energy revenues would empower India’s rural landscape. He said farmers would not only grow food, but also fuel for the aviation sector, construction machinery, and more. He concluded that the day India no longer imports fossil fuels would mark a truly historic achievement.

Praj BioVerse Unique Movement

In his address, Dr. Pramod Chaudhari said that Praj BioVerse was a unique movement bringing together innovation, collaboration, and sustainability within one powerful ecosystem. He explained that BioVerse was a place where ideas were transformed into solutions, where climate action progressed alongside economic growth, and where India’s leadership in the global bioeconomy took centre stage. He added that this aligned perfectly with the vision of Viksit Bharat by fostering inclusive growth and building a circular bioeconomy.

Dr. Chaudhari noted that in the current geopolitical and trade environment, energy security was no longer optional, but a strategic imperative. He stressed that Praj’s bioeconomy model, rooted in local systems and rural self-reliance, was both sustainable and scalable for nations worldwide. He described walking through the BioVerse experience as akin to witnessing the entire Indian bioeconomy value chain in action—from feedstock diversification and intercropping practices to advanced co-product innovations that ensured farmer profitability and steady supply chains.

He highlighted that Kirloskar Oil Engines had tested a B50 blend for the first time in India and that the Automotive Association of India was advancing ethanol–diesel blends while fast-tracking certifications for biofuel technologies meeting the highest standards of performance, safety, and sustainability. According to him, exhibits ranging from ethanol-powered bikes to next-generation engines demonstrated that technology and industry were ready to scale. However, he cautioned that this transformation required more than technology, calling for collective action from innovators, researchers, manufacturers, and policymakers to work together as one.

Vikram Kasbekar, CEO of Hero MotoCorp, said the company was among the first in the country to develop a flex-fuel two-wheeler capable of operating on blends starting from E20. He noted that since 2023, the entire product portfolio had been E20-compliant. According to him, the initiative was not just about technology, but also about supporting the circular economy, benefitting farmers, and reducing dependence on imported fuels. He added that the company had upgraded its technology so that modern ethanol-compatible engines delivered fuel efficiency comparable to traditional petrol engines, and that these vehicles were being well accepted in the market and running successfully.

Vikram Gulati, Country Head and Executive Vice President of Toyota Kirloskar Motor, emphasised that most automotive companies today—both two-wheeler and four-wheeler manufacturers—have introduced flex-fuel vehicles capable of operating on ethanol blends ranging from E20 to E100. He acknowledged that some barriers remained, but noted that these were being addressed with strong policy support from the Government, whether through enabling CAFE norms and taxation structures for OEMs or by creating the right environment for customers and the supply chain to adopt such fuels.

Carbon Trading

Gulati added that in the coming years, economies would increasingly be driven by carbon trading. He said India had a significant opportunity not only to use ethanol domestically and save billions in foreign exchange, but also to earn substantial carbon credits in the global market.

Sanjay Kirloskar, President of MCCIA and CMD of Kirloskar Brothers, said that to achieve the Prime Minister’s vision for 2047, India would require around 1,000 GW of generation capacity. He noted that fossil fuels would need to be phased out and that base-load power would likely come from nuclear energy. He observed that the dangers of fossil fuels were well recognised and that countries worldwide were investing in wind, solar, and nuclear energy together.

Kirloskar pointed out that Europe had implemented carbon border adjustment mechanisms that would affect exports from fossil-fuel-heavy economies, using the funds raised to invest in green technologies. He stressed that Maharashtra was uniquely positioned to lead in nuclear technology, as it housed most of the country’s nuclear establishments, EPC contractors, consultants, and major equipment manufacturers, including Godrej, Larsen & Toubro, and Kirloskar Brothers. According to him, if the state positioned itself strategically, it could drive manufacturing growth, high-tech jobs, and skills development.

Speaking about Kirloskar Brothers’ contributions, he said the company had pioneered titanium pumps for 2G ethanol biofuel production in India. Until now, these pumps had been entirely imported from the US, but he indicated that this would soon change, as every ethanol plant in India currently imported them.

