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India-UK FTA Signed: 26 Alcobev Industry Leaders Share Expert Insights!

• Prime Minister, Narendra Modi calls the pact ‘historic milestone’

• UK Prime Minister, Keir Starmer believes it would strengthen alliances and reduce trade barriers

• Scotch whisky and gin tariff reduced from 150% to 75%

• Indian alcobev industry hopes ‘minimum import price’ and non-tariff barriers are addressed

• Radico Khaitan to import `250 crore worth of Scotch in Fiscal Year 2025-26, expects substantial cost-benefit

After protracted negotiations from January 2022, India and the United Kingdom finally signed the ‘Free Trade Agreement’ on April 6. The Indian Prime Minister, Narendra Modi has termed it as a ‘historic milestone’, while his UK counterpart Sir Keir Starmer said that strengthening alliances and reducing trade barriers with economies around the world is part of their ‘Plan for Change’ to deliver a stronger and more secure economy.

The FTA signing announcement came following a telephonic conversation between Prime Minister Modi and his UK counterpart Starmer. The pact was signed in London by the Indian Commerce Minister, Piyush Goyal and the UK Trade Secretary, Jonathan Reynolds. The FTA covers 90% of tariff lines and includes tariff cuts on Scotch whisky, gin, automotive exports, medical devices, and machinery.

Scotch Whisky Tariff Halved

The Scotch whisky industry has been seeking reduction in tariff and that has been halved from 150% to 75% at entry into force, following to 40% after 10 years.

It must be mentioned here, recently India had reduced the tariff on American whiskey (bourbon) from 150% to 100%. India is likely to see now more of imported whiskies, predominantly Scotch as Indians love the dram.

Automotives down from 100% to 10%

The UK Department for Business and Trade (DBT) said that besides whisky and gin, tariff reductions have also been achieved on products such as medical devices, advanced machinery and lamb. Automotives has had the biggest tariff reduction from 100% to 10%. DBT said that the reduction of tariffs would be worth over 400 million pounds based on 2022 trade statistics and is expected to double to 900 million pounds by 2035.

“By striking a new trade deal with the fastest-growing economy in the world, we are delivering billions for the UK economy and wages every year and unlocking growth in every corner of the country, from advanced manufacturing in the North-East to whisky distilleries in Scotland,” said Trade Secretary Reynolds.

PM Modi’s Tweet

Prime Minister Modi tweeted “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded and ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.”

Both agreed that the landmark agreements between the two big and open market economies of the world will open new opportunities for businesses, strengthen economic linkages, and deepen people-to-people ties.

The two leaders agreed that expanding economic and commercial ties between India and the UK remain a cornerstone of the increasingly robust and multifaceted partnership. The conclusion of a balanced, equitable and ambitious FTA, covering trade in goods and services, is expected to significantly enhance bilateral trade, generate new avenues for employment, raise living standards, and improve the overall well-being of citizens in both countries. It will also unlock new potential for the two nations to jointly develop products and services for global markets. This agreement cements the strong foundations of the India-UK Comprehensive Strategic Partnership, and paves the way for a new era of collaboration and prosperity.

The talks between the two nations have been going on since January 2022 and the signing gains importance in the backdrop of the tariff war initiated by the US President Donald Trump. Between 2022 and now, Britain has seen four different Prime Ministers, including the previous PM Rishi Sunak, involved in the negotiations.

INDUSTRY REACTIONS

Sudden and steep reduction, impacts Indian alcobev sector: Deepak Roy

However, the Confederation of Indian Alcoholic Beverage Companies (CIABC) while welcoming the cut in tariffs said it should have been gradual.

The Chairman of CIABC, Deepak Roy said the reduction from 150 to 75% is ‘sudden and steep’ which should have been gradual as the Indian alcobev sector is going through difficult times, besides operating in a highly regulated market.

“The Indian single malts, the gins and others are doing well, but we needed another couple of more years to make them really competitive in the global market.”

He said CIABC is hoping that non-tariff barriers are addressed in the FTA. “We had proposed a minimum import price of 50 to 75$ per case to ensure that there is no dumping of cheap and unknown products.”

Roy added that it was time for some of the State Governments to withdraw the excise duty concessions given to multinational corporations. “There should not be any difference and there should be a level playing field.”

While stating “We are not against any tariff reduction. The Indian industry is ready to compete with the global best and they are holding their own. Only thing, we do not want unknown cheap brands coming and killing the industry here which is providing substantial revenues to the State governments.”

CIABC hopes for ‘Minimum Import Price’: Anant Iyer

The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S. Iyer said, “Though FTA details are still awaited, from what information we have gathered it seems that the Government has not fully heeded to the pleas of the Indian alcoholic beverage industry.

