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‘Drink better, not More’ is our Vision – Hina Nagarajan, MD & CEO, Diageo India

Taking over the reins of one of the biggest companies in the market, can never be an easy task, especially when the daunting objective is to ensure double-digit growth, drive revenue and increase profits. Add to that, the first woman to lead the business, but Hina Nagarajan, Managing Director and CEO, Diageo India has not only successfully achieved this, but also surpassed many other feats. She speaks to Bhavya Desai about her journey, future objectives and more. Excerpts:

Since you took over, you’ve made incredible strides towards ensuring that the company becomes net debt free. How have you managed that?

The task ahead of me when I took charge in 2021 was to bring our Diageo India business on a sustained double-digit growth path, especially driving revenue and profitable share in the premium and prestige segments of the Indian alcohol market. Together with my leadership team, we made some strategic choices to win in this decade and beyond.

I led the execution of our portfolio reshape with the objective of accelerating premiumisation-led growth while delivering our guidance of mid to high teens margin. We completed the strategic review of our Popular brand portfolio, resulting in the sale of 32 mass brands and franchising of 11 brands in September 2022.   

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Box Item:

  • Our overall business growth has tripled in the period from 2021-23 vs. 2016-21.
  • Our premium portfolio growth rates have doubled over the same period, P&A is 86% of our portfolio now
  • Our brands are performing competitively in their respective segments 2-3 years in a row,
  • And we have doubled the Market Capitalisation of USL since 2021.

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Our commitment to premiumisation is evident in our investments over the past years. We’ve introduced new products and innovations such as Royal Challenge American Pride, Epitome Reserve’s second limited edition of Peated Indian Single Malt in Goa, and Godawan, a unique single malt from Rajasthan. Additionally, our minority stake in Nao Spirits, the makers of Hapusa and Greater Than, underscores our strategy to grow in the luxury and premium segments, particularly in scotch, where we lead the market.

We also redefined our offerings in the Upper Prestige segment with unique products that resonate with new consumer trends. Furthermore, our efforts to premiumise and reposition brands in the Lower & Mid Prestige segments, such as McDowell’s No.1 Whisky and Royal Challenge Whisky, are part of our strategy to respond to evolving consumer needs.

With the consumer at the heart of our business, the strength of our reshaped portfolio, and the investments we are making to accelerate our strategic priorities, we have been able to deliver our mission of profitable double-digit growth for our business and in the process, wiped out our cumulative losses and declared dividend for the first time since acquisition a decade ago.

Having set on this path, what is Diageo’s next objective – in the coming years?

We feel extremely positive and excited about the future of the alcobev industry in India. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. India is in the middle of deep societal change led by women, youth and boom towns. This along with a massive growing need to ‘drink better, not more’ across all segments, is in line with our vision for the category.  

The premiumisation trend will continue to stay strong with rising affluence. By 2030, 45% of Indian households (approx. 175 million households) will be in the upper mid and high-income groups. We see a big opportunity, not only to leverage this trend through our incredible portfolio of global and IMFL brands, but also to position Indian whisky as a characterful, distinct, high-quality offering by bringing the best of people, processes, and ingredients together to create bespoke liquids that are ‘Made in India’ for the world. 

Our mission is to be a top CPG (Consumer Packaged Goods) company in India delivering sustained double digit topline growth with mid to high teen margins and long-term value to all our stakeholders. With this new strategy, we aim to deliver our Mission through 3 pillars that form the essence of our mission:

  • Reshaping our portfolio with a focus on accelerating premiumisation-led growth, while delivering our guidance of mid to high teens margins.  
  • Creating an Organisation of the Future – We are building a future-ready organisation by investing in our talent, introducing market-leading policies and driving digital capabilities.
  • Defining and executing an ambitious role for Diageo in Society 2030 focusing on promoting responsible consumption, championing inclusion & diversity, and pioneering grain-to-glass sustainability which includes preserving water for life, accelerating to a low-carbon world and lastly, becoming sustainable by nature.

Keeping our customers as our main focus, along with the reshaped portfolio of our products and the investments we’re making to accelatate our strategic goals forward, we are confident of  growing our business in a steady and sustainable way.

How has the consumer landscape changed over the years in the industry?

India is in the middle of deep societal change led by rising affluence, women, youth and boom towns. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. This trend expands to middle India and boom towns which are undergoing a remarkable transformation, fuelled by high aspirations and digital revolution where consumers are looking for premium brands, products, and experiences. The new consumer cohorts are driven by values of authenticity, individuality, local pride and collaboration with women building a more inclusive consumption narrative.

Digital has also been a big game changer. Most consumer journeys begin on digital with discovery, information, inspiration – informing them of their choices and behaviour and most of all aspiration and desire for what they want. If we look at the alcobev category, consumers are choosing different products for different occasions and need.

This means that repertoires are expanding from whisky to gin, vodka, rum, aperitifs, cocktails, etc. Consumers today choose to drink better, not more, leading to premiumisation of the alcobev category. At Diageo , we are responding to these structural shifts in consumer choices and behaviour, pivoted around premiumisation, wellbeing and sustainability. This new, changing, and vibrant India presents a huge opportunity for us.

You are the first woman to lead the business at the company. How do you think this encourages and inspires others across industries?

My appointment sparked interest and garnered positive attention, which reflects the breaking of traditional barriers especially in the alcohol beverage sector. As a woman CEO in alcobev,  traditionally a male dominated industry, I see this as an opportunity to change the paradigm of this industry to make it more inclusive and normalise the narrative.

Our efforts are making a difference, leading to an environment where joining our sector feels no different from any other industry for women. At Diageo India, our commitment lies in building a workplace where everyone feels included. 50% of our Executive Committee and 35% of our senior leadership team comprises of women. We believe that a diverse leadership helps create a more balanced and well represented workforce. We’re making this happen by welcoming women into various leadership positions, ensuring we drive change right from the top.

