spiritsEUROPE has regretted that the EU-US political agreement has, for now, failed to secure the long-overdue restoration of the zero-for-zero framework for spirits. European Union spirits exports to the US are subject to a 15% import tariff.
Hervé Dumesny, Director General of spiritsEUROPE
“We welcome the broader principle of an agreement to de-escalate trade tensions and provide greater predictability to businesses,” said Hervé Dumesny, Director General of spiritsEUROPE. “While we thank the European Commission for its ongoing efforts to include spirits in the list of exemptions, the failure thus far to reinstate zero-for-zero for our products is a missed opportunity. The continued application of US tariffs on EU spirits, now at 15%, places our products at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth in our sector on both sides of the Atlantic.”
Originally agreed in 1997, the zero-for-zero arrangement eliminated tariffs on virtually all spirits traded between the EU and the US. It proved to be a powerful engine of economic exchange, boosting transatlantic spirits trade by 450% between 1997 and 2018, spurring cross-investment, and strengthening the cultural and economic bonds between our two sectors. European spirits enjoy strong demand among American consumers, driving substantial growth and job creation both in US retail and hospitality and in the EU regions where these products are made.
“This situation remains unbalanced and unsustainable,” Hervé Dumesny added. “We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits. A truly tariff-free environment is essential to unlock the full potential of our shared industry and safeguard the many jobs it supports, from farmers and distillers to logistics, retail and hospitality across the Atlantic.”
It said that spiritsEUROPE is ready to work constructively with the European Commission, US counterparts, and industry partners to achieve a durable, balanced, and tariff-free solution that reflects the longstanding spirit of EU-US cooperation in the spirits sector.
IMFL manufacturer, Tilaknagar Industries Limited (TI) has made a follow-on investment of ₹10.66 crore in Spaceman Spirits Lab Private Limited (SSL), the maker of premium craft spirits such as Samsara Gin; Sitara Rum and Amara Vodka.
While ₹9.15 crore is part of the previously announced ₹13.15 crore investment envisaged under the September 2024 agreement between TI and SSL, the balance ₹1.51 crore is being invested to acquire shares from some of the early shareholders in SSL.
With this investment, TI’s stake in SSL increases from 12.98% to 21.36% on a fully-diluted basis. The definitive agreements further provide TI with the option to invest additional capital or acquire further stake from other shareholders at a pre-determined valuation methodology, subject to SSL achieving certain pre-agreed milestones.
Ameya Deshpande, President – Strategy and Corporate Development, Tilaknagar Industries
Ameya Deshpande, President – Strategy and Corporate Development, Tilaknagar Industries said, “Our continued investment in Spaceman Spirits Lab reflects our conviction in the enduring appeal of premium craft spirits in a rapidly evolving market. Their thoughtfully curated portfolio featuring Samsara Gin, Sitara Rum and Amara Vodka demonstrates innovation, quality and craftsmanship. We are excited to deepen our partnership as Spaceman enters a new phase of growth.”
According to TI, the company is subscribing to 1,772 equity shares and 11,752 Compulsorily Convertible Preference Shares for ₹9.15 crore. Further, TI is acquiring 2,236 equity shares from existing SSL shareholders for ₹1.51 crore.
Aditya Aggarwal, Founder and Managing Director, Spaceman Spirits Lab
Aditya Aggarwal, Founder and Managing Director, Spaceman Spirits Lab, said, “We are thrilled to deepen our partnership with Tilaknagar Industries as we embark on a bold new chapter. With Tilaknagar’s extensive distribution network and industry leadership, we are excited to take our iconic brands to every corner of India.”
SSL is preparing to diversify its product portfolio with strategic forays into new categories including whisky, heritage liqueurs and tequila. “We are anticipating robust performance in the current fiscal, with projected revenue growth of nearly 70% and volume growth of about 60% in FY26,” Aggarwal added.
