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Ian Macleod: From India to the World

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Plan to launch exceptional Single Malt from India, date not finalised yet

The Ian MacLeod family, known for their unwavering commitment to excellence, is on the brink of launching a Single Malt from India. Although the launch date remains undecided, the legacy that has driven four generations of the Russell family—the principle that there can be “no compromise on quality”—continues to guide the company. This dedication has positioned Ian MacLeod as the 10th largest Scotch whisky company globally, boasting some of the world’s most renowned brands. 

During a recent visit to their distillery in Scotland, I had the opportunity to sit down with Leonard Russell, Managing Director of Ian MacLeod. Our conversation revealed the company’s ambitious plans for India, highlighting the country’s rapidly evolving market, the impressive talent pool, sustainable practices and the exciting new distillery in Una, nestled in the Himalayas.

Trilok Desai in Edinburgh

A Glance Back: The History of Ian MacLeod

Before diving into our conversation, it’s essential to understand the history of Ian MacLeod. Founded on October 1st, 1933, the company traces its roots to Leonard Russell Senior, who established his whisky brokerage in 1936. Three decades later, the Russell family acquired Ian MacLeod & Co Ltd, with Peter Russell taking the helm as Chairman and Leonard Russell as Managing Director. The Russell family’s pursuit of perfection soon earned Ian MacLeod a reputation for producing whisky of exacting standards — because great whisky doesn’t come easily.

Today, after more than 80 years, Ian MacLeod has expanded its footprint to include five distilleries in Scotland, with a sixth under construction in Una, Himachal Pradesh, India. Under Leonard Russell’s leadership, the company has charted a meticulous roadmap for global expansion, focusing on carving a niche rather than pursuing mass production.

Peter Russell, the company’s visionary Chairman, passed away last year, leaving behind an enviable portfolio of 34 products, including Glengoyne, Tamdhu, Smokehead and Edinburgh Gin to name a few. Each of these award-winning brands, though distinct in flavour and character, is crafted with the same passion and commitment to quality.

Passion and Precision

Leonard Russell, who joined the family business in 1989, exudes passion and an unwavering commitment to quality. Under his stewardship, Ian MacLeod has transformed from a spirit blender and whisky broker into a fully integrated distiller, blender, and bottler, acquiring three distilleries—Glengoyne in 2003, Tamdhu in 2011, and Edinburgh Gin in 2016.

So, why is Ian MacLeod venturing into India, especially when they’re already thriving? Russell’s vision is clear: to create a Single Malt brand that will make India proud on the world stage. This venture is not about capturing the mass market but about delighting the discerning Indian consumer who appreciates the unique offerings that India can bring to the table.

Tamdhu Single Malt

India’s Growing Thirst for Single Malt

“India has a large population that favours branded spirits, unlike the Chinese and other Asians who prefer white spirits,” Russell explains. “As the Indian economy develops, so does the taste for Single Malts. India is crying out for the very best single malt whisky, and with our expertise from Scotland, we are poised to meet that demand.”

Although it may seem that Ian MacLeod is a newcomer to India, the company has actually been present in the country for two decades. Now, Russell believes, the timing is perfect. “The demand for the very best is there, and it’s our intention to deliver just that. We’re committed to creating a Single Malt whisky in India, using local ingredients, to satisfy the growing number of consumers who are genuinely interested in quality.”

Russell’s confidence in their India plans is palpable. “We’ve begun distilling some of the finest Single Malts in India, leveraging our expertise in oak casks and warehouse design to ensure that the maturation process is perfect.”

The Road Ahead: Quality Over Speed

When asked about the timeline for launching the new malt, Russell is clear: “We have no plans to reveal a brand launch date just yet. Our priority is to perfect the quality of the whisky. We’re sampling different casks, monitoring the maturation process, and comparing it to our Scotch maturation in Scotland. We’re not in a rush — we’ll launch when the whisky is at its peak.”

While the focus on quality is understandable, there’s no denying the market potential waiting to be tapped. Russell notes, “It’s incredible to see the growth of Indian Single Malts. There are some very good brands emerging from India, and it’s encouraging to see the market develop both domestically and internationally.”

A Distillery in the Himalayas: The Perfect Location

Though tight-lipped about investment figures, Russell expresses his satisfaction with the company’s investment in India. “It went over budget, but if you’re going to do it, you have to do it right.” The distillery in Pandoga, Una, Himachal Pradesh, is nearing completion, and as for the malt, no brand name has been chosen yet. Russell reiterates that their focus is on creating a Single Malt that will make India proud on the world stage.

The distillery’s location aligns perfectly with Ian MacLeod’s sustainable practices as well. “Though small, it’s perfectly formed,” says Russell. “We’re using hydropower from the Sutlej River, and we have access to excellent water sources. My dream is to open the distillery to visitors so they can see how we create exceptional brands.”

Glengoyne Single Malt – Aged 30 Years

A Niche Strategy: Quality Over Quantity

When pressed about the distillery’s capacity and market ambitions, Russell draws an analogy: “Our capacity will be similar to our distilleries in Scotland, like Glengoyne and Rosebank — enough to supply the discerning market, but not too large. We’re not aiming to be mass producers; we’re focused on creating a premium, luxury Single Malt for India that can compete on the world stage.”

Ian MacLeod’s strategy in India is clear and measured. “We’re not going to produce a million cases. If we reach 100,000 or 200,000 cases, we’ll be very happy. For us, it’s not about volume — it’s about ensuring the product is exceptional and winning the confidence of consumers, step by step.”

The Whisky and Scottish Lobsters Analogy

Russell offers a fascinating comparison between whisky maturation and the growth of Scottish lobsters. “A Scottish lobster from the cold northern waters, weighing one kilo, is likely 7 or 8 years old. In contrast, a lobster from warmer southern European waters will be only 1.5 years old at the same weight. Scottish lobsters, like well-matured whisky, develop a deeper, more complex flavour over time. Similarly, our distillery’s location in the cooler Himalayan climate is ideal for slower maturation, which results in a more rounded and complex whisky.”

When I mentioned Pernod Ricard’s construction of Asia’s largest distillery in Nagpur and Diageo’s two Single Malt brands in India, Russell was emphatic: “We’re not looking to be that big. We’re not interested in competing in the IMFL (Indian Made Foreign Liquor) market. We’re focused on creating the best Single Malt, and we have the expertise to do just that.”

Exports and Three Year Maturation

Ian MacLeod has clear plans to export their Indian Single Malt. “Indians love to travel, and there’s a large expatriate community around the world. We certainly have plans to export.”

Russell also emphasizes the importance of adhering to the three-year maturation requirement. “We won’t launch by this Christmas. We’re committed to the legal requirement of three years of maturation, which is standard worldwide. I can wait three years — after all, we wait 12 years for Single Malts in Scotland.”