Vishal Soni of Vishwakarma Publications talked about the book, the key takeaways being the clear vision, integrity and the journey of Pramod Chaudhari who is known as the ‘Ethanol Man of India’. The journey echoes how ‘confidence is key to success and preparation is key to confidence’.

Atul Mulay, President of Bioenergy at Praj Industries, while proposing the vote of thanks said the event reflected how collaborative efforts between industries and other research and development organisations helps in strengthening the bioverse ecosystem. Stating that Pune is a powerhouse of industrial technological development, he said that it is key to cleaner, greener and self-reliant future.

Radico Khaitan, Nikhil Kamath Invest in SRK & Aryan Khan’s D’YAVOL Spirits

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First Launch to be Premium Tequila
In 2022, Aryan Khan and Bunty Singh had launched luxury apparel and small-batch spirits
Radico Khaitan acquires 47.5% of D’YAVOL for Rs 40 crore

Radico Khaitan, one of India’s largest alcoholic beverage players, and Zerodha co-founder Nikhil Kamath have joined forces with Bollywood icon Shah Rukh Khan and his son Aryan Khan to scale up D’YAVOL Spirits, a luxury alcohol venture set to debut with a high-end tequila.

Launched in 2022 by Aryan Khan and Bunty Singh as a lifestyle label, D’YAVOL first offered luxury apparel and small-batch spirits, later expanding into fashion with D’YAVOL X. The new spirits-focused entity will operate independently under CEO Leti Blagoeva.

The strategic alliance brings together Radico Khaitan’s manufacturing and distribution scale, D’YAVOL’s premium brand positioning, and Kamath’s consumer market expertise. The company will focus on “bottled-in-origin” international products, targeting affluent consumers in India and overseas.

Radico Khaitan has acquired 47.5% of D’YAVOL for Rs 40 crore, making it the largest shareholder. Apart from the Khans, the other founders of D’YAVOL are their friends Harprit Singh and his wife Leti Blagoeva who is the CEO, the total holding comes to 47.5%. Nikhil Kamath has invested 5% in D’YAVOL Spirits.

“With D’YAVOL Spirits, we are entering a bold new chapter—merging our blending, marketing, and distribution strengths with the charisma of Shah Rukh Khan, the entrepreneurial vision of Aryan Khan, and Nikhil Kamath’s disruptive approach,” said Abhishek Khaitan, MD, Radico Khaitan. “This is a long-term investment that aligns with our growth strategy while opening new avenues in luxury spirits.”

Khaitan added that Radico had no plans to enter tequila, “but when conversations happened with Shah Rukh… and when we saw the product created by them, we decided to partner with them.”

The first product, a premium tequila, is expected to hit the market within months, possibly before the fiscal year ends. Over time, the portfolio will expand to include more internationally sourced, high-end spirits.

Shah Rukh Khan said, “Every great idea needs the right energy behind it. With Abhishek’s experience, Nikhil’s passion, and our creative instinct at D’YAVOL, we are building something bold, relevant, and future-facing.”

India’s alcoholic beverage market is steadily moving upmarket, fueled by rising incomes and evolving tastes. Industry leaders are increasingly investing in design, provenance, and global appeal to capture the growing premium segment.

Radico Khaitan—known for Rampur Indian Single Malt and Magic Moments Vodka—has been expanding globally. The company says D’YAVOL Spirits will run alongside its existing portfolio, aiming squarely at younger, aspirational consumers.

Exclusive: Industry Veteran Suresh Menon dwells on impact on Street Prices of India-UK FTA

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The alcobev sector has been a part of two critical Free Trade Agreements (FTAs) – the one India signed with Australia in early 2022, and the more recent Comprehensive Economic and Trade Agreement (CETA) between India and the UK. While the focussed beverage on the Australian one was wine, the UK agreement is focussed on spirits – notably whisky and gin.