Seeing more women in our company is truly encouraging. Their presence brings fresh ideas and perspectives on how we approach our products, market them, and innovate. This enriches our connection with customers and broadens our talent base, helping us to stand out and succeed in a competitive market. And hopefully, this encourages and inspires others to do more.

With sustainability being a rising factor amongst consumers today, how is Diageo moving towards a more sustainable tomorrow?

We at Diageo strongly believe that social and environmental impact and profitability are not two separate goals but rather interlinked. As one of the world’s largest beverage alcohol producers, we believe that we are ambassadors of our industry and aim to be the best we can – at work, at home, with friends, and in the communities we serve.

Sustainability is at the heart of our business strategy and is outlined in our Society 2030: Spirit of Progress ESG action plan. Our Society 2030 agenda is focussed on pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting responsible consumption.

Pioneering grain-to-glass sustainability plays a pivotal role in our Society 2030 goals and is embedded throughout the process and focusses on three key aspects; preserving water, lowering carbon emissions, and becoming sustainable by design.

In terms of preserving water we have overachieved our water replenishment target by 25% and three years ahead of our 2026 goals. We have improved our water use efficiency by 44% in our distilleries and 30% in our packaging processes, against the 2030 goal of 40%.

Women and girls are disproportionately affected when communities don’t have access to clean Water, Sanitation and Hygiene (WASH) facilities. We’re investing in such projects to empower women by providing sustainable water access and rebalancing their societal roles in more than 30 villages.

At the state level, we have partnered with Forest Department in Rajasthan and Maharashtra for mass plantation projects to improve green cover, protect soil, improve percolation and support biodiversity. In Alwar we have initiated efforts for desilting ponds, constructing check dams, improving drainage systems, to name a few. Measures like maintaining Zero Liquid Discharge status, rainwater harvesting pits, and others were adopted. We have also launched an afforestation drive to plant 2 lakh trees to offset residual greenhouse gas emissions.

We are making good progress in reducing our carbon emissions, and have committed to becoming Net Zero by F26 in our direct operations by mitigating our Scope 1 & 2 emissions and reduce 50% of our Scope 3 emissions by 2030. Our sustained efforts have resulted in industry-recognitions by Sustainalytics recognising the company as a “Top-Rated ESG Performer for 2022 and 2023” and our Alwar unit in Rajasthan,

has achieved the Alliance for Water Stewardship (AWS) certification, making it the first distillery in Asia to attain this certification.

In our efforts to becoming sustainable by design,  we have removed mono cartons from 90% of our portfolio. In addition, we have introduced biodegradable packs as well as recyclable PETs in some of our brands and continue to expand it to others. This is aligned to our global mission to ensure 100% of our packaging is widely recyclable or reusable/compostable by 2030. Over 99% of materials used are recyclable. On glass, we have initiated light weighting of our bottles.

Our brands like ‘Signature by Nature’ uses 40% recycled glass for the glass bottle and is associated with Mangrove Plantation in Puri, Orissa where 30,000 Mangroves seedlings are being planted in five villages. These mangroves can sequester carbon up to 2-4 times faster than a mature tropical forest.

Our ESG agenda is owned by senior leadership levels including the board, which monitors the same through a CSR and ESG Committee. The ESG Index report we release annually highlights our progress mapped against each of the three pillars and we have witnessed remarkable achievements.

Our ambition is to be the forerunner in the Indian Consumer Product Goods (CPG) industry on ESG and create enterprise value.

What is Diageo’s roadmap for India with most companies betting big on the Indian markets? What is the next big product category that Diageo is focussing on for the coming years?

Diageo India is responding to structural shifts in consumer choices and behaviour, pivoted around growing affluence, premiumisation across categories, and quest for experiential and experimentation, through its refreshed business strategy focussed on premiumisation and focus on transformational innovation and renovation. We have a future back approach to our innovation pipeline and use a proprietory framework called Foresight to determine where trends will go few years from now.

It is for this reason that we have launched Royal Challenge American Pride which caters to the growing consumer preference for bourbon, renovated Signature to be the most sustainable brand in its segment , developed the Naya Sher campaign encouraging youth to take bold , confident steps forward for our Royal Challenge packaged drinking water as well as launched Walkers & Co – a platform to celebrate bold boundary pushers. We launched Don Julio tequila in the country in response to the growing traction for Tequila consumption in the country. We are also scaling up Baileys given the affinity for desserts in India.

We will continue to use Foresight to guide us on innovations for the future and bring the best of both our global, as well as Made in India portfolio, to cater to the evolving needs of Indian consumers.

While your association ISWAI has been representing centre and states for rationalisation of taxes including GST/Excise etc., do you expect centre to bring reform in the alcobev sector? How do you think this move will be beneficial?

ISWAI has been in talks with State Governments to rationalise high excise duties. It has made representations to the authorities time and again as manufacturers of alcohol beverages (Alco-Bev) continue to face shrinking margins due to high taxes, along with soaring inflation and import tariffs. The biggest barrier faced by the industry is freedom to price its brands. ISWAI continues to advocate for pricing freedom, especially for premium brands, as this will help the industry to overcome inflationary pressures.  There are also several other regulatory and operational barriers which hamper ease of doing business for the industry. We have seen positive steps from the government on resolving some of these issues. ISWAI will continue to work proactively with various government bodies on these matters and is hopeful that the state governments will consider a harmonised tax structure as well as an acceptable annual pricing mechanism for the sector and continue to support ease of doing business for our industry.

A Peek into the Whisky Whisperer’s World: Jim Murray Unfiltered

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.  

The Indian Single Malt Whisky Landscape

Indian Whiskies are experiencing a new high. With a growing drinking population the Indian alcobev industry is likely to boom to a new high.

In recent years, a formidable challenger has emerged from an unexpected corner of the world – Indian single malts. With their unique character and exceptional quality, Indian single malts have proven that they are more than capable of matching their Scottish counterparts.

