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Sanjay Dutt’s The Glenwalk Records Sale of a Million in 4 months

The Glenwalk, co-founded by Sanjay Dutt, has reported strong sales. The company sold over one million bottles in India between April and August 2025. This represents a five-fold increase from the previous year. The brand is available in 15 Indian states and four international markets.

The Glenwalk’s success has been driven by Cartel Bros’ co-founders Mokksh Sani, Jitin Merani, Rohan Nihalani, and Manish Sani, whose innovative strategies have propelled the brand’s remarkable trajectory. The Glenwalk plans to launch new products and expand into more markets

The company said in a statement that the figure represents a five-fold increase from 0.2 million bottles during the same period last year. The brand is currently available in 15 states including Maharashtra, Haryana, Delhi, Karnataka and Tamil Nadu, and has expanded its presence to four international markets including Canada, Australia, New Zealand and the UAE. It is stocked across more than 10,000 retail and bar outlets and featured in 24 duty-free stores globally. In Meghalaya, where it was recently launched, the brand is priced at ₹1,708 and targets sales of 8,000 cases in the first year

“Witnessing The Glenwalk’s meteoric rise in such a short span has been genuinely inspiring. We’ve achieved in two years what takes many brands decades. Our success is a testament to the team’s relentless effort and the high-quality product we offer, and I’m excited for this next phase of growth,” said Sanjay Dutt, co-founder and brand ambassador. The Glenwalk has received over 10 global whisky awards and four business recognitions. It plans to introduce two new expressions – a 5-Year-Old and a 7-Year-Old and expand into six more Indian states and five overseas markets, including the US, Hong Kong, Nepal, Sri Lanka and Africa.

The Glenwalk is now available in Meghalaya. The brand has expanded across 15 Indian states, including Maharashtra, Haryana, Delhi, Karnataka, and Tamil Nadu. Internationally, it is present in Canada, Australia, New Zealand, and the UAE, available at over 10,000 retail and bar outlets, and featured in over 24 duty-free stores worldwide.

“The Glenwalk’s journey has been phenomenal, and our success is a direct result of our strategic vision and the immense market potential we identified,” said Mokksh Sani, Founder of Living Liquidz, Mansionz, and Co-founder of Cartel Bros. Sanjay Dutt, celebrity brand ambassador and co-founder, added, “Witnessing The Glenwalk’s meteoric rise in such a short span has been genuinely inspiring. Our success is a testament to the team’s relentless effort and the high-quality product we offer.”

Kerala to Launch Brandy

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In a strategic push to boost local liquor production and capture the evolving preferences of Kerala’s spirits market, the state government has commenced construction of a state-owned brandy production facility at Malabar Distilleries Limited, Menonpara, Palakkad. The plant—a fully automated Indian Made Foreign Liquor (IMFL) unit—broke ground on July 7, 2025, and is expected to be operational within six months.

This marks Kerala’s formal entry into premium brandy manufacturing, aimed particularly at serving the northern districts, where brandy consumption dominates. In contrast, rum remains the preferred spirit in southern Kerala—a consumer insight that shaped both the location and product strategy of the initiative.

Scaling Up with Automation

The upcoming facility will house three fully automated production lines, capable of producing 13,500 cases per day. Initially, the plant will run a single shift employing around 40 workers, with plans to scale as demand increases. This is a significant leap from the current manual production of Jawan Deluxe XXX Rum, which yields only 6,000–8,000 cases daily.

Production at the plant will cover the entire value chain—from blending and bottling to capping and packaging—enabling complete in-house control and quality assurance.

A Jawan-Inspired Rollout

Although the brand name of the new brandy is under wraps, officials from Kerala State Beverages Corporation (Bevco)—the state’s liquor monopoly—hinted that the marketing strategy will mirror the successful template used for Jawan Rum, now a trusted name in Kerala’s IMFL landscape.

Kerala’s `20,000 Crore Industry

In FY 2023–24, Kerala reported liquor and beer sales worth ₹19,088.68 crore, a 3% increase from the previous year. Taxes and levies contributed a massive ₹16,609.83 crore to the state exchequer, underscoring liquor’s role as a fiscal pillar.

Kerala’s IMFL market accounts for 90% of liquor revenue, with brandy (35%), beer (33%), and rum (27%) dominating consumption. Premium liquors—priced above ₹1,000 per 750 ml—make up just 4% of the volume, highlighting a strong preference for affordable brown spirits.