Russell praises the talent in India, noting that the company is recruiting the best local distillers from Himachal Pradesh. “We’re excited to share our knowledge from Scotland with the team in India, and we’re eager to learn from each other.”

Copper Pot Stills at the Ian MacLeod distillery

Craftsmanship from Scotland, Tailoured for India

Regarding production equipment, Russell mentions that the stills, which are crucial for creating the flavour in the new spirit, are being precisely crafted in Scotland and shipped to India. “The rest of the production equipment is being made by craftsmen in India to our exact specifications,” he adds.

Russell also stresses the importance of the three-year maturation rule, which is universally accepted in the Scotch Whisky Act and in the US. He expresses a desire to see similar standards applied in India to protect consumers and maintain the integrity of the whisky industry.

Looking ahead, Russell is hopeful that Indian Single Malt distillers will form an association and establish a voluntary code to safeguard consumer trust and the quality of the product.

As our conversation wrapped up, Russell reflected on the challenges and opportunities ahead. “We’re here to create something special—something that will make India proud. And I’m confident that with our experience and commitment to quality, we’ll do just that.”This journey from Scotland to India, steeped in tradition and driven by innovation, is set to bring the world a new Single Malt that reflects the best of both worlds.

Whyte & Mackay: Looking to Craft a Legacy in India’s Evolving Whisky Market

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As the Indian whisky market evolves with the introduction of newer and more premium products, Indian consumers are increasingly gravitating toward ultra-premium spirits. Whyte & Mackay (W&M), originally acquired by USL (later Diageo) and eventually sold to the Philippines-based Emperador Distilleries, has made its offerings available in India through VBev. In a conversation with Bhavya Desai, James Cordiner, International Malt Specialist at W&M, and Sumedh Singh Mandla, CEO, AWS Global and VBev, shared perspectives on their portfolio, market strategy and future plans. Excerpts:

Whyte & Mackay’s current portfolio in India spans both the ultra-premium and premium segments. The lineup includes the renowned Dalmore single malt, available in age statements of 12, 15, and the Port Reserve edition, while the premium range features Jura single malt, offered in 10- and 12-year-old variants.

James Cordiner, International Malt Specialist at W&M

In addition to Dalmore and Jura, the company plans to launch the Tamnavulin single malt at the end of this year or early next year, with Fettercairn single malt also in the pipeline.

James Cordiner, who recently joined W&M, is no stranger to the Indian market, given his previous tenure at Bacardi. He is impressed by India’s passion for whisky. “It’s a huge whisky market and one that’s growing rapidly as consumers become more adventurous and curious,” he observes.

Sumedh Singh Mandla, CEO, AWS Global and VBev

Both James and Sumedh recognize that while Indian consumers are leaning toward premium spirits, Dalmore is positioned at a higher price point (₹14,300 per bottle in Mumbai). Nevertheless, they are optimistic that consumers will connect with the brand’s heritage, craftsmanship, and royal legacy dating back to 1839. James emphasizes that the cask selection and meticulous production process are what set these whiskies apart.

Despite the competition in the segment, Sumedh is confident that W&M’s products can carve out their own niche, particularly with the rise in consumers’ purchasing power. For those who find Dalmore’s price point steep, Jura offers a more accessible option.

Currently, the brand’s strategy includes advocacy and education initiatives targeted at on-trade establishments, with activities expected to commence soon. W&M products are now available in approximately 20 tier A and B cities, and they are also looking to go more vertical in the States that they are already available in. For instance, in Maharashtra –  expanding to other cities like Nagpur, Pune, Kolhapur etc apart from Mumbai. Although the top line products might not be made available in these markets, but they tend to surprise W&M in terms of aspiration and growth.

But growing that market comes with its challenges and fluctuating price points, shifting regulations in each State hamper the expanding market reach. Additionally, securing sufficient supply quotas for wider distribution also remains a concern, which a more streamlined regulatory framework could address.

Sumedh mentions an example: if a regulator requires a barcode to be repositioned on the bottle, it’s difficult to implement such changes after the labels have already been customized. A standardized policy would simplify these processes and accelerate growth across the segment.

James admires the progress of Indian single malts, noting, “You’ve got some fantastic whiskies being produced in India.” He points out that Scotland’s cold climate allows for extended maturation periods, resulting in more complex and nuanced flavour profiles that can develop over decades. By contrast, India’s warmer climate accelerates maturation, but might limit the depth of flavours that can be achieved within 10 to 12 years. Nonetheless, he believes that India’s single malt journey will play a key role in shaping the country’s luxury whisky market for the future.

Interestingly, the demand for luxury products is surging in smaller cities, with on-trade partners requesting more stock of premium offerings like Dalmore. Clearly, Dalmore is being positioned as an aspirational brand, catering to discerning consumers who appreciate fine spirits. But interestingly, their messaging isn’t solely targeted at men, but also at women who have reached a certain level of accomplishment in their professional and personal journeys. Moving forward, the brand plans to conduct more high-profile events to engage with affluent consumers and reinforce brand loyalty.

For those already familiar with single malts and seeking an elevated experience, W&M aims to meet their expectations. Even with Dalmore’s luxury pricing, Sumedh doesn’t see this as a major hurdle. He anticipates that as duties gradually decrease over time, products like Dalmore will become more accessible to a broader audience, growing India’s journey further.

It is clear that Whyte & Mackay’s legacy, which is built on over 175 years of whisky-making expertise, steeped in tradition and a pursuit of quality, has grown into one of the most respected names in Scotch whisky, renowned for its craftsmanship and innovative blending techniques. From the luxurious Dalmore with its rich heritage dating back to 1839, to the adventurous Jura and the approachable yet complex Tamnavulin, their current whisky portfolio offers whisky enthusiasts an option at every stage.

As the Indian whisky market continues to evolve, W&M’s commitment to delivering exceptional products, combined with its focus on storytelling and education, positions it in a strong footing for the future.

UP Distillers’ Association: Navigating Agriculture, Advocating Diversity, Inspiring Change

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With the Government of India going aggressive in the E-20 blending target, availability of maize will be critical as presently India has limited maize production, needing a paradigm shift in quality upliftment, states the Secretary General of UP Distillers’ Association, Rajneesh Agarwal.

Mr. Agarwal mentioned that the Union Ministry of Agriculture had advised State Governments to plan and promote cultivation of maize in areas around 50-100 km of distillery through ‘special projects’ under the Rastriya Krishi Vikas Yojana (RKVY)/ Public–Private Partnership for integrated Agriculture Value Chain Development (PPPAVCD) scheme.

The UP Government, he added, has been in the forefront to increase maize production, allocating the budget for the same. The UPDA, he reiterated had extended its support and cooperation to the government programme and had decided to chalk out a roadmap together to take the campaign forward involving all stakeholders namely Farmers Producers Organisations (FPOs); seed manufacturers; sowing & harvesting machine manufacturers and all other concerned in developing the eco-system. 