One of the key factors that differentiate Indian single malts from their Scottish counterparts is the influence of terroir. India’s tropical climate, with its soaring temperatures and high humidity, creates a whisky maturation process unlike any other. The angel’s share – the amount of whisky lost to evaporation – is significantly higher in India, resulting in an accelerated aging process and intensifying the flavours within a shorter timeframe. This unique maturation process infuses Indian single malts with bold, robust flavours that tantalise the taste buds.

Amrut’s recognition placed India on the global whisky map, but Mohan Meakin pioneered Indian single malt whisky back in 1858, long before Amrut.

While Indri Diwali Edition’s win is celebrated in India, the perception differs internationally. Even though India strives for quality whisky production, global recognition is a work in progress. 

 Unlike established producers like Japan, India’s whisky prominence is relatively recent – the industry is shifting from the traditional older consumer to younger audiences, by diversifying consumption methods through cocktails.

More distilleries venturing into malt whisky production – Amrut, Paul John, Rampur, and newcomers like Piccadily aim for global market penetration amid rising Scotch whisky imports.

Indian single malts proudly celebrate the country’s rich heritage while incorporating modern techniques and influences. Distilleries often draw inspiration from local ingredients, spices, and cultural traditions to create whiskies that are uniquely Indian. From the use of Indian barley to the incorporation of regional flavours like cardamom, cloves, and saffron, these whiskies encapsulate the essence of India, offering a sensory experience that is both nostalgic and forward-thinking.

The meteoric rise of Indian single malts has not gone unnoticed in the whisky world. They have garnered numerous awards and accolades, winning over skeptics and enthusiasts alike. The recognition from renowned whisky experts and critics has solidified the position of Indian single malts as a force to be reckoned with in the industry. As more people discover the quality and complexity of these whiskies, their popularity continues to soar.

The emergence of Indian single malts has undoubtedly shaken the foundations of the whisky industry, challenging the long-standing dominance of Scotch whisky. With their distinct character, unique maturation process, and unwavering commitment to quality, Indian single malts have proven that excellence in whisky knows no geographical boundaries. As whisky enthusiasts and collectors seek out new and exciting expressions, Indian single malts stand ready to captivate their palates and leave an indelible mark on the world of whisky.

Despite the hype about the magnitude of Indian whisky compared to Scotch, actual consumption statistics show no drastic increase. However, global recognition for quality Indian whiskies has notably risen.

The bulk of India’s whisky market comprises blended and daily drinking whiskies, not just the premium single malts like Amrut/Paul John – underscores the  dominance of everyday brands like Signature and McDowell’s. The knowledge and information of seasoned whisky enthusiasts have expanded significantly over the past five years, and they demand whiskies that are:  high-quality; limited editions; priced conveniently available in a broader market.

Newer or curious consumers are gradually transitioning from lower-end to mid-segment whiskies, amplifying affordability in the ₹1500-₹2000 range.

While single malts garner recognition and elevate the industry’s stature, the substantial demand driving the industry’s profit lies within these affordable mid-tier whiskies. 

Amrut’s pioneering strategy of launching single malts in the UK, rather than India, set a precedent for others like Paul John and Rampur. The idea was to create international demand that would pique curiosity domestically, a strategy that continues to shape the market.

The entry of big players like Diageo and Beam Suntory into India reflects the strategic shift to safeguard their market shares. Diageo’s move from importing Scotch to producing locally aims to counter the rising curiosity for Indian whiskies among consumers, particularly when price points are comparable.

Comparing Indian single malts with global counterparts – blind tastings often unveil the impressive quality of Indian whiskies.

Market acceptance remains a challenge due to the stronghold of brands like Johnny Walker and Chivas, deeply entrenched in the Indian consumer psyche.

Quality control emerges as a critical concern. Despite norms borrowed from the Scotch Whisky Association, the lack of a regulatory authority poses challenges. Looking ahead to 2024, manufacturers must grapple with the realities of production complexities and retaining skilled personnel. The absence of a consistent master blender/distiller in India points to the challenges of replicating Scotch whisky’s intricate craft.

Production transparency, along with quality control, demands attention, emphasising the need for a regulatory body to standardise practices. This prevents the replication of the Japanese whisky industry’s pitfalls, where lack of oversight led to a decline in repute.

International market alignment is crucial, but Indian single malt production capabilities are still dwarfed by Scotland. Expansion plans by major players like Amrut, Paul John, and Rampur indicate the industry’s growth trajectory.

The Future of Whisky Production  

Accelerated maturation in India for quicker whisky development:  The high Angel’s Share poses challenges due to significant evaporation losses. To counter this, distilleries are employing sophisticated warehouse management techniques to minimise losses and maximise output.       

Exploration of alternate sources for key ingredients: Distillers are seeking sustainable and efficient means to procure essential elements for whisky production and exploring new avenues beyond traditional sources.

While currently in its nascent stages in India, there’s a growing emphasis on data-driven processes and automation. Techniques like employing spectrometers to analyse whisky flavours and aromas are being explored to ensure consistency and quality.

Manufacturers are associating with clubs and creating limited editions for various festivals like Diwali or Christmas. Brands are diversifying their offerings, aiming to capture consumer interest with specialised releases tied to zodiac signs, festivals, or master distiller editions.

Expansion into different spirit categories: This may redefine the industry landscape and provide diverse options for consumers beyond traditional whisky offerings. The future might also see a more adventurous consumer base exploring a wide array of whisky variants.

Heineken’s Five Star Experience

With millennials leaning towards fresher and lighter tipple, Heineken recently launched their Heineken Silver Draught beer in Maharashtra with the aim to make it available in other States soon. In an effort to educate the industry and the consumer, they also hosted a Star Serve programme that teaches the five steps on how their fresh draught beer should be served. Jacqueline Van Faassen, Head of International Premium Portfolio, Heineken India spoke to Bhavya Desai and Vincent Fernandes about the launch and plans moving forward. Excerpts:

The launch of the Heineken Silver Draught beer marks an important milestone for both, Heineken and United Breweries, who’ve been in India together since 2019. But while Heineken is a popular premium beer amongst the consumers, Van Fassen felt that the company was still missing on the draught experience, considering the trend where younger consumers are looking for a more fresher and lighter beer.