Interestingly, only 20% of the liquor consumed is produced within the state, with the rest sourced externally—a gap the new facility aims to narrow.

Kerala also faces limited retail access, with just 0.8 outlets per lakh population. Bevco is working to enhance distribution by launching air-conditioned premium outlets at strategic locations like Kochi Metro stations.

The government is concurrently exploring the production of fruit-based wines and spirits—using pineapple, mango, and banana—to support farmers and diversify beyond grain-based alcohol.

The brandy project is being executed by Kerala Electrical and Allied Engineering Company Ltd., and is part of a broader blueprint approved in June 2022, with administrative sanction in July 2023, to establish five blending and bottling lines at Malabar Distilleries.

Originally set up in 2009 for IMFL production, Malabar Distilleries is now transitioning towards a premium spirits portfolio, aligning with the state’s ambitions to create a self-sustaining, publicly-led liquor ecosystem.

“The government sees liquor production as a sector that supports both employment and state revenue,” said Minister M B Rajesh. “We plan to begin production by February and ensure availability of high-quality liquor through public sector efforts.”

Taxes could affect Indian Alcobev Industry

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High taxation significantly burdens the Indian alcohol industry by increasing production costs, impacting profitability, and potentially driving consumers towards illicit alternatives. While GST doesn’t directly tax alcohol, increased taxes on input materials and logistics contribute to higher retail prices. This, coupled with state-specific excise duties and other levies, leads to a complex and fragmented market with varying prices and access points.

Indian alcohol market is estimated to be valued at 60.11 bn in 2025 and is expected to reach USD 101.10 bn in 2032, exhibiting compound annual growth (CAGR) 0f 7.7% from 2025 to 2032.

India’s alcoholic beverage industry faces regulatory hurdles like liquor bans and high taxation, impacting revenue and market share. Despite these challenges, the industry is projected to grow significantly, driven by premiumisation and evolving consumer preferences.

High taxation, particularly state-level excise duties and other levies, significantly burdens the Indian alcohol industry, impacting both producers and consumers. The industry contends with high tax burdens, with taxes often comprising 65-80% of the final retail price. This complex taxation structure, including state excise duties, VAT, and various fees, restricts financial flexibility and profitability.

In addition, the industry is hobbled by significant compliance overheads and a fragmented distribution ecosystem, where regulatory variations across states create logistical inefficiencies and increased costs. The working capital cycle is often elongated due to delayed payments from distributors and high inventory carrying costs, disproportionately affecting small and medium-sized enterprises (SMEs). For these players, who typically operate on EBITDA margins as low as 10–12%, any downward pressure on pricing can be economically unsustainable.

Indian spirits—particularly whisky, rum, and country liquor—have only a marginal share in global markets. According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported alcoholic beverages worth USD 322 million in FY 2022–23, with Indian-made foreign liquor (IMFL) comprising a major portion. In comparison, the UK exported over £6.2 billion worth of whisky alone in 2022, highlighting the asymmetry in export capacities. The entry of global players with deep pockets, established branding, and premium positioning will make it impossible for Indian brands to compete against them and scale sustainably or capture premium market share. This reduced market share could ultimately lead to downsizing, plant closures, and stagnation in rural supply chains that depend on the sector for income. If local manufacturers lose market share, states could face a decline in excise revenue and employment generation.

Tax increases on alcoholic beverages can negatively impact the alcobev industry in several ways. They lead to higher prices for consumers, potentially reducing demand, and can also increase the costs for producers due to taxes on inputs. Furthermore, tax increases can lead to a decrease in sales volume, impacting the industry’s revenue and potentially leading to job losses.

Reduced Demand and Sales Volume: Higher taxes translate to increased prices for consumers, which can make alcoholic beverages less affordable, particularly for budget-conscious consumers.

This price sensitivity can lead to a decrease in the quantity of alcohol purchased, impacting sales volume for manufacturers and retailers. Some consumers might switch to cheaper brands or even substitute with other alcoholic products, impacting specific segments of the industry.

Increased Production Costs: Even if not directly taxed, the production process of alcoholic beverages involves various inputs like bottles, labels, and packaging materials, which are subject to taxes like GST. The cost of these inputs can rise due to higher taxes, increasing the overall production cost for manufacturers.

