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INDSPIRIT 2025 – CELEBRATING THE GROWTH OF ALCOBEV INDUSTRY

• Panel discussion on FTA seeks reduction in tariffs

• Company of The Year is Allied Blenders & Distillers

• Corporate Leader of the Year is Nilesh Patel of Global Beverages Group

• Business leader of the Year is Davide Aiudi of Guala Closures India

• Lifetime Achievement Award goes to Satpal Chaudhry who has held key positions in Mohan Meakins, United Breweries, Shaw Wallace, Empee Distilleries, Him Neel Breweries, and Khoday India.

With India’s alcobev sector showing exceptional growth, SAP Media Worldwide, the publishers of Ambrosia magazine among other publications, reached yet another milestone. On March 21 and 22, it hosted the 20th edition of INDSPIRIT 2025 at Le Meridien, Gurugram. The two-decade journey of INDSPIRIT is a highpoint, reflecting the challenges and opportunities the sector has been navigating all through. And when industry peers met to network, exchange ideas and to chill, it was truly a celebration.

INDSPIRIT is an amalgamation of conference, exhibition, networking and AMBROSIA Awards, organised by Ambrosia. This year the panel discussion was on ‘Free Trade Agreements: Gateway or Roadblock for Indian Alcobev Industry’. The 20th edition also featured a consumer-day, to connect the industry with the end-consumer to taste the many different brands. INDSPIRIT 2025 was powered by Platinum Partner SNJ Group and supporting partners Diageo India and Pernod Ricard.

This year INDSPIRIT had an open consumer day on March 22 wherein consumers got to taste a variety of spirits. Lifting the spirits were DJ Veronika and DJ Zorin, followed by sumptuous buffet. It was day 1 of IPL 2025 cricket and SAP Media ensured that there was live coverage, adding to the zing.

Eminent Jury

The AMBROSIA awards were adjudged by an eminent panel of jury members and they included Stephen Beal (London) – Founding Sr. Consultant, Master of Whisky International Drinks Specialists; Bernhard Schafer (Germany) – A Whisky Expert, Spirit Consulting and A Master of Quaich; Ajoy Shaw – DipWSET Wine Maker & Consultant; Binod Maitin – Independent Technical Consultant; Julie Lee (Taiwan) – Industry Expert and Entrepreneur; and Katsuhiko Tanaka (Japan) – Director, Japan Import System Co.

The jury members for the Packaging category of awards were Prof. K Munshi – Industrial Design Centre, IIT Powai; Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre and Jigna Shah Oza – Communication Designer | Design Educator.

Panellists seek rationalisation of tariffs

The panel discussion was moderated by Bhavya Desai, Group Head and CEO of SAP Media Worldwide and the panellists were Suresh Menon, Secretary General of International Spirits and Wines Association of India (ISWAI); Ajay Srivastava, Founder, Global Trade Research Initiative; and Rajnish Singh of Dhvaen Law Practice and consultant on FTA to the Government.

The panellists were in consensus that tariffs on alcobev products are extremely high. Ajay Srivastava said that Donald Trump, the US President was right when he mentioned that India charged 150% tariff on alcohol-based products, followed by passenger cars, while agriculture products it ranged between 30 and 40% and industrial products between 7 and 12%. Trump, he added, was disrupting the world economy with a tariff war.

Suresh Menon said the FTA negotiations were ongoing with the UK and the position of ISWAI members has been that there should be a reduction in tariff on spirits in whatever form they were imported – either bulk or bottled. There was unwanted fear that there would be dumping by cheap Scotch whisky and that would disrupt the domestic market, he said and added that with the trend of premiumisation, this was unlikely to happen. Rajnish Singh advocated a threshold level of tariffs as to bar cheaper products from entering into the country, thus in a way protecting the domestic industry which has been investing substantially in the sector. He referred to the Economic Cooperation and Trade Agreement with Australia which has a threshold level to ensure that cheap wines are not dumped in the Indian market.

The panellists also referred to the Scotch Whisky Association which since 1915, stated that to be called Scotch Whisky, the spirit has to be aged no less than 3 years, malt or grain – replacing the old early 1900s limit of 2 years. The panellists opined that as the rule on 3 year maturation is not going to change and that Indian whisky manufacturers who wanted to export had to keep this in mind, even though the whiskies in India matured faster due to the hot climate.

India third largest alcobev market

Bhavya Desai talked about how India is the third largest alcobev market and was valued at over 52 billion dollars in 2024 and expected to touch 64 billion dollars by 2028, growing at a CAGR of 6.8%.

The panel discussion was followed by the much-awaited AMBROSIA Awards. In his opening address before the awards, the Managing Director and Publisher of SAP Media Worldwide, Trilok Desai said, “Despite operating in a highly regulated environment, the industry is witnessing remarkable growth. But with this growth comes a sense of uncertainty. Domestic players are increasingly concerned about the impact of reduced tariffs on Bourbon and the potential phased reduction on Scotch. The worry isn’t limited to premium Scotch—it extends to more affordable Bourbons and Tennessee whiskies, which could directly challenge mid-range IMFL brands.”

Global alcobev giants dominate

Desai added, “Currently, the Indian alcobev market stands at around 410 million cases, growing at a modest rate of 5%. The beer market is slightly larger at approximately 425 million cases, with a healthy growth rate of 8% to 10%, while the country liquor market is around 250 million cases. The world’s top nine alcobev companies operating in India hold a market share of over 52% by value and 43% by volume of the total Indian alcobev market.

Global alcobev giants operating in India bring deep experience from multiple international markets, significantly contributing to the industry’s growth. However, we shouldn’t overlook our own strengths. Indian companies are producing exceptional IMFL products, world-class single malts, and premium gins, along with competitive, high-quality beers that stand toe-to-toe with international brands. That’s something Indians should be incredibly proud of.”

Success of Indian single malts

Referring to the success of Indian single malts on the global map, Desai mentioned how they are inspiring even multinational companies to invest in producing premium spirits within India. “Many are now not only crafting outstanding single malts here, but also looking to export them globally — a true testament to the growing stature of Indian spirits.”

