Tag Archives: alcobev industry

India Wine Market growing despite challenging times

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

UK Tax Burden Hurting Scotch Whisky

Leave a reply

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

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

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

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

Over two thirds of price goes in taxes

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

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

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

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

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

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

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

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

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

Scotch Whisky Industry Records £5.4BN Global Exports in 2024

Leave a reply

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Beer Sales Dip in Karnataka in First Half of 2025

Leave a reply

Karnataka, long seen as one of India’s top beer-consuming states, is witnessing a troubling trend. Beer sales in the state dropped by more than 18% in the first half of 2025, even as India’s overall beer market clocked a robust 10% growth during the same period.

According to data from the Karnataka excise department, 209.9 lakh carton boxes were sold between January and June 2025—down from 257 lakh cartons in the same period last year. The most dramatic fall was in January, when sales dropped a staggering 30.6%. Even during peak summer months—typically strong for beer sales—the slump continued, with April and May down by 16% and 26% respectively. March and June saw double-digit dips too, suggesting that the downturn is more than just seasonal.

Industry insiders point to a mix of policy instability and rising prices as the primary culprits. In the last two years, the government has increased taxes and licence fees on beer and low-end Indian-made liquor (IML) four times. This change in policy constantly has been hurting the sector. Retailers echo the frustration.

Responding to mounting criticism, the Karnataka government recently revised the Additional Excise Duty (AED) structure. The earlier system—195% duty plus ₹130 per bulk litre—was replaced with a flat 200% AED. Venkatesh Kumar R, Commissioner of the State Excise Department, recently told a media house that the ₹130 slab disproportionately impacted low-cost beer by increasing MRP by ₹15–20 and that the new flat structure aims to ease that burden.

Still, the revised structure has been in effect for just a month, and officials admit a full recovery will take time. An early monsoon this year also disrupted peak-season sales, particularly in Bengaluru.

Contrasting National Growth

Ironically, Karnataka’s woes come at a time when the national beer market is booming. India’s beer consumption rose 10% year-on-year in FY 2024–25, according to the Brewers Association of India (BAI), with total volumes hitting 450 million cases—up from 405 million cases in the previous fiscal. Spirits, by contrast, saw a mere 2.2% growth, down from 4.5% the year before.

“There’s a shift towards milder alcoholic beverages like beer,” said Vinod Giri, Director General, BAI. “As alcohol becomes more socially accepted, consumption moves from just functional highs to social bonding.”

The trend has prompted renewed investment interest. In February 2025, major brewers—including United Breweries, AB InBev, and Carlsberg, who together control 85% of India’s beer market—announced plans to invest over ₹3,500 crore in setting up new breweries across the country. It is the largest annual investment in over a decade for the sector.

The contrasting trajectories highlight the challenges of India’s fragmented alcohol policy landscape. While some states offer competitive excise regimes and policy clarity, others like Karnataka are struggling with over-regulation and volatile taxation.

India – UK FTA: A New High or Hard Hangover for Indian Premium Spirits?

Leave a reply

India and UK signed a historic FTA recently and while some in the Indian Alcobev landscape lauded and applauded the move for reduction on import tariffs from 150% to 75% on scotches and bulk imports, many are up in arms anticipating the impact it can have on the homegrown products. At Ambrosia we have covered this topic extensively over the past few months and in this article Bhavya Desai spoke to industry leaders to understand and ascertain the sentiments of both, domestic as well as international players. Excerpts:

In a country like India – where the consumer landscape is witnessing a paradigm shift and premiumisation atop of most manufacturers list, Anant S. Iyer, Director General, Confederation of Indian Alcoholic Beverage Companies (CIABC) says, “Imported Scotch already enjoys a strong foothold in India’s premium segment and with the new India-UK FTA, and Scotch whisky likely to become 20–30% cheaper, the impact could be asymmetric and policy-skewed.”

To substantiate this, he points to the fact that, in 2024, bottled-in-origin (BIO) and bottled-in-India (BII) Scotch collectively accounted for more than 80% of the premium-and-above whisky segment. BII holds 59%, BIO 21%, while Indian-made premium whisky (IMFL) was left with just 20%.

The concern, as Iyer outlines, is less about competition and more about a ‘policy imbalance’. Imported whiskies already enjoy tax and label registration fee advantages in many states like Maharashtra, Kerala, Odisha and Delhi. And he urges that, “States should now remove the discriminatory policies vis-à-vis IMFL compared to BIO brands.”