This cost pressure can be particularly challenging for smaller or craft producers who may have less financial flexibility to absorb these increases.

Impact on Revenue and Employment: Reduced sales volume and increased production costs can significantly impact the industry’s revenue and profitability. This can lead to potential job losses in the manufacturing, distribution, and retail sectors of the alcobev industry.

The industry might also face challenges in terms of cash flow and working capital, especially when dealing with tax refunds for input costs.

Potential for Unintended Consequences: Some studies suggest that higher taxes may lead to increased illicit production and sale of alcohol to avoid taxation, which can pose public health risks and further impact legitimate businesses. Consumers may also resort to cheaper alternatives or reduce consumption in other areas to afford alcohol, potentially impacting other industries.

While the industry may argue that tax increases do not reduce alcohol-related harm, some research suggests that price increases can lead to reduced consumption, especially among heavy drinkers and young people.

Industry Arguments: The alcoholic beverage industry often argues that tax increases unfairly burden the industry and consumers, and may not be effective in reducing alcohol-related harm. They may also highlight the potential negative impact on employment and tourism, particularly in areas where the industry is a significant contributor to the local economy.

The industry may also argue that other measures, such as public awareness campaigns and responsible drinking initiatives, can be more effective in addressing alcohol-related issues.

Policy Considerations: Policymakers need to consider the potential economic and social impacts of tax increases on the alcobev industry when formulating policies. Balancing the need to generate revenue and address alcohol-related harms with the potential negative consequences for the industry and consumers is crucial. Consultation with the industry, public health experts, and consumers can help to develop more effective and balanced policies.

Overall, while higher taxes on alcoholic beverages can be a tool to address public health concerns and generate revenue, they can also pose significant challenges for the alcobev industry and potentially lead to unintended consequences. A careful and balanced approach is necessary when considering tax policy changes in this sector.

Carib Brewery Enters India with Premium Strong Beer

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Caribbean-headquartered Carib Brewery has launched its Carib Premium Strong Beer in India, marking a key milestone in the brand’s international expansion. Carib’s entry into India is in partnership with Globus Spirits Ltd., a leading player in India’s alcoholic beverage industry. The beer is being locally produced through Globus Ansa Private Ltd., a joint venture between Globus Spirits and Carib’s parent company, Ansa McAL.

“At Globus Spirits, we’ve always believed in crafting experiences that transcend borders—and Carib Premium Strong Beer is a perfect reflection of that,” said Shekhar Swarup, Joint Managing Director, Globus Spirits. “This launch is more than introducing a new beer; it’s about celebrating the spirit of two vibrant cultures brought together by cricket, bold flavours, and good times.”

Targeted initially at five key cities in Uttar Pradesh—Lucknow, Kanpur, Varanasi, Ayodhya, and Prayagraj—Carib Premium Strong Beer is crafted to appeal to Indian preferences. With 8% alcohol by volume, a medium body, and a crisp, floral finish, the beer is designed to pair well with India’s spicy and flavour-rich cuisine.

The India launch is part of a broader international strategy led by Adrian Sabga, Managing Director (International & Business Development) at Carib Brewery, who has identified India and Greece as focus markets by the end of 2025. This push is supported by a $200 million investment in a modernised production facility in Champs Fleurs.

Smirnoff Introduces Minty Jamun, Mirchi Mango and Zesty Lime

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Smirnoff is set to shake up India’s flavour landscape with the launch of three bold new variants—Minty Jamun, Mirchi Mango and Zesty Lime—created especially for the evolving tastes of modern India. The exciting new flavours are available in Karnataka, Uttar Pradesh, Haryana and Maharashtra.

Whether it’s a fiery Mirchi Mango margarita, a Minty Jamun spritz with nostalgic flair, or a simple Zesty Lime soda pitcher, this new range unlocks versatile drinking possibilities—whether sipped, or mixed.

“We’re seeing a clear shift in how young Indians approach their favourite spirits—they want global brands to build a stronger local connect that is fresh and premium and yet playful. With Minty Jamun, Mirchi Mango, and Zesty Lime we’re not just offering new flavours, we’re creating moments of discovery that are vibrant, social, and rooted in today’s cultural codes,” said Ruchira Jaitly, CMO, Diageo India.