Heineken’s Global Draught Master, Frank Evers demonstrating the Five Star Serve Experience

The beer is already popular and available in the global markets and gets its freshness from utilizing natural ingredients like its A-yeast and 100% malt. And the brand is hoping to have similar success with the product in India as well.

Hence they launched the new Heineken Silver Draught beer with the initial launch market as Mumbai, Thane and Pune, which will be supplied from their Taloja factory with an aim to expand to the other States soon, most likely Karnataka once the draught is started brewing there. Apart from Taloja where most of the Heineken beer is manufactured, the company also has brewing plants in Telangana with development underway for another brewery in Mysore, Karnataka.

But what’s interesting is that Heineken is not only looking to capitalise on their new product but also are making efforts to educate the bartenders on how to serve the beer, thereby hoping to educate the consumer touchpoints and the industry as a whole. “This week we educate 400 bartenders on how to pour Heineken draft beer. This includes 200 today in Mumbai and another 200 bartenders in Pune later this week. They are important stakeholders for us since they make sure that bring it to consumers in the best way,” says Jacqueline.

The training programme was led by Heineken’s Global Draught Master, Frank Evers, which includes the five step serve process to give the consumers the best experience of the tipple. The steps include cleaning the glass with cold water, pouring it at a 45-degree angle with the right amount of foam and finally skimming the extra foam off. The foam protects the CO2 keeping the oxygen out making the beer fresh for a longer time says Evers. What’s also unique to the beer is its brewing process, which is horizontally fermented  as compared to the other lager beers which are brewed vertically.

But while serving the beer at the right temperature and with the steps seem interesting, whether the end consumer on-trade is really partaking at these points remains to be seen. But Van Fassen is confident that with the programme and efforts to educate the bartenders, once the consumers are served the beer correctly, they will identify with the quality and freshness of the product. Jacqueline is also aware of the potential of the draught beer category as a whole with a huge market that can be tapped on. She also states that the plans are that unleash the draught beer across India as soon as possible. And to do that they are focusing on activities like partnering with popular sports events like Champions League football. Recently the brand also hosted the F1 races across bars in Mumbai to further build on that social recall.

Govt Takes Big Decision, ENA outside GST

  • Alcohol industry welcomes decision
  • Council recommends cut in GST on molasses from 28% to 5%

The 52nd GST Council which met under the Chairpersonship of Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman on October 7th took a significant decision with regard to Goods and Services Tax (GST) rates which has a positive impact on the alcobev sector. It has recommended to keep Extra Neutral Alcohol (ENA) used for manufacture of alcoholic liquor for human consumption outside of GST. 

The GST Council recommendations will now be examined by the Law Committee on suitable amendment in law to exclude ENA for use in manufacture of alcoholic liquors for human consumption from the ambit of GST. The other recommendation is to reduce GST on molasses from 28% to 5%. This step will increase liquidity with mills and enable faster clearance of cane dues to sugarcane farmers. This will also lead to reduction in cost for manufacture of cattle feed as molasses is also an ingredient in its manufacture.

As per reports, a separate tariff HS code has been created at 8 digit level in the Customs Tariff Act to cover rectified spirit for industrial use. The GST rate notification will be amended to create an entry for ENA for industrial use attracting 18% GST.

It also clarified that job work services for processing of barley into malt attracts GST @ 5% as applicable to “job work in relation to food and food products” and not 18%.

The Council also made changes in GST rates on “Food preparation of millet flour in powder form, containing at least 70% millets by weight”, falling under HS 1901, with effect from date of notification, have been prescribed as: 0% if sold in other than pre-packaged and labelled form; and 5% if sold in pre-packaged and labelled form. 

Briefing the media, the Union Finance Minister Nirmala Sitharaman said, though by law, the GST Council had the right to tax ENA as established by the judgment of the Allahabad High Court, the Council has decided to cede those right to the States. The issues around the taxability of ENA has been under consideration since the implementation of GST in 2017. Several states had opposed and challenged the right of the GST Council in imposing taxes on ENA. The Allahabad High Court has issued a judgement in the favour of the GST Council. As per the judgement, the GST Council has the right to impose taxes on ENA, and not the states. “If the states want to tax it they are welcome, if they want to leave it as it is, they can.  In the interest of states, the centre has ceded that right to states,” Sitharaman said.

ISWAI welcomes recommendations

Mr. Suresh Menon, Secretary-General of the International Spirits and Wines Association of India (ISWAI) said, “Today’s decision by the GST Council to cede taxing control on un-denatured ethyl alcohol (commonly called Extra Neutral Alcohol or ENA) to the States is a major and very welcome step for the industry. It brings finality to an issue that has been hanging fire for the six plus years since GST came into being. The alcoholic spirits industry has been making the case for continuing to keep the taxation of this item within the taxing domain of the States, as had been the practice pre-GST. The possibility of an increase in taxes and hence in the cost of this essential ingredient in the manufacture of alcoholic spirits if ENA were to be taxed to GST, thereby pushing up the prices of the end alcoholic beverage, now falls away, and is very welcome. The industry is grateful to the members and the secretariat of the GST Council for this very critical decision for the sector. Likewise, also for the reduction in the rate of GST on molasses to 5% (from the current 28%), which should make for a level playing field for distillers of both grain and molasses (both integrated and standalone).”

CIABC thanks the Government for resolving long-standing demand

Welcoming the move, Mr. Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC) said, “We are very happy to see the GST Council give a definitive recommendation on the taxability of ENA used in making alcoholic beverages. ENA is nothing but high strength potable alcohol used as the primary ingredient for making alcoholic beverages after due dilution with water. 