We have always been asking for a level-playing field for the Indian players. We only hope that the government has included in the FTA the minimum import price (MIP) which will prevent dumping / under invoicing and also the removal of non-tariff barriers to ensure better international market access to Indian alcoholic beverages.

“We fear that if the same template of duty reduction is followed for the trade deals with the EU, the US and other nations which produce spirits and wines, then the Indian Alcobev industry, including the wine sector, could get adversely impacted.”

CIABC has urged the Government of India, as pointed out earlier also to various states such as Maharashtra, Kerala, Odisha, Rajasthan, Madhya Pradesh etc., to review the excise concessions given to imported liquor, both spirits and wines. “The governments should make them equal to that of IMFL / Indian wines. This discrimination should end immediately.”

He added, “The government is looking to touch $1 billion exports from the Indian Alcobev industry by 2030. However, without ensuring proper market access especially to the Western nations, it will be difficult to meet the export target. While the other sectors might be benefitting from the FTA, the Indian Alcobev industry seeks similar benefit. Though Indian whiskies, rum and gins have been winning accolades globally, without removal of non-tariff barriers and granting of market access it will be difficult for the Indian Alcobev sector to meet the export target.”

Suntory’s Neeraj Kumar calls its ‘pivotal development’

Neeraj Kumar, Managing Director, Suntory Global Spirits India terming it a ‘historic milestone’, welcomed the decision to reduce tariffs on whisky and gin. “This is a pivotal development that will improve access, affordability, and consumer choice in India. It also marks a positive step in strengthening bilateral trade ties and fostering an environment for enhanced investment, innovation, and growth. The team at Suntory Global Spirits looks forward to unlocking new opportunities for collaboration and growth across both markets.”

Positive Shift for India’s Alcobev Sector: Abhishek Khaitan

The Managing Director of Radico Khaitan, Abhishek Khaitan while extending his congratulatory messages to the Prime Minister and the Minister of Commerce said, “This is a welcome move that signals a positive shift for India’s alcobev sector, particularly for companies on a premiumisation journey and those which are producing world-class spirits.

“As the largest importer of Scotch whisky for blending, Radico sees significant potential for cost advantages through the expected reduction in customs duties. Radico plans to import scotch malt worth ₹250 CR in fiscal year 2025-2026, and this treaty therefore benefits us substantially.

“Overall, this agreement creates a win-win opportunity for Indian companies striving to take India to the global stage with excellence and innovation.”

Hope Indian Single Malts will not dilute premium image: Amar Sinha

The Chief Operating Officer of Radico Khaitan, Amar Sinha termed it as a ‘landmark’ pact that was ‘long overdue’.

“India is transforming and we as a country are producing world class spirits and constantly upgrading our quality. To produce this quality of spirit, obviously we need to import spirits for blending which India does so far as vatted malt Scotch is concerned from Scotland.

“Radico as a company are the largest importers of vatted malt Scotch. This fiscal year 2025-26, Radico plans to import scotch worth ₹250 crores. With this FTA, Radico is going to get substantial benefit on the cost front which will make the company healthier and more profitable. So, we personally think as a company that it’s a great agreement and it will offer great opportunities for Indian companies to continue their premiumisation drive and keep reducing their cost.”

Sinha, however, added, “As far as Indian single malts (ISM) are concerned Radico produces ISM which are today acknowledged as one among the top 10 spirits of the world. Rampur ISM is one among top whiskies from India. We have priced our product pretty high and we believe in pricing our product much higher than what competition does. So, we are not weary of the fact what the competition does to its price. We feel that competition if it reduces price, they will be diluting the image of their premium brand, therefore we don’t think they will reduce price. It would be an opportune moment for foreign companies to make some money through this tax reduction.”

It is a very welcome move and a win-win situation for the UK as well as India, he said and added that the demand of India to look into non-tariff barriers is genuine. “We are waiting for the fine print of the FTA, before that it is difficult to comment.”

‘Short-term impact’ on Indian products: Paul John

The Chairman of John Distilleries, Paul. P. John while welcoming the FTA said, “We believe this to be a significant step towards strengthening bilateral trade and economic cooperation between the two countries. This may have a short term impact on Indian products however we are confident about the quality of our products. We also hope that that this deal will allow better ease of business for Indian products in the UK. It is also crucial to ensure that both nations maintain a level playing field, safeguarding the interests of domestic industries and promoting fair competition.”

Three-year maturation period contentious issue: Vinod Giri

The Director General of Brewers Association of India, Vinod Giri who has championed the cause of the spirits industry earlier, said, “We are yet to see what India gets in return and how the non-tariff issues are handled – especially the condition of three-year maturation to qualify as whisky and measures to prevent predatory pricing.

