Tag Archives: alcohol industry

ISWAI Commends State Governments for Implementing Progressive Excise Policies

  • 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.

Carlsberg India profits up by 60%

Carlsberg India has reported a jump of 60.5% in its profits at ₹323.1 crore in FY’24, according to RoC filing by the company. Carlsberg India total revenue was up 15.2% at ₹8,044.9 crore for the financial year ended March 31, 2024.

The company said, “During the financial year 2023-24, profit amounting to ₹323 crore under the standalone financial statement has been carried forward to ‘Reserve and Surplus’ including other comprehensive income in the balance sheet.”

Carlsberg India Pvt Ltd had reported a total profit of ₹201.3 crore a year before in FY’23, and its revenue from operations was at ₹6,937 crore on a standalone basis. Its “Excise duty expense” in FY’24 was at ₹4,877.8 crore, up 13.4%. This was at ₹4,301.6 crore a year before in FY’23.

“Cash and bank balances increased from ₹9,304 million to ₹11,165 million with strong business performance, better trade working capital and lower capital investment,” it said. Advertising promotional expenses of Carlsberg India were at ₹96.5 crore in FY’24 and total expenses stood at ₹7,628.3 crore, up 13.4%.

The market share however declined to 13.3%, from 14.9% in the fiscal year 2023-24, but Carlsberg India continues to hold the number three position in the Indian beer market. Carlsberg India is the subsidiary of Singapore-based South Asian Breweries Pte Ltd, owned by Danish brewing major Carlsberg.

Delhi Earned ₹5,000 Crore from Tax On Liquor

The newly elected Delhi government run by the Bharatiya Janata Party (BJP) has said that due to the implementation of the new liquor policy under the AAP from November 2021 to August 2022, only private shops were allowed to sell alcohol. It said that over ₹5,000 crore was collected from taxes on liquor in the current financial year.

Responding to a question asked by BJP MLA Abhay Verma in the Delhi Assembly, the government said it earned revenue of ₹5,068.92 crore from excise duty and VAT (value added tax) on the sale of liquor in the financial year 2024-25, till February.

The question comes at a time when the BJP has continued to attack the AAP over the alleged liquor policy scam. Former chief minister Arvind Kejriwal and his deputy Manish Sisodia were among the AAP leaders who were jailed in connection with the alleged scam.

The new Rekha Gupta-led BJP government reported that ₹5,164 crore was collected in taxes on alcohol in 2023-24, ₹5,547 crore in 2022-23 and ₹5,487 crore in 2021-22. The government stated that due to the implementation of the new liquor policy in Delhi under the AAP from November 2021 to August 2022, only private shops were allowed to sell alcohol. However, when the old liquor policy was reimplemented in September 2022, government liquor stores were permitted to operate.

In 2023-24, 21.27 crore litres of alcohol were sold in Delhi, which translates to 5.82 lakh litres per day, while the figure for 2022-23 was 25.84 crore litres.

Celebrity Liquor Brands, Trend That’s Raging

  • In 1987 itself, actor Danny Denzongpa had quietly started Yuksom Breweries
  • Long list of International actors, singers, sports personalities own liquor brands
  • India is yet to see a woman celebrity owning a liquor brand

On April 10, actor and businessman, Ajay Devgn joined the bandwagon of celebrities, part owning liquor brands with the launch of ‘The GlenJourneys Pioneer Edition’, a premium 21-year-old Highland single malt scotch whisky. Devgn has partnered with luxury spirits house Cartel Bros in this venture. He is not the first, nor is he going to be the last to venture into owning liquor brands, even as premiumisation is becoming the norm and connoisseurs are increasingly becoming aspirational and are looking at experiences, brand identity and quality. This trend began in the West with several celebrities associated with high-end brands and is catching up here.

Long before any of them really got into owning liquor brands or even before premiumisation had set in, our own Danny Denzongpa, the villain and character actor in Bollywood, had founded the Yuksom breweries in his hometown – Sikkim. Actor Tsering Phintso alias Danny Denzongpa’s, Yuksom Breweries Limited was established in 1987. Subsequently, in 2005 and 2009, Yuksom set up its second greenfield project in Odisha and acquired third brewery, Rhino Agencies in Assam. The three breweries together have a production capacity of over 680,000 HL per annum.