Tilaknagar Industries is expected to leverage its distribution network to sell Samsara Gin, Sitara Rum and Amara Vodka in certain states in India and abroad.
Caribbean-headquartered Carib Brewery has launched its Carib Premium Strong Beer in India, marking a key milestone in the brand’s international expansion. Carib’s entry into India is in partnership with Globus Spirits Ltd., a leading player in India’s alcoholic beverage industry. The beer is being locally produced through Globus Ansa Private Ltd., a joint venture between Globus Spirits and Carib’s parent company, Ansa McAL.
“At Globus Spirits, we’ve always believed in crafting experiences that transcend borders—and Carib Premium Strong Beer is a perfect reflection of that,” said Shekhar Swarup, Joint Managing Director, Globus Spirits. “This launch is more than introducing a new beer; it’s about celebrating the spirit of two vibrant cultures brought together by cricket, bold flavours, and good times.”
Targeted initially at five key cities in Uttar Pradesh—Lucknow, Kanpur, Varanasi, Ayodhya, and Prayagraj—Carib Premium Strong Beer is crafted to appeal to Indian preferences. With 8% alcohol by volume, a medium body, and a crisp, floral finish, the beer is designed to pair well with India’s spicy and flavour-rich cuisine.
The India launch is part of a broader international strategy led by Adrian Sabga, Managing Director (International & Business Development) at Carib Brewery, who has identified India and Greece as focus markets by the end of 2025. This push is supported by a $200 million investment in a modernised production facility in Champs Fleurs.
Smirnoff is set to shake up India’s flavour landscape with the launch of three bold new variants—Minty Jamun, Mirchi Mango and Zesty Lime—created especially for the evolving tastes of modern India. The exciting new flavours are available in Karnataka, Uttar Pradesh, Haryana and Maharashtra.
Whether it’s a fiery Mirchi Mango margarita, a Minty Jamun spritz with nostalgic flair, or a simple Zesty Lime soda pitcher, this new range unlocks versatile drinking possibilities—whether sipped, or mixed.
“We’re seeing a clear shift in how young Indians approach their favourite spirits—they want global brands to build a stronger local connect that is fresh and premium and yet playful. With Minty Jamun, Mirchi Mango, and Zesty Lime we’re not just offering new flavours, we’re creating moments of discovery that are vibrant, social, and rooted in today’s cultural codes,” said Ruchira Jaitly, CMO, Diageo India.
Each flavour has been thoughtfully developed to reflect the mood and momentum of the modern Indian consumer: Minty Jamun is a throwback with a twist—evoking childhood nostalgia with a fresh, modern take; Mirchi Mango piques curiosity with a sweet-spicy punch inspired by India’s love for heat and tropical fruit; and Zesty Lime brings an easy-going zing that makes it a go-to for group occasions and cocktail starters.
The launch is anchored in the brand’s new India-first campaign “Flavour is a Vibe” — a call to explore taste with freedom, fun, and community.
On the occasion of the 10th anniversary of World Mangrove Day, celebrated on July 6, 2025, Diageo India’s Signature Packaged Drinking Water unveiled a compelling new campaign titled “The Mangroves Regeneration Pledge”. Featuring brand ambassador Ayushmann Khurrana, the campaign underscores the urgent need to protect and restore India’s fragile mangrove ecosystems.
At the heart of the initiative is a short film that pays tribute to the resilience of India’s coastal communities and the silent strength of mangroves in battling climate change. Through immersive visuals and Ayushmann’s evocative narration, the film captures the on-ground challenges of conservation, highlighting the role of grassroots action in environmental stewardship.
The film draws attention to Signature’s flagship Mangrove Regeneration Project in Odisha—a three-year, community-led initiative that aims to restore over 62 acres of degraded coastal land. The project involves planting more than 30,000 mangrove saplings and empowering five coastal villages to engage in long-term conservation efforts.