“In terms of impact Scotch makers are expected to improve their margins first by adjusting duty savings in invoice prices and if that happens, market dynamics will remain unchanged in short terms. Companies importing raw material for blending with domestic whiskeys in India will make some savings on cost.

“The most important long-term impact will be on BII (bottled in India) category. As duties start falling, the rationale for that segment will go away.”

About 30% reduction in retail price, avers Ajay Srivastava

Ajay Srivastava, the Founder of Global Trade Research Initiative and who was earlier part of negotiations with Australia said, “it’s a good decision and trade would increase between the two countries across sectors.”

While stating that as details of the FTA were still not available it would ‘difficult to hazard a guess’ on what the minimum import price would be, Srivastava said but added that “it will only be on the higher side, unlike wine which is around 4 dollars. Scotch always sells at a premium.”

Srivastava said the question that needs to be asked is how much would be the retail price be following the duty reduction. Giving a hypothetical scenario, he said if a bottle of Scotch whisky is 100$ and the duty at 150% and average State government duties is 60%, the consumer will be buying at $400. Now with the tariff halved from 150 to 75%, the consumer will pay 275$ which is almost 30% reduction. It is a good deal and people are anyways willing to pay for Scotch.”

On whether the Indian spirits market would be impacted, Srivastava asked “Is any Indian company producing Scotch. Nobody is in the bulk business. The Indian single malt is a niche market and does not compete with Scotch. Yes, Indians love Scotch.” However, he added that the Indian alcohol sector has to further develop and this would help in doing so.

He said the FTA would open the flood gates to Europe seeking reduction in tariff on wines, maybe up to 50%.

Sanjiv Puri, Regional Director (India), Angus Dundee Distilleries

The proposed Free Trade Agreement (FTA) between India and the United Kingdom marks a significant milestone in strengthening bilateral trade and investment ties. For Angus Dundee Distillers, this development presents a promising opportunity to enhance our presence in one of the world’s fastest-growing spirits markets.

India’s burgeoning middle class, evolving consumer preferences, and growing appreciation for premium Scotch whisky align well with our commitment to delivering high-quality, authentic Scottish products. A well-negotiated FTA could lead to reduced tariffs and streamlined regulatory procedures, addressing long-standing market access barriers that have limited the full potential of Scotch exports to India.

Currently, imported Scotch whisky faces a high customs duty of 150% in India, which restricts competitiveness and volume growth. A phased reduction in tariffs under the FTA would not only make premium Scotch more accessible to Indian consumers but also support local economic activity through increased trade, investment in distribution, and brand development.

For Angus Dundee, a family-owned independent company with a long-standing tradition of quality and integrity, this FTA offers a platform to expand responsibly, collaborate with Indian partners, and contribute meaningfully to the India-UK trade corridor.

We look forward to the successful conclusion of the agreement and are optimistic about its potential to unlock mutual growth and value for both countries.

ISWAI believes premiumisation will get further boost

The CEO of International Spirits and Wines Association (ISWAI), Sanjit Padhi said, “We anticipate that this will accelerate the ongoing trend of premiumisation within the alcobev sector, positively impacting the exchequer revenues of Indian states. Cheaper prices may also result in premiumisation. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices.”

Pegs on enhanced consumer experience

The Adviser (Tax and Regulatory Affairs) of ISWAI, I.P. Suresh Menon said, “ISWAI and its members welcome the UK-India Free Trade Agreement as a landmark development for the Alcobev sector. The reduction in tariffs offers significant strategic benefits for both countries. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices. This enhanced choice will elevate the consumer experience and boost growth across related sectors such as tourism and hospitality.

“We anticipate that this will accelerate the ongoing trend of premiumisation within the Alcobev sector, positively impacting the exchequer revenues of Indian states. We see this agreement as a win-win for all stakeholders in the spirits sector whilst fuelling trade, attracting investment, and fostering the exchange of best practices. It reflects the shared commitment of India and the UK to deepening economic ties and advancing fair, balanced trade.”

RV Subramanian, Director, Ian Macleod Distillers India Pvt Ltd

The UK India FTA is a long-awaited trade deal covering wide range of goods and services between two countries. The most important one among the items is Scotch whisky, the proposed duty reduction of 75% from present level of 150% is a welcome move and this will benefit all stakeholders – the Governments (Centre and States), Scotch whisky companies and Consumers.

India being a predominantly whisky market, the customs duty reduction would expand the market for Scotch whisky, which is currently less than 2% of total Indian whisky market.

It is to be seen whether the states are increasing excise duty and other levies on imported bottled spirits.