Mr. Agarwal pointed out that the key areas to work on in UP included increasing crop intensity; developing high yielding varieties; crop diversification with special incentive & subsidy for machinery in maize cultivation / harvesting; incentives to farmers in catchment areas; replicating the model prevalent in Gujarat; technology infusion initiatives; developing a dedicated online market like e-NAM for maize growers to ensure better pricing; and direct contact between farmers and industries.

As regards the efforts of UPDA, the Secretary General mentioned that the apex state body has been representing the distillery industry since 1983, rendering advocacy role on policy & regulatory matters and getting official recognition from numerous state & central government bodies.

Mr. Agarwal stated that as an active participant in the UP liquor growth story, UPDA would stand tall with unwavering dedication to quality and innovation. Recently, UPDA signed a Memorandum of Understanding (MOU) with the Indian Agricultural Research Institute (IARI) and with the Indian Institute of Maize Research. The prime objective is to undertake large-scale evaluation of newly developed hybrid maize varieties which promise higher ethanol recovery and improved protein quality in Distillers Dried Grains with Solubles (DDGS). “We are glad to know that the UP Government has initiated steps on maize production allocating around ₹30 Cr. budget.”

The Secretary General also mentioned that the UPDA’s leadership team attended the Global Ethanol Summit in Washington in Oct’2023 organised by the US Grains Council a premier body under the US Department of Agriculture. USA is a leader in corn and ethanol production. Given the importance of maize as a potential future feedstock in India, the USGC, he said, was keen on partnering with UPDA for development of the corn programme. Following up on that a groundbreaking MoU was signed between UP Distillers’ Association (UPDA) and the U.S. Grains Council (USGC) in New Delhi on April 24, 2024.

Mr. Agarwal said the future vision of this understanding is to take a deep-dive in to the Indian agrarian space & ecosystem to, establish innovative farming & logistical practices from latest US / Global Technologies for integration of higher ethanol blends into the ecosystem, training for maximisation of Corn value ethanol co-products, leveraging digital platforms etc.

William Grant continues to grow with a positive momentum

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With an evolving Indian consumer and alcobev market, William Grant & Sons has one of the most enviable portfolios in the industry. From award winning whiskies to popular gins, the company has been enjoying a healthy growth for the past few years. Sachin Mehta, Country Director, William Grant & Sons spoke to Bhavya Desai about the Indian market and the future roadmap for the company. Excerpts:

The overall business has been good for William Grants & Sons (WGS). It’s been growing at a healthy pace informs Sachin Mehta, the Country Director of WGS. The past 3–4-years have been particularly positive as Indian consumers are seeking and appreciating more premium and high-quality and prestigious products. “Our portfolio allows for a great fit to this trend of growing premium and luxury consumption growth in India,” he adds.

And if this trend is anything to go by then the future surely looks bright, with the Indian consumer looking towards more premiumisation, especially since WGS’ portfolio includes some of the most popular brands on the global stage. This includes brands like Grant’s Scotch Whisky, Monkey Shoulder Blended Malt Scotch Whisky, Hendrick’s Gin, Glenfiddich Single Malt Scotch Whisky and The Balvenie Single Malt Scotch Whisky. Sachin is also delighted to see brands like Hendrick’s, which has led, created and established the premium gin category, on the other hand, Monkey Shoulder has trended very well with its unique premium offering for the young and aware consumer. “We are blessed that our brands and quality liquid is loved by consumers here.”

Despite the popularity and the evolving pallet of the Indian consumer, WGS has no plans of creating specific products for the Indian pallet, not for the near future at least. “Our products have found a good preference to the Indian consumer’s pallet. The Indian consumers now have an evolved preference in line with the most developed in the world. At William Grant & Sons, we are committed to quality premium offerings to consumers and our current portfolio fits well to the evolving preferences of consumers.”

What’s interesting is that despite have a more premium portfolio, WGS has been successfully targetting the more affluent consumer, and the strategy is simple, with the Indian consumer evolving and seeking premiumisation across categories, from watches to cars to high-end spirits etc. – their brands cater to this growing demand for luxury products with their quality liquid.

Combine that with special liquids like the limited-edition releases and aged expressions, offered to collectors and explorers, better availability, an increasingly aware premium consumer and the retail experience have been key drivers in the recent past.

At the company’s UP bottling plant, the company bottles the two variants of Grant’s currently in India – Grant’s Triple Wood and Grant’s Distinction, in the blended scotch whisky category. Overall Grant’s continues to grow with a positive momentum with a dynamic play between the variants depending on the RTM of the state. “We are committed to continue to offer more variants to our consumer on Grants in the future.”

Undoubtedly, India is an important market for WGS not only because it’s growing, but also from the economic front and consumers preferences, tastes and premiumisation. India is now an important part of the global plans across categories and brands. “For example, we recently introduced the Grand Series, with Glenfiddich 21-year-old “Gran Reserve” and Glenfiddich 26-year-old “Grande Couronne”, Glenfiddich 29-Year-Old “Grand Yozakura” and the Time series with Glenfiddich 30-Year-Old – some of them limited editions and some of them rare and unique variants.”

Similarly, there are additional variants being introduced on The Balvenie Range as well. While many of these are still limited and allocated quantities – such variants now being offered to India reflects their commitment and focus on India as a market.

“We have also introduced Smokey Monkey, a new variant of Monkey Shoulder Blended Malt Whisky which was highly appreciated for its Smokey taste amongst our consumers. Similarly, Hendrick’s brings its limited-edition variants from the “Cabinet of Curiosity” to explore some curious offerings in India. Starting with Hendrick’s Midsummer Solstice in 2021, followed by Hendrick’s Lunar, Hendrick’s Neptunia, and, most recently, Hendrick’s Flora Adora.”

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

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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

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Jim Murray stands as a prominent figure and key player in the global whiskey scene, having held the title of the world’s first full-time whisky writer for over three decades. The 2024 release of his widely successful “The Whiskey Bible” marks the 20th anniversary of the publication. Maintaining a staunch commitment to independence, Jim fearlessly critiques those deserving of scrutiny and advocates for whiskies that were once overlooked or unfamiliar.

In the present day, the likes of Ardbeg, Pure Irish Pot Still, and Canadian and Japanese whiskies such as Yoichi and Yamazaki have gained widespread popularity, thanks in no small part to Jim’s daring efforts to bring them into the public eye. Despite facing criticism and occasional attempts at character assassination, Jim’s bold choices have significantly shaped the current whisky segment.

In a conversation with Ambrosia, Jim shared insights into his passion for the spirit, details about his personal life, encounters with setbacks and comebacks, and perspectives on emerging whisky trends and Indian distilleries.

What led to your transition from journalism to becoming the world’s first full-time whisky writer, and are there any interesting stories or experiences from your journey you’d like to share?