Unlike most of the world, the Indian alcobev market is dominated by spirits whose share stands at circa 52%, compared to beer at just under 48%, with wine making up the minuscule remainder. To place it in a comparative context, the UK market is dominated by beer at nearly three-fourths of the market, followed by wine at a healthy 20%, with spirits bringing up the single-digit balance. Even within spirits, India is typically ‘browns’ country with whisky, brandy and rum having a dominant 96% share of all alcoholic spirits, with ‘white’ spirits (e.g., vodka, gin, tequila and flavored spirits) at a distant 4%. On the contrary, the UK is dominated by ‘white’ spirits at 60%, the balance 40% being ‘brown’ spirits (Figures are courtesy IWSR calendar year reports).

While exports of spirits from India to the UK have been traditionally subjected to NIL import duties at the UK end, India imposes an import tariff of 150% on all imports of alcoholic spirits from the UK.

Under the recent India-UK CETA, for whisky and gin, this will now come down to 75% on entry-into-force (EIF) or operational commencement of the CETA, followed by a phased annual reduction over ten years to a resting rate of 40%. For all alcoholic spirits other than whisky and gin, the comparable figures are 110% on EIF, going down over a ten-year period to a resting rate of 75%. However, this concession for all spirits (other than Whisky and Gin) will be subject to a Minimum Import Price (MIP) of USD 5 / USD 6 i.e., only imports valued abovethe threshold will be eligible for the concession – those belowthe threshold will continue to be charged at the current import tariff of 150%.

Whisky and Gin		Other Alcoholic Spirits
150%	Current Import Tariff (BCD + AIDC)	150%
75% ↓ 75%	On Entry into Force (EIF)	110% ↓ 40%
40% ↓ 110%	Phased annual reduction to a resting rate in Year 10 of	75% ↓ 75%
NA	Minimum Import Price (MIP)	USD 5 / USD 6*

*UOM unclear at present BCD – Basic Customs Duty

AIDC – Agricultural Infrastructure and Development Cess

The use of the term ‘Whisky’ in the CETA will make imports of all Whisky from the UK (e.g., those produced in Great Britain, Wales and Northern Ireland) eligible for the tariff reduction in addition to Scotch. The Rules of Origin embedded in the CETA mandate a minimum value addition of 35% within the UK to qualify for the beneficial import tariff into India.

While the intention of the reduction in tariff is to make it applicable to both forms of import – those imported in bottled form (also known as Bottled in Origin or BIO), as also to Bulk Spirit, imported to facilitate local production / bottling and to enhance the blend quality of Made-in-India products, historical HSN classification of the Bulk products may create some issues for imports which will need to be ironed out.

India is the largest importer of Scotch whisky from the UK in volume terms, primarily on account of its humongous import of Bulk Scotch, which constitutes nearly 80% of the country’s overall Scotch import. As mentioned earlier, the Bulk Spirit is used for bottling of Scotch whisky brands in India as also for blending with locally produced brands of IMFL.

While the Indian Cabinet has approved the CETA, the UK Parliament must approve the CETA before it can become effective – and hence the current expectations are that the EIF will be around mid-2026.

While state duties and taxes on Alcoholic Spirits vary state by state, on a national average they are in the range of 66-75% of the street price paid by consumers. That leaves a residual share of 25-34% to cover the CIF price (or cost of goods), local distribution and other expenses, customs tariffs (for imported products), local state levies (e.g., licence fees), and margins for the suppliers, wholesalers and retailers. When placed in this context, one can well visualise that the tariff reduction, though very welcome, is not going to have an earth-shattering impact on street prices. Additionally, given that the EIF is still some time away, various factors can impact the benefits of the tariff reduction, particularly in the current charged geopolitical environment of aggressive physical and trade conflicts – e.g., the INR-GBP forex rate, and the UK-India freight rates, to name only two.

That said, it’s a fresh and welcome reset to a long-standing trade relationship. Cheers to that!

Suresh Menon is a veteran of the Indian alcobev industry, having been a part of the sector for over 35 years – the views expressed herein are personal.

India Wine Market growing despite challenging times

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Given the global disruptions the Indian wine industry can look forward to good times.