It is difficult to predict now, whether consumer will get the benefit of customs duty reduction from 150% to 75% on Scotch whisky, much will depend on the State Excise and Brand owning companies.”

Scotch Whisky Association calls its ‘once in a generation deal’

While the Indian alcobev sector is still hoping for a ‘level playing field’, the distilleries in Scotland are more than happy.

The Chief Executive of the Scotch Whisky Association, Mark Kent calling it a “transformational” deal said, “The UK-India free trade agreement is a once in a generation deal and a landmark moment for Scotch Whisky to the world’s largest whisky market.

“The reduction of the current 150% tariff on Scotch Whisky will be transformational for the industry. The deal has the potential to increase Scotch Whisky exports to India by £1bn over the next five years and create 1200 jobs across the UK. The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.

“This agreement shows that the UK government is making significant progress towards achieving its growth mission, and the negotiating teams on both sides deserve huge credit for their dedication. The Scotch Whisky industry looks forward to working with the UK and Indian governments in the months ahead to implement the deal which would be a big boost to two major global economies during turbulent times.”

Chivas Brothers CEO terms it ‘game-changer’

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said the FTA is a “welcome boost for Chivas Brothers during an uncertain global economic environment.”

He said “India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s. The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte (meaning cheers in Irish) to the UK Ministers and officials who steered the deal though long negotiations.”

Chivas Brothers Ltd. which is part of the Pernod Ricard group of companies, exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater. India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume. The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.

Quality and choice will increase across India: Debra Crew

Diageo Chief Executive Debra Crew said, “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.

“The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market. Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoﬀ, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.”

The Managing Director and CEO of Diageo India (USL), Praveen Someshwar

While congratulating the leaders for the historic agreement said, “The landmark treaty will enable improved accessibility and choice of scotch for the Indian consumers, the largest and the most exciting whisky market.”

Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation. Diageo has 35 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.

Better access to global premium spirits: Sachin Mehta, William Grant & Sons

Sachin Mehta, Managing Director – India of William Grant & Sons India Pvt. Ltd. Said, “This will enable much better access to global premium spirits to India’s growing discerning consumers. This enhanced choice will allow acceleration of the ongoing trend of premiumisation within high-end spirits, not only elevating the Indian consumers experience, but also benefitting the overall industry, trade, exchequer, and related sectors or travel, tourism, and hospitality. We are committed to provide access and choice of world-class brands of our global portfolio to the Indian consumers.”

‘Over the Moon’: Karan Billimoria

Karan Billimoria, Chair of the International Chamber of Commerce, UK, Founder of Cobra Beer and Member, House of Lords, UK Parliament said he was ‘over the moon about the UK-India Free Trade Agreement’.

Calling from the UK, he said, “Negotiations started when I was President of the Confederation of British Industry (CBI) in early 2022 and they have concluded over three years later, whilst I am Chair of the International Chamber of Commerce (ICC) UK.

“India is the fastest growing major economy in the world and this year will become the fourth largest economy globally. In spite of this, India is only the 11th largest trading partner of the UK; it should be one of the handful of largest trading partners.

“I believe this FTA will be a catalyst for bilateral trade, business and investment between the UK and India and will turbocharge bilateral trade in goods and services from the current level of £42 billion to more than double at over £80 billion within the next five years.

“India has historically been a high tariff country, with the extreme being the tariff imposed on Scotch whisky at 150%. Thanks to this FTA, this will halve to 75% and decrease to 40% over the next decade. Scotch whisky exports are, as a result, expected to increase by £1 billion.

“I am hoping that this FTA combined with an investment agreement will also help to increase bilateral investment between the two countries. We already have the examples of Tata investing in Jaguar Land Rover and Tata Steel in the UK, and JCB investing hugely in India over the past decades. Similarly, I am confident that there will be large investments by British alcobev companies in India over the coming years.”

India and UK sign historic FTA

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Prime Minister, Narendra Modi calls the pact ‘historic milestone’
UK Prime Minister, Keir Starmer believes it would strengthen alliances and reduce trade barriers
Scotch whisky and gin tariff reduced from 150% to 75%
Indian alcobev industry hopes ‘minimum import price’ and non-tariff barriers are addressed
Radico Khaitan to import ₹250 crore worth of Scotch in Fiscal Year 2025-26, expects substantial cost-benefit

Scotch Whisky Tariff Halved

The Scotch whisky industry has been seeking reduction in tariff and that has been halved from 150% to 75% at entry into force, following to 40% after 10 years.

Automotives down from 100% to 10%

PM Modi’s Tweet

Prime Minister Modi tweeted “Delighted to speak with my friend PM Keir Starmer. In a historic milestone, India and the UK have successfully concluded an ambitious and mutually beneficial Free Trade Agreement, along with a Double Contribution Convention. These landmark agreements will further deepen our Comprehensive Strategic Partnership, and catalyse trade, investment, growth, job creation, and innovation in both our economies. I look forward to welcoming PM Starmer to India soon.”