I began my career in journalism covering sports and general news, gradually diving into more intense subjects like murders and special investigations while working for national newspapers. Amidst these experiences, my first encounter with a distillery occurred in 1975 during a hitchhiking expedition across Scotland. Boarding a boat bound for Skye, I visited the Talisker distillery, and it literally changed my life.

The vibrant sensory details of the distillery – the colours, smells, sounds, and the meticulous process – left a lasting impression on me. As a journalist, I used to get to travel a lot. Tasting whisky straight from the barrel with its 60% alcohol content was a revelation, and it sparked a personal interest. From the age of 17, during my spare time, I started making personal notes on whiskies, differentiating their unique qualities. By 1989, I began writing and selling articles about whisky globally, all while maintaining my role as an investigative journalist.

In media publications, I noticed a gap in whisky coverage. Wine writers were handling whisky topics with incorrect terminology and descriptions. Convinced I knew more about whisky, I considered transitioning into whisky writing. This decision faced resistance, especially as it meant giving up a stable income. Despite the initial resistance from my wife, in 1992, I took the leap, becoming the world’s first full-time whisky writer.

Back then, there were no whisky festivals or visitor centers, maintaining a sense of mystique around the industry. Breaking into the scene was tough. For years, I earned little, even became a single parent. Despite financial challenges, I persevered, creating fresh content for the emerging market. The books I wrote brought in money, but research costs were high due to the lack of prior literature on the subject. Believing in the cause, I endured the financial strain, comparing it to the pain barrier in athletics. It’s been a journey with continuous challenges, drawing parallels to my days as a long-distance runner facing a tough race.

A pivotal moment occurred during a meeting with Jim Milne, a J&B revered blender, who has been blending since the 1950s. In a seminar he conducted, whiskies labelled X, Y, and Z were presented without disclosing the distillery names. Upon nosing one of the whiskies, I asserted, “This doesn’t belong in your blend; it’s Fettercairn.” To this, he acknowledged, “Indeed, that is Fettercairn, and it’s included here only because of an oversight.” By identifying a misplaced sample, I earned the blender’s respect and was urged by him to share my opinions on whisky. This encounter led to a realisation – my extensive self-guided apprenticeship in studying whiskies positioned me uniquely.

Unexpectedly discovering my heightened olfactory senses (got to know I had a unique skill set, ranking in the top 2% for sensitive noses), this breakthrough moment changed my perception, realising I could sense and appreciate whiskies in a distinctive way. I ventured into consulting as a blender, complementing my role as a writer. This unforeseen skill set, acknowledged by one of Scotland’s most respected blenders, allowed me to contribute to the whisky industry in ways I had never imagined.

What is your typical approach to whisky tasting? Are there specific methods or techniques you adhere to during the process?

My approach to whisky is akin to that of a blender. I first identify any flaws in the whisky before acknowledging its merits. This involves deducting points for aspects like added caramel, an imbalance of oak flavours that overpower the malt, and any weaknesses that detract from the overall quality of the whisky. I can discern whether a whisky has been meticulously crafted or hastily put together.

When it comes to public awareness, blind tastings are crucial to eliminate biases. People often have preconceived ideas about certain whiskies, which can influence their perception. Therefore, I conduct blind tastings to remove any biases and judge the whisky solely on its merits. When compiling my Whiskey Bible, I don’t taste blind as I need to consider the distillery’s style and whether the blender has captured its essence. I assess the whisky’s complexity and intended profile before making judgments.

My tasting method, dubbed the “Murray Method”, involves avoiding strong perfumes, water intake, and spicy foods to keep my senses sharp. Strong perfumes can interfere with the senses, affecting the ability to discern aromas accurately. Additionally, I avoid consuming spicy foods while working, ensuring my taste buds remain undisturbed and receptive. However, recognising the cultural practices, I understand that asking Indians not to eat spices isn’t practical, given their culinary preferences. In 1997, I authored “Jim Murray’s Complete Book of Whiskey: The Definitive Guide to the Whiskeys of the World”, which gained significant popularity, selling over a quarter million copies. While discrepancies in numbers and subsequent editions may have altered the count, the book’s success is evident.

I’ve come across articles critiquing the book “Whiskey Bible”, accusing it of being sexist. However, generally, I’ve noticed that descriptions of food in a sensual manner are common in many publications. How do you respond to this perspective?

You need to grasp the immense impact of this book. It sparked the rise of Indian whisky and catapulted Japanese whisky to new heights. I awarded World Whisky of the Year to a Japanese whisky, leading to a whopping 3 billion dollars in revenue for them. Despite this success, I personally didn’t gain financially because I don’t accept kickbacks. I maintain complete independence. However, there’s a phenomenon known as industrial espionage, where some individuals might see the power of this book as a threat.

This book is pivotal because, like food and drink share common ground: sight, smell, taste, and touch. These senses, when combined, create a sensual experience. If people in the industry argue that whisky isn’t sexy, they probably shouldn’t be part of it. As a writer, honesty is of utmost importance. The motto of the Whiskey Bible is “the truth, always above all”. Criticism requires integrity and candour.

Some distilleries hold a grudge against me because I refuse to engage in their marketing tactics or succumb to their influence. Despite my disdain for those attempting to control me, I remain impartial in assessing the quality of their whisky. I won’t conform to the prevailing trends, particularly the notion of labelling everything as an anti-feminist crime. Personally, my marriage met its demise when I embraced the role of a whisky writer, a sacrifice I made for my career. The constant globetrotting has hindered the possibility of forming lasting relationships. I’ve never remarried, but it’s not due to a lack of romantic inclinations. Unfortunately, my genuine love for others has been weaponised by jealous individuals aiming to undermine the influence of the Whiskey Bible. Frankly, I feel sorry for these people, in their pursuit to tarnish my reputation, reveal a certain poverty in their character.

During a recent visit to Kentucky, a woman expressed admiration for my writings on whisky, considering it one of the most beautiful things ever shared with her. The hypersensitive woke culture on certain social media platforms seizes any opportunity to unleash their destructive tendencies, fuelled by baseless hatred. Many of these individuals are familiar with my identity and knowledge of whisky, yet they target me simply because I’m a convenient male figure to attack. This trend reflects the fragility of Western society.

Watching a stunning sunset often sparks a longing for someone to share the experience. Similarly, I take pleasure in sharing my love and passion for whisky with the world. I want to introduce people to the finer things in life.

Jim Murray at the launch of Amrut Bagheera and Portonova

When comparing Indian whisky to traditional whisky-producing nations, do you observe any notable differences?

The primary distinction lies in the heat when comparing it to traditional whisky-making countries. The maturation process in cooler climates allows for an important element: time. This time factor plays a vital role as tannins and other components from the environment have the opportunity to integrate and blend seamlessly. In contrast, hotter countries face a more accelerated maturation process, making it challenging to achieve the desired balance. Balancing whisky in warmer climates requires more effort and skill. While some argue that water quality influences whisky, the key is ensuring water is free from contaminants like pesticides and iron deposits, which can discolour the whisky. Interestingly, despite the romanticised notions surrounding water sources, many Scotch whiskies use tap water.