Yuksom Breweries has its market in Sikkim, West Bengal, Assam and Arunachal Pradesh. The brands include Hit (Super Strong Beer); He-Man 9000 (Super Strong Beer, bottle and can); Dansberg 16000, brewed at Denzong Breweries and sold in Odisha  and also internationally (Super Premium Beer); Dansberg Blue (Premium Lager); Denzong 9000 (Strong Beer); Dansberg Red (Special Strong Beer); Dansberg Strong (Premium Strong Beer); He-Man 9000 Gold (Ultra Super Strong Beer); Himalayan Blue (Premium Lager Beer) exported to US and Australia and Himalayan Snowman (Super Premium Beer) sold in US.

Shah Rukh Khan and son Aryan Khan’s D’Yavol Inception making waves

Shah Rukh Khan (SRK), the highly popular Bollywood actor and his son Aryan Khan jumped into the fray in 2023 with the launch of D’Yavol Inception, a 100% pure malt Scotch whisky. Originating from Scotland, this whisky is carefully crafted as a medley of eight selected single malts hailing from the Speyside, Highland, Lowland, and Islay regions.

His son recently launched fashion and lifestyle brand D’yavol X in partnership with the Belgian drink and brewing company Anheuser-Busch InBev (AB InBev) in the Indian market.

D’Yavol which means ‘Devil’ in Russian has already captured the imagination of whisky drinkers in Karnataka, Maharashtra, West Bengal, Haryana, Delhi, Uttar Pradesh, Telangana, and Goa. The price ranges from ₹6,000 in Haryana to ₹9,950 in Karnataka. It has bagged several awards including the ‘Best Overall Scotch’ as well as the ‘Best of Class’ Blended Malt Scotch Whisky at the 2024 New York World Spirits Competition (NYWSC) for its flagship whisky – Inception.

D’Yavol co-founder Shah Rukh Khan said “INCEPTION’s award at the New York World Spirits Competition is a testament to the belief that the finest things in life are crafted with care and passion.”

This whisky is currently sold in Goa, Maharashtra, and Karnataka. (Images: Instagram)

Sanjay Dutt ‘s The Glenwalk has amazing sales

Another actor who has invested in alcobev startup Cartel & Bros is Sanjay Dutt and The Glenwalk Scotch whisky is quite popular having notched up impressive sales of 1.4 million bottles in FY 2024-25. Riding on his popularity, the company hopes to touch 4.2 million bottles in FY2025-26. Launched in December 2024, the brand is said to have generated over ₹15 crores in just 45 days, selling over 300,000 bottles in Maharashtra alone.

Cartel & Bros is a partnership of Manesh Sani and Mokksh Sani of Living Liquidz, one of the largest liquor retail chains in India; Jittin S. Merani of Drinq Bar Academy; and Rohan Nihalani of Morgan Beverages. “Unlike other Scotch whiskies in India, where the alcohol comes at a higher ABV from Scotland and is then bottled in India with Indian water, The Glenwalk is made and bottled in Scotland with Scottish water. This guarantees an authentic taste of Scotch,” said Jittin S. Merani.

Cartel & Bros are totally in sync with market trends and know how celebrities with their fan-following can influence them into becoming potential consumers. They are playing with the psyche of the fans and are roping in celebrities as the latter can build brands at accelerated pace. We have seen that happen with The Glenwalk. Now, Cartel and Bros has brought on board Ajay Devgn for ‘The GlenJourneys’, but we are yet to see any female celebrity in the alcobev sector, but the guess is, it won’t be too long a wait as India has seen a number of young women entrepreneurs launching gin, tequila and other categories with success.

Sanjay Dutt, a renowned actor launches The Glenwalk beverage!

Ranveer Singh equity partner in ABD Maestro

Last year, another superstar Ranveer Singh became an equity partner in Allied Blenders and Distillers Maestro, in a new business venture to offer a portfolio of premium brands. “I am delighted to partner with Allied Blenders and Distillers’ unique initiative. This venture is not just about creating and offering premium and luxury spirits, but equally about realising the aspirations of the Indian consumer. We’re blending world-class products, sourcing and craftsmanship with the rich, vibrant flavours of India, creating experiences that speak to people,” said Ranveer Singh, business and creative partner.

“At ABD Maestro, we believe in the power of innovation. This new venture, with a major impact personality like Ranveer Singh, represents our commitment to bring together simply the best. With him as our business partner and a creative mentor, we are confident that our luxury products will resonate with consumers,” said Alok Gupta, Managing Director, Allied Blenders and Distillers Limited.

Rana Daggubati’s Loca Loka

Actor Rana Daggubati owns an international tequila brand Loca Loka (Loca in Spanish means crazy and Loka in Sanskrit means world), using 100% pure highland agave sourced from the highlands of Jalisco, Mexico.  In collaboration with music composer Anirudh Ravichander, Loca Loka is imagined in India, authentically produced in Mexico. The duo has blended & bottled the cultures, colours, art, tastes, and emotions of the two nations with vibrant energy.