Each flavour has been thoughtfully developed to reflect the mood and momentum of the modern Indian consumer: Minty Jamun is a throwback with a twist—evoking childhood nostalgia with a fresh, modern take; Mirchi Mango piques curiosity with a sweet-spicy punch inspired by India’s love for heat and tropical fruit; and Zesty Lime brings an easy-going zing that makes it a go-to for group occasions and cocktail starters.

The launch is anchored in the brand’s new India-first campaign “Flavour is a Vibe” — a call to explore taste with freedom, fun, and community.

Tilaknagar Industries to Acquire Imperial Blue from Pernod Ricard India

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Tilaknagar Industries to become a PAN-India Player in Alcoholic Beverages
Acquisition is a strategic move to fast-track Tilaknagar Industries’ whisky foray
Pernod Ricard to accelerate focus on Premiumisation and Innovation

IMFL manufacturer Tilaknagar Industries Limited (TI) has entered into a definitive agreement to acquire Imperial Blue business division (IB) from Pernod Ricard India Private Limited via slump sale, for a lump sum consideration, basis enterprise value of €412.6 million (which translates to approx. ₹4,150 crores as on date). The consideration includes deferred payment of €28 million (₹282 crore as on date), to be paid four years after the date of closure of the transaction.

The proposed transaction includes acquisition of the IB, with 22.4 million 9-litre cases sold in the year ended March 2025 across India and other markets, including two owned units and services from co-manufacturing bottlers across India.

Imperial Blue is the third largest whisky brand in India by volume, with over 25 years of brand heritage. The underlying business had reported revenue of ₹3,067 crore for the year ended March 2025. TI is one of the leading IMFL players with leadership in brandy, the second largest IMFL category. Mansion House Brandy, TI’s flagship brand, is one of the largest selling brands in India and globally.

This landmark acquisition, largest in Indian alcoholic beverages space by an Indian company, fast-tracks TI’s foray into whisky segment, the largest IMFL category in India. It also significantly expands TI’s distribution reach, reinforcing its evolution into a truly pan-India player having strong scale across both brandy and whisky with a combined volume of 34 million 9-litre cases for the year ended March 2025.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries Limited said, “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base. While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”

Imperial Blue will act as TI’s launchpad for a significant whisky premiumisation journey, enabling TI to build a strong whisky portfolio across premium price-points. “We’re excited to build on Imperial Blue’s strong foundation and take it to new heights”, Dahanukar added.

Tilaknagar Industries reported revenue of ₹1,405 crore and EBITDA of ₹226 crore for the year ended March 2025. The transaction is a result of the continuous assessment and evaluation of strategic opportunities, in line with a longstanding policy to deliver sustainable value for the shareholders, employees and partners of TI.

India, second-largest market for Pernod Ricard

Pernod Ricard said that the sale strengthens Pernod Ricard India’s portfolio, enabling the business to fully tap into premiumisation trends and support sustained, profitable growth. As Pernod Ricard’s second-largest market, India is a strategic priority, and this realignment improves the ability to capitalise on the country’s strong macroeconomic fundamentals and long-term potential. Upon closing, the transaction is expected to be immediately and meaningfully accretive to Pernod Ricard India’s operating margin and net sales growth rate.

Pernod Ricard’s active portfolio management is a key contributor to its dynamic growth across categories and geographies. The transaction is the result of the Group’s continuous assessment of its strategic opportunities, in line with its long-standing commitment to deliver sustainable value to its shareholders, employees, clients and partners.

Alexandre Ricard, Chairman and CEO of Pernod Ricard, stated, “We are pleased to announce the sale of the Imperial Blue business division, a strategic move to sharpen our focus on more profitable and faster growing brands in India, like in the rest of the world. This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”

Jean Touboul, CEO of Pernod Ricard India added, “By exiting the Admix Value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumisation and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands such as Royal Stag, which has already surpassed the 30-million cases milestone, Blenders Pride, and international brands like Chivas, Jameson, Absolut, and Ballantine’s.

Driving the next phase of growth, we are entering an exciting new chapter, one that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer.”

The proposed transaction is subject to approval from the Competition Commission of India, with closure anticipated in about six months from signing the definitive agreement. TI will raise a mix of debt and equity to finance the transaction.

Deutsche Bank and Avendus Capital acted as financial advisors, with Avendus Capital also serving as the exclusive financing arranger to TI. Crawford Bayley & Co. and W.S. Kane & Co. acted as legal counsels while Deloitte served as the diligence advisor to TI.