As Scotch becomes more affordable, Indian premium brands – especially in the ₹1,200–₹2,500 segment – may find their shelf space and margins under pressure. And according to him it is not just whisky, but also the premium Indian gins priced between ₹800 to ₹3,000 could also feel the squeeze.

While the jury is still out on the longterm impact, but he could be right – if makers take the same route as the Americans. Sources close to Ambrosia state that atleast 2-3 bourbon companies are likely to set up a bottling plant in India following its reduction to 50% this year. Whether they are able to capture the imagination of the consumer, remains to be seen, considering the bourbons aren’t very popular amongst Indian consumers.

However, to counteract potential market flooding, Iyer emphasises the need for a Minimum Import Price (MIP) of $4 per 750ml for BIO spirits and higher thresholds for wine. “Without this safeguard, cheaper imported spirits could flood the market, undoing years of progress by Indian premium brands.”

But Indian spirit makers aren’t backing down.

“Our members are ready to compete, but on fair terms,” says Iyer. Strategies range from enhanced consumer engagement to stronger retail execution (RTM) and even launching new premium SKUs. “The consumer will be spoiled for choice as FTAs materialise,” he adds.

And what’s interesting is that Indian Single Malts like Amrut, Rampur, Indri, Gianchand and others have already begun outselling Scotch Single Malts in India. “Our brands are winning international awards and are now on duty-free shelves globally,” Iyer notes, calling for removal of non-tariff barriers (NTBs) to help Indian brands expand into developed markets like the UK, EU, and Australia.

A sentiment echoed by Sanjit Padhi, CEO, International Spirits and Wines Association of India (ISWAI), “As Indian Single Malts gain global recognition, improved market access can create mutual benefits, just as Scotch whiskies gain better accessibility in India, Indian whiskies can expand their footprint abroad.”

What India has to Say?

But not all of the Indian companies are concerned with the FTA. Ideally the bigger the better.

For instance, Abhishek Khaitan, Managing Director, Radico Khaitan Ltd. takes a pragmatic view. “The FTA signals a momentous growth opportunity. As one of India’s largest Scotch importers, we expect strategic and cost advantages, particularly with requirements estimated at ₹250 crore in FY26.”

And that figure of ₹250 crore is surely inclined to tip the scales for the better for Radico.

Khaitan also believes that lower duties could accelerate premiumisation in the domestic market. “This agreement is a win-win – empowering Indian enterprises while showcasing India’s excellence on the global stage.”

But not everyone is convinced that cheaper Scotch will flood the market. Prem Dewan, Managing Director, DeVANS Modern Breweries notes, “Indian consumers are selective. Indian single malts are already available in all ranges – including premium editions costing over ₹1 lac. We should not assume all Scotch whiskies are palatable for the Indian market.”

He adds that bulk Scotch imports for blending could actually enhance Indian whiskies, neutralising the pricing advantage. However, he warns that ‘undue state-level duty advantages for imported liquor, driven by lobbying, continue to hamper domestic players’, a concern highlighted by Iyer earlier as well.

Is Dumping a Possibility?

Like many industries, a question on everyone’s mind is – if dumping cheaper spirits is going to be a possibility and Iyer is unequivocal. “Yes, and it’s already visible. Scotch bottles retail at ₹900-1,100 in Haryana despite high MRPs. That suggests under-invoicing or transfer pricing.”

He isn’t alone in this concern. Abhishek Modi, Managing Director, Modi Illva acknowledges that opportunistic brands may attempt price-led disruptions. “Some players might introduce aggressively priced Scotch-heavy blends to lure price-sensitive consumers.” But he also quick to highlight that such moves are short-term and that the premiumisation trend will stay intact.

Modi also stresses that rising input costs (barley, energy) and a weakening rupee already compress margins for Scotch producers. “Scotch isn’t likely to become drastically cheaper in reality. The cost advantage may not even trickle down to consumers due to the rising input costs.”

Praveen Someshwar, Managing Director and CEO, Diageo India

International Players Toast the Opportunity

Understandably, for global players the enthusiasm runs high.

Praveen Someshwar, Managing Director and CEO, Diageo India, hails the FTA as ‘a historic treaty that reignites growth and offers greater choice to Indian consumers’.

And Neeraj Kumar, Managing Director, India, Suntory Global Spirits echoes the sentiment. “This is a pivotal development and it improves affordability and strengthens bilateral trade, paving the way for greater innovation and investment.”

Padhi adds, “The deal will also stimulate growth across ancillary sectors such as hospitality, tourism and retail, while potentially increasing revenue for Indian states. At a macro level, the agreement will leverage mutual synergies and competencies of both nations.”