Global wine consumption declined by 3.6% year-on-year to 214 million hectolitres (mhl), while production slumped by 4.8% to 226 mhl—its lowest level since the 1960s. This concurrent drop in demand and supply signals deep-rooted structural challenges, as consumer preferences shift and climate change continues to disrupt traditional wine-making regions.

Against this global backdrop, India has quietly emerged as a bright spot. The country now commands a 2.6% share of the world’s vineyard area, buoyed by a 4.1% CAGR in expansion—contrary to global trends. However, this optimism should be tempered with realism: wine still accounts for less than 1% of India’s alcohol consumption.

The India wine market size was valued at USD 229.0 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 892.0 Million by 2033, exhibiting a CAGR of 16.30% from 2025-2033. The rising disposable incomes, evolving consumer preferences, expanding wine tourism, increasing local production, supportive government policies, growing e-commerce accessibility, and the influence of the hospitality sector are factors responsible for the increasing number of India wine market shares.

Wine Growers Association of India (WineGAI) was started with a mission to grow India’s wine industry to ₹3,000 crore by 2030 by accelerating demand, improving quality, and shaping a supportive regulatory ecosystem. The vision was to establish India as a globally respected leader in wine production and a vibrant, wine-loving nation at home.

“WineGAI began in 2023 with just seven members and have since grown into an association representing 17 wineries across the country — and we’re actively working to bring more on board so as to be truly representative of the Indian wine industry.

“We’ve got a huge challenge ahead, given the slowdown in the wine category. I truly believe that we can overcome this by banding together and contributing to the larger cause. With your cooperation and involvement, we can,” says Ashwin Rodrigues, Secretary, WineGAI.

WineGAI consists of wineries with active brands as members. Key office bearers cannot serve two consecutive terms. There are mandatory monthly meetings of the Managing Committee. Member access to an exhaustive online database of over 200 documents containing statewise policies and correspondence. Full-time professionals are hired to manage the affairs of the association.

WineGAI successfully collaborated with The Lalit Group in celebrating the 8th annual Indian Wine Day. The event was a true celebration of Indian-ness, emphasising the rich flavours of Indian cuisine and wines. The Lalit Group has been instrumental in promoting Indian wine and making it a special day for wine enthusiasts.

WineGAI has also actively supported the event, further highlighting the growth and recognition of Indian wine.

The Ministry of Food Processing Industries (MOFPI) has recently established a Committee on Alcoholic Beverages to steer the sector’s growth and development. WineGAI actively participates in this committee, contributing its expertise to the industry’s advancement.

On March 29, 2025, WineGAI and HPMF signed an MoU to work together on promoting Indian wines in the hospitality space. The aim is to build awareness among hospitality professionals, encourage the use of Indian wines in the HoReCa sector, and drive demand through knowledge-sharing and smarter purchasing decisions.

The highlight of the year was the Bandra WineOut, a 1,800 strong consumer festival that reached out to a younger audience and made wine fun!

Their cooperation under the Joint Dialogue with Australia under the FTA got stronger. India gave them duty concessions in 2022, and the Australians have promised to help them in technical know-how and various other things.

Key Market Highlights: Strong market expansion driven by evolving consumer lifestyles & growing urban affluence; Increasing preference for premium, imported, and artisanal wine varieties and Rising focus on sustainable viticulture and eco-friendly packaging solutions.

The Indian wine market is experiencing a shift towards premiumisation as consumers increasingly seek high-quality, imported, and artisanal wines. With rising disposable incomes, evolving social drinking habits, and greater exposure to global wine culture, there is growing demand for fine wines from countries like France, Italy, Australia, and Spain. Additionally, domestic wineries are expanding their premium offerings to compete with global brands, focussing on quality production, innovative blends, and vineyard tourism.

By 2025, the demand for premium and imported wines is expected to surge further, driven by urban millennials and professionals who view wine as a sophisticated lifestyle choice. This trend is also fuelling investments in wine education, wine-tasting events, and the expansion of wine retail and e-commerce channels.