Diageo India acquires Nao Spirits

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Diageo India has acquired Nao Spirits & Beverages, India’s craft gin makers (Greater Than and Hapusa brands), valued at Rs. 130 crores.

Diageo India (United Spirits Limited) has increased its equity stake in Nao Spirits from 30% to approximately 97.07%, making it a subsidiary of the company. With a final tranche pending, Diageo India is set to hold 100% ownership, bringing one of India’s most influential craft spirits startups fully into its fold. The transaction includes a secondary share purchase of ₹53.79 crore and a further infusion of ₹56 crore in growth capital — a strong commitment to scaling what began as a bootstrapped dream of India’s first homegrown gin.

Founded in 2017 by Anand Virmani, Aparajita Ninan and Vaibhav Singh; and later joined by Abhinav Rajput, Nao Spirits created India’s first craft gin from the ground up. From a small distillery in Goa, they distilled more than just spirits – they distilled the movement that would later be celebrated as ‘Indian Craft Spirits’. ‘Nao’, derived from the word ‘boat’ in Portuguese is a nod to Goa’s history as a trading port and a play on the English word ‘now’, capturing the spirit of a confident, modern India.

With Greater Than (2017), they introduced India to its first homegrown London Dry gin made with botanicals from around the world. With Hapusa (2018), they broke new ground with the world’s first Himalayan Dry Gin, bottling the wild spirit of the mountains with a premium, sipping gin. While Greater Than built the foundation, Hapusa gave gin a voice rooted in local flavour. Together, these helped build India’s craft gin category from scratch.

Imaginative Limited Editions

Nao Spirits launched a series of imaginative limited editions—each one crafted to stand apart, both in flavour and in form: Juniper Bomb (2020) – born from an accidental extended botanical soak that led to thrice the juniper flavour; No Sleep (2021) — India’s first coffee-infused gin; Broken Bat (2022) — the world’s first gin, aged using Kashmir Willow cricket bats; and Punk Gin (2023) – India’s first naturally infused pink gin made with real Mahabaleshwar strawberries, born from a place of rebellion.

These never-before-seen limited editions broke convention and captured attention, each bottle a celebration of India’s biodiversity, ingenuity and evolving palate.

“We started with a copper still named Agotha and a dream to make India proud. Today, we’re humbled and energised with Diageo India stepping in as a full partner and investor. Along the way, we realised that gin isn’t just about what goes into the bottle — it’s about the culture you build around it. From day one, we’ve been deeply focused on nurturing a community of bartenders, servers, and craft champions who could carry the story of Indian spirits forward in ways we never imagined. We’re proud that many of the original hands and hearts that built Nao Spirits are still with us today, and this next chapter gives us a chance to grow the culture we’ve helped shape with even greater reach and purpose. This isn’t the end of a journey, but the beginning of a new chapter; powered by the same people, the same purpose, and the same belief — that modern Indian spirits deserve their place on the world stage,” said Anand Virmani, Co-Founder & CEO, Nao Spirits & Beverages.

The original team continues to lead Nao Spirits with the same creative direction and cultural clarity that have defined its journey from the start — now supported by Diageo India’s robust distribution network, production capabilities, and leadership strength.

Teacher’s Whisky Unveils a Bold New Identity

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Teacher’s Whisky has unveiled a new identity, signaling a bold new chapter. The new look brims with modernity yet remains anchored in timeless tradition, celebrating over 195 years of character, conviction, and quality, states a press release.

“True to the vision of our founder William Teacher, the blend continues to offer its signature smoothness and full flavour crafted from a high malt content and distinctive smoky notes. This consistency crafted over 190 years has made Teacher’s a trusted choice for whisky drinkers across the globe.”

The evolved identity speaks to today’s premium whisky consumer – confident, globally attuned, and deeply appreciative of quality. Developed in collaboration with Design Bridge & Partners, London – one of the most awarded global brand design agencies – the refreshed identity spans from a refined label to an elevated bottle structure, crafted to signal depth, substance, and distinction. At its heart lies the iconic WT hallmark, a proud tribute to founder William Teacher, honouring his legacy of integrity and conviction.”