Sudden and steep reduction, impacts Indian alcobev sector: Deepak Roy

However, the Confederation of Indian Alcoholic Beverage Companies (CIABC) while welcoming the cut in tariffs said it should have been gradual.

“The Indian single malts, the gins and others are doing well, but we needed another couple of more years to make them really competitive in the global market.”

CIABC hopes ‘Minimum Import Price’, inter-alia, is factored in

The Director General of the Confederation of Indian Alcoholic Beverage Companies (CIABC), Anant S.Iyer said, “Though FTA details are still awaited, from what information we have gathered it seems that the Government has not fully heeded to the pleas of the Indian alcoholic beverage industry.

“We have always been asking for a level-playing field for the Indian players. We only hope that the government has included in the FTA the minimum import price (MIP) which will prevent dumping / under invoicing and also the removal of non-tariff barriers to ensure better international market access to Indian alcoholic beverages.

Radico Khaitan says ‘Win-win’, sees cost-benefit in its imports

The Chief Operating Officer of Radico Khaitan, Amar Sinha while welcoming the FTA has congratulated the Prime Minister, Narendra Modi and the Minister of Commerce, Piyush Goyal for concluding the ‘landmark’ pact. “It was long overdue.”

Radico as a company are the largest importers of vatted malt scotch. This fiscal year 2025-26, Radico plans to import scotch worth ₹250 crores. With this FTA, Radico is going to get substantial benefit on the cost front which will make the company healthier and more profitable. So, we personally think as a company that it’s a great agreement and it will offer great opportunities for Indian companies to continue their premiumisation drive and keep reducing their cost.”

Indian Single Malts should not dilute the premium image

Sinha added “As far as Indian single malts (ISM) are concerned Radico produces ISM which are today acknowledged as one among the top 10 spirits of the world. Rampur ISM is one among top whiskies from India. We have priced our product pretty high and we believe in pricing our product much higher than what competition does. So, we are not weary of the fact what the competition does to its price. We feel that competition if it reduces price, they will be diluting the image of their premium brand, therefore we don’t think they will reduce price. It would be an opportune moment for foreign companies to make some money through this tax reduction.”

Three-year maturation period contentious issue: Vinod Giri

“The most important long-term impact will be on BII (bottled in India) category. As duties start falling, the rationale for that segment will go away.”

About 30% reduction in retail price, avers Ajay Srivastava

He said the FTA would open the flood gates to Europe seeking reduction in tariff on wines, maybe up to 50%.

ISWAI believes premiumisation will get further boost

Pegs on enhanced consumer experience

The Adviser (Tax and Regulatory Affairs) of ISWAI, I.P.Suresh Menon said, “ISWAI and its members welcome the UK-India Free Trade Agreement as a landmark development for the AlcoBev sector. The reduction in tariffs offers significant strategic benefits for both countries. India’s increasingly aspirational and discerning consumers will now have access to premium international brands at more accessible prices. This enhanced choice will elevate the consumer experience and boost growth across related sectors such as tourism and hospitality.

“We anticipate that this will accelerate the ongoing trend of premiumisation within the AlcoBev sector, positively impacting the exchequer revenues of Indian states. We see this agreement as a win-win for all stakeholders in the spirits sector whilst fuelling trade, attracting investment, and fostering the exchange of best practices. It reflects the shared commitment of India and the UK to deepening economic ties and advancing fair, balanced trade.”

Scotch Whisky Association calls its ‘once in a generation deal’

While the Indian alcobev sector is still hoping for a ‘level playing field’, the distilleries in Scotland are more than happy.

Chivas Brothers CEO terms it ‘game-changer’

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said the FTA is a “welcome boost for Chivas Brothers during an uncertain global economic environment.”

He said, “India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s. The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte (meaning cheers in Irish) to the UK Ministers and officials who steered the deal though long negotiations.”

Diageo quality and choice will increase across India

“Bourbon, Welcome to India”

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Ambrosia Magazine 2025 Awards jury member and global spirits expert shares his take on the future of Bourbon and American whisky in India. He is an award winning whisky expert, Keeper of The Quaich and Whisky Magazine Hall of Fame Member.

For the last twenty-five years whisky has enjoyed an unprecedented global growth in popularity, profit, expansion and appreciation in the alcobev industry, and among adult beverage consumers. While Scotch whisky has definitely dominated the landscape for decades, increasing – global travel, social media and global awareness has seen the world’s whisky industry explode. Whisky drinkers are now global explorers, enjoying flavours, aromas, enthusiasm and excitement from all over.