At the launch last year, Daggubati said, “Both Indian and Mexican cultures boast rich histories, vibrant music and art, and much more. With Loca Loka, we look forward to bringing the essence of these cultures together and sharing them with longtime lovers of tequila, as well as those who are beginning their tequila journey. The entrepreneurial opportunity to innovate within the spirits industry while honouring and merging Indian and Mexican traditions is an adventure, I actively wanted to be a part of instead of just being a brand ambassador. There are so many possibilities with this venture and the introduction of Loca Loka is just the start.” 

Loca Loka – Harsha GOC

Celebrity Pull Factor

There is more than one reason why companies are bringing celebrities on board. Besides, their pull factor, making the brands more noticeable and reaching a wider audience, celebrities, unlike earlier days, are weary of advertising, even surrogate advertising. In India, the Central Consumer Protection Authority (CCPA) has escalated its efforts to clamp down on the indirect promotion of alcohol and tobacco. Celebrities and social media influencers who engage in such promotional activities could now face penalties of up to ₹50 lakh, according to new CCPA guidelines.

From advertising to investing, celebrities across the globe have made a decisive impact on businesses as they help in reaching a broader audience; improve brand credibility; go beyond boundaries; and make brands stand out from competitors.

Dwayne Johnson, Beyonce, Michael Jordan…. List of celebrities owning spirit brands is unending

Celebrities in India have just taken the first step, while internationally the list of celebrities from the field of cinema, music, sports etc, is quite exhaustive. They include Fast and Furious actor Dwayne Johnson (owns Teremana Tequila brand ); American rapper and actor Snoop Dogg (Still G.I.N); American singer and husband of Priyanka Chopra, Nick Jonas (Villa One Tequila); actor Ryan Reynolds (Aviation American Gin); Hollywood star George Clooney and Rande Gerber (Casamigos Tequila); Singer Beyonce (SirDavis Whisky); American TV personality and influencer, Kylie Jenner (Sprinter vodka); Hollywood star Brad Pitt (The Gardener Gin); actors Matthew McConaughey and Camila McConaughey (Pantalones Organic Tequila); Basketball icon Michael Jordan (Cincoro Tequila); Music band The Rolling Stones (Crossfire Hurricane Rum); actor and singer Jennifer Lopez (Delola, RTD spritz); actor Emma Watson and her brother Alex (Renais Gin); WWE star John Cena (Thomas Ashbourne); ‘Sex and the City’ TV personality Sarah Jessica Parker (The Perfect Cosmo by SJP); Heavy metal band Metallica (Blackened Whiskey); actor Mark Wahlberg (Flecha Azul Tequila); actor Eva Longoria (Casa Del Sol Tequila); singer Mariah Carey (Black Irish cream liqueur); Jamie Foxx (BSB-Brown Sugar Bourbon); actor Kate Hudson (King St. Vodka); singer Bob Dylan (Heaven’s Door Spirits, handcrafted whiskeys); actor Channing Tatum (Born and Bred Vodka); singer Justin Timberlake (Sauza 901 Tequila); David Beckham (Haig Club) among many others.

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

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.

Recent Bloodbath in Stocks, How Liquor Stocks are Performing

In the recent past, the stock market has crashed massively with the BSE Sensex going below 77,000 and the NSE Nifty50 also saw a sharp decline. Most broader market indices have been in the red. At the time of writing on February 13, the Sensex and Nifty were trading higher bringing relief for investors, following a six-day decline. The rise has been attributed to the meeting of the Indian Prime Minister Narendra Modi with the US President Donald Trump and the appreciation of the rupee against the dollar.

How have the liquor stocks been performing in this backdrop. It is reported that a few liquor stocks are outperforming consumer staples, even though there is slowdown in consumption. Brokerage firms are betting on some liquor stocks, the notable ones being Radico Khaitan and United Spirits. Some brokerage firms have estimated an upside potential of up to 19%, while some others have given six stocks a growth potential of 7% to 54%, something to cheer.

This is despite the demand environment remaining muted in Q4 FY24 due to inflation. In the previous quarter, liquor companies have had higher sales, thanks to the festive season, Cricket World Cup and wedding season.

United Spirits, a good bet

Though United Spirits, with famous brands such as Johnnie Walker, Black & White, Black Dog, Signature, Royal Challenge, McDowell’s No.1, Smirnoff and many more, had subdued sales in Q4 FY24, it is now focussed on premiumisation, in line with global trend of upgrading to better brands.