India’s domestic wine industry is growing steadily, with wineries in Maharashtra, Karnataka, and Himachal Pradesh focussing on high-quality local production. Improved viticulture practices, better grape varieties, and technological advancements in winemaking are enhancing the quality and competitiveness of Indian wines. Additionally, vineyard tourism is gaining popularity, with wineries offering immersive experiences such as wine tasting, vineyard stays, and food pairings to attract enthusiasts.

By 2025, the domestic wine sector is expected to witness increased investment in infrastructure, production capabilities, and promotional activities. The government’s supportive policies, including relaxed excise duties in some states and incentives for local wine producers, are also expected to boost the market, making Indian wines more prominent in both domestic and international markets.

Sustainability is becoming a key focus in India’s wine market, with producers adopting eco-friendly practices in both winemaking and packaging. Consumers are increasingly conscious of environmental impact, driving demand for wines packaged in biodegradable materials, lightweight glass bottles, and recyclable cartons. Wineries are also adopting sustainable viticulture methods, such as organic farming, water conservation, and solar-powered production facilities.

By 2025, the shift towards sustainability is expected to accelerate, with wine brands emphasising green certifications and eco-conscious branding to appeal to environmentally aware consumers. This trend aligns with global movements towards sustainable consumption, positioning Indian wineries to attract both domestic buyers and international export opportunities.

The Indian wine market is experiencing significant growth, driven by factors like a rising middle class, urbanisation, and changing consumer preferences. While still a relatively small industry compared to spirits, Indian wine production is increasing, and the market is expected to continue its expansion. Key trends include the adoption of wine as a preferred beverage, its use as a status symbol, and the increasing perception of it as a healthier alternative to stronger alcohol.

A significant portion of the market is supplied by domestic wineries, with imports accounting for a smaller share. Wine is increasingly becoming a preferred beverage, especially among younger demographics and urban consumers.

Wine has become a symbol of sophistication and an indicator of higher social standing among some Indian consumers. Wine is perceived by some as a healthier choice compared to stronger alcoholic beverages. Wine producers are exploring new grape varieties, fermentation methods, and blending techniques to cater to evolving consumer tastes.

Major Production Regions: Maharashtra, particularly the Nashik region, is the largest wine-producing area in India, with other regions like Bangalore and Himachal Pradesh also contributing.

Regulations and Taxation: Government regulations and taxation policies can impact production costs and pricing, which is a key factor in the Indian wine market.

Impact of COVID-19: The pandemic had a temporary impact on the wine industry due to lockdowns and economic contraction, but the market has since rebounded.

Indian wineries are focussing on building strong brands to enhance their competitiveness and reach a wider consumer base.

Taxes could affect Indian Alcobev Industry

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High taxation significantly burdens the Indian alcohol industry by increasing production costs, impacting profitability, and potentially driving consumers towards illicit alternatives. While GST doesn’t directly tax alcohol, increased taxes on input materials and logistics contribute to higher retail prices. This, coupled with state-specific excise duties and other levies, leads to a complex and fragmented market with varying prices and access points.

Indian alcohol market is estimated to be valued at 60.11 bn in 2025 and is expected to reach USD 101.10 bn in 2032, exhibiting compound annual growth (CAGR) 0f 7.7% from 2025 to 2032.

India’s alcoholic beverage industry faces regulatory hurdles like liquor bans and high taxation, impacting revenue and market share. Despite these challenges, the industry is projected to grow significantly, driven by premiumisation and evolving consumer preferences.

High taxation, particularly state-level excise duties and other levies, significantly burdens the Indian alcohol industry, impacting both producers and consumers. The industry contends with high tax burdens, with taxes often comprising 65-80% of the final retail price. This complex taxation structure, including state excise duties, VAT, and various fees, restricts financial flexibility and profitability.

In addition, the industry is hobbled by significant compliance overheads and a fragmented distribution ecosystem, where regulatory variations across states create logistical inefficiencies and increased costs. The working capital cycle is often elongated due to delayed payments from distributors and high inventory carrying costs, disproportionately affecting small and medium-sized enterprises (SMEs). For these players, who typically operate on EBITDA margins as low as 10–12%, any downward pressure on pricing can be economically unsustainable.