The Future?

Some industry pundits visualise the distant future, where the duty will reduce to 40% over the next decade as India being the most matured and developed spirits market globally. And if trends are anything – we are surely seeing that push currently.

As Anant Iyer puts it, atleast for the immediate future, “the momentum of Indian brands won’t stop. But we need policy support – both at the Centre and in States – to sustain it”.

The India–UK FTA might open doors to new markets and consumer segments. But it also lays bare the need for a level playing field, long-overdue reforms and robust checks to prevent policy-led distortions.

Whether this agreement becomes a toast to opportunity or a sobering challenge depends on how well Indian regulators, producers and consumers navigate the spirit of the deal.

Tilaknagar Industries to raise ₹2,296 Crore via Preferential Issue

Leave a reply

Tilaknagar Industries Limited (TI) has announced that its Board of Directors has approved a preferential issue of securities (equity shares and warrants) amounting to approximately ₹2,296 crores. The issue price of ₹382 per security is in compliance with the pricing determined under Regulation 164 of the SEBI ICDR Regulations.

It goes without saying what the company intends to utilise the proceeds raised through the Preferential Issue – considering its recent announcement for the acquisition of Imperial Blue brand and general corporate purpose.

A total of 44 investors will be participating in this issue, including promoters and existing prominent investors. Of these, nine investors are subscribing through equity shares, contributing approximately ₹549 crores while the remaining 35 investors will participate through warrants, raising approximately ₹1,747 crores.

As per the terms, ₹437 crores (25% of the warrants issue size) will be payable at the time of allotment of warrants, while the balance ₹1,310 crores will be received upon conversion into equity shares.

The promoter group is also actively participating in the issue with the company’s Chairman and Managing Director, Amit Dahanukar subscribing to warrants worth ₹306 crores. Other investors include Axana Estates LLP, SMALLCAP World Fund Inc, TIMF Holdings, Funds managed by Abakkus Asset Manager Private Limited, Bandhan Mutual Fund, Arpit Khandelwal and several other institutional and marquee high-net-worth individuals.

ISWAI, Scotch Whisky Association and industry call FTA ‘a game-changer’

Leave a reply

ISWAI says Cheers to India-UK FTA as a Historic Moment
Tariff Reduction may provide Greater Choice and Access To Premium Products

The International Spirits and Wines Association of India (ISWAI), has applauded the signing of the India-UK Free Trade Agreement (FTA) calling it as a historic moment that underscores the shared commitment of both nations to strengthen economic ties and advance fair trade. ISWAI said – that for the alcobev sector, this agreement paves the way for a more balanced and equitable trade environment, particularly given that Indian alcohol exports to the UK have zero import duties.

Key Highlights
– Total Customs Duty to reduce from 150% to 75%, followed by a progressive reduction to 40% over the next decade
– Revised tariff structure to apply on both Bottled-in-Origin (BIO) and bulk imports
– India sells over 400+ million cases of Indian alcoholic spirits annually
– Scotch around 81% of the overall imports of 10.9 million cases of alcoholic spirits

Under the agreement, the Total Customs Duty on imported alcoholic spirits, limited to whisky and gin from the UK, will be halved at the first stage of entry-into-force from 150% to 75%, followed by a progressive reduction to 40% over the next decade. The revised tariff structure will apply to both Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL.

Sanjit Padhi, CEO, ISWAI said, “The India-UK Free Trade Agreement is a historic moment in bilateral relations between the two countries and can become a trendsetter for other FTAs. ISWAI and its members welcome the deal.” Adding further, Padhi said, “For the alcobev sector, the immediate tariff reduction on Scotch whisky and gin imports from 150% to 75%, and subsequent reduction to 40% over the decade, will open up and expand market opportunities for the industry. The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumization. It will also stimulate growth across ancillary sectors such as hospitality, tourism, and retail, while potentially increasing revenue for Indian states. At a macro level, the agreement will leverage mutual synergies and competencies of both nations. As Indian Single Malts gain global recognition, improved market access can create mutual benefits, just as Scotch whiskies gain better accessibility in India, Indian whiskies can expand their footprint abroad.”

India, one of the world’s largest alcobev markets, which sells over 400+ million cases of Indian alcoholic spirits annually. Yet imported spirits – Bottled in Origin and Bulk Bottled in India, account for a mere 2.6% of the total market. The imported category is dominated by whisky with Scotch being around 81% of the overall imports of 10.9 million cases of alcoholic spirits.