Unlike the present era filled with marketing gimmicks, the industry in the late ’80s and ’70s was less saturated with such tactics. Kentuckians, for instance, boast about having the best whiskey due to their water source originating underground, having been there for centuries, dissolving limestone and aiding fermentation. This stands in contrast to other Scottish distilleries, although not Glenmorangie and Highland Park, two renowned Scottish distilleries, which also derive their water from limestone, similar to the Kentuckians. I advocate for focussing on the contents of the glass rather than getting swayed by marketing claims on labels.

What trends do you perceive in the whisky industry, in your view?

Looking back at the whisky industry’s history, it’s been characterised by cycles of growth and decline. In the 1980s, whisky consumption dwindled as it was perceived as a drink of the older generation, with younger drinkers favouring lighter spirits. A common joke was that one could spot a whisky drinker by looking at the obituary column, as they were diminishing in number. This decline in blended whisky consumption led to an excess of single malt whisky sitting idle in distillery warehouses. It was during this time that efforts to promote single malt whisky, spearheaded by individuals like Michael Jackson, began to gain traction, revitalising interest in the category.

Similar to the boom in distillery construction in the 1890s, the recent surge in new distillery openings has created a crowded market. However, the current global situation introduces uncertainty, making it challenging for new distilleries to establish themselves and sell their products. Despite these challenges, smaller distilleries are poised to thrive, although they will face significant pressure. Nevertheless, it’s crucial for them to remain authentic and transparent in their approach to whisky production.

A concerning trend observed among some Irish distilleries is the practice of finishing whisky in various casks, obscuring the true character of the spirit. This approach detracts from the whisky’s identity, akin to wearing excessive layers of clothing that mask one’s true self. Moving forward, distilleries should prioritise honesty and authenticity to attract discerning consumers. The road ahead may be arduous, but it presents an opportunity for distilleries to redefine themselves and engage with consumers on a more genuine level.

Jim Murray at the launch of Amrut Bagheera and Portonova

How can Indian distilleries enhance their quality and global standing?

When considering the steps Indian distilleries can take, it’s important to acknowledge the unique dynamics in the Indian market. Unlike Scotland, India has a massive population of over a billion people, with a growing middle class. Over the past 30 years, I’ve witnessed significant changes in India, particularly in terms of economic growth and an expanding consumer base. The challenges faced by Scotch whisky in India may not be as pronounced, given the increasing number of people who can afford high-quality whisky. Notable distilleries, like Amrut and Paul John, have set a commendable standard, maintaining their commitment to excellence. In my early involvement with Paul John, I assisted in training their blender and witnessed their staunch dedication to quality. Several other Indian companies are also making strides in improving their whisky, demonstrating a continuous pursuit of excellence. While there is always room for improvement, the progress made in all these years is remarkable.

Comparing the whisky from three decades ago to the present would reveal a staggering leap in quality. This positive trajectory showcases the dedication and attention to detail exhibited by Indian distilleries. The success of Indian whisky on the global stage can be attributed to the determination of distilleries to make a lasting impression. Unlike some companies that may compromise on quality when relying solely on their brand name, Indian distilleries have prioritised maintaining high standards. The meticulous attention to detail is a driving force behind the success of Indian whisky. Even distilleries that were once considered mediocre have elevated their standards, while new entrants to the market are setting the bar even higher.  

Heineken’s Five Star Experience

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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.

A Warm Welcome, campaign that elevates Mansion House brandy

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Mansion House, a flagship brand of Tilaknagar Industries launched its new DVC titled ‘A Warm Welcome’ with a digital campaign. The campaign aims to evoke emotions and foster a strong sense of shared humanity. In an interview with Ambrosia, Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries speaks about Mansion House’ phenomenal growth, consumer connect and their new campaign.

The idea behind the campaign was simple, to evoke emotions and spread the sense of human bonding. From the visuals of ‘atithi devo bhava’ that is critical to our culture like a friend walking through the gate to a warm hug, a brave woman army officer returns home in the North East to a joyous welcome, a stranded musician gets a lift by a couple, a fresher is made to feel at home in the office cafeteria. With every frame the campaign tries to paint a story of human bonding.

World’s fastest growing Brandy

The campaign ‘A Warm Welcome’ comes at a time when Mansion House brandy has become the world’s fastest growing brandy and the second-fastest-growing alcoholic beverage brand across categories globally in 2022. Mansion House Brandy achieved sales of 7.1 million cases in 2022 as against 4.5 million cases in 2021. It has a 12% market share in the brandy category and is ranked third, in the overall global rankings for the ‘Brandy and Cognac’ category, according to Drinks International.

Premiumisation and tapping newer markets

The flagship brand of Tilaknagar Industries, Mansion House, is already creating waves. And with the trend of premiumisation catching on, the company’s second premium brandy brand, Courrier Napoleon has had a robust 43% growth as per Drinks International’s The Millionaires’ Club 2023 report. 

Mr. Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “We have always been passionate about brandy as a product category. The remarkable performance of both our brandy offerings is a pointer to the immense potential the brandy segment holds in the region. Our brandy-first approach coupled with new product innovations has helped us jazz up the segment.”

Resonates with its target audience

Ahmad Rahimtoola, the Chief Marketing Officer of Tilaknagar Industries. adds that capturing this essence, this cultural richness, this warmth and this bonding is the new campaign by Mansion House Brandy. The campaign resonates well with customers who find Mansion House brandy more than just a product, becoming a symbol of fostering authentic relationships and memorable moments, in the very own words of

With such phenomenal growth and consumer connect, it was necessary for the brand to further connect with its expanding clientele base, hence the campaign, subtly aspirational, resonating well with the target audience of families and friends who value simple but genuine bonding.

Rahimtoola explains that the campaign is to redefine the brandy category’s communication landscape and establish a distinctive category code. “The rationale is to tap into consumers’ emotions and elevate Mansion House beyond being just a beverage to becoming an integral part of their cherished moments.”

Embraces inclusivity, compassion and heartfelt connections

Asked how the team came up with this campaign, Rahimtoola mentions that the “campaign’s central idea drew inspiration from the essence of Mansion House Brandy itself – the warmth and hospitality it embodies. We sought to create a narrative that mirrors the product’s attributes that exemplifies the genuine connections Mansion House.

StoryBoats the creative agency’s brilliance

Talking about how StoryBoats, its creative and brand partner, Rahimtoola says the ‘relationship has been nothing short of transformative. It transcends the typical client-agency dynamic, as we embarked on an extraordinary journey together. From the very outset, StoryBoats became an essential part of the process, infusing their creativity and passion into every step. This campaign’s brilliance is a testament to the profound relationship and mutual respect we share.