For the fourth quarter of FY24, the company recorded consolidated net sales of ₹2,666.00 crore, down from ₹2,989.30 crore in the December quarter and ₹2,864.70 crore in the September quarter. For the nine months ending December of the current financial year, the company notched up net sales of ₹18,995.50 crore, compared to ₹7,879.90 crore in FY22, ₹6,946.60 crore in FY21, and ₹5,664.80 crore in FY20. PAT for the nine months of the current year stood at ₹927.60 crore, compared to ₹847.70 crore in FY22.

United Spirits stock is trading at ₹1394.50 (down 3%) with the 52week low being ₹1075 and the high being ₹1700. If an individual had invested ₹1 lakh on February 12, 2020, it would now be worth ₹2.02 lakhs.

Radico Khaitan Riding High on Premiumisation

The next company to watch is Radico Khaitan, manufacturers of Rampur Indian Single Malt Whisky, Magic Moments, Dazzle Vodka, 8PM whisky and more. The company, one of the largest manufacturers of Indian Made Foreign Liquor (IMFL), which has 30 plus bottling units, over 75,000 retail outlets, reported an increase of 27.05% in its consolidated net profit to ₹95.48 crore in the third quarter ended December 2024. The company had posted a consolidated net profit of ₹75.15 crore in the October-December quarter a year ago, according to a BSE filing from Radico Khaitan.

Its revenue from operations went up 8% to ₹4,440.90 crore during the quarter under review. The figure was ₹4,111.23 crore in the corresponding quarter of the previous fiscal. In the December quarter, Radico Khaitan’s total IMFL volume was at 8.36 million cases, up 15.3% year-on-year. The Chairman & Managing Director Lalit Khaitan said, “Despite challenges in overall consumption growth, the spirits industry in India has experienced strong momentum, particularly driven by premium brands. In this context, we have delivered an impressive operational performance in Q3 FY25.”

Radico Khaitan is driving a premiumisation strategy which has benefitted the company’s financials. The premium products category is growing at over 20%. Rampur India single-malt whisky is gaining popularity by the day, all of which are driving EBITDA margins to 17-18% and improving the cash flow. The company expects these positives to result in a sharp fall in its debt levels by FY26.

If an individual had invested ₹100 in Radico Khaitan in 2021, it would now be fetching ₹242.81. The stock is trading on February 13, 2025 at ₹2,119 (down by ₹118 for the day).

United Breweries 17% gain in a year

United Breweries, subsidiary of Heineken N.V and makers of Heineken, Kingfisher Premium, Zingaro, Kalyani Black Label, London Pilsner etc., had gained 3.9% in trade following Heineken N.V reported its 2024 full-year results. The market capitalisation of the company stood at ₹54,561.32 crore. The 52-week high of the stock was at ₹2,299.4 per share and the 52-week low of the stock was at ₹1,645.8 per share.

UB is a market leader and its brand Kingfisher grew in volume in mid-single-digit, while Kingfisher Ultra and Heineken Silver volumes grew in the mid-thirties, gaining segment market share. UB shares have gained 17% against Sensex’s rise of 7.3% in the past one year.

Sula Vineyards Robust Growth

India’s largest wine producer, Sula Vineyards, has reported robust growth in its premium wine portfolio and wine tourism segment for the third quarter (Q3) and nine months (9M) of FY25, despite a challenging market environment. The company, known for its expansive range of wines and innovative wine tourism initiatives, announced its financial results, showcasing resilience and strategic adaptability.

In its latest performance update, Sula posted its highest-ever 9M net revenue of ₹489.2 crore, marking a 1.7% year-on-year (YoY) growth. This growth was largely driven by the company’s premium and elite wine brands, which saw a 5.6% YoY increase in Q3. The share of these higher-end labels in the company’s portfolio reached an all-time high of 80.5% in Q3, up from 77% last year, reflecting Sula’s strategic focus on catering to India’s evolving taste for luxury and quality.

Wine tourism, a key differentiator for Sula, also shone brightly, recording a remarkable 11.6% YoY growth in Q3 revenue. This was attributed to a vibrant festive and wedding season, coupled with higher guest spending, improved occupancy rates (81% compared to 76% in the previous year), and an increase in Average Room Rates (ARR).

However, the company faced significant headwinds in Q3, impacting profitability. The reduction in WIPS credits resulted in a direct EBITDA impact of ₹4.7 crore for the quarter, contributing to a 26.3% decline in EBITDA to ₹53.9 crore. Profit After Tax (PAT) also fell by 34.7% YoY to ₹28.1 crore, reflecting the pressures on margins.