Talking about the AMBROSIA Awards, Desai said, “They are not just about recognition—they’re a celebration of the hard work, creativity, and dedication that have driven the industry forward over the past year.

Tonight, we honour excellence—from outstanding products and innovative packaging to groundbreaking marketing strategies. Over the past 30 years, Ambrosia has witnessed the transformation of the alcobev industry. What was once a market dominated by a few players has become a vibrant and competitive landscape, with Indian and multinational companies alike driving innovation and quality.”

He said that the AMBROSIA Awards have stood for excellence for three decades, thanks to a rigorous and unbiased judging process. “Each year, we assemble an international jury whose expertise ensures that only the very best are recognised. Their insights have highlighted significant improvements in product quality across various categories. Beyond the products, the jury has also acknowledged the remarkable advancements in packaging and design. From labels and bottle shapes to overall presentation, Indian brands are not just meeting global standards—they are often exceeding them.”

Ambrosia launches ASEAN Edition

Desai talked about Ambrosia magazine which has completed 33 years of successful publishing and in 2024 the ASEAN Edition of Ambrosia was launched. The ASEAN edition, launched from Singapore is being circulated across nine ASEAN countries—making Ambrosia the world’s largest combined circulated alcobev magazine. But we’re not stopping there. We’re also exploring the possibility of hosting an international exhibition and awards in Singapore—a significant milestone for the brand.

After Desai’s speech, the AMBROSIA Awards were presented by Air Marshal (Retd) Anil Chopra, a highly decorated officer of the Indian Air Force.

Quick recap of the Ambrosia Awards 2025

Pernod Ricard’s Resilient Performance

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Q3 fy25 organic net sales decline -3% (-3% reported)
YTD organic net sales decline -4% (-5% reported)

Pernod Ricard has reported a resilient net sales performance in a global macroeconomic and geopolitical environment which remains challenging and very fluid with regards to tariffs. The quarterly sales are impacted by some phasing technicalities that will reverse in Q4: namely in India, the impact of new customs clearance procedures and temporary production interruption in one major state, which is now resolved; in Global Travel Retail, a very high comparison base; and in some markets, the impact of the later Easter.

Pernod Ricard said the balanced and broad-based geographic breadth and its diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment. The company said it is continuously adapting its resources with agility, deploying its operational efficiencies and steering the organisation to fuel future growth and optimising cash generation.

The FY25 Q3 Net Sales was €2,278m an organic decline of -3%, and -3% reported. The FY25 9 months Net Sales was €8,454m, an organic decline of -4% and -5% reported, with unfavourable Foreign Exchange impact of -€145m, and a favourable Group Structure of +€3m. The three quarter volumes grew by +1%, while price/mix effect declined by -5% driven by a strongly negative market mix, it said.

By regions, (Q3/YTD) – Americas +3% / -2%; USA +2% / -5%

Pernod Ricard said that the US Spirits market remains broadly stable. The Q3 Organic Net Sales are ahead of sell-out supported by wholesalers’ orders ahead of tariff announcements. The company’s ongoing focus on execution is illustrated by a steadily improving Sell-Out gap to market, on both volume and value. It reported improving performances on Jameson, Absolut, notably boosted by the success of Absolut Ocean Spray RTD and Kahlua.

It mentioned that Canada had strong growth YTD, driven by Bumbu, Absolut and Jameson and Brazil also showed continued solid momentum in Q3, with growth for Ballantine’s, Absolut and Chivas Regal.

Europe -7% / -3%

In France, the company registered solid growth YTD, driven by Ballantine’s, while in Spain it was soft performance, impacted by the later Easter timing. In Germany there was decline in an ongoing challenged macroeconomic context and lapping a high comparable basis. In Poland the performance was broadly stable YTD.

India +1% / +5%

Pernod Ricard reported dynamic growth YTD with strong underlying market demand and continuing premiumisation trends in Asia. It said there was a softer Q3 sales, impacted by phasing technicalities, due in part to the implementation of new customs clearance procedures affecting sales of imported Spirits, and a temporary production interruption in a major state which is now resolved. It said there has been ongoing strong growth of Jameson, and good performance of Ballantine’s and Royal Salute. Similarly, the company said there has been good growth on Seagram’s whiskies, notably Royal Stag. The strong momentum was expected in Q4, including catch-up from Q3.

China -5% / -22%

The release said that in China the macro context remains challenging. The company registered a sharp decline on Martell, while experiencing very strong ongoing growth on Absolut, Olmeca and Jameson. It said that as expected, Chinese Yuan was very soft and Q3 sales benefitted from cycling a favourable comparison basis. The price increase of mid-single-digit for Martell was taken in February.

In Japan there was strong momentum YTD, with Perrier-Jouet in double-digit growth while Korea continuing weakness in an environment of political disruption.

Global Travel Retail -31% / -17%

The company said that on expected lines, there was sharp decline driven by suspension of the duty-free regime on Cognac in China Travel Retail, compounded with a high comparison basis in Q3. However, there was continued growth in Europe and the Americas, driven by good travellers’ numbers and growth from cruises.

By brands:

The Strategic International Brands showed -4% / -6%, while there was YTD good growth for Jameson, Chivas Regal, Ballantine’s and Absolut, declines on Martell and Royal Salute. The Strategic Local Brands -5% / experienced flat, solid growth for Seagram’s whiskies, Olmeca and Kahlua and Specialty Brands reported -8% / -6%, with double-digit growth of Bumbu, good growth on Skrewball, soft performance for Aberlour.

FY25 Outlook
Pernod Ricard said, “In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in Organic Net Sales while sustaining our Organic Operating Margin, supported by our programme of continuous operational efficiencies. This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today.
A&P will be maintained at c.16% of Net Sales and strict discipline applied to structure costs.
Maximising cash generation remains a core focus for the group. Negative FX impact on PRO for the full year is expected to be broadly similar to H1.”