“With this bold new packaging, we’re not just refreshing the look of Teacher’s – we’re reaffirming the values that have shaped its nearly 200-year legacy,” said Rishi Walli, Senior Director – Marketing, Suntory Global Spirits.

“This evolution honours our rich heritage while introducing a contemporary edge that resonates with today’s culturally fluent consumer. It’s a bold expression of our commitment to evolve with the times, while staying true to the spirit of quality and character that defines our portfolio,” he added.

Whether through its high malt content, cask maturation in ex-Bourbon barrels, or the presence of Ardmore’s signature fingerprint malt, every bottle of Teacher’s continues its legacy. With its debut in Uttarakhand, the identity sets the stage for a nationwide rollout.

Piccadily Targets 1 Million Cases of Whistler Barrel Whisky in 3 years

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Relaunches Whistler Barrel Aged Blended Malt Whisky
Positioned in mid-premium segment

Piccadily Agro Industries Limited has relaunched Whistler Barrel Aged Blended Malt Whisky, featuring new packaging and premium blend.

Piccadily said that Whistler’s new avatar is a celebration of barrel ageing, maturation and the art of blending. The finest matured malt and grain spirits have been handpicked and aged in oak wood barrels, creating a whisky that’s smoother, more elegant and even more memorable than before, it said. Inspired by the Whistler Warbler, a vibrant songbird native to the region of Indri, the packaging reflects the whisky’s premium ethos with a modern and sophisticated design.

The relaunched Whistler expression offers a more layered and complex drinking experience—crafted for today’s evolving palate, yet grounded in traditional whisky-making excellence.

Tasting Notes:

Nose: Warm and inviting, with dried apple and apricot at the forefront. Vanilla cream and caramelised malt add delicate sweetness, complemented by toasted oak, cinnamon, and floral hints.
Palate: Silky and well-rounded with a rich malt core. Notes of toffee, pineapple, and vanilla glide through the sip, underscored by gentle spice and warmth.
Finish: Medium to long, leaving a graceful trail of mellow sweetness and soft refinement.

Whistler Whisky (750 ml / 42.8% ABV) will be available across premium retail outlets and on-trade venues across India, with plans for export expansion in the coming months, the company said.

“Whistler’s new premium look is more than a brand refresh — it’s a strategic play to capture the next wave of premium whisky consumers,” said Praveen Malviya, CEO – IMFL, Piccadily Agro Industries Limited. “With its elevated blend and bold new identity, Whistler is poised to disrupt the mid-premium segment. Our goal is ambitious — 1 million cases in the next three years — and we’re confident Whistler will become a powerhouse brand that redefines what Indian blended malts can achieve.”

ISWAI Commends State Governments for Implementing Progressive Excise Policies

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Move will provide enhanced consumer experience and generate revenue opportunities
Premium-only and Smart Liquor Stores in Karnataka, Telangana, Haryana
Industry seeks De-regulation

The International Spirits and Wines Association of India (ISWAI), voice of the Indian Premium alcoholic beverage industry, has commended State governments for implementing progressive excise policies aimed at modernising retail formats, increasing revenue, and enhancing the overall consumer experience.

From Uttar Pradesh’s composite retail formats to Andhra Pradesh’s privatised model, Rajasthan’s premium mall-based stores, Madhya Pradesh’s single-bottle billing system, Haryana, Telangana, Karnataka, and Odisha’s premium-only retail formats, these progressive policies are redefining how the alcohol retail ecosystem operates across the country.

Welcoming the positive change, Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), said, “The reforms we are witnessing across different states in India, signal a paradigm shift in how the alcobev sector is perceived and managed, and reflects the state governments positive intent and commitment. Progressive excise policies are not only improving compliance and transparency, but also creating the foundation for sustainable, consumer-centric growth.”

UP’s reform-centric excise policy

ISWAI said at the forefront of this transformation is Uttar Pradesh, which has launched a reform-centric excise policy for FY 2025–26 with an ambitious revenue target of ₹55,000 crore, a 10% increase over the previous year. Structural changes like consolidating over 12,000 outlets into approximately 9,000 composite vends are doubling retail accessibility and ensuring broader market coverage. The adoption of a digital e-lottery system for retail licenses has already generated more than ₹2,250 crore, while retail license fees are expected to contribute over ₹4,200 crore, a testament to how digitization and transparency can directly drive state revenues.

Excise reforms are reshaping the alcobev landscape.