Nowhere is that more exciting than in India, the world’s largest whisky consuming and whisky producing country. India’s own export whiskies are gaining worldwide recognition, almost daily, as they continue to receive accolades and awards at major international competitions. The excitement is in India as well, not just for locally produced products but for whisky from other countries. The popularity of whisky continues to grow among Indian consumers as they explore outside the traditional boundaries.

Bourbon, together with its sibling Tennessee whisky and with its cousin, American Rye whisky, is America’s most popular spirit and has been enjoying growth at home and abroad. Virtually every alcohol consuming culture has a whisky or two which uniquely identifies with the local ingredients, natural resources and climate. Some emulate Scotch whisky, as Scotch is iconic and renowned for its flavour and its traditions. Others celebrate their differences and use local grains and ingredients to achieve a whisky experience which reflects their origins.

Bourbon is a uniquely American spirit and, by law, regulation and international trade agreements, it is acknowledged and protected as such. To carry the label ‘Bourbon’, it must be made in the United States and distilled from at least 51% corn maize, which brings a sweet and fruity character all its own. The balance of grain, called a “mash bill” must be composed of cereal grains – generally rye or wheat – with some malted barley. Bourbon must be matured in new, charred oak containers. The production standards are very specific and while most Bourbon is produced in the state of Kentucky, it can be made in any part of the U.S.

What does the future hold for Bourbon globally and in India? The global Bourbon spirits market is experiencing strong growth, despite a current slowdown due to international tariffs and uncertainty, with projections indicating a rise from approximately $8.2 billion in 2022 to $12 billion by 2030, driven by factors like premiumisation, craft distilleries and international demand.

Here’s a more detailed look at the bourbon volume growth.

• Premiumisation:

Consumers in India and elsewhere are increasingly seeking higher-quality and premium whisky offerings, leading to growth in the high-end and super-premium categories.

• Craft Distillery Interest:

There is growth in craft distilleries and artisanal whisky production which caters to the demand for unique and distinctive spirits.

• International Demand:

Bourbon’s popularity is expanding internationally, with key export markets like Europe, Japan, and Australia showing significant recent gains.

• Popular Cocktail Culture:

The “Cocktail Revolution” continues to expand internationally. The growing popularity of Bourbon-based cocktails and the expansion of cocktail culture further fuels demand. Many classic whisky cocktails are quite adaptable to Bourbon. India is a current global hotspot for this revolution.

• Cross Demographic Appeal and Affordability:

Bourbon has two very important characteristics which make it particularly attractive. First, accessibility – there is the range of pricing from value brands, which are priced to compete with popular, less expensive spirits to ultra-premium labels which appeal to connoisseurs and collectors. The second, perhaps more important, appeal – Bourbon is transgenerational in its appeal and crosses the full range of enthusiasts of all ages, genders and economic classes. In India, this translates into a product which will appeal to younger, aspirational drinkers and explorers.

• Tourism and Distillery Visits:

With return to global travel and the unique relationship between The US and India, particularly in the tech industry where whisky enjoys exceptional popularity, there is resurgence of tourism and distillery visits, providing immersive experiences for consumers, contributes to market growth. This is particularly apparent in Kentucky and Tennessee just as it is also beginning to happen in India.

• Sustainability:

Many distilleries are embracing eco-friendly practices, aligning with consumer demand for environmentally responsible products.

Market Projections:

• Global Market Value:

The global bourbon spirits market is expected to reach $12 billion by 2030, growing at a compound annual growth rate (CAGR) of around 5.6% between 2023 and 2030.

• North America Dominance:

North America remains the dominant market for bourbon, benefitting from strong local demand and a well-established production infrastructure.

• India and Asia-Pacific Growth:

The Asia-Pacific region is projected to experience the fastest growth in the bourbon spirits market. The opportunities in India are exciting as US Bourbon currently enjoys an import duty advantage over its Scotch whisky competitors and cheaper local IMFL products, making it competitive.

• Producers such as DIAGEO, which makes the incredibly fast growing and much celebrated brand, Bulleit Frontier Whiskey Bourbon, as well as several other American whiskey brands, have a strong advantage because of their already well-established infrastructure and market presence in India as well as their familiarity with local whisky culture.

Specific Growth Figures:

• In 2022, bourbon and Tennessee whiskey volumes in the U.S. grew by 4.2% to 29.7 million 9-liter cases, with revenues increasing by 10.5% to USD 4.5 Billion.

• The global bourbon spirits market was valued at nearly US$ 8 billion in 2022 and is expected to reach US$ 15 billion by 2030.

• The global Bourbon category is predicted to grow by 5% between 2022 and 2031.