Varun Koorichh, Vice President and Portfolio Head – Marketing, Diageo India, said, “The Mangrove Regeneration Project in Odisha is a powerful expression of what we stand for–community-driven action, sustained commitment, and meaningful environmental progress. With our proposition ‘One With Nature’, we honour the quiet resilience of ecosystems like mangroves and the communities that protect them. This initiative, like our engagement at the Ziro Festival of Music, reinforces our belief in conscious living and environmental responsibility.”
Ayushmann Khurrana, actor and brand ambassador, added, “What drew me to this campaign was its deep connection with real-world impact. This isn’t just a film—it’s a tribute. Mangroves are unsung heroes, silently protecting coastlines, restoring biodiversity, and fighting climate change. Signature Packaged Drinking Water’s approach goes beyond raising awareness—it drives meaningful action. I hope this campaign inspires many to take the pledge and join us in nurturing nature.” Mangroves are among the most efficient carbon sinks on the planet, capable of absorbing up to four times more carbon dioxide than rainforests. Their preservation is critical to climate resilience, biodiversity, and the livelihoods of coastal communities
Karnataka, long seen as one of India’s top beer-consuming states, is witnessing a troubling trend. Beer sales in the state dropped by more than 18% in the first half of 2025, even as India’s overall beer market clocked a robust 10% growth during the same period.
According to data from the Karnataka excise department, 209.9 lakh carton boxes were sold between January and June 2025—down from 257 lakh cartons in the same period last year. The most dramatic fall was in January, when sales dropped a staggering 30.6%. Even during peak summer months—typically strong for beer sales—the slump continued, with April and May down by 16% and 26% respectively. March and June saw double-digit dips too, suggesting that the downturn is more than just seasonal.
Industry insiders point to a mix of policy instability and rising prices as the primary culprits. In the last two years, the government has increased taxes and licence fees on beer and low-end Indian-made liquor (IML) four times. This change in policy constantly has been hurting the sector. Retailers echo the frustration.
Responding to mounting criticism, the Karnataka government recently revised the Additional Excise Duty (AED) structure. The earlier system—195% duty plus ₹130 per bulk litre—was replaced with a flat 200% AED. Venkatesh Kumar R, Commissioner of the State Excise Department, recently told a media house that the ₹130 slab disproportionately impacted low-cost beer by increasing MRP by ₹15–20 and that the new flat structure aims to ease that burden.
Still, the revised structure has been in effect for just a month, and officials admit a full recovery will take time. An early monsoon this year also disrupted peak-season sales, particularly in Bengaluru.
Contrasting National Growth
Ironically, Karnataka’s woes come at a time when the national beer market is booming. India’s beer consumption rose 10% year-on-year in FY 2024–25, according to the Brewers Association of India (BAI), with total volumes hitting 450 million cases—up from 405 million cases in the previous fiscal. Spirits, by contrast, saw a mere 2.2% growth, down from 4.5% the year before.
Vinod Giri, Director General, BAI
“There’s a shift towards milder alcoholic beverages like beer,” said Vinod Giri, Director General, BAI. “As alcohol becomes more socially accepted, consumption moves from just functional highs to social bonding.”
The trend has prompted renewed investment interest. In February 2025, major brewers—including United Breweries, AB InBev, and Carlsberg, who together control 85% of India’s beer market—announced plans to invest over ₹3,500 crore in setting up new breweries across the country. It is the largest annual investment in over a decade for the sector.
The contrasting trajectories highlight the challenges of India’s fragmented alcohol policy landscape. While some states offer competitive excise regimes and policy clarity, others like Karnataka are struggling with over-regulation and volatile taxation.
After a successful debut in India, Indri Single Malt Indian Whisky has launched its limited edition ‘City Series’ global with the Dubai Duty Free Series. This special edition features two distinct and exclusively crafted Single Cask expressions — Sauternes Cask and Oloroso Sherry Cask — each bottled at a bold 58.5% ABV, created specifically for discerning global travellers, whisky connoisseurs and collectors at one of the world’s busiest international airports.