Sula Vineyards share price is ₹317.55 as of February 13, having a 52 Week high of ₹639.95 while 52 week low is ₹308.10. Some brokerage firms are suggesting investors to hold on.

Tilaknagar Industries confident

Tilaknagar Industries Ltd., primarily engaged in the manufacture and sale of IMFL and extra-neutral alcohol, has brands such as Courrier Napoleon Brandy-Green, Mansion House Whiskey, Lumumba, Apple Fizz, Madira Rum, Brandy Smash, Warm Punch, etc.

Tilaknagar Industries for nine months FY25 had a net revenue from operations at ₹1,028 crore v/s ₹1,035 crore the previous period. The EBITDA improved by 28.6% to ₹176 crore v/s ₹137 crore; adjusted for the subsidy income. Volumes grew 2.1% to 84.9 million cases, while the net service revenue stood at ₹1,227 per case.

However, the company’s share price had hit 20% lower circuit at the time of writing, following the Bombay High Court’s dismissal of its petition in a trademark dispute involving the Mansion House brand. The company is going on an appeal on the Court order. The share price on February 13 was ₹261, the 52 week high been ₹457 and the low been ₹182.05, with a lot of promise. The alcobev market in India has been growing gradually over the years, thanks to the rising disposable income, urbanisation and retail innovations, all of which are making liquor stocks a good bet, despite the industry been highly regulated and prohibition in place in some states. The alcobev sector is dynamic, attracting investors as demand for alcobev products sees no decline. India’s alcohol industry is projected to reach sales of US$ 112,338.9 million by 2034, indeed a bet worth taking.

Alcobev Sector Soft Target, Governments Keep Hiking Taxes Arbitrarily

  • Telangana government’s delay in settling dues, liquor industry in dire straits
  • Cash-strapped Congress government mulling increase in liquor prices
  • Third tax hike in the last five years

With the exception of States which have prohibition, all other States, if they need to shore up their revenues, first target alcobev sector. State government after state government have increased excise duties, license fees etc without batting an eyelid and in most cases without taking the industry into confidence. The alcobev sector is the milch cow.

The latest news is that the cash-strapped Congress-led Telangana government is looking at the liquor industry to come to its rescue.  Telangana’s alcobev sector, which is a major revenue earner for the state, is now faced with two major issues – government’s inability to clear outstanding dues of over Rs. 4,700 crore and its impending decision to increase taxes on liquor – both of which adversely impacting the sector.

To give a perspective, the Telangana government is depending on Overdrafts, Ways and Means Advances and Special Drawing Facility (SDF) from the Reserve Bank of India to meet its expenditure. The Congress government which came to power in December 2023 in Telangana has so far raised Rs. 12,358.48 crores through these routes.

In many states, excise is a major revenue generator and in Telangana revenue from liquor sale doubled from Rs. 12,703 crores in 2015-16 to Rs. 31,225 crores in 2021-22. For 2022-23, the state government had projected a revenue of around Rs. 37,500 crores from liquor. In 2023, the Telangana Excise Department managed to collect Rs. 2,639 crores without selling a single bottle of liquor, the money coming from nearly 1.32 lakh applications charging Rs. 2 lakh non-refundable application fee for the allotment of 2,620 liquor shops.

Fiscal deficit up

Despite the increase in revenues, the government has not been able to reduce the fiscal deficit as the Congress government has announced quite a few freebies that is costing the exchequer. To shore up revenues, the Congress government is planning to increase tax on liquor which in turn will push up the prices. The proposal made recently is expected to come into effect soon. The previous Bharat Rashtra Samiti (BRS) government in its term had hiked the liquor prices twice and now the Revanth Reddy government is contemplating, in five years that would be the third tax hike.

An industry veteran told Ambrosia “Nobody likes a tax increase. As liquor is a discretionary product, people slip down the value chain or they resort to alternate sources of supply, so both of which have implications to both the state government and the suppliers. In that respect, it is not the best of moves.  This kind of thing is happening in other states, given that they have made electoral promises and have to fund that and alcobev is the soft target.”

The veteran who has held top posts in various companies said “As of now, we don’t know what levels the tax is going to be increased. Somewhere, there is a mention of license fee going up, we don’t know whether it is tax on consumer or manufacturers/suppliers or both we don’t know yet.”