The reduction in import tariffs will also bring a huge benefit to all manufacturers in the Indian Made Foreign Liquor (IMFL) industry as 79% of the Scotch imported into the country is in Bulk form, which is used for bottling in India and for blending by local brands of whisky in the IMFL category.

Padhi added, ‘The FTA agreement is an important step by the Government of India towards facilitating equitable market access while safeguarding domestic industry interests through a calibrated and phased approach.

SWA says FTA will bring long-term benefits

The Chief Executive of the Scotch Whisky Association, Mark Kent, said “The Scotch Whisky industry has long championed a free trade agreement between the UK and India. The signing of the FTA is an historic moment and is an important milestone to reducing tariffs on Scotch Whisky in a growing market. This will contribute to the government’s growth objective, by laying the foundations for further investment and jobs.

“The FTA will bring long-term benefits for the industry, but the industry needs immediate support in order to realise the deal’s full potential. Distillers, especially smaller ones, are under significant pressure now – including as a result of tariffs in the US and a growing tax burden in the UK.

“Action by the UK government to alleviate these pressures will ensure distillers are in the best position to take advantage of the UK-India FTA once it comes into force.”

Diageo calls it ‘great moment’

Nik Jhangiani, Interim Chief Executive, Diageo, said “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”

Chivas Brothers says it’s a ‘Sign of Hope’

Jean-Etienne Gourgues, Chairman and CEO, Chivas Brothers said “Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.”

The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!

Vinexpo Asia calls for Rules-based Trading, Amid Tariff Issues

Leave a reply

Held in Singapore, Vinexpo Asia 2025 brought together 1,100 exhibitors and over 11,000 visitors, reaffirming the resilience of the global wine and spirits industry amidst rising trade tensions and tariff uncertainties. The event underscored the importance of staying connected and adapting to an evolving geo-economic climate.

Singapore’s Minister of State for Foreign Affairs and Trade & Industry, Gan Siow Huang, highlighted the existential threat of trade barriers for small producers and the need for a predictable, rules-based trade system. She emphasized Singapore’s commitment to international collaboration, with 28 Free Trade Agreements, including the newly effective Pacific Alliance-Singapore FTA.

The Asia Pacific wine and spirits market is expected to grow annually at 6.85% till 2030, driven by a youthful middle class and interest in innovative offerings such as low- or no-alcohol options. Singapore, with its strategic location and robust logistics, has emerged as a key import-export hub—importing $2.1B and exporting $2.5B worth of wines and spirits.

Vinexpo’s CEO, Rodolphe Lameyse, addressed the triple challenges facing the industry: shifting consumption habits, climate change, and geopolitical shocks. He reiterated that face-to-face engagements like Vinexpo are crucial for building partnerships and strategizing the future.

The event saw strong participation from global wine producers and featured over 4,000 business meetings, with buyers from more than 60 countries—especially from Southeast Asia—cementing the region’s growing significance in the alcobev trade.

RCB Win Triggers ₹157.94 crore Liquor Sales in Just One Day in Karnataka

Leave a reply

In a thrilling final of the Indian Premier League (IPL) 2025, Royal Challengers Bangalore (RCB) nudged past Punjab Kings to lift the IPL trophy, after a long wait of 18 years. The much-awaited win on June 3 saw widespread celebrations across Karnataka, cheering the team ‘spiritedly’.

Besdies RCB, the winner was, of course, the alcobev industry. Karnataka collected a huge sum of ₹157.94 crore from liquor sales on that single day.

According to reports, 1.48 lakh boxes of bottled beer were sold, generating a turnover of ₹30.66 crore. This is a substantial increase from the same date last year when only 0.36 lakh boxes were sold, resulting in ₹6.29 crore in revenue. Sales of other alcoholic spirits reached 1.28 lakh boxes, valued at ₹127.88 crore. In contrast, on June 3 last year, the revenue from liquor sales was only ₹19.41 crore.

With RCB having reached the IPL final for the fourth time, there was an air of anticipation that RCB would pull off the win which was to be special for several reasons – it was the 18^thIPL edition and Virat Kohli, the India and RCB icon, dons jersey number 18. Anyone and everyone got drawn into watching the game in their own style, with drinks or otherwise.

11 RCB-Flavour Shots

Celebrations across Karnataka began early on June 3 with offers galore at pubs, restaurants, clubs etc. With huge screens televising the event live, there was so much euphoria and the pubs and restaurants played to the gallery.