Indian spirits—particularly whisky, rum, and country liquor—have only a marginal share in global markets. According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported alcoholic beverages worth USD 322 million in FY 2022–23, with Indian-made foreign liquor (IMFL) comprising a major portion. In comparison, the UK exported over £6.2 billion worth of whisky alone in 2022, highlighting the asymmetry in export capacities. The entry of global players with deep pockets, established branding, and premium positioning will make it impossible for Indian brands to compete against them and scale sustainably or capture premium market share. This reduced market share could ultimately lead to downsizing, plant closures, and stagnation in rural supply chains that depend on the sector for income. If local manufacturers lose market share, states could face a decline in excise revenue and employment generation.

Tax increases on alcoholic beverages can negatively impact the alcobev industry in several ways. They lead to higher prices for consumers, potentially reducing demand, and can also increase the costs for producers due to taxes on inputs. Furthermore, tax increases can lead to a decrease in sales volume, impacting the industry’s revenue and potentially leading to job losses.

Reduced Demand and Sales Volume: Higher taxes translate to increased prices for consumers, which can make alcoholic beverages less affordable, particularly for budget-conscious consumers.

This price sensitivity can lead to a decrease in the quantity of alcohol purchased, impacting sales volume for manufacturers and retailers. Some consumers might switch to cheaper brands or even substitute with other alcoholic products, impacting specific segments of the industry.

Increased Production Costs: Even if not directly taxed, the production process of alcoholic beverages involves various inputs like bottles, labels, and packaging materials, which are subject to taxes like GST. The cost of these inputs can rise due to higher taxes, increasing the overall production cost for manufacturers.

This cost pressure can be particularly challenging for smaller or craft producers who may have less financial flexibility to absorb these increases.

Impact on Revenue and Employment: Reduced sales volume and increased production costs can significantly impact the industry’s revenue and profitability. This can lead to potential job losses in the manufacturing, distribution, and retail sectors of the alcobev industry.

The industry might also face challenges in terms of cash flow and working capital, especially when dealing with tax refunds for input costs.

Potential for Unintended Consequences: Some studies suggest that higher taxes may lead to increased illicit production and sale of alcohol to avoid taxation, which can pose public health risks and further impact legitimate businesses. Consumers may also resort to cheaper alternatives or reduce consumption in other areas to afford alcohol, potentially impacting other industries.

While the industry may argue that tax increases do not reduce alcohol-related harm, some research suggests that price increases can lead to reduced consumption, especially among heavy drinkers and young people.

Industry Arguments: The alcoholic beverage industry often argues that tax increases unfairly burden the industry and consumers, and may not be effective in reducing alcohol-related harm. They may also highlight the potential negative impact on employment and tourism, particularly in areas where the industry is a significant contributor to the local economy.

The industry may also argue that other measures, such as public awareness campaigns and responsible drinking initiatives, can be more effective in addressing alcohol-related issues.

Policy Considerations: Policymakers need to consider the potential economic and social impacts of tax increases on the alcobev industry when formulating policies. Balancing the need to generate revenue and address alcohol-related harms with the potential negative consequences for the industry and consumers is crucial. Consultation with the industry, public health experts, and consumers can help to develop more effective and balanced policies.

Overall, while higher taxes on alcoholic beverages can be a tool to address public health concerns and generate revenue, they can also pose significant challenges for the alcobev industry and potentially lead to unintended consequences. A careful and balanced approach is necessary when considering tax policy changes in this sector.

Maharashtra Made Liquor (MML) Guidelines Announced to Boost Local Industry

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In a move aimed at reviving underutilised liquor manufacturing units and offering consumers more affordable choices, the Maharashtra Government has formally introduced a new category of alcoholic beverage—Maharashtra Made Liquor (MML). The decision, approved by the State Cabinet in July, has now been formalised through a Government Resolution (GR) amending the Bombay Foreign Liquor Rules, 1963.