Ahmed Rahimtoola

Captivating Visuals

In the spirits business, we all are aware how it is rare to see a campaign for brandy as a category, but it requires a brand like Mansion House to set the spirits soaring. Rahimtoola substantiates “Producing this campaign for the brandy category was a rare opportunity to redefine communication norms within the segment. By emphasising the power of warm welcomes and inclusivity, the campaign sets a precedent for elevating the brandy experience beyond the physical product. We envision this campaign to contribute to the category’s growth by connecting with consumers at an emotional level and becoming a catalyst for brand preference and loyalty.”

The campaign addresses different age groups featuring a probable corporate female trainee; a 30ish musician who has hit the road; a female army officer who returns home, probably from a battle zone making the parents proud; an elderly gentleman showing compassion to a middle-aged person seemingly stressed out, consciously making an effort to dispel that brandy is a preserve of the elderly and that it is administered when someone catches a common cold. Brandy is for all occasions, more so celebratory.

Mansion House Brandy

The campaign has been unveiled across all its digital platforms. Strategically rolled out in key south India markets, the campaign utilises a multi-touch point digital strategy and a hyper local influencer amplification campaign to leave an impressionable mark.

In FY23, the company launched India’s first premium flavoured brandy – Mansion House Reserve French Style Brandy, the premium variant of Mansion House Brandy. These products have been well-received in the market and are being instrumental in imparting a new verve to the brandy space. Also, the company has forayed into newer markets, specially in the East and the Northeast, that offer a huge opportunity for category expansion.

UP becoming the hub of distilleries: UPDA’s Rajneesh Agarwal

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Uttar Pradesh better known as the ‘Granary of the Nation’ is the largest sugarcane and wheat producer and the second largest rice producer in the country. In its bid to become one of the top states every which way, the Yogi Adityanath led BJP government has set itself a target of becoming a one trillion economy by 2027, for which it is laying out the red carpet for different industries, infrastructure project development, agri-produce and more. One of the verticals which is doing well is the alcohol production sector and here the Secretary General of the Uttar Pradesh Distillers Association, Rajneesh Agarwal talks about the efforts being made by the industry, the association and the state government in pushing the envelope further.

Tell us how Uttar Pradesh is a land of limitless opportunities?

Rajneesh Agarwal (Agarwal): Uttar Pradesh is indeed a land of limitless opportunities in the distillery/alcohol sector due to several reasons. Firstly, UP is the largest producer of sugarcane in India, which is a primary raw material for alcohol production, making the State an attractive destination for investment in the alcohol industry.

Secondly, the state has a diverse agricultural base that includes grains such as maize, wheat, and barley, which can be used as alternative raw materials for alcohol production and the government is encouraging the same, thus increasing the capacity of distilleries and reducing their reliance on traditional raw materials like sugarcane and molasses.

Thirdly, with a population of over 240 million people, UP has a large and growing consumer market for alcohol. Also with rising incomes and changing consumer preferences, the demand for premium quality alcohol and varieties of alcohol is increasing, supplemented with streamlined licencing process.

Finally, UP has a well-developed transportation network, with several major highways and railway lines passing through the state. This makes it easier for distilleries to transport their products to customers across the country and the world.

What has been a game-changer for the distillery sector in UP?

Agarwal: There are many factors – Expansion of Alcohol production; Ease of doing business; Robust government policies; and growing consumer base.

a. Expansion of alcohol production: In 2018, the UP government announced the new excise policy that allowed the production of ethanol from alternative feedstocks, such as maize, barley, and wheat. This decision supplemented with streamlining of licensing system and restoration of working hours from sunrise to sunset were all game-changers, opening up new opportunities for distilleries to diversify their raw material base and expand their production capacity.

In 2017-18 there were 60 distilleries in UP with total installed capacity of 161 Cr. litres of alcohol production, which in 2022-23 jumped to 85 distilleries with 346 Cr litres of alcohol production, a growth of 115% in a span of five years. While 20 grain distilleries have established in just last one year, 20 more distilleries are in the pipeline which will produce another 80 Cr. litres of alcohol.

The decision to allow the production of ethanol from alternative feedstocks was a significant shift from the state’s traditional focus on sugarcane and molasses as the primary raw materials for alcohol production. This has helped to reduce the reliance of distilleries on these traditional feedstocks and create new business opportunities for farmers and other stakeholders in the supply chain.

The policy has also helped to boost the state’s ethanol production capacity, which has significant implications for the biofuel sector. Ethanol produced from alternative feedstocks can be used as a fuel additive to reduce emissions in the transport sector, which is a key focus area for the Indian government’s energy policy.

b. Ease of doing business

The excise policies in recent years has a significant positive impact on the distillery sector in UP. It has made it easier for distilleries to obtain licenses and permits, reducing bureaucratic hurdles and increasing the ease of doing business in the state. The reduction in taxes on liquor has also made alcohol more affordable for consumers, leading to an increase in demand for alcohol in the state.

Additionally, the policy has encouraged investment in the alcohol industry in Uttar Pradesh, leading to the establishment of new distilleries and expansion of existing ones. This has helped to increase the capacity of the distillery sector in the state and generate employment opportunities for local residents.

c. Robust government policies

There have been robust and encouraging government policies from 2017 onwards. In potable liquor segment itself specific to Country Liquor (mammoth volumes with significant revenue to the state exchequer) the distillery sector volumes have grown 2.3x or at a compounded annual growth rate of 18%.

The total Excise Duty collection increased from ₹17000 Cr. in 2017-18 to ₹41000 Cr. in 2022-23. To sustain this industry growth, an investment of approx. ₹10,000 Cr. has been made by distilleries including an investment of around ₹3000 Cr. for setting up grain alcohol plants.

UP has been primarily producing over 200 Cr. litres of alcohol from molasses and there has been a paradigm shift of producing alcohol from grain too. Over 20 grain distilleries have been established in this short span which are producing around 62 Cr. litres of grain alcohol. Overall, as on date UP has over 85 molasses and grain distilleries producing nearly 350 Cr. liters of alcohol making a massive growth of 150% in less than two years.

UP has been a major contributor in the country’s ambitious ‘Ethanol Blending Programme’ having achieved highest blending of 11.89% with the national average of 11.56% as in March’23.

Rampur Distillery

Tell us about the investments that are coming in this sector?

Agarwal: UP’s alcohol sector is all set to get a shot in the arm with investments worth ₹16,392 crores. According to the state’s excise department, ahead of the Global Investors summit, the department signed 17 MoUs for setting up industries based on distillery, brewing and alcohol products. Along with this, letters of intent have been given for investments worth ₹1400 crore. These include distilleries, breweries, microbrewery, yeast units, malt manufacturing units and caramel manufacturing units.

What efforts are being made to meet the demand for 20% EBP and potable alcohol industry?

Agarwal: To meet the target of 20% EBP by 2025 it is estimated that 1150 – 1200 crore litres of alcohol would be required for ethanol purposes. In present context of having achieved over 11.5% blending, the sugar / molasses capacities for alcohol production are nearing saturation. Moving forward, grain would be the primary source to meet the 20% EBP programme.  