Adding to the exclusivity, each bottle is individually numbered with only 210 bottles of the Sauternes Cask and 348 bottles of the Oloroso Sherry Cask available worldwide. These rare expressions are a true collector’s delight, showcasing Indri’s signature craftsmanship and India’s rising prominence in the world of fine single malts.
“Crafting the City Series has been a journey of storytelling through flavour. For the Dubai editions, we wanted to capture the city’s dual essence—its deep-rooted traditions and its modern, global outlook. Both the Oloroso Sherry and Sauternes cask expressions reflect that harmony through bold character, complexity and elegance. These are not just whiskies, they are our tribute to Dubai in a bottle,” said Surrinder Kumar, Master Blender, Piccadily Distilleries.
“With the City Series, we aim to create rare experiences through our whiskies by capturing the soul of great cities around the world. Dubai, with its global flair and cultural richness, was a natural choice for our first international release,” said Madhu Kanna, Head International Business, Piccadily Distilleries.
The Indri City Series Oloroso Sherry Cask expression opens with a rich nose of sweet caramel, subtle smoke, and hints of leather, vanilla, dried fruits, and roasted nuts. On the palate, it reveals a warm, fruit-forward character with layers of toffee, gentle spices, elegant nuttiness, and earthy undertones. The finish is long, sweet, and delicately smoky, leaving a refined and lingering impression.
The Indri City Series Sauternes Cask expression offers a rich nose of dried apricot, peach, honey, and roasted nuts, with soft vanilla and a sweet, fruity cupcake-like aroma. The palate unfolds with layers of honey, butterscotch, dry apricots, and roasted nuts, enhanced by notes of pineapple, gentle oak, and warm spice. The finish is medium to long, leaving a lingering sweetness balanced by subtle oak and a vibrant fruity lift.
Following the successful Bengaluru Duty Free edition, Indri continues to make bold strides in international markets, firmly establishing itself as one of the most exciting new names in global whisky. It is priced at about USD150.
Mount Everest Breweries Ltd. (MEBL), recently announced the appointment of Vinod Babu G as its new Chief Executive Officer (CEO). Vinod Babu G, with over 19 years of experience in the FMCG and alcoholic beverages sector, will lead MEBL’s overall business operations and growth agenda. Vinod has previously held leadership roles at Anheuser-Busch InBev India and SABMiller India, where he led key brand launches, market expansions, and built high-performing teams across regions.
“We are thrilled to welcome Vinod into the MEBL family,” said Vedant Kedia, Wholetime Director, Mount Everest Breweries Ltd. “Vinod’s proven leadership, strategic vision, and deep understanding of the evolving beer landscape in India and beyond make him the perfect fit to guide MEBL’s next phase of growth.
“I am truly excited to be part of Mount Everest Breweries at such a pivotal moment in its journey,” quoted Vinod. “With its strong legacy and ambitious vision, MEBL is uniquely positioned to lead the next wave of innovation and premiumisation in the Indian beer industry. My goal is to build on this foundation and work closely with our teams to grow MEBL into the largest Indian beer company by 2030. Together, we will create iconic brands, strengthen our operational footprint, and unlock new growth opportunities across India and beyond.”
Vinod has been a two-time recipient of the prestigious BUP Fanatic Award, reflecting his strategic impact and consistent performance. From shaping India’s Trade Marketing function to expanding business across global markets, including establishing a presence in Nepal, Vinod’s career is marked by bold moves and meaningful growth.