One of Asia’s largest microbrewery, BYG brewski in Hennur put up a “larger than life” stadium-like experience with live streaming supported by surround speakers. Like the twists and turns in the match, the brewery offered cocktails that resonated with the RCB campaign and campaigners.

At Jollygunj in J P Nagar the fans got to taste 11 different shots, a tribute to the 11 RCB players and their distinct personalities. For Phil Salt it was spicy flavours, for Virat Kohli it was Vanilla flavour and such like, adding to the zing of the evening, even as the game progressed in a ding-dong manner.

SOCIAL, owned by Impresario Entertainment and Hospitality, live=streamed the match across its Bengaluru outlets, throwing several enticing offers. There were 1+1 offer on beer buckets of all brands.

The best campaign was by a new pub called 404 by ToF in Tavarekere which offered free shooters and an extra free beer at the bar counter if a player scored ‘4,0,4’. The pub also offered two new flavours of Geist beer, adding to the excitement of the evening.

The Yard at Doddanekundi offered one beer free for every three beers. It also had unlimited beers from the first ball to the last of an innings for just ₹1,999 per person. The menu at the Yard was quirky from Punjabi Butter Chicken Fries and Rajasthan Royal Rajma to RCB Battered Prawns, Delhi Wale Tom Uncle’s Maggi, and the cheeky Overseas Players and so on.

Virat Kohli’s restobar One8.Commune was packed in all the eight cities – Bengaluru, Mumbai, Pune, Delhi, Gurgaon, Jaipur, Indore, and Kolkata – it is present in, cheering its owner who scored a decent knock in the final.

As the home of the Royal Challengers Bangalore, RCB Bar & Café was again in the centre-stage of celebrations with exciting offers. RCB Bar & Café is not just an establishment that is for watching sporting events in a cool and cozy place, but is surely a one-of-a-kind experience that celebrates the spirit of the sport alongside exceptional cuisine and mixology. It was chock-a-block with frenzied fans cheering the RCB team.

Piccadily Combats Counterfeiting with NFC Technology

Leave a reply

First Indian alcobev company to do so
Innovative Smart Labels on Indian Single Malts

In a pioneering move to safeguard consumers and reinforce trust in premium Indian spirits, Piccadily Agro Industries Limited has become the first Indian alcobev company to implement ForgeStop’s cutting-edge anti-counterfeit smart label technology for its acclaimed Indri Single Malt.

With counterfeiting rampant in India—where it’s said that more Scotch is consumed than Scotland even produces—Piccadily has taken a bold and proactive step. By integrating NFC-enabled smart labels into its packaging, the company is setting a new benchmark in authenticity and transparency, investing significantly to ensure consumers receive only genuine, original products, reinforcing trust in premium Indian spirits.

ForgeStop InfoTap Labels on Piccadily products utilise EM Microelectronic echo-V chips with 128bit AES encryption and dynamically changing tokens – giving them bank level security and making them virtually impossible to fake. They also feature tag-tamper detection – alerting a consumer if the bottle seal has ever been broken – this prevents bottle re-use, a major issue with Alcohol counterfeiting that is difficult to combat with other technologies. Its platform creates a unique digital twin of every product at the moment of production and secures the product until it’s enjoyed by the customer. The software allows for app-free authentication and provides batch level product information – making it the most user-friendly anti-counterfeit technology available. This technology can be connected to the blockchain generating an immutable product journey – securing supply chains.

Unlike static technologies such as QR codes or holograms, this NFC tap and verify experience allows customers to simply tap their smartphones to the bottle to instantly confirm its authenticity and view batch-level information.

“As a brand committed to authenticity and quality, we’re proud to be the first Indian single malt brand to take this bold step,” said Praveen Malviya, CEO (IMFL), Piccadily Agro Industries Limited. “Counterfeit alcohol is a serious issue in India and globally. With ForgeStop’s smart technology, our customers can enjoy Indri with the confidence that what’s in the bottle is exactly what we crafted.”

“We’re proud to partner with Piccadily Distilleries, a globally recognised brand leading the way in product integrity. With ForgeStop’s smart label technology, consumers can instantly verify authenticity and access product information with a simple tap—no app required. It’s a seamless blend of security and brand storytelling.” said Terry Katz, CEO of ForgeStop.

As per the TRACIT (Transnational Alliance to Combat Illicit Trade) September 2023 report on India, a significant share of alcohol sold in India is counterfeit—well above the global average—and the problem is escalating rapidly. Counterfeit alcohol not only harms brands, but also poses serious risks to consumer health.