GIFT City Earns nearly 1 cr from liquor sales

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The Gujarat government has earned ₹94.19 lakh in revenue from the sale of liquor to employees working at Gandhinagar-based Gujarat International Finance Tec-City (GIFT City) where alcohol consumption has been permitted since December 30, 2023.

The Chief Minister Bhupendra Patel, who also holds the Prohibition and Excise portfolio, told the Gujarat Assembly in a written reply to a question by Congress MLA Amit Chavda that as of January 31, 2025 people have consumed 3,324 bulk litre spirit, 470 bulk litre wine, and 19,915 bulk litre beer at the fintech hub. Gujarat is a “dry” state where manufacture, sale, and consumption of liquor are prohibited, but the government made an exemption for GIFT City in 2023.

India-EU FTA Talks on May 12; Will there be trade-off between textiles and alcobev?

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The next round of free trade agreement (FTA) talks between India and the European Union is slated from May 12 to 16 and both sides are pushing for early resolution of FTA with the latter seeking reduced tariffs on key exports such as whisky, wine, and automobiles, while India is wanting tariff drop on textiles.

The EU is negotiating on tariffs on cars, whisky and wine to be brought down from 150% to 100%. Away from the EU, Australia was able to negotiate a deal with India for reduced duties for premium wines. However, European exporters opine that India remains one of the toughest wine markets due to state-level excise duties that further raise costs.

India, on the other hand, is pushing for reduced tariff on textile exports. Presently, India is hit by an additional 10% tariff on textile exports, in the absence of an FTA. Bangladesh and Vietnam, strong textile markets, are benefitting, as the former concluded in 2001 an EU-Bangladesh Cooperation Agreement, while Vietnam and EU signed the FTA in 2020.

After an eight-year hiatus, talks between India and the EU resumed in June 2022. The bilateral trade between the two surpassed US$200 billion in 2023. India exported US$75.18 billion in goods and US$31.13 billion in services to the EU, while imports from the EU stood at US$63.44 billion in goods and US$31.35 billion in services.

The Additional Secretary in the Department of Commerce L Satya Srinivas said that the tenth round of talks focussed on areas like market access offers in goods, services, investment. He said, “Both sides have agreed to accelerate efforts to advance the negotiations.”

Bacardi India, Engine of Growth for Bacardi Global: Vinay Golikeri

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Bacardi Limited, the world’s largest privately held international spirits company with a portfolio comprising over 200 brands and labels. In a conversation with Bhavya Desai on a podcast, Vinay Golikeri, Managing Director of Bacardi India explains why India is a key market for Bacardi and more. Excerpts:

The market opportunities in India, both from a macro-economics and spirits perspective, are huge. Substantiating this Golikeri said, “In the global market place, premium spirits account for 50% of brands, while in India it is 5 to 6%, which means there is ample headroom to premiumise.” In India, between 2020 and 23, premium spirits had a growth of over 40% while globally it was around 7 to 8%.

Adding 20 million LDA every year

As regards Bacardi, Golikeri mentioned that vast majority of products were premium and ‘we have a long runway of growth for premium’ aided by factors such as rising affluence, consumers are drinking better, the demographic dividend (every year India is adding 20 million coming in to the legal drinking age (LDA) bracket), sea change in the retail environment, top notch bars, trading up is happening across price points. “Put all that together, the premium plus segment is really accelerating.” The median LDA in India is 28 whereas in the US and China it is over 40. “The number of affluent households is expected to more than double from 77 million in 2020 to over 177 million by 2030.”

Inflation-linked price mechanism needed

However, he said that two things from the regulators were essential – ease of doing business and consistency in policy, both of which will go a long way in driving growth for the industry and revenues for the government. “Several States have not given price increases for years. There is inflation and cost of raw material has gone up, affecting investment capabilities. The government should introduce inflation-linked price mechanism.”

With the alcobev sector in India being a highly regulated and complex market, Golikeri said, “It is like dealing with 28 countries rolled into one, policies change every year, route to market changes every year.” Taxes and duties are about 65 to 70% of the MRP (maximum retail price) and the rest goes to each level of the chain – wholesale, retail and brand owners. “Our taxes are significantly higher than anywhere in the world. We need inflation-linked pricing mechanism. We need to invest to grow the brand and for that to happen, price becomes critical.”

Best 10 Strategy

Continuing on Bacardi’s plans in India, Golikeri pointed out, “We started out in India in 1997-98 with Bacardi rum, then in early 2000s with Bacardi Breezer, mid 2010 with Bombay Sapphire, Grey Goose and a few years back with Patron. It’s being a great run. Bacardi India is an engine of growth for Bacardi globally.

“We at Bacardi are going along with our Best 10 strategy… that is making the next 10 years the best ones yet. We want to grow our India business six times by 2030. We have been having strong double-digit growth and we are on track. Experiential marketing is key for us. It is going to continue in importance as a growing number of consumers are experience-seeking. It is going to be equally about experience as much as the product.”

Cocktail Culture Evolution in India

“The bar scene in India has changed considerably, not just in metro, but also in Tier 2 cities. There is a lot of experimentation and we are seeing real evolution of the cocktail culture. It is not just Mumbai or Delhi. Recently, I had been to a bar in Guwahati and If I showed you their cocktail menu, you would think it was some bar in London or New York. Our products are positioned at half of the cocktail culture. This is an interesting opportunity for us to leverage the cocktail culture.”

Golikeri cited the sixth annual Bacardi Cocktail Trends Report, which identifies the five key trends poised to reimagine cocktail culture and the spirits industry in 2025. The report, created in collaboration with The Future Laboratory (TFL), draws on data from Bacardi-led and external research, consumer surveys, bartender interviews and TFL insights to reveal the movements that are influencing cocktail experiences, flavour profiles, and culture the coming year.

Quoting Mahesh Madhavan, the Bacardi CEO, Golikeri said the company has embraced the shift from consumption to curation, where consumers are not just seeking drinks, but meaningful experiences enjoyed over a cocktail.