In UP over 20 grain distilleries have come up in a short span, with 13 more grain distilleries expected by 2024. Overall UP is expected to have over 20 new distilleries (Grain + Molasses) in the next one year.

However, the Ethanol producers within the State and pan India are presently facing operational challenges due to severe shortage and availability of broken rice and damaged food grains (DFG) at the prevailing prices of the government. Ethanol producers are jointly seeking an SOS upward price revision with the Central Government for both broken rice and DFG to put Ethanol producers back on momentum.

What kind of investments have been made to increase grain capacity for potable liquor in UP, a state which has seen industry volumes grow by 2.6 times and expected to double in the next five years?

Agarwal: To sustain this industry growth, an investment of approx. ₹10,000 Cr. has been made by distilleries including an investment of around ₹3000 Cr. in setting up grain alcohol plants in UP. With 13 more grain plants itself expected by 2024 will have an additional Investment of more than ₹1200 Cr.

The state government has approved establishment of distilleries based on molasses, grains, potatoes etc. Could you let us know if the UP distillers have taken that route?

Agarwal: Traditionally, many distilleries in Uttar Pradesh have been based on molasses, as the state is one of the largest producers of sugarcane in India. However, in recent years, there has been a growing trend towards using alternative raw materials such as grains, potatoes, and other vegetables, which can provide a more diverse and sustainable supply of raw materials for the industry. Some distilleries in UP have already taken this route and started using grains like maize, barley, and wheat to produce alcohol. For example, in 2019, a distillery in the state started using maize as a raw material for alcohol production. Similarly, there are distilleries in UP that are using potatoes to produce alcohol, taking advantage of the state’s large potato production. The government is launching numerous schemes and incentives to develop agro-processing industries in UP.

The UP government has allowed production of Absolute Alcohol of Pharma grade, could you give us an update on the same?

Agarwal: The production of pharma-grade absolute alcohol in UP is expected to substitute imports and reduce the country’s dependence on imported alcohol. The state government has allocated land to set up a pharma-grade alcohol plant and several companies have expressed interest in setting up such plants.

The UP government in April’22 has given permission to commence production of Absolute Alcohol of Pharma grade from Cane crushing season of 2022-23. This has paved way for self-reliance on Absolute Alcohol of Pharma grade which till now is dependent on imports from countries like USA, Australia, China etc. The State has envisioned production capacity of 25 lac litres from the total requirement of nearly 50 lac litres currently, saving revenue of around ₹10 cr. in import substitution.

What are the challenges for distillers in UP, regulatory or otherwise, and how can the government resolve it?

Agarwal: Today, UP is proud to hold its head high for turning the major challenges into opportunities. The rapid expansion and overall growth in past years is quite evident of this fact. However, the government continues to make radical reforms in the policies in ease of doing business, simplified regulatory environment, rationalising taxes & duties, expansion of infrastructure development with better road & rail connectivity etc. The ground water being the main source of irrigation, the State’s Environmental Board is taking various measures to avoid over exploitation of ground water.

Tell us about the role of UPDA in promoting the sector?

Agarwal: The UP Distillers Association (UPDA) is an apex body of distillery industry with nearly 90 distilleries. The Association is a 40-year-old body, actively rendering services as interface between its members and both State & Central Government authorities primarily through its advocacy role for policy makers and resolving issues of the industry.

To tap the limitless opportunities, UPDA is fast spreading its wings in international arena to explore and adopt best practices and technologies across the world. In recent years, under the close guidance of UPDA President – Mr. S.K. Shukla and Vice-President – Mr. Manish Agarwal, the association has ensured industry benefits.

The UPDA conducted its first International Summit in Aug’22 with six countries participating. The second UPDA International Summit will be held in July 2023, showcasing global innovation technologies with USA, Brazil, Israel and many more countries, besides home grown technologies.

This was followed by a visit to Brazil a delegation jointly organised by the All India Distillery Delegation and the UPDA, with the objective to explore synergy and business avenues of mutual interest between Indian and Brazilian distilleries and technology providers. Brazil has achieved 27% blending in 2G ethanol. 

UPDA-AIDA are planning their next distillery delegation visit to USA under an exchange programme which will explore:

1)            Corn supply chain model comparison between, India and Brazil & India and USA.

2)            Corn cultivation and corn grains productivity enhancement in India, GM corn cultivation in India, testing of new corn cultivators from USA, and developing a holistic model for the corn growing farmers and industry.

3)            Ethanol production technology transfer from corn grains and from corn biomass (cobs and leaves-corn stover).

4)            DDGS (Dry Distillers Grains Soluble) valorization, Proteins recovery from DDGS and purification, Oils recovery from DDGS and its profiling, Develop of DDGS based holistic nutritive and palatable feed for cattle and poultry.

UPDA is in process of collaboration with ‘Invest India’ wherein UPDA will interface and support bringing investments & technologies, with initial focus in bio-fuels sector and grain based distilleries.

Will UP become the distilleries hub, if so, by when and what are you betting on? How many distilleries are there in UP and how many of them are your members?

Agarwal: Out of the around 520 distilleries in India, UP itself has nearly 90 distilleries with nearly 33 more distilleries coming up in 2024. These numbers show that UP is already a distinctive hub. 

UP Distillers Association’s a prime focus all along has been on potable distilleries and now fast catching up with the industry at large on grain and ethanol producing distilleries. Presently, UPDA has 16 members on board which produce over 90% of the potable Country liquor requirement of the State. UPDA takes pride in having on-board Patron members such as Radico Khaitan Ltd., India Glycols Ltd., Wave Group, Sir Shadi Lal Industries and Superior Industries. Country Liquor sales of over 9 Crores cases per annum contributing significantly to the overall excise revenue of over ₹41k Crores with target of ₹45k Crores in 2023-24.

Kimaya Himalayan Beverages clock 100 crore turnover in one year

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Abhinav Jindal, founder of Kimaya Himalayan Beverages, outlines the company’s growth trajectory

What is your impression of the response to craft beers?

The craft beer industry in India is still in its nascent stage, but it is exhibiting positive indicators of expansion. The global trend towards craft beer is starting to take hold in India, and this presents a significant opportunity for the industry. Unlike developed economies, where the craft beer movement has been established for over a decade, India is experiencing high double-digit growth in the craft beer category compared to a lower double-digit growth in the overall beer market. This indicates that the craft beer industry in India is experiencing a strong upward trend and is expected to continue this path in the future. The surge in the demand for craft beer offers possibilities to innovate and introduce new products in various categories, as well as to redefine existing categories in the competitive market space. This creates a lot of opportunities for innovation and differentiation within the industry, which will further drive growth and create more choices for consumers. Overall, the craft beer industry in India is poised for substantial expansion, and businesses that can tap into this trend and create exciting new products will be well-positioned to capitalise on this opportunity.