India and UK signed a historic FTA recently and while some in the Indian Alcobev landscape lauded and applauded the move for reduction on import tariffs from 150% to 75% on scotches and bulk imports, many are up in arms anticipating the impact it can have on the homegrown products. At Ambrosia we have covered this topic extensively over the past few months and in this article Bhavya Desai spoke to industry leaders to understand and ascertain the sentiments of both, domestic as well as international players. Excerpts:
Anant S. Iyer, Director General, CIABC
In a country like India – where the consumer landscape is witnessing a paradigm shift and premiumisation atop of most manufacturers list, Anant S. Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC) says, “Imported Scotch already enjoys a strong foothold in India’s premium segment and with the new India-UK FTA, and Scotch whisky likely to become 20–30% cheaper, the impact could be asymmetric and policy-skewed.”
To substantiate this, he points to the fact that, in 2024, bottled-in-origin (BIO) and bottled-in-India (BII) Scotch collectively accounted for more than 80% of the premium-and-above whisky segment. BII holds 59%, BIO 21%, while Indian-made premium whisky (IMFL) was left with just 20%.
The concern, as Iyer outlines, is less about competition and more about a ‘policy imbalance’. Imported whiskies already enjoy tax and label registration fee advantages in many states like Maharashtra, Kerala, Odisha and Delhi. And he urges that, “States should now remove the discriminatory policies vis-à-vis IMFL compared to BIO brands.”
As Scotch becomes more affordable, Indian premium brands – especially in the ₹1,200–₹2,500 segment – may find their shelf space and margins under pressure. And according to him it is not just whisky, but also the premium Indian gins priced between ₹800 to ₹3,000 could also feel the squeeze.
While the jury is still out on the longterm impact, but he could be right – if makers take the same route as the Americans. Sources close to Ambrosia state that atleast 2-3 bourbon companies are likely to set up a bottling plant in India following its reduction to 50% this year. Whether they are able to capture the imagination of the consumer, remains to be seen, considering the bourbons aren’t very popular amongst Indian consumers.
However, to counteract potential market flooding, Iyer emphasises the need for a Minimum Import Price (MIP) of $4 per 750ml for BIO spirits and higher thresholds for wine. “Without this safeguard, cheaper imported spirits could flood the market, undoing years of progress by Indian premium brands.”
But Indian spirit makers aren’t backing down.
“Our members are ready to compete, but on fair terms,” says Iyer. Strategies range from enhanced consumer engagement to stronger retail execution (RTM) and even launching new premium SKUs. “The consumer will be spoiled for choice as FTAs materialise,” he adds.
And what’s interesting is that Indian Single Malts like Amrut, Rampur, Indri, Gianchand and others have already begun outselling Scotch Single Malts in India. “Our brands are winning international awards and are now on duty-free shelves globally,” Iyer notes, calling for removal of non-tariff barriers (NTBs) to help Indian brands expand into developed markets like the UK, EU, and Australia.
Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI)
A sentiment echoed by Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI), “As Indian Single Malts gain global recognition, improved market access can create mutual benefits, just as Scotch whiskies gain better accessibility in India, Indian whiskies can expand their footprint abroad.”
What India has to Say?
But not all of the Indian companies are concerned with the FTA. Ideally the bigger the better.
For instance, Abhishek Khaitan, Managing Director, Radico Khaitan Ltd. takes a pragmatic view. “The FTA signals a momentous growth opportunity. As one of India’s largest Scotch importers, we expect strategic and cost advantages, particularly with requirements estimated at ₹250 crore in FY26.”
And that figure of ₹250 crore is surely inclined to tip the scales for the better for Radico.
Khaitan also believes that lower duties could accelerate premiumisation in the domestic market. “This agreement is a win-win – empowering Indian enterprises while showcasing India’s excellence on the global stage.”
Prem Dewan, Managing Director, DeVANS Modern Breweries
But not everyone is convinced that cheaper Scotch will flood the market. Prem Dewan, Managing Director, DeVANS Modern Breweries notes, “Indian consumers are selective. Indian single malts are already available in all ranges – including premium editions costing over ₹1 lac. We should not assume all Scotch whiskies are palatable for the Indian market.”