Speaking on these forward-looking changes, Sanjit Padhi said, “Uttar Pradesh has been a leader in driving structural reforms that have seen its revenue jump from ₹24,000 crore in FY 18/19 to a target of ₹55,000 crore in FY 25/26, growing at a rate of 13% CAGR. ISWAI members are the largest contributors to the state’s IMFL revenue (55%+), and we believe that the current changes are part of building a sustainable, growth-oriented revenue model that is also consumer-centric. The new outlets and investments in the retail infrastructure will result in a superior consumer experience.”

The reforms also offer greater operational stability for vendors. The state now grants two-year licenses via the e-lottery system, promotes fair competition by capping ownership at two outlets per individual, and fosters a level playing field for stakeholders.

Uttar Pradesh’s focus on premiumisation is reshaping consumer expectations and retail standards. New composite vends are being upgraded into well-lit, aesthetic, and secure outlets, particularly appealing to women consumers and supporting responsible consumption.

“We’re witnessing the rise of a more inclusive, modern alcobev ecosystem. From premium retail formats to safer consumer environments, these changes are aligning with global best practices and unlocking new growth opportunities. This will also provide consumers with high-quality premium brands and genuine products, deterring counterfeit products and encouraging responsible drinking. We hope that other states adopt the best practices of these progressive states to build consumer-centric, growth-oriented, sustainable revenue models,” added Sanjit Padhi.

Innovative Approaches by Andhra Pradesh, Rajasthan, Madhya Pradesh

Some states are following suit with their innovative approaches. Andhra Pradesh, through its privatised retail model, now supports 3,736 liquor vends and has witnessed a ₹1,800 crore surge in revenues and a 37% rise in Scotch sales, indicating strong premiumisation trends. Rajasthan has declared a four-year excise policy – a landmark reform that ensures stability in the sector. Speaking on this, Sanjit Padhi said, “The industry needs business stability as it allows room for building long-term investment plans. Rajasthan has taken this step, which we hope will inspire many other progressive states to evaluate and build this into their future planning process.”

The state of Rajasthan has already seen a 55% increase in IMFL sales since FY 2021, thanks to a retail overhaul that includes premium outlets at airports and shopping malls. States like Madhya Pradesh and Rajasthan are also experiencing significant volume growth—27% and 55% respectively—by embracing composite retail formats that ensure equitable access across urban and rural areas while reducing the prevalence of illicit trade and counterfeit products. Madhya Pradesh’s 2025–26 policy has also introduced features like stock carry-forward and single-bottle billing for premium brands, enhancing traceability and efficiency.

Premium-only and Smart Liquor Stores in other States

Similarly, Uttarakhand is launching Smart Liquor Stores in malls and department outlets, while Haryana, Telangana, Karnataka, and Odisha are promoting premium-only retail formats to meet rising urban demand.

Industry seeks Deregulation

Meanwhile, one of the biggest challenges the industry faces is pricing control. In this context, Sanjit Padhi emphasised the need for deregulation in the IMFL sector. “Market forces should determine pricing, and no company will risk its business by arbitrarily pricing itself out of the market,” he said. ISWAI strongly recommends the removal of pricing controls to liberate and unshackle the industry, encouraging greater investment and more robust contributions to state revenues.

In addition, leading states like Madhya Pradesh, West Bengal and UP have digitized their processes and significantly improved the ease of doing business. This is another area where other states can consider increasing efficiencies, which could lead to better resource utilisation.

As more states look to emulate these successful models, India’s alcobev landscape will continue to evolve into a refined, progressive ecosystem that balances public welfare, economic growth, and consumer preferences, marking a significant milestone for the industry.

ISWAI members largest revenue contributors

Members of ISWAI include global leaders Bacardi, Brown Forman, Campari Group, Diageo-United Spirits, John Distilleries, Moet Hennessy, Pernod Ricard, Suntory Global and William Grant & Sons and have almost 98% of the business produced in India through Indian Made Foreign Liquor (IMFL), Bottled-in-India (BII) products and Indian Single Malts, thereby making the sector strong proponents of the ‘Make in India’ ideology, generating employment and business opportunities, both directly and in ancillary services & industries, across states. ISWAI members are the largest revenue contributors, with over 45% share in volume and more than 55% share in value. With over 95 manufacturing plants in the country, ISWAI members have large investments in India.