Do you feel consumers will go back to regular beer as compared to strong beer or is it only millennials?

The market trend indicates that consumers generally prefer stronger beer over milder ones, and this preference has been evident in the high growth rates of the premium, stronger beer category. With the availability of better-quality products in the stronger beer category, consumers are more likely to stick with their preference for stronger beer, and therefore, it is unlikely that there will be a significant shift in consumer preference towards milder beer.

What are your plans for the summer season – new launches, and promotions?

We have some exciting developments this season. Firstly, we have introduced a newer bottle packaging for BeeYoung Strong 650 ml bottle, which is a one-of-a-kind innovation that is unprecedented in this industry. It is highly likely that this packaging has not been seen before in the market. Moreover, our team is actively working towards launching BeeYoung in Himachal Pradesh to mark our market presence. To further enhance our product offerings, we plan on introducing new variants in premium segment with unique flavour notes to the Kimaya’s profile, likely to be launched in a couple of months. On the marketing front, we have launched an exciting summer campaign that will be visible both digitally and on the ground. This campaign is designed to be fun and engaging, and we are actively seeking out opportunities for collaborations and event sponsorships that align with the spirit of the summer campaign in the near future.

How would you describe Kimaya Himalayan Beverages’ remarkable journey from being the latest entrant in the market just before the pandemic to becoming a company worth over 100 crores in just one year of full operation?

The pandemic has caused significant disruption in the industry, particularly impacting small businesses and homegrown brands. Despite the uncertainties and obstacles caused by the pandemic, BeeYoung, which was launched in September 2019, has managed to stay resilient with a mindful approach and strategic resource allocation. Through proactive market analysis, the company has taken effective measures to reach its sales targets and develop a robust strategy for expansion into larger markets. As a result, BeeYoung achieved a remarkable milestone by dispatching 1,00,000 hectolitres of beer in its first year of full operation, experiencing an impressive growth rate of 129%. The brand has also successfully established itself in Delhi, Uttar Pradesh, Uttarakhand, Punjab, and Chandigarh and is now focussed on expanding into other states. To meet the increasing demand in its existing markets, Kimaya Himalayan Beverages is increasing its production capacity, reaffirming its commitment to meeting its customers’ needs.

How has the company ensured enhancing product availability in the existing market, diversifying the product range, and venturing into new regions across the nation.

To enhance product availability in the existing market, Kimaya Himalayan Beverages has established partnerships with distributors and retailers to ensure that its products are widely available. The brand has successfully established its presence in multiple regions of North India including Delhi, Uttarakhand, Punjab, and Uttar Pradesh. To diversify its product range, the team is working on introducing new variants with distinctive flavour notes to cater to the changing tastes of consumers. We are working on strengthening the foothold in North India by expanding into new regions and states, such as the upcoming launch in Himachal Pradesh. We have also invested in marketing campaigns to raise brand awareness and attract new customers. Overall, we have taken a proactive and strategic approach to enhancing product availability, diversifying its product range, and venturing into new regions across the nation. These efforts have helped us to grow.

What is the industry overview on alcobev category – the shifts and trends?

The alcohol beverage category has undergone significant shifts and trends in recent years. One of the most notable changes is the growing consumer interest in healthier and low-alcohol options. Consumers are more health-conscious and looking for beverages that align with their wellness goals. This has led to an increase in the demand for low-alcohol or non-alcoholic beverages, such as hard seltzers and non-alcoholic beers. Another trend in the alcohol beverage industry is the rise of craft and artisanal beverages. This has led to an increase in the number of craft breweries, distilleries, and wineries, as well as a growing interest in local and regional products. Finally, sustainability and environmental concerns have become increasingly important to consumers, and brands are responding by prioritising sustainability in their operations and products. This includes using eco-friendly packaging, reducing waste, and sourcing ingredients from sustainable sources.

Overall, the alcohol beverage industry is evolving rapidly, with a focus on health, quality, sustainability, and innovation. Brands that can adapt to these changing trends and meet the evolving needs of consumers are likely to succeed in this competitive market.

What steps are being taken to ensure Sustainability in the alcohol and beer industry: Innovative approaches towards environmental responsibility?

The alcohol and beer industry are taking various steps towards ensuring sustainability and environmental responsibility. These steps include implementing sustainable sourcing practices, using eco-friendly packaging, conserving water, reducing energy consumption, and minimising waste. Companies are exploring innovative approaches towards sustainability, such as using renewable energy sources, investing in water-saving technologies, and using waste-to-energy technologies. The industry is responding to the growing consumer demand for environmentally responsible products and operations. By prioritising sustainability in their operations and products, companies are demonstrating their commitment to social responsibility and ensuring long-term success in the competitive market.

How would you describe the Science of Brewing: The chemistry behind a ‘Perfect Pint’?

Brewing is a complex process that blends the art and science of beer-making. It involves a variety of chemical reactions that transform simple ingredients such as water, malt, hops, and yeast into the diverse range of beers we enjoy today. The science of brewing entails understanding and manipulating these chemical reactions to create the desired flavour, aroma, and appearance of beer. However, creating the perfect pint requires not only scientific knowledge, but also artistic skill. Artistry in brewing involves being artisanal and selecting the right ingredients in the desired quantities. It also involves carefully combining the ingredients without adding concentrated hops, colour, or flavour. The art of brewing complements the science, which includes determining the appropriate temperature to boil, ferment, and so on. Understanding the chemistry behind brewing is essential for creating a satisfying and enjoyable drinking experience that caters to the diverse preferences of beer drinkers worldwide. In summary, brewing is a delicate balance of science and art that requires skill, expertise, and creativity to produce a perfect pint.

What can you do to make the industry more circular?

To make the beer industry more sustainable and reduce waste, adopting a circular approach is crucial. At Kimaya Himalayan Beverages, we have taken steps to minimise our environmental impact by recycling the used bottles. Additionally, breweries can use sustainable ingredients such as organic and locally sourced grains and hops, as well as switching to renewable energy sources like solar or wind power to reduce their carbon footprint. Breweries can also reduce packaging waste by using biodegradable materials. Furthermore, minimising packaging waste by using lightweight materials or reducing packaging size can be another effective approach. Lastly, partnering with local farmers to source ingredients can reduce transportation emissions and support the local economy. Adopting these circular approaches can significantly reduce waste, promote sustainability, and help create a more environmentally friendly product. As businesses, we have a responsibility to act towards becoming more sustainable for future generations.

How would stress the importance on the Art of Beer Labelling: Design Trends and marketing strategies?

In the beer industry, the art of beer labelling is a crucial element that plays a vital role in attracting and retaining customers. A well-designed beer label not only conveys essential information about the beer, such as its flavour and ingredients, but also serves as a marketing tool that sets the brand apart from its competitors. As design trends in beer labelling continually evolve, companies are embracing creative and eye-catching designs that appeal to a broad range of consumers.