• The global bourbon spirits market was valued at $7.8 billion in 2021, and is projected to reach $12.8 billion by 2031, growing at a CAGR of 5% from 2022 to 2031.

The Bottom Line
– Bourbon’s Future in India

India is excited about American whiskey. A new, younger generation of educated, globally aligned consumers is energising the whisky market in India and Asia. Currently there are number of products available in India which includes Jack Daniel’s, Jim Beam, Woodford Reserve, Maker’s Mark, Gentleman Jack and Old Forester. And with the entry of Sazerac through John Distilleries Ltd as well as scores of other US companies, the Indian market will be flooded with bourbon and Tennessee whiskeys. Bourbon enjoys a particularly competitive advantage over other imported spirit products. My prediction – a bright and sunny future for Bourbon in India.

– Steve Beal

spiritsEUROPE deeply disappointed over EU announced Tariffs on US Whiskey & spirits

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spiritsEUROPE has said that it is extremely concerned by the announcement of the European Union on rebalancing tariffs on US whiskey and other US spirits categories in response to US tariffs on steel and aluminium. It has urged the EU and the US to keep spirits out of unrelated disputes.

The announcement comes at a particularly difficult time for the spirits sector, amidst geopolitical tensions and a marked slowdown in many key markets. If implemented on 1 April, these tariffs will have a hugely damaging impact on the EU companies that produce US spirits, US companies that are heavily invested in Europe and all actors in the value chain, putting at risk the many jobs they support, including in rural areas.

“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute. As highlighted in our numerous engagements with the European Commission over the last seven years, we fail to understand how this will help with the broader, unrelated dispute on steel and aluminium. The EU and US spirits sectors stand united in their steadfast commitment to maintaining transatlantic spirits trade tariff-free,” said Pauline Bastidon, Trade & Economic Affairs Director at spiritsEUROPE.

The 1997 reciprocal zero-for-zero agreement that eliminated tariffs on spirits led to a remarkable 450% growth in transatlantic trade until 2018, before retaliatory tariffs were first introduced. Their return would have devastating consequences for the sector and put at risk the strong transatlantic trade & investment flows that have benefitted both sides and created so many interconnections on both sides of the Atlantic.

“The clock is ticking. We urge the EU and the US to keep spirits out of unrelated disputes while they work on resolving their differences and protecting the vitally important transatlantic trade relationship,” she said.

Indri’s Winning Streak Continues

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Piccadily Agro Industries Limited has once again made a resounding mark on the global whisky stage, winning six prestigious medals at the World Whiskies Awards 2025. The company’s flagship brand Indri Single Malt with its exclusive expressions, emerged victorious across various categories, reinforcing Piccadily Distilleries position as a trailblazer in the Indian and international whisky landscape.

Indri secured an impressive lineup of awards. They included Indri Founder’s Reserve Wine Cask 11 Years Old, 58.5% ABV (12 years and under – small batch) – Winner; Indri Refill Oloroso Sherry Cask Single Cask 03, 58.5% ABV (No Age Statement) – Winner; Indri 2024 Diwali Collector’s Edition, 58.5% ABV (No Age Statement – small batch) – Silver; Indri Game of Thrones: House of the Dragon Exclusive Edition – House of Black, 46% ABV, (No Age Statement) – Silver; Indri Ex Sauternes Wine Cask Single Cask 47050, 58.5% ABV, (No Age Statement) – Silver; and Indri Game of Thrones: House of the Dragon Exclusive Edition – House of Green, 46% ABV (No Age Statement) – Bronze.

Since its launch, Indri has taken the international whisky scene by storm, challenging industry norms with innovative expressions that celebrate India’s terroir and expertise. With each award and accolade, Indri has established itself as more than just a brand—it’s a symbol of national pride and a testament to the potential of Indian single malts.

Shalini Sharma, Head of Marketing, Piccadily Agro Industries Limited said, “Indri’s journey has been nothing short of groundbreaking, and we are incredibly proud of these remarkable wins at the World Whiskies Awards 2025s. This recognition is a true testament to our relentless pursuit of excellence and our vision to firmly establish Indian single malts on the global whisky stage. Being recognised on such a prestigious international platform is not just a victory for Indri, but a triumph for Indian single malts as a whole. We are reshaping global perceptions, proving that Indian single malts can set world-class benchmarks and stand shoulder-to-shoulder with the finest whiskies across the globe.”

Radico Khaitan, eyeing ₹500 crore from premium brands

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Radico Khaitan expects sales of ₹500 crore from its luxury brands in the next fiscal, according to its Managing Director Abhishek Khaitan. The premium brands are the famous Indian single malt ‘Rampur’ and the artisanal gin Jaisalmer Indian craft gin. The company has plans to add to more brands in the next fiscal.