He adds that bulk Scotch imports for blending could actually enhance Indian whiskies, neutralising the pricing advantage. However, he warns that ‘undue state-level duty advantages for imported liquor, driven by lobbying, continue to hamper domestic players’, a concern highlighted by Iyer earlier as well.
Is Dumping a Possibility?
Like many industries, a question on everyone’s mind is – if dumping cheaper spirits is going to be a possibility and Iyer is unequivocal. “Yes, and it’s already visible. Scotch bottles retail at ₹900-1,100 in Haryana despite high MRPs. That suggests under-invoicing or transfer pricing.”
Abhishek Modi, Managing Director, Modi Illva
He isn’t alone in this concern. Abhishek Modi, Managing Director, Modi Illva acknowledges that opportunistic brands may attempt price-led disruptions. “Some players might introduce aggressively priced Scotch-heavy blends to lure price-sensitive consumers.” But he also quick to highlight that such moves are short-term and that the premiumisation trend will stay intact.
Modi also stresses that rising input costs (barley, energy) and a weakening rupee already compress margins for Scotch producers. “Scotch isn’t likely to become drastically cheaper in reality. The cost advantage may not even trickle down to consumers due to the rising input costs.”
Praveen Someshwar, Managing Director and CEO, Diageo India
International Players Toast the Opportunity
Understandably, for global players the enthusiasm runs high.
Praveen Someshwar, Managing Director and CEO, Diageo India, hails the FTA as ‘a historic treaty that reignites growth and offers greater choice to Indian consumers’.
Neeraj Kumar, Managing Director, India, Suntory Global Spirits
And Neeraj Kumar, Managing Director, India, Suntory Global Spirits echoes the sentiment. “This is a pivotal development and it improves affordability and strengthens bilateral trade, paving the way for greater innovation and investment.”
Padhi adds, “The deal will also stimulate growth across ancillary sectors such as hospitality, tourism and retail, while potentially increasing revenue for Indian states. At a macro level, the agreement will leverage mutual synergies and competencies of both nations.”
The Future?
Some industry pundits visualise the distant future, where the duty will reduce to 40% over the next decade as India being the most matured and developed spirits market globally. And if trends are anything – we are surely seeing that push currently.
As Anant Iyer puts it, atleast for the immediate future, “the momentum of Indian brands won’t stop. But we need policy support – both at the Centre and in States – to sustain it”.
The India–UK FTA might open doors to new markets and consumer segments. But it also lays bare the need for a level playing field, long-overdue reforms and robust checks to prevent policy-led distortions.
Whether this agreement becomes a toast to opportunity or a sobering challenge depends on how well Indian regulators, producers and consumers navigate the spirit of the deal.
Tilaknagar Industries Limited (TI) has announced that its Board of Directors has approved a preferential issue of securities (equity shares and warrants) amounting to approximately ₹2,296 crores. The issue price of ₹382 per security is in compliance with the pricing determined under Regulation 164 of the SEBI ICDR Regulations.
It goes without saying what the company intends to utilise the proceeds raised through the Preferential Issue – considering its recent announcement for the acquisition of Imperial Blue brand and general corporate purpose.
A total of 44 investors will be participating in this issue, including promoters and existing prominent investors. Of these, nine investors are subscribing through equity shares, contributing approximately ₹549 crores while the remaining 35 investors will participate through warrants, raising approximately ₹1,747 crores.
As per the terms, ₹437 crores (25% of the warrants issue size) will be payable at the time of allotment of warrants, while the balance ₹1,310 crores will be received upon conversion into equity shares.
The promoter group is also actively participating in the issue with the company’s Chairman and Managing Director, Amit Dahanukar subscribing to warrants worth ₹306 crores. Other investors include Axana Estates LLP, SMALLCAP World Fund Inc, TIMF Holdings, Funds managed by Abakkus Asset Manager Private Limited, Bandhan Mutual Fund, Arpit Khandelwal and several other institutional and marquee high-net-worth individuals.