Do What Moves You

Bacardi has launched a marketing push to launch its brand purpose ‘Do What Moves You’, which aims to “shine a spotlight on the brand’s belief in the power of self-expression”. “It has music experience, delicious cocktails, wonderful merchandise, its 360 degrees, bringing all together to a compelling experience. We amplify that digitally where a few experience, but gets seen by many.”

Legacy, Made in India

Talking about ‘Legacy’ whisky, the make-in-India product, Golikeri said its ‘tested, researched and produced in India’. “We have put the consumer in the heart of it. We have had strong results from the consumer to the product. We initially went into three States – Maharashtra, Uttar Pradesh and Telangana and we know we have a winner on hand. We will be rolling out in other states too and Legacy is a response to vocal for local.” The roll out plans include Goa, Pondicherry, Jharkhand, Odisha, Meghalaya, Assam, Tripura, Arunachal Pradesh, Kerala, and Rajasthan. The focus, Golikeri said, is going to be on Legacy, Irish whiskey brand Teeling; tequila brand Patron El Cielo, and vodka brand Grey Goose Altius.

However, he said that Bacardi rum which was introduced in 1997-98 continues to be popular. “For Bacardi Breezer, the main player in the RTD (ready to drink) segment, the market share in India is 90%. Launched in 2002-03, it is a great liquid and has had good activations. We had the winning recipe. We were an early entrant and we have cemented the product.”

Three F’s that Drive Bacardi culture

Asked about his experience so far in India, he said, “I came from Dubai in early 2023 and the first few months, I just travelled across the country, visiting almost all states, meeting with our teams, stakeholders and also consumers. It was an exercise to understand the challenges, the market and to help shape our strategy. I put all this on paper and took it to our board of directors. One of the learnings from the travels has been there is incredible opportunity for Bacardi to grow here.”

The company, he adds, encourages entrepreneurial mindset and helps in taking bold decisions, all coming from Bacardi’s focus on three F’s – Family; Founders and Fearless. “In Bacardi everyone is treated as family. We are all ‘Primos’ (cousins in Spanish), where we care for each other and help in making bold decisions. We are all a passionate team of Primos.”

India, Golikeri adds, contributes hugely not just in terms of business, but also as a global talent hub. Bacardi has so many career programmes and India is a key pillar when it comes to talent sourcing.

Kerala’s New Liquor Policy, Open to More Distilleries, Breweries

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The Kerala government has announced that it would allow for the establishment of distilleries, breweries and spirit manufacturing units as to check import of liquor from other states. The new policy has several concessions for production and distribution of liquor, in the state’s bid to increase revenues from excise.

Under the new policy, now liquor sale can happen in industrial parks. In 2022-23, the Kerala government had allowed liquor permits in IT parks. Another concession it has granted is to give a special one-day permit on dry days. Hotels with three stars or more, along with heritage and classic resorts, now can apply for a one-day permit to serve liquor on the first day of the month for business meetings, international conferences, and other gatherings. No permission is granted on other dry days.

As per media reports, the government had granted permission to set up a liquor manufacturing centre in Elappully, Palakkad and a controversy had erupted. Now the government is planning to be lot more liberal in allowing breweries and distilleries across the state. The new liquor policy builds on the previous year’s guidelines of allowing the establishment of distilleries and units for manufacturing extra neutral alcohol (spirits).

Kerala in 2023-24 had generated a revenue of ₹31,618.12 crore from alcohol and sale of lottery tickets, accounting for one-fourth of the total revenue of the state. Revenue from alcohol sales amounted to ₹19,088.86 crore, making it the larger of the two main sources. Income from lottery sales was recorded at ₹12,529.26 crore. These figures combined account for approximately 25.4% of state’s total income.

From Bar Counter to Global Stage

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Great drinks aren’t made by accident. They take skill, patience, and someone who knows exactly what they’re doing. Akhilesh Sheoran is one of those people. Whether it’s crafting a cocktail that wins championships or introducing whisky lovers to some of the finest spirits, he knows his way around a bar… and a bottle.

His journey started behind the counter, shaking and stirring his way through some of the toughest global competitions. Now, as Brand Ambassador – Craft Spirits at Diageo India, he’s the face behind some of the most talked-about labels, including Godawan Single Malt, crowned the Best Single Malt in the World (2024), and United’s Epitome Reserve.

In this chat, he spills stories from his career, shares tips on spotting a great bottle, and even talks about disastrous food pairings. Whether you’re a whisky enthusiast or someone who just wants to sound smarter at the bar, there’s plenty to take away from this conversation.

From mixology to brand ambassadorship, your journey has been remarkable. What inspired you to enter the world of craft spirits, and how has your path evolved over the years?

Working with different styles of spirits and engaging with consumers, I realised there’s so much that goes into bringing these incredible spirits to the bar. This curiosity led me to explore the other side of the industry as a Brand Ambassador, a dynamic and challenging role that allows me to bridge the gap between brands and consumers.

Which of your victories holds the most significance for you and why?

All competitions hold their own importance, as any win comes with new insights and a responsibility to push the boundaries further. However, Diageo World Class India stands out as one of the most demanding and rewarding experiences. Its rigorous structure truly tests creativity, technical skill, and adaptability, making it an unforgettable milestone.

The alco-bev space is constantly evolving. What are some of the biggest changes you’ve seen in the industry over the last decade, especially in India?

India’s drinking culture is evolving, driven by a younger, growing middle class that’s showing a stronger preference for premium homegrown brands. More people are exploring craft spirits and beers, and embracing new flavours and experiences. This move highlights a greater appreciation for quality, creativity, and the narratives behind bottles, shaping a more sophisticated and adventurous approach to what we drink.

What makes a spirit truly “craft,” and how do you see India’s role in this global movement?

Craft spirits are defined by their small-batch production, emphasis on high-quality ingredients, and hands-on distillation techniques that prioritise authenticity over mass production. Craft producers often experiment with distinctive botanicals, innovative ageing techniques, and transparent but unique production methods. More than just a process, craft spirits are about the people, leaders who challenge conventional rules. India’s role in the global craft movement is growing rapidly, with a surge in homegrown distilleries that merge heritage with modern innovation.