The policy positions MML as a distinct sub-category under the Indian Made Foreign Liquor (IMFL) framework. To qualify, the liquor must be grain-based and produced using rectified spirit sourced exclusively within Maharashtra.

One of the biggest attractions for producers and consumers is the reduced excise duty, 270% for MML compared to 450% for IMFL. At an assumed manufacturing cost of ₹400 per litre, IMFL retails at roughly ₹2,200 (including ₹1,800 in excise), while MML is expected to cost around ₹1,480 (with ₹1,080 excise), making it about ₹700 cheaper per litre. The government has set a minimum retail price of ₹148 for a 180 ml bottle of MML, compared to ₹205 for IMFL and ₹80 for country liquor.

Under the new guidelines, MML manufacturers must have their registered head office in Maharashtra; maintain at least 25% state-resident shareholding; avoid producing or marketing MML outside the state; and register their brands within one year. Third-party production is not allowed, though leasing of plant capacity is permitted if the facility remains dedicated to MML production. If sold outside Maharashtra or if rules are violated, the MML status will be revoked, the guidelines state.

Economic Impact

According to reports, Maharashtra currently has 48 licensed IMFL manufacturing units, but only 10 dominate production; many operate at minimal capacity just to retain their licences. The government hopes MML will revive idle plants and generate up to ₹3,000 crore in additional annual revenue. The move is part of wider excise reforms targeting ₹14,000 crore yearly collections through measures including AI-powered monitoring of production and sales; new divisional excise offices; revised duty structures, IMFL at 3× to 4.5× manufacturing cost (capped at ₹260/litre), country liquor up to ₹205 per proof litre; and higher licence fees for FL-2 (retail) and FL-3 (bars) outlets.

In 2024-25, Maharashtra excise revenue stood at ₹25,467.96 crore. Of the six excise regions, Nashik region (Nashik, Nandurbar, Dhule and Jalgaon) earned ₹6,186.82 crore; followed by Chhatrapati Sambhajinagar region (Chhatrapati Sambhajinagar, Beed, Jalna, and Dharashiv) at ₹5,995.07 crore; Pune region (Pune, Ahilyanagar and Sholapur) at ₹5,809.79 crore; Thane region (Mumbai City, Mumbai suburbs, Thane, Palghar and Raigad) at ₹4,513.02 crore; Kolhapur Greater Region (Kolhapur, Satara, Sangli, Ratnagiri and Sindhudurga) at ₹1,265.21 crore; Nagpur region (Nagpur, Wardha, Bhandara, Gondia, Chandrapur and Gadchiroli) at ₹874.43 crore; Nanded region (Parbhani, Latur, Nanded and Hingoli) at ₹592.73 crore; and Amravati region (Amravati, Buldhana, Akola, Washim and Yavatmal) at ₹230.09 crore.

Unlike IMFL’s foreign-style blends, MML will feature simple, traditional flavours such as orange, cumin and herbs. Popular varieties are expected to include Santra, Chandni and Sugandhi. Packaging is expected to be basic, in bottles or sachets and to be labelled “For sale only in Maharashtra”. Distribution will focus on rural and semi-urban markets, though MML will also be available in urban centres. Production is said to be undertaken by state-run units, cooperative sugar factories, and private distilleries.

By creating a regulated, lower-cost option, the government hopes MML will help curb illicit liquor trade and reduce consumption of illicit brews.

UK Tax Burden Hurting Scotch Whisky

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75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
One in four Scotch distillers expect to make job cuts as a result of economic headwinds
76% say an increase in duty would make them less likely to take forward capital investment and recruitment

Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).

India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.”

Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”

Over two thirds of price goes in taxes

Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.

Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.

Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.

As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.

This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.

Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”

Scotch Whisky Industry Records £5.4BN Global Exports in 2024

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High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.

The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.

The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.

Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment.

India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024.

However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India.

Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year.

“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.

“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.

“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”

These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.

Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.

Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.

The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.

Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.

Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.

While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.

Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.