Ideally, the industry would have liked all of alcohol including the finished products be under the GST to bring parity in taxation across states. However, we know there are complexities involved in that but as long as alcoholic beverages are kept outside GST, putting ENA under GST and leaving the industry with a stranded cost would have made little sense, especially as companies do not have the freedom to pass on this tax in most states.”

Mr. Giri added that in the absence of clarity from the GST Council, Courts had taken conflicting positions on the matter which had further compounded the uncertainties. 

“Industry has been pleading with the Council and other Government agencies involved for several years to bring finality on the matter. GST Council has also taken it up several times in its meetings but a definitive recommendation and closure had eluded. Considering that, the GST Council’s decision is a big relief to the industry. It will bring stability and settle nerves all over. “

He also mentioned that the CIABC had also recommended measures on related matters such as tax rate on molasses to bring a finality on the matter. “We are happy to see the Council recommend a comprehensive solution including reducing GST rate on molasses to 5% which should mitigate discomfort amongst the minority users buying molasses to make ENA.

On behalf of CIABC members and many other IMFL manufacturers, I thank the involved Governments and the Council for resolving a long-standing demand of the alcoholic beverages industry. We feel relieved.”

Allahabad High Court earlier had said ENA is subject to GST

Earlier the Allahabad High Court, in the case of Jain Distillery, held ENA is not covered under ‘alcoholic liquor for human consumption’ and is subject to GST.  The decision had opened a floodgate of questions for the manufacturers/suppliers of ENA across the country, who have been paying VAT/CST on the sale, and also the buyers, who have been availing credits of such VAT and setting it off against VAT payable on the sale of alcoholic beverages. 

The taxability of ENA has been the subject matter of deliberation for some years now. West Bengal has said the tax on potable liquor whose raw material comes from ENA must remain with the states; the ENA used for industrial purposes comes under GST, it said. Uttar Pradesh, where alcohol makes up more than 95 per cent of ENA, and other states such as Kerala, Tamil Nadu, Rajasthan, Telangana, Punjab, Madhya Pradesh, Chhattisgarh, and Karnataka wanted ENA to be kept out of GST. 

The Rise of Craft Beer and a Burgeoning Microbrewery Segment in India

Recent years have seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers. There are now strong indications that the growing demand for craft beer is paving the way for new microbreweries in India.

The beer industry in India has emerged in the last two decades to become a thriving money spinner today. Just a few decades ago, it wasn’t commonplace to find modern bars, restobars, lounges, and even friends sitting over a few beers. Today, there’s a new culture of brewing in India, even among millennials and Gen Zs, and beer has become trendy. As of 2022, the beer market was valued at 383.6 billion, growing at a CAGR of 8.1%, and expected to reach 622.4 billion by 2028.

Recent years have also seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers, with an emphasis on new and evolving flavours, enthusiasm, and techniques. There are now strong indications that the growing demand for craft beer is paving the way for microbreweries in India. Some industry players believe this is only the start of a journey that can transform the beer scene much more significantly.

Craft beer flexibility and a burgeoning segment

There’s a growing crop of craft beer producers and brands in India who seem determined to take over the beer market with what they call a breath of fresh air. “Being true to style and ingredients, the experience that craft beer provides in terms of flavour, aroma and array of styles has led to the growth of craft beer the world over. We often say that once one has tasted true craft, he’ll never go back to industrial lager, especially if craft is available within reach.

“This is the reason that the world and, indeed, India are seeing the growth of microbreweries. Industrial lager literally offers one-style-fits-all products, whereas craft gives the choice back to the consumer for its preferred taste profile and styles,” said Upesh Gulati, Founder, Strategist, and Master Brewer, Effingut Breweries Pvt Ltd.

Over the years, Effingut has taken pride in introducing patrons to various different styles from around the world. With 16 different craft beers on tap, there is a flavour for each and every patron to enjoy. As of today, Effingut has a pan-India presence with three different verticals across four cities that cater to any kind of patron. This includes the Effingut 2 Go boutique stores, Effingut Bistros, and The Effingut Brewpubs and Taprooms.

Rather than release large batches of single-flavour, often mundane beers, microbreweries offer a variety of tastes and flavours based on the changing preferences of consumers and innovativeness of producers. As more adventurous beer enthusiasts emerge, craft beer makers have to continually innovate and expand to meet growing demands. According to Dr. Nishant Grover, Brew Master at Hotel The Royal Plaza, craft beer has quickly become a trend in India.

“There are several factors responsible for the growth of microbreweries in India. First is the shifting consumer tastes and the desire for distinctive and expensive beverages, as well as the fact that they are becoming more daring and discriminatory in their taste preferences. Second, increasing disposable income has also contributed to the growth of microbreweries, and lastly, we must acknowledge the encouraging government policies that are making microbreweries like our own The Royal Brewery Bistro to thrive,” he says.

Creating richer experiences with richer flavours

Microbreweries like The Royal Brewery Bistro are also being fostered by the craze for the culture by both local and international tourists and beer enthusiasts. This contributes to the overall tourism sector in India. Beyond that, the most important changes are the ones seen in the lives of budding beer drinkers in India. Younger Indians are becoming adventurous and seek out newer tastes each new day.

“After a long hectic day at work, people would stop by a bar to relax with a mug of their favourite beer in hand. But now with changing demographics, millennials and Gen Zs, people’s taste for beer is also undergoing a shift. They are looking for something different to explore and experiment including their consumption of alcoholic beverages. It was only 20 years ago that the first breweries opened in the industrial city of Gurugram. Today, there are microbreweries spurring across the country. Well-known internationally trained brewers are brewing international quality beer recipes in new-world pubs and bars across the country.  As the best quality raw material is available with ease, production becomes less hassle, this is why craft beer availability is spreading across the country. Multiple yearly events on brewing and brewing equipment have also propelled information sharing and technical know-how for the industry,” explains Sandeep Singh Katiyar, CEO of The Finch, one of the finest premium luxury lounges in India, known for its extensive range of freshly brewed craft beer.