The CEO of the International Spirits & Wines Association of India (ISWAI), Nita Kapoor in an interview with ET Hospitality has called for urgent attention to the critical issue of high state excise duties that account nearly 70- 80 percent of consumer MRP, inflationary pressures adding significant pressures on the industry. As inflation rates rise in the country, the alco-bev sector faces significant challenges due to escalating costs of production, transportation, raw materials, and exorbitant import duties. This combination poses a dire threat to the industry’s sustainability.

Ms. Kapoor said, “The liquor industry has consistently and significantly contributed by generating 25-40 percent of revenues for state governments and nearly 2 percent of nominal GDP. However, the current tax and tariff structure, characterised by high excise duties, limited supplier price flexibility, and exorbitant import duties of 150 percent (50 percent BCD + 100 percent AIDC), is pushing the industry toward a crisis. Regulators must recognise the necessity of inflation-linked adjustments in supplier prices as the Alcobev industry is a cornerstone of economic activity.”

Beer suppliers due Rs. 1,200 cr

On the one hand hike in liquor prices and on the other the government not releasing outstanding dues, both are hitting the industry hard. Beer suppliers, it is estimated, are to get nearly Rs. 1,200 crores, pending since October 2023. The alcobev sector has urged the government to resolve the issue as some of them were finding it difficult to go ahead with production.

The Director General of the Brewers Association of India, Vinod Giri said, “In absence of immediate resolution of this problem, I fear some companies may be forced to opt out of the state.”  Of the Rs. 1,200 crores due to beer suppliers by Telangana State Beverage Corporation (TSBCL), around Rs. 900 crore is beyond tender credit terms of 45 days, he said, adding some of it is even 120 days overdue. “Payments are being released but amounts are too small and don’t even cover new outstandings, leave aside past ones.”

The alcobev companies in a statement said, “Delayed payments is creating a stressful cash flow situation for the manufacturing companies, hindering their ability to invest in operations, buy raw materials, pay employees and continue supplies to the consumers. Despite repeated attempts by industry leaders to meet key ministers in the state, the issue remains unresolved. This lack of communication and action is causing frustration and uncertainty amongst manufacturing companies in the state.”

It said that this might force companies to curtail supplies to Telangana. Unless the government does something soon, some companies may be forced to cut costs, including job retrenchment. This situation, the alcobev sector said would further dent industry confidence and dampen investor sentiment in Telangana.

As regards the delay on the part of the government on outstanding dues, the industry veteran mentioned that “All suppliers put together beer, spirits and wine, as of May 31st the outstanding was over Rs. 4,700 crore. That itself is an additional cost the supplier is bearing and if consumers resort to alternate sources, it is not good for the suppliers. The suppliers have held on for quite some time, the question is for how long can they hold on.”

Telangana major liquor consumption state

Liquor consumption in Telangana is high as the state guzzles over 6 crore cases of beer or 15% of 40 crore cases sold across the country per annum. As regards Indian Made Foreign Liquor (IMFL), Telangana’s consumption is about 3.4 cases or 9% of 39 crore cases sold.

The non-payment of dues and the constant hike in liquor prices had left some in the trade to sell liquor above the maximum retail price (MRP) to make up for the losses. Besides, some licensed vendors were reported to have opened bars in the guise of permit rooms. The Bar Owners Association complained to the Excise Department against the wine shops which were allowing consumers to drink on the premises. The Association argued that they were already burdened by the excise rules of the government and adding to the woes were the so called ‘permit rooms’. In the process, the government was also losing revenue. The bar owners, on the other hand, complained that bars with retail outlets on the premises was affecting their business.

Despite woes, AP traders planning to move to Telangana

Whatever the issues, the consumer in Telangana continues to patronise the alcobev sector and this has enthused some liquor manufacturers to move or add liquor businesses from Andhra Pradesh to Telangana. According to reports, some of the liquor dealers in Andhra Pradesh were selling unknown brands at exorbitant prices through the state-run AP Beverages Corporation Limited (APBCL). Brands such as President’s Medal, Capital, Timer, Boom Boom, Classic Blue, Old Admiral, Royal Green and Sentinel were out in the market, particularly rural, in large numbers.

There have been allegations that out of 100 liquor companies, the APBCL procured 75% of its liquor from only 15-16 manufacturers like SPY Agro, Adan Distilleries, PMK Distilleries, etc., which are controlled by the erstwhile ruling party leaders of YSRCP. It now remains to be seen how the Telegu Desam Party which has come to power in Andhra Pradesh will take a call. However, the Telangana market being a lucrative one, the AP businesses are looking at Telangana.