With whisky gaining a younger audience in India, how do you see the preferences of Indian consumers evolving when it comes to single malts and premium spirits?

Over the past decade, Indian consumers, especially younger consumers have developed a refined taste for single malts and premium spirits. This shift is driven by rising affluence, global exposure, and a desire for more authentic, high-quality drinking experiences. What’s even more exciting is the growing appreciation for domestically produced single malts, which are now competing on the world stage, reflecting a sense of national pride and recognition of India’s craftsmanship.

What’s the best way to appreciate and savour a good single malt?

The best way is to explore different styles from various regions and find what suits your palate. However, the right technique makes all the difference.

Use a Glencairn or tulip-shaped glass to concentrate aromas.

Observe the whisky’s colour.

Nose the whisky gently, keeping your mouth slightly open to catch nuanced aromas like vanilla, spice, fruit, or smoke.

Take a small sip and let it coat your tongue, identifying layers of flavour; sweetness, spice, peat.

The finish, or how long the flavours linger, tells you a lot about its depth and complexity.

Adding a few drops of water can open up hidden notes, making the whisky more approachable.

Ultimately, whisky should be enjoyed slowly, in a relaxed setting, where each sip reveals something new.

There’s a growing curiosity about how to identify a high-quality whisky. What are the key characteristics one should look for while selecting a bottle?

For me, specifics matter; from the packaging to the liquid inside.

But key factors to consider include: cask type and ageing process (although older doesn’t always mean better), alcohol by volume (ABV), and distillery and production methods. Look for anything that talks about tasting notes and flavour profile, brand philosophy and heritage behind the whisky. A well-crafted whisky tells a story before you even take the first sip.

Trump The Economic Disruptor

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• Impacts Alcobev Sector

• Economic Uncertainty Prevails

The second term of Donald J. Trump as the United States President which began early this year has disrupted the world economic order. Trump’s sweeping tariffs on imports from almost all countries, including the US’s allies, has led to an international trade war, the ramifications of which are being felt in the stock markets, in trade disruption and creating economic uncertainty globally.

However, on April 9, under severe pressure from the bloodbath in the global stock markets and world leaders criticizing his move, Trump has paused for 90-days most of his exorbitant tariff hikes to 57 countries but with a baseline tariff of 10% while going aggressive on China by imposing an astounding 125% tariff.

India termed ‘Tariff-King’

As regards India, which is one of the US’s biggest trading partners in Asia, Trump has imposed a ‘discounted’ reciprocal tariff of 26%, while calling India the ‘tariff king’. Trump has claimed that the reciprocal tariff is aimed at countering unfair trade practices. The 26% tariff came into effect from April 9. Though he claimed that the Prime Minister, Narendra Modi is a great friend of his, Trump said India was charging 52%, while the US was charging almost nothing.

India subsequently slashed duty on bourbon whiskey from 150% to 100%, making the Indian liquor manufacturers take up the issue. The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S. Iyer said the Indian alcoholic beverage industry is already at a disadvantage compared to manufacturers from developed countries due to high capital and operational costs, evaporation losses, and restrictive licensing regimes. He said, “The government needs to safeguard the interests of Indian liquor manufacturers when deciding on issues related to customs duty cuts and other concessions under FTAs.” The CIABC wanted the state governments to withdraw all excise concessions given to imported liquor, arguing that the customs duty cuts announced would harm Indian products in both the spirits and wine categories.

Bilateral Trade

The bilateral trade between India and the US was pretty balanced at 10.73% till the Trump disruption. America accounted for about 18% of India’s total goods exports, 6.22% in imports with about 30 sectors (6 in agriculture, 24 in industry) exporting to the US. As regards alcohol, wine and spirits, the tariff hike at 122.10% has come into effect. As per the data from the Export Import Data Bank (EIDB) of the Ministry of Commerce & Industry, in FY24, India imported spirits worth $23.09 million against exports of only $8.03 million with companies such as Radico Khaitan, Amrut Distilleries, Piccadilly Industries, being the prominent ones.

The concern among Indian companies is that lower import duties might push the prices of premium liquor down, thus making Indian premium liquor face stiffer competition. However, at a panel discussion organised by Ambrosia during INDSPIRIT 2025, the Secretary General of the International Spirits and Wines Association of India (ISWAI), Suresh Menon clearly stated that there was need to rationalise the tax structure, while agreeing that the Indian import duties on spirits was exceptionally high.

Scotch Whisky Association ‘disappointed’

Globally, the tariff war is impacting almost all sectors, including the alcobev sector. The Scotch Whisky Association expressed disappointment with Trump’s tariff moves. With Trump announcing import duties, including a 10% levy on all UK goods and a steeper 20% rate for imports from the European Union, taking effect on April 5, the alcobev sector was going to be adversely impacted. “The move, one of the most aggressive protectionist measures in recent years, has sparked concern across multiple sectors, including scotch whisky producers. A spokesperson for the Scotch Whisky Association said,”The industry is disappointed that Scotch Whisky could be impacted by these tariffs. We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”

Wine sector concerned

It is not just the Scotch whisky producers who are worried, even the bourbon industry from the US is. The bourbon industry which is the backbone of Kentucky economy fears that it may get caught in the crossfire of the trade war, if other countries impose tariffs on American whiskey. There has been a lot of noise on how in the short-term Scotch whisky and European wines may become that much costlier. France’s Bourgogne Wine Board (BIVB) has said that the levies have “pushed our wines past a psychological price threshold”. French wines are subject to 20% tariffs under the new tariff rates.

The IWSR, in its analysis, has said that the new import tariffs will have serious consequences for beverage alcohol in the US, but the exact picture is complex, nuanced and subject to a host of uncertainties.

The IWSR said that with tariffs introduced on imports from Canada and Mexico and potential EU tariffs in discussion, a number of single origin beverage alcohol categories are most at risk – products with a legally protected designation of origin, meaning that they cannot be “re-shored” and produced in the US. These include agave spirits, Canadian whisky, Irish whiskey, Cognac, Champagne and Prosecco. Mexican beer imports would also be affected. The UK is trying to negotiate a separate trade deal with the US to head off tariffs to cover categories such as Scotch whisky.

“The second Trump Administration’s policies on tariffs will almost certainly be net negative for total beverage alcohol (TBA) in the US market, with global implications likely to be more limited, but there is major uncertainty about the extent of the impact,” says Marten Lodewijks, President IWSR US.

2024 in Retrospect: How Alcobev Players Defied the Odds and Broke New Grounds

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The alcobev sector flourished in 2024, balancing growth with challenges. Premiumisation, innovation, and sustainability stood out as key drivers of success and future opportunities.

India’s alcobev industry has grown to become one of the fastest-developing sectors in the country, showcasing its transformation from tradition to modernity. Over the past few decades, this sector has emerged as a dynamic force, fuelled by changing consumer preferences, increased disposable incomes, and a rising affinity for premium and artisanal beverages.

Per capita alcohol consumption in India has risen significantly, growing from 1.3 litres in 2005 to approximately 3.1 litres in 2022, reflecting the country’s evolving consumer base and expanding market. In 2024, the alcobev sector reached a valuation of $55 billion, driven by a compound annual growth rate (CAGR) of more than 6%. Analysts project that by 2025, the sector will see further growth, with an expected CAGR of 8-10%.

This growth trajectory has been supported by increased urbanisation, a young population eager to explore global trends, and a shift toward mindful indulgence. However, the industry faced its share of challenges, including escalating production costs, supply chain inefficiencies, and regulatory complexities. To better understand the highs and lows of 2024, key industry players provided their perspectives on consumer trends, innovations, and the future outlook.

Consumer Preferences Shape the Market

The year was largely defined by the shift in consumer preferences, with buyers driving the industry toward greater innovation and authenticity. Modern consumers demand products that resonate with their values and provide unique experiences, prompting brands to innovate across production, marketing, and packaging.

Vikram Damodaran, Chief Innovation Officer at Diageo India, attributed much of the year’s success to this change. “Today’s consumers are looking for more than just a drink; they seek experiences rooted in quality, authenticity, and sustainability. We have embraced this change by leveraging our heritage, incorporating locally sourced ingredients, and celebrating artisanal techniques. This approach has not only strengthened our connection with audiences, but has also earned us over 70 national and international awards,” he explained.

**Tarun Bhargava, Proost’s Co-Founder and CEO**

Proost’s Co-Founder and CEO, Tarun Bhargava, shared how their brand remained focussed on balancing quality with environmental responsibility. “While trends like IPAs and craft beers dominated the market, we stayed true to our core identity, producing beer with consistently unique flavours. Consumers appreciate our mature, well-crafted beers free of off-notes. Also, we’ve adopted practices such as reusable packaging to align with the expectations of eco-conscious buyers,” he said.

**Shekhar Swarup, Joint Managing Director at Globus Spirits L**td.

Shekhar Swarup, Joint Managing Director at Globus Spirits Limited, stressed that sustainability and authenticity extend beyond production. “We’ve implemented advanced water management systems and effluent treatment technologies to significantly reduce our environmental impact. Each bottle tells a story of authenticity, showcasing top-quality ingredients, time-honoured distillation methods, and artisanal techniques. This ensures that sustainability and authenticity are central to both our products and operations,” Swarup shared.

Premiumisation Gains Momentum

The move toward premium offerings was another defining trend of 2024, with younger consumers showing an increased preference for high-quality, craft, and luxury beverages. This trend highlights a growing demand for exclusivity, innovation, and elevated drinking experiences.

Rupi Chinoy, Director of South Seas Distilleries, spoke about the success of their Crazy Cock Single Malt. “Crazy Cock is a journey. The name reflects the founder’s bold vision, resilience, and passion for creating something extraordinary. Our mascot, the cock, symbolises a new dawn for South Seas Distilleries and the Indian single malt category. This spirit represents decades of dedication and meticulous craftsmanship,” Chinoy explained.

Adding to their accomplishments, Rupi highlighted the launch of Six Brothers Mahura (Mahua), a unique spirit firmly rooted in Indian heritage. “Our Six Brothers Mahura, crafted from 100% Mahura flowers native exclusively to India, revives a legacy long overshadowed during colonial times. As the country’s first commercial distillers of Mahura, we see it as our mission to bring this category to global prominence. Mahura has the potential to become India’s ambassador on the international stage, standing shoulder to shoulder with spirits like Tequila from Mexico and Cognac from France,” she shared.

What distinguishes Six Brothers Mahura is its unparalleled authenticity. “This is a spirit no other country can replicate. Distilled in the same copper pot stills as Crazy Cock Single Malt and platinum-filtered for an exceptionally smooth finish, Mahura is versatile…ideal for sipping neat, on ice, or as a cocktail base. Its reception in the bar scene has been phenomenal, with establishments like Bandra Born hosting the world’s first dedicated Mahura bar, exclusively serving Six Brothers cocktails that have quickly become a sensation,” Chinoy elaborated.

Globus Spirits took advantage of the premiumisation wave by introducing DŌAAB India Craft Whisky. The first edition, Six Blind Men and the Elephant, was designed to appeal to discerning drinkers who value creativity and tradition. This product showcased the growing appetite for unique offerings that bridge the gap between heritage and modernity.

**Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura**

The agave-based spirits segment also gained traction in 2024, with many referring to it as the “Year of Agave”. Kimberly Pereira, Chief Operating Officer of Maya Pistola Agavepura, highlighted the category’s growth. “Agavepura is a 100% pure agave spirit that stands apart from tequila and mezcal. It reflects our homegrown roots while appealing to the global palate. As cocktail culture evolves and celebrity endorsements grow, agave-based menus are becoming more prominent in bars across India. We are proud to lead this movement, fostering greater appreciation for authentic, well-distilled agave spirits,” Pereira said.