Breaking the odds, surging ahead

There’s still a long way to go. The craft beer culture may be growing in popularity, but it is still relatively young in India. Brewing has certainly become easier because quality ingredients are easier to come by and the manufacturing process has been simplified. However, there’s a long path ahead, and it is rough and rocky. There’s need for both the central and state governments to support the segment and its operators for them to thrive even better and ensure the growth is smooth.

As Katiyar of The Finch puts it, “The new brewery policies in Haryana, Karnataka, Maharashtra, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh have helped craft beer businesses scale to new heights. However, craft beer and microbreweries yet have a long path to cover and have plenty of hindrances to cross in the upcoming years. The industry requires care, support, and nurture from the state and central governments. With the government’s support, the smooth growth of microbreweries can be ensured.”

The idea of authenticity loved by millennials is what is spurring the growth in the industry, and there’s need to support the over 200 microbreweries in India to succeed, while also ensuring new ones emerge, especially in far-flung cities and towns where they’re currently non-existent.

“It’s no secret millennials live life differently. Things no longer matter. Experiences do. Indeed, the potential rise of craft beer has paved way for many microbreweries in India. Millennials are clearly choosing experiences over things, fuelling the homecoming of microbreweries. They now know that there is much to the world of beer than just the dull and mass-produced bottled hard liquor. With hints of chocolate or sweet caramel, floral hops or fruity notes, rich coffee undercurrents and more – the options are tempting and endless. Today, India is now growing its own craft culture one sip at a time, and it will get even better in the future,” notes Anirudh Khanna Managing Director, Independence Brewing Company.  

Innovations in Packaging, Adding to the Consumer Experience

The total sales of Indian-made foreign liquor (IMFL) products were 388 million cases in 2022, up from 305 million cases in the previous year with demand in all major segments like rum, gin, vodka, whisky and brandy rising. The rise has been the sharpest in premium products with their portfolio now accounting for a fifth of all the whisky sold in India and consequently demand for glass bottles and packaging material has shot up.

The bottling and packaging segment is a key component and along with ENA it accounts for over 65% of raw material costs for IMFL operators, who have been requesting price increases from the respective state governments, to offset high input costs.

While excise departments have their own yardsticks to concede price rise, the alcobev industry has to think of ways of bringing down raw material costs. One of the ways is to push their supply partners to go for innovations in glass bottling and packaging. Already, we are seeing a number of new packaging and bottling solutions such as bag-in-box, ceramic glass bottles, bag-intube, whiskey pouches and more. But the premium segment cannot do away with glass bottles as glass has its own charm. Design comes in play here.

All in all, the market of the glass bottle and packaging industry is expected to grow phenomenally, even as some companies are giving up mono-cartons. Extensive R&D to introduce biodegradable and sustainable packaging materials due to rising environmental concerns are fast gaining currency and companies are becoming increasingly environmentally sustainable entities. 

Value creation without cutting corners

In view of its importance, Ambrosia at its 2023 Indspirit Conference in Delhi, organised a session on ‘Innovations in Packaging for value creation: cut cost without cutting corners’. The panellists included Srinivas Mantri, Sr Procurement Manager, Beam Suntory India; Vinod Sharma, Assistant Vice President (Commercial) Alcobrew. The session was moderated by Bhavya Desai, Group Head & CEO, SAP Media Worldwide Ltd. who set the tone by stating that in a competitive environment, the alcobev sector had to come up with bottling and packaging innovations for enhancing customer experience. 

Abnormal increase in alcobev sales

Mr. Vinod Sharma said that in the last one and a half years, there has been an abnormal increase in alcohol sales and companies need to religiously work on cutting costs in a highly competitive world, without compromising on quality. The alcobev sector is banking on innovation of reducing weight of glass bottle while ensuring that it is not susceptible to breakages. 

He mentioned that in the last two to three years there have been several innovations / techniques in bottling and packaging. One is the NNPB (Narrow neck press and blow) technique which can reduce weight of glass bottle up to 10 to 12%. However, over 90% of glass manufacturers in India have not adopted this technology due to initial investment costs. There is no substitute for glass bottle, particularly with premiumisation gaining currency, however glass manufacturers in India do not have adequate infrastructure to make bottles the way some foreign companies do. 

Smart caps becoming smarter

The other areas the industry could look at includes smart caps with multiple options now with HDPE and metal combinations. “Smart cap is becoming smarter by the day.” Similarly, shipper cartons there are so many different varieties of material. 

Sustainability should be key

Bhavya Desai nudged the panellists to talk about sustainability in packaging and Prof. K. Munshi, former IIT faculty, said while cost cutting is a factor by reducing bottle weight, making it compact etc., the sector should emphasise on value addition and how the consumer is benefitted. He gave a Japanese example where a manufacturer was dispensing Sake in small glasses which could be reused. “Sustainability also means next use of the product.” Most of the packaging is now thrown in to the garbage, he said and urged the industry to ‘put their minds together’ on sustainable packaging. 

Innovation officers in companies

Prof. Munshi said presently the onus on cost reduction is on the bottle manufacturer which cannot happen due to reasons best known for the manufacturer. Hence, there is need for the alcobev sector to collaborate with the bottle supplier with regard to innovation. Companies should have innovation officer on board and whose full-time job has to be on innovation and value addition. 

No alternative to glass bottles in premium segment

The professor underlined the importance of ‘thought process’ and research. “Whatever new technology comes in, one has to look at shapes, colours, aesthetics, the feel etc. how to get the maximum flavour, how to hold the bottle. These issues need to be looked into in a professional way. The user experience has to be factored in. You see many a time, empty bottles are kept as souvenirs. And as Indian companies we should think of what Indianness we can bring to the product through shapes, colours, culture etc. and how it complements with the bottle and the liquid within.”  There is no alternative to glass bottles for premium category of alcobev as consumers do not prefer premium liquor in PET bottles. 