The company has been experiencing robust sales and expects 8 to 9% growth in volumes and by 12 to 15% in terms of value. The prestige and above segments have been registering double digit growth and the company expects to close in the same range of about 15%.

Radico Khaitan’s luxury portfolio consists of Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt and Spirit of Victory 1999 Pure Malt. “For the first time in Q3 (December quarter) we achieved a turnover of ₹100 crore (from premium) and for the nine months of FY’24, we have achieved ₹250 crore (turnover). We are very confident that for FY’26, Radico Khaitan should achieve ₹500 crore of turnover, just for the luxury segment only,” said Khaitan.

Tilaknagar Industries Launches Green Apple Flavoured Brandy

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Tilaknagar Industries Limited, a leading Indian-Made Foreign Liquor Manufacturer (IMFL), has unveiled a new flavour innovation under its Flandy (premium flavoured Brandy) range. Mansion House Flandy has now been launched in an all-new Green Apple flavour in the state of Telangana, to begin with.

Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “Our Mansion House Premium Flavoured Brandy is a category-first innovation. It has been well-received across markets and its saliency, as a percentage of Mansion House Brandy in relevant states, has grown significantly. The launch of the all-new Green Apple flavour is a testimony to Flandy’s strong performance since its introduction in FY23, and is in line with our plans to further enhance our premium Brandy portfolio while strengthening our regional foothold.”

TI has seen very encouraging response to its Flandy range in the state, aiding the Company’s jump to become the fourth-largest IMFL player and the third-largest IMFL Prestige & Above (“P&A”) player, in Telangana, in FY24.

Tilaknagar Industries, which is one of India’s largest manufacturers of premium Brandy, had earlier rolled out its Mansion House Flandy range in Orange, Cherry and Peach flavours. Telangana is one of the prominent IMFL markets and has one of the highest Prestige & Above (“P&A”) segment with over 50 per cent saliencies across IMFL industry in India. It is estimated that the Brandy P&A segment in the state has grown by 18 per cent in FY24, as compared to almost 8 per cent growth in IMFL P&A segment over the same period. Additionally, in terms of flavours, Green Apple is the largest selling flavour in the flavoured spirits category in the state, providing a large canvas to the brand to gain market share.

First movers in premium flavoured brandy

Mr Ahmed Rahimtoola, Chief Marketing Officer, Tilaknagar Industries said, “We are first-movers in the premium flavoured Brandy category in India. In addition to this, an elevated demand for flavoured drinks and the predominant cocktail culture trend gives Tilaknagar Industries a competitive advantage across markets. The new Green Apple variant of Mansion House Flandy is another step by TI to enrich consumer experience and drive growth.”

The Mansion House Flandy range has a unique blend of natural fruit flavours. The latest offering has been infused with sweet green apple essence which is complemented by the nuanced richness of oaky undertones, delivering a truly palate-enriching experience to consumers.

In the financial year ended March 2024, Tilaknagar Industries volumes grew 16 per cent, year-on-year, in comparison to the overall IMFL industry growth of 2-3 per cent for the same period, making it fastest growing IMFL company in India for the 2^nd year running.

India stands out as one of the largest markets for Brandy, globally. Within IMFL, Brandy is the second-largest product category, accounting for more than 20 per cent share of the industry by volume. Moreover, the premium Brandy industry in India is expected to continue expanding market share within the overall Prestige and Above IMFL segment.

Founded in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company has nine decades of excellence in the consumer goods category. The Dahanukar family continues to be the promoter of TI sharing the same vision and values as the founders. Under the current leadership of Amit Dahanukar, the company has grown to be the largest manufacturer of premium brandy in India. Its portfolio comprises of two ‘Millionaire’ brandy brands, Mansion House and Courrier Napoleon. TI has presence in whisky, rum and gin categories through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

*Jim Murray at the launch of Amrut Bagheera and Portonova*

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

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

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

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

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

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

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

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.

Anti-counterfeiting Technologies to Stop Fake Alcohol Market

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Even as new technologies to prevent fake liquor emerge, there are still many hacks who think of devious ways to push the fake business. This needs to be taken head on.

This November, Haryana reported 20 deaths due to consumption of illicit liquor. On and off, we hear of incidents wherein illicit/fake liquor takes toll of human lives, besides upsetting genuine liquor business. Even as new technologies emerge, there are still many hacks who think of devious ways to push the fake business. That needs to be taken head on.

Counterfeit wines and beverages pose a significant danger, causing a loss of US$3.18 billion in direct sales and costing governments US$2.61 billion in tax revenues, states Vikas Jain, Founder of Acviss Technologies. He states that