Meanwhile, in Telangana there are charges and counter charges from the ruling dispensation and the BRS. In an open letter to the Telangana Chief Minister, A.Revanth Reddy, the BRS leader M.Krishank urged the Chief Minister not to introduce adulterated liquor in Telangana.  Krishank said that on May 21, minister Jupally Krishna Rao stated that no proposals had been made to allow new liquor companies to operate in Telangana State. He warned that if anyone reported such news, a defamation suit of Rs 100 crore would be filed against them. However, on May 27, the BRS party exposed minister Jupally Krishna Rao’s falsehood, revealing that the government had indeed granted permissions to a company named Som Distilleries, pointed out Krishank. The Minister acknowledged stating that the decision was taken by the Beverages Corporation. It is now reported that the government has decided to cancel the permission given to Som Distilleries to sell its liquor in Telangana.

The liquor industry not just in Telangana is looking for stability in policy making but also to ensure that the government takes care of the liquor industry which is a revenue-spinner.

Beam Suntory is Now Suntory Global Spirits

Beam Suntory has rebranded itself to become Suntory Global Spirits, marking the 10 years since Suntory acquisitions of Beam Inc. in 2014. The 10 years has seen the company nearly double its growth from a from a $2.5 billion-dollar company to a $5.5 billion-dollar global spirits powerhouse today.

The rebrand includes the launch of a new website and visual identity to celebrate Suntory Global Spirits’ focus on quality, craftsmanship and sustainability –brand attributes that they feel are connected to and complemented by those of its parent company, Suntory Holdings. The rebrand is expected to help the company drive value as one global team and focus on key priorities including American whiskey, Japanese Spirits, Scotch, Tequila and Ready-To-Drink, while providing flexibility for growth in the future. 

Since the acquisition of Beam Inc. in 2014, the company has seen an incredible transformation to become an even stronger organization, led by the shared values of Yatte MinahareGrowing for Good and Giving Back to Society.

“Now is the right moment to deepen our shared passion for the innovation and artistry that deliver incredible experiences through our products and fully unlock our unified advantage across our leading spirits portfolio,” said Tak Niinami, President & CEO of Suntory Holdings and Executive Chairman of the Board of Directors at Suntory Global Spirits. “  

“The dedication that Suntory CEO Tak Niinami and Suntory Holdings have shown to advancing our culture and business growth – while also preserving the legacy of craftsmanship and interplay of traditions exemplified in brands from Jim Beam to Laphroaig and Maker’s Mark to Yamazaki – is extraordinary. Becoming Suntory Global Spirits is the natural next step in our evolution,” said Greg Hughes, President & CEO of Suntory Global Spirits. 

The company’s new brand platform also pays homage to the bold steps that Suntory and Beam Suntory, now Suntory Global Spirits, have taken over the last decade in pursuit of Suntory Global Spirits’ ambition to become the World’s Most Admired Premium Spirits Company.

Supreme Court observation on Blenders Pride vs London Pride Whisky on Trademark Infringement

The Apex Court in an observation on January 22 has asked respondents Indore-based JK Enterprises if they are willing to change the trade dress of the brand London Pride whisky in a trademark infringement case filed by Pernod Ricard India Pvt Ltd., makers of Blenders Pride and Imperial Blue whiskies. A bench of the Chief Justice of India, D.Y. Chandrachud, Justices J.B. Pardiwala and Manoj Misra adjourned the case by two weeks while asking the respondents – JK Enterprises to get instructions in this regard.

The Supreme Court in two recent hearings saw the petitioners – Pernod Ricard India Pvt Ltd and ANR – presenting their case by bringing bottles of whisky of the two contending brands to highlight trademark infringement. Senior Advocate Mukul Rohatgi representing the petitioners had taken permission to display the bottles in the Court to point out the similarities in the name ‘Pride’, trade dress and the bottle shape. The trade dress between London Pride and Pernod Ricard’s another brand ‘Imperial Blue’ has similarities.

Pernod Ricard said, “The respondent has copied the trademark Blender Pride by adoption and use of London Pride and further copied the colour combination, get-up and trade dress of Imperial Blue of petitioners including use of bottles with embossing of Seagram, the house mark of the petitioner.”

Pride is a generic word, CJI

Presenting the bottles to the Court, advocate Rohatgi said, “In this case the name is not the copy. In this case the trade dress, and even the bottle is identical. And something worse, bottle is absolutely identical.” Rohtagi showed “London Pride” to the bench, however, the bench said the bottle had a different shape. Chief Justice Chandrachud said that the term “Pride” is a generic word. Rohatgi went on to argue on the ‘deceptive similarity’ by recalling similarities in name such as Royal Stag-Indian Stag, Blenders Pride-Casino Pride, Amritdhara- Lakshmandhara, Imperial Blue-Imperial Gold, Golden Deer-Double Deer, Johnny Walker-Captain Walker, Lal Kila-Hara Kila, Field Marshal-Sona Marshal, Officer’s Choice-Green Choice etc. It may be mentioned here that the Supreme Court had in September last year refused to grant interim relief to Pernod Ricard India in its trademark infringement plea against United Spirits which manufactures whisky under the name ‘Royal Challengers American Pride’.