**Leti Blagoeva, Co-Founder SLAB Ventures**

SLAB Ventures tapped into the premium spirits market with a lineup that has garnered global recognition. Co-Founder Leti Blagoeva detailed their offerings, saying, “Our Single Estate Vodka is made in Poland, the birthplace of vodka, exclusively from winter wheat and filtered through rare black pearls, ensuring unparalleled smoothness. Meanwhile, our whiskies, INCEPTION and VORTEX, are crafted in Scotland and have received gold medals at several prestigious international competitions. D’YAVOL INCEPTION was even named the ‘Best Overall Scotch’ at the New York World Spirits Competition.

“Looking ahead, we are excited about expanding our range of spirits. In 2025, we plan to launch an Anejo Tequila crafted in Jalisco, Mexico, in keeping with our commitment to authenticity. Moreover, we are broadening our global reach; D’YAVOL will soon be available in the UK and the US. For us, it’s still the beginning, and there’s much more to come from the brand in the coming years,” Blagoeva commented.

The Experiential Turn

The year 2024 also marked the rise of experiential marketing, as brands sought to create deeper connections with consumers by offering immersive experiences. These efforts went beyond traditional marketing, emphasising storytelling, creativity, and meaningful engagement.

Swarup enlightened how Globus Spirits leveraged this trend. “With Six Blind Men and the Elephant, we offered an experiential journey. This limited-edition release allowed us to involve with consumers who value exclusivity and creativity, encouraging a stronger bond with our audience,” he said.

Similarly, SLAB Ventures leaned into experiential marketing through its D’YAVOL AfterDark platform. Blagoeva described the initiative, saying, “Consumers today look for more than good products; they want to engage with the brand’s story. D’YAVOL AfterDark combines exclusive artists, signature cocktails, and a vibrant nightlife atmosphere. This initiative has reverberated not only in India, but also in international markets like the UAE and Australia.”

Varun Jain, Founder and CEO of Smoke Lab, explained how their premium events brought the essence of Smoke Lab Vodka to life. “We curated a series of events that embodied our brand ethos, from art-infused cocktail evenings to sensory experiences like Smoke Lab Nights, where guests explored our vodka variants paired with music, visuals, and gourmet cuisine. Collaborations with leading mixologists, chefs, and lifestyle brands helped us to deliver unique experiences,” he stated.

He also highlighted partnerships with sustainable fashion and design brands to reflect Smoke Lab Vodka’s commitment to modern luxury and environmental responsibility. “To enhance exclusivity, we introduced limited-edition bottles featuring bespoke packaging inspired by contemporary art and design. These bottles were accompanied by curated tasting notes and recipes, encouraging consumers to celebrate with elegance and creativity,” Jain added.

Vikram Achanta, Founder & CEO of Tulleeho and Co-Founder of 30BestBarsIndia and India Bartender Week, shared his perspective on the growing importance of experiential drinking. “Experiential events have become a central aspect of consumer engagement, offering meaningful opportunities to connect with the beverage community. This year, Tulleeho participated in marquee events like ProWine, Bar Convent Berlin (BCB), and exclusive masterclasses highlighting Sake, among others,” he noted.

Achanta also underlined the growing popularity of travel-inspired events, with consumers seeking pop-ups and bar takeovers by world-renowned establishments. “The recent takeover by Handshake Speakeasy, crowned the world’s #1 bar in 2024, in Jaipur is a prime example. We anticipate immersive drinking experiences gaining even more momentum in 2025. To prepare for this, we are exploring new opportunities, including events with Tulleeho Tequila Club,” he added.

Challenges and Adaptation

Despite the successes, the alcobev industry faced significant hurdles. Mounting raw material costs, supply chain disruptions, and regulatory changes created obstacles that required companies to remain agile and innovative.

Bhargava outlined these challenges, saying, “We faced price pressures due to intensifying costs, logistical delays in obtaining permits, and changing excise policies. Adapting to these circumstances demanded a proactive approach and collaboration across teams to ensure smooth operations.”

Adding his perspective, Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd., reflected on the complexities of managing these challenges while launching a new premium offering. “As leaders in the brandy category, we recognised the need to elevate its perception. This led to the launch of Monarch Legacy Edition, our first luxury brandy, in November 2024, aimed at redefining the category and spotlighting the depth and complexity of brandy. However, navigating volatile commodity prices, particularly ENA and packaging materials, was a major obstacle. We overcame this by strengthening our asset-light model, ensuring robust cash flows, and focussing on premiumisation to improve margins. Agility and staying attuned to consumer needs allowed us to turn challenges into opportunities,” he mentioned.

Nevertheless, the industry’s resilience shone through as brands implemented strategic solutions to navigate these difficulties. Investments in technology and sustainable practices helped mitigate challenges, ensuring continued growth.

Urban and Rural Synergies

As the alcobev sector looks ahead, balancing urban sophistication with rural potential has become a critical focus. While metropolitan regions continue to demand premium products, rural areas present untouched opportunities for growth through tailored offerings and localised strategies.

Bhargava described Proost’s approach to addressing this divide. “In cities like Delhi and Gurgaon, we are concentrating on launching lagers that cater to refined tastes. For rural markets, the weight is on deeper penetration and affordable products that resonate with local preferences,” he shared.

Simba Beer and ZigZag Vodka, co-founded by Ishwaraj Singh Bhatia, are also pursuing a dual-market strategy. “Rural and urban audiences require distinct approaches. By combining innovation with eco-conscious practices, we’re catering to the needs of both markets effectively. Plans are underway to introduce new flavours and experiences that further immerse consumers in our vibrant world,” Bhatia noted.

Future Outlook

Looking ahead to 2025, the alcobev industry is poised for further growth, with estimates suggesting a valuation of $60 billion and annual sales exceeding 1.2 billion cases. The focus on innovation, sustainability, and health-conscious options is expected to drive this expansion.

Jain shared his company’s plans for the upcoming year. “We are introducing vodka flavours inspired by regional and global culinary influences, launching limited-edition artisanal vodkas aimed at connoisseurs who value exclusivity, and enhancing our presence in emerging markets like Europe, Australia, Asia, and Latin America. We will also strengthen our reach in established regions such as the U.S. and the Middle East by forming partnerships with premium distributors,” he said.

**Ishwaraj Singh Bhatia, Co-founder and COO, Simba Beer and ZigZag Vodka.**

Bhatia accentuated the importance of aligning with evolving trends. “We foresee 2025 as a year of experiential consumption, eco-friendly practices, and personalised premium offerings. At ZigZag, we will focus on creating immersive brand experiences, implementing sustainable methods, and collaborating with mixologists to craft innovative, trend-driven products that resonate with today’s consumers,” he conveyed.

Damodaran pointed to two critical trends expected to shape the future of the alcobev industry. “Affluent consumers are seeking bespoke, exclusive experiences, while younger demographics are driving the demand for low- and no-alcohol options,” he observed.

Damodaran also talked about plans for Indian craft spirits. “We are closing 2024 on a high note with Godawan’s entry into the UK market. In 2025, we aim to build on this momentum through The Good Craft Co.,” he added.

Tilaknagar Industries Ltd. has ambitious goals for the year, particularly in the brandy segment. “In 2025, our aim is to increase brandy’s ‘share of voice’ in the market,” stated Dahanukar. “Following the launch of our luxury brandy and whisky portfolio, we plan to drive further marketing investments. Monarch, in particular, has already seen strong pre-order interest from export markets in Asia and the Middle East, and we intend to deepen our reach in southern India. Alongside this, we are preparing to expand our portfolio across both local and international markets,” he informed.

As the industry evolves, driving change and nurturing creativity will remain essential for long-term success.

Record-Breaking Sales of Liquor for New Year Celebrations Across the Country

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Telangana tops
Karnataka does roaring business
Delhi does ₹400 crore business

Cheers to 2025! Tipplers across the country have given the liquor trade a good enough reason to be cheerful. Liquor sales have hit the roof, just in the two days as revelers rang in the new year. The southern states of Karnataka, Andhra Pradesh, Telangana and Kerala have shown robust sales. According to estimates, Telangana has broken all records with liquor sales of over ₹800 crores on December 30 and 31, eight times the usual daily sales of around ₹100 crores.

The Telangana State Beverages Corporation Ltd (TSBCL) sources have told some media that last year the sales were around ₹700 crores on December 30 and 31 and this year the increase was phenomenal. Telangana registered liquor sales of about ₹402 crores on December 30 and ₹401 crores on New Year’s Eve night as revelers flocked to bars and restaurants; liquor stores and enjoyed at home drinking. There were hundreds of parties that rocked the city of Hyderabad which had the most sales, followed by surrounding districts of Ranga Reddy and Medchal.

Telangana has overtaken its previous record of liquor sales in the month of December. This year the government raked in a revenue of ₹3,523.16 crores, compared to ₹2,764 crores in December 2023. With Sankranti round the corner, excise officials expect the momentum to continue, though not on the same scale as year-end celebrations. The Telangana government has set a target of ₹45,000 crores from excise for 2024-25.

As per media reports, Uttar Pradesh came next in sales, having done a business of nearly ₹600 crores, breaking its previous record.

Karnataka rakes in nearly ₹1,000 crores in end December

Karnataka, more so Bengaluru which is known for its pub and cocktail culture, witnessed its highest single-day liquor sales of ₹409 crores on December 28 as residents and bars stocked spirits. The Karnataka State Beverages Corporation Limited (KSBCL) reportedly sold liquor worth ₹308 crore during New Year celebrations in the state against the target of ₹250 crores. At least 4.83 lakh boxes of Indian-made liquor (IML) were sold generating revenue of ₹250.25 crore. Around 2.92 lakh boxes of beer bottles were sold for ₹ 57.75 crore. In total 7,76,042 lakh boxes of liquor were sold.

December has been an exceptional month as during Christmas too there were good sales. On December 27, ₹408.58 crore liquor sale was registered. Around 6.22 lakhs of IML boxes and 4.04 lakh beer boxes were sold, generating business of ₹327.50 crore and ₹80.58 crore.

Andhra Pradesh sales hit a new high

Tipplers in Andhra Pradesh gulped down liquor worth nearly ₹300 crores on New Year’s Eve, double the amount of liquor sales during the previous year (₹147 crores). To encourage sale of liquor, the Andhra Pradesh government allowed the retail vends to be open until midnight, while bars were permitted to dispense liquor till 1 am.

The port city of Visakhapatnam registered sale of liquor worth ₹11 crore on December 31 alone with around ₹ 8.89 crores sales happening through 145 liquor outlets in Visakhapatnam district; ₹ 1.55 crores from 119 bars; ₹17 lakh sales from 12 star hotels; ₹8 lakh sales from six clubs and ₹ 7.5 lakh from four tourism hotels, according to the Superintendent of Excise, R. Prasad. Visakhapatnam average daily sales is ₹ 5 crores.

Delhi touches ₹400 crore sales

Delhi also saw liquor sales worth ₹400 crore, with hotels, bars and party events consuming the most alcohol, while Noida had sales touching ₹16 crores on December 31 and January 1, 2025, boosted by the extended hours of vending.

Kerala sees more sales during X’mas

In Kerala, it was Christmas season which saw Keralites guzzle more beer and liquor than during New Year’s Eve. On December 24-25, beer and liquor sales in Kerala was about ₹152 crores (₹94.72 on December 24 and ₹54.64 crores on Christmas day) while on New Year’s Eve it was ₹108 crores, nevertheless ₹13 crores more than the previous year.

The Kerala State Beverages Corporation (KSBC), the sole wholesaler of alcoholic drinks in the state, released these figures. It said that the sale of liquor and beer was about ₹19,088.68 crores in 2023-24, up from ₹18,510.98 crores in 2022-23. The profile of liquor consumers in Kerala reveals that around 32.9 lakh people out of the 3.34 crore population in the state consume liquor, which includes 29.8 lakh men and 3.1 lakh women. Around five lakh people consume liquor on a daily basis. Of this, as many as 83,851 people, including 1,043 women, are addicted to alcohol.