Symbiotic relation between technology and design

While the big companies can bring in cost benefit partnering with the suppliers, the small players should leverage the flexibility they have by experimenting to the extent possible to offset costs. There is need for companies, irrespective of the size, to orient themselves to innovation and documenting it, even while adopting the best practices from around the world. Product development departments need boost. “Technology drives design. Development of technology takes a little longer, design is quicker but there is a symbiotic relationship between technology and design.”

Kaizen, continuous improvement to remove inefficiencies

Srinivas Mantri, Senior Manager, Beam Suntory India, talked about how the company came from a ‘Japanese thought process’ where continuous improvement or ‘Kaizen’ was in place. The idea is to keep removing the inefficiencies in the system. “Any innovation in our sector, it should factor in enhancement of customer experience and sustainability, giving back to the society, to nature.”

Beam Suntory is always working on these aspects, he said and mentioned that such processes had been implemented across different SKUs. “We have reduced the weight of the bottle, elevated the feel of the bottle, improved the label panels, reduced breakages.” Talking about glass bottles, he said, ‘see the liquid in the bottle, feel the bottle with hand and then taste the liquid…  and also sound of the opening of closure…. consumer experience is involved and is demanding’. “The consumer wants something nice and something new.”

Bars display bottles, not mono cartons

He mentioned how in bars, one does not get to see mono cartons, but only bottles showing the liquid. Underlying the importance of thought process, Mantri said that from sourcing to the brand and to the consumer, there is an evolving journey, hence there is need to work with partners for continuous improvement. To engage the consumer, one needs to research who the consumer is and what we are giving to him or her, then comes tying up with internal and external partners. Importantly, consumer feedback has to be factored in and the entire process is on building the brand and consumer loyalty. 

Anuj Bhargava, Managing Director, Kumar Labels, said there is a trend to remove mono cartons and when that happens, the focus is on the label on how it can be more attractive than the competition. Besides taste of the product, consumers pick the bottle for reasons such as the ‘look and feel’. Aesthetics is gaining considerable importance in this highly competitive market.

Experiential shopping: The rise of the flexible liquor consumer

From local rice beer and wine to the more complex sura, through varieties like palm toddy and cashew feni, India has always had a rich culture of alcoholic beverages. While the fancy bottles now adorn bar tables and home refrigerators, it is important to point out that the industry is more diverse than that. India’s alcobev industry has grown tremendously in recent years to become one of the nation’s star sectors. As of 2020, the industry had a market size of $52.5 Billion, with a projected CAGR of 6.8%, according to ICRIER.

Specifically, India’s liquor subsector is currently undergoing a revolution, triggered, inspired, and sustained by a growing crop of evolving consumers. The culture of experiential liquor shopping has now found a foothold across the urban and suburban cities, where consumers are as interested in the experience of shopping as the product itself. There are several alco-bev companies that now offer such experiences, including liquor tours, tasting, and so on. From Hyderabad to Bangalore, Delhi to Mumbai, Guwahati, and across the other cities, there’s something exciting for every liquor lover.

Transforming the Indian liquor scene with game changing experiences

Why gamble with your liquor purchase when you can choose the brand you like after a round of tasting? In Bangalore’s Mansionz from the stables of Living Liquidz, is a one-of-a-kind experience. Mansionz is a premium brand that offers premium experiences to premium customers. It is a liquor store with a wine-tasting room that offers that up-beat luxury New York feel. So, you can get an elite experience and have a taste of their amazing liquors before making a purchase.

Beyond the tasting experience, Mansionz is also a platform for learning about different kinds of spirits and brews, towards enlightening consumers about tastes, styles, texture, and value. As Moksh Sani, Managing Director of Living Liquids says, the essence is to build a deeper understanding and greater appreciation within the consumers about the beverages available to them. “I am highly enthusiastic about wines and foods, and it is that same passion I intend to share with every customer that walks into Mansionz or has a taste of any of our 1,500 uniquely curated wines at the top floor,” he says.

Beyond the liquors and classic cocktails served to interested tasters, and the exciting assortment of rum, vodka, gin, single malts, beers, and cognacs, the brand has gone a step further with the introduction of a mobile app that allows users to sample at least three spirits based on a predefined sum. Mansionz is just one of the many liquor store brands that are doing amazing things in India. In fact, some like The Liquor Store in Mumbai houses some extremely rare collections including the Special Edition Louis XIII Cognac with a price tag of Rs 3,95,000, the 1800 Milenio Extra Anejo Tequila, and the Taiwanese hotshot Kavalan’s whiskeys.

These rare offerings stand in the midst of around 1,500 different types of wines, 1,000 spirits, 250 champagne brands, and at least 100 different beers from different parts of the world. With side attractions like The Tavern, a London-style restobar that hosts pairing sessions occasionally and bring alco-bev enthusiasts under one roof and the Lift & Learn feature in the Liquor Store which gives a shopper the opportunity to learn about the history, tasting notes, texture, and other details of the beverage through an AR technology.

In the words of Dinesh Kathuria, co-founder of The Liquor Store at Belapur’s Palm Beach Road, the surge in alco-bev demand during the pandemic called for innovative measures to draw in larger crowds and take advantage of new enthusiasts. “It’s increasingly becoming about the experience. People need to see that you’re invested in their feelings and comfort; that you care about them. This involves creating the right environment, and building stronger customer service. It’s all about the service,” he adds.

A rising preference for experience and consumer service

Think of a restaurant and how you’re waited on, attended to, pampered and offered a tour of their menu (if you like). That is what liquor stores are now trying to achieve with such experiential shopping. The importance of adding variety and lifestyle options to liquor stores is a testament to the growing need to not just attract, but also keep consumers by personalising their experiences.