D.Y. Chandrachud, Chief Justice of India

Misuse of embossed bottles

Rohatgi further pointed out how the respondent had misused ‘Seagram’ embossed on the bottles. “Seagram is also mine, which they are using. They are either getting manufactured from somewhere else or getting from Kabadi. Because they can’t get Seagram.” The CJI then asked the petitioners to point out where the bottle was embossed with the word ‘Seagram’. The bench in lighter vein asked the petitioners not to hand over the bottle but to indicate from their place where the embossed word was.

The CJI on seeing the bottles remarked “Why have you (London Pride makers) but adopted the same trade dress and colour and all? Get instructions on whether you will change. We will keep it on Friday week. Ask yourselves, why you suddenly chose to use ‘Pride’?”

Price difference pointed out by respondents

The apex court witnessed interesting exchanges between the two parties. When Senior Advocate Dr. S. Muralidhar, appearing for the respondent, said that affluent customers can easily discern between London Pride and Blenders Pride, the latter being a premium product. Countering this argument, Abhimanyu Bhandari, representing JK Enterprises, submitted that London pride was much cheaper. He argued that while Blenders Pride was priced around ₹1,650, London Pride cost about ₹600. Therefore, someone willing to buy a Blenders Pride would never buy a bottle of London Pride, he contended.

The apex court bench pointed out that the question whether ‘London Pride’ name is deceptively similar to ‘Blenders Pride’ requires arguments from both sides. The petitioners had alleged that the Indore-firm was hurting Pernod’s ₹4,400 crore annual turnover.

The Chief Justice of India observed there was no absolute similarity with regard to the names of Blenders Pride and London Pride. “You used the word ‘Blender’, they use the word ‘London’, and the bottles are also different. They are also saying 42 other manufacturers also use the word. Blender and London are two completely different words.” The CJI asked an open-ended question “Will a person walking into a store to buy Blenders Pride only say give me ‘Pride’ or ‘Blenders’?”

Appearing for Pernod Ricard, Senior Advocate Dr. Abhishek Manu Singhvi argued that the makers of London Pride were riding piggy-back on Blenders Pride. Pernod Ricard was also represented by advocates Hemant Singh, Mamta Jha, Mohit D Ram, Rajul Shrivastav, Monisha Handa, Sambhav Jain, Reha Mohan and Anubhav Sharma.

Appeal against Madhya Pradesh High Court order

Pernod Ricard India had approached the Supreme Court following the order of the Madhya Pradesh High Court of November 3, 2023, which had rejected their petition to stop the sale of London Pride whisky on grounds of trademark infringement. The Madhya Pradesh High Court had found no visual, phonetic or structural similarities between the two whisky brands.

The High Court in its judgment had held “…The first word of the trade mark of plaintiffs is ‘Blenders’ whereas that of the defendant is ‘London’. There is absolutely no similarity in them leave aside any dissimilarity. ‘Pride’ being a generic, common place and laudatory expression in ‘Blenders Pride’ mark, the common man would certainly treat ‘Blenders’ part of plaintiff’s mark as the dominant part. The question of comparison of the words ‘Imperial Blue’ and ‘London Pride’ does not even arise…”.

Court contends that consumers can distinguish between two brands

The High Court went on to conclude that “It can be safely presumed with a sufficient deal of certainty that the consumers of such products would be mostly literate and having reasonable intelligence to distinguish between the bottles of Blenders Pride/Imperial Blue and that of London Pride. Even if they are of average intelligence with imperfect recollection, they would be able to differentiate between the rival competing brands… Liquor consumers of scotch whisky are educated and discerning type. They are literate persons belonging to the affluent class of society.” During the conclusion of the day’s hearing in the Supreme Court, the CJI remarked in lighter vein that Dr. Muralidhar had spoken with “much authority” on the whisky products, to which the latter replied “I am the only sober one here.”

– R. Chandrakanth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jim Murray at the launch of Amrut Bagheera and Portonova

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

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

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

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

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

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

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

Jim Murray at the launch of Amrut Bagheera and Portonova

How can Indian distilleries enhance their quality and global standing?

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

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