Another major concern is the “taboo” that surrounds women walking into a liquor store. Finding a way around this is what Mayank Shroff, Vikash Musaddi, Anant Shroff, Anurag Murarka, and Vikas Murarka envisioned when they created Hedonne. The Kolkata-based premium shopping hub offers a superb experience, which the founders say is the goal, and not necessarily a transaction. This is a first-of-its-kind in eastern India, offering a delightful walk-in experience for patrons to explore its over 9,000 bottles of various alcoholic beverages. And what about the Alcopedia corner? That’s an innovation that leaves curious customers more enlightened than they were when they walked in.

According to team Hedonne, “Women now have a comfortable space to walk in, ask about alcoholic beverages and even shop for themselves and their partners without any judgement. They can also try out the drinks before making a purchase, a concept that is first-of-its-kind in the city. For us, it’s about making the customers love the experience of shopping from us and enjoying it.”

It’s the same goal for The Whiskey Company, an 8,900 sq ft enclave in Guwahati, the alco-bev capital of North-east India. The moment you walk into The Whiskey Company; you’re greeted by a W-SET-certified sommelier who introduces you to the finest liquors the industry can offer. The Cuban cigar lounge and soon-to-be open tasting room are other amazing features you’ll find. This place, like most innovative settings, operates an open-door policy for expression. “There are no taboos or judgments here. This is why we have more women coming here than any other place in North-east India. We’re also concerned about educating our patrons and expanding their palates,” says Vishal Deorah, the company’s Managing Director.

Hyderabad and Bengaluru are two other places where experiential liquor stores are opening up. In fact, Bengaluru made news when Tonique, a boutique liquor store set up what became Asia’s largest liquor store built on a 25,000 sq ft land. Owned by Anith Reddy, the brand now owns two showrooms between the two cities. A tour of the store showcases the best wines and champagnes from India, Australia, New Zealand, France, Italy, Japan, and several other parts of the world.

Building brand loyalty and long-lasting memories

These trail-blazing brands have offered another side to India’s growing alco-bev industry; one that shows that beyond the magic of the brewers and distillers, great customer service and experience are a no-brainer. Together, they have garnered a growing crop of patrons who understand the value of the moments that lead up to a purchase. It is hoped that this crucial aspect of the liquor industry will continue to expand and add a pleasant flavour to the industry’s value chain.

5 Women Bartenders who have made their mark

Working in a bar is a great career option for anyone with a creative mind and a drive to learn. The preconceived notion that bartending is a man’s field has been thrown out of the window in the past decade, with women from different social, cultural and academic backgrounds having set the standard high in this industry, by leading some of the best bars, discovering and creating new drinks and whatnot. This International Women’s Day, we’re celebrating some of the top female mixologists from India, who despite the challenges, have broken barriers and showcased their excellent skills behind the bar.

Shatbhi Basu

An alumnus of IHM Mumbai, Shatbhi Basu went on to carve out an illustrious career in bartending and was awarded by the President of India and the Ministry of Women and Child Development as India’s first woman bartender. With an experience of over three decades, Shatbhi runs her own bartending academy in Mumbai called Stir Academy of Bartending. She conducts various workshops across the country and tries to keep this art alive among women. She also authored the first comprehensive guide to alcoholic beverages and cocktails relevant to Indian conditions called ‘The Can’t Go Wrong Book of Cocktails’, and has hosted and created India’s first TV show on cocktails & more – ‘In High Spirits’ on NDTV Good Times. Shatbhi was appointed the first American Whiskey Ambassador, India from 2013 – 2016.

Ami Shroff

Ami Shroff started her career in 2003 at the age of 18. Since then, she has never looked back. Today she is one of India’s few women flair bartenders who is sought after for special events and gigs. If that’s not enough, she is also an accomplished mixologist which makes her a complete professional at the bar. She has managed to perform at over 20 destinations across India and beyond the borders, at over 1000 events, from backyard pool parties to elite corporate functions and conferences. Ami also curates cocktail menus for some of the most acclaimed establishments and has starred in the Netflix documentary Midnight Asia, depicting the mixing of drinks into performing art.

Cindy Lalramngaihzuali

Cindy Lalramngaihzuali started her career in the F&B industry in 2015. After working in different departments, she got inspired after working behind the bar at Ek Bar in Delhi. Later, while doing a bartending course, she started working at Piso 16. After working for a month, she moved to Perch Wine and Coffee Bar, Delhi and takes care of Hoots’ cocktail bar there. One of her favourite cocktails is Hanky Panky – a spirit forward cocktail with gin, vermouth and Fernet Branca. Cindy considers her mother and grandmother as her biggest inspiration.

Sonam Rai

Hailing from a small town in Bihar and having no professional background in mixology, Sonam Rai is a hands-on and quick leaner of the craft. She credits he stint as an assistant bartender at GVK Lounge, Mumbai International Airport for her skills, where she picked up everything she knows from the Bar Manager Abhinay Patil. A big fan of dehydrated fruit garnishes and citrus drinks, try one of her grapefruit creations like the Bloody Habanero Margarita or Gin Grapefruit and Basil Ginger ale. 

Arati Mestry

Arati Mestry’s journey towards being a bartender started with an impromptu cocktail competition in college and with a part-time job at a friend’s bar on weekends. After switching jobs, Arati took a small break to find a good workplace, and within some time landed a stint with BYG Brewski Brewing Co in Bangalore. She got her first job in the pre-opening team in Planet Hollywood Beach Resort, Goa, and then moved to Elephant & Co. Pune which, she considers, was a turning point. Currently she works with Seven Rivers Brewing Co, Taj Group, as a bar manager. Some of her accolades include being runner-up in the American Whiskey Legacy 2020, winner of the Jameson Barrelmen’ Face-Off 2018 (1st Edition), and national finalist in several competitions like the Campari Bartender Competition Asia 2019 – Top 5, the Monkey Shoulder Ultimate Bartender Championship 2019 – Top 5, and the Beluga Signature Bartender Program 2019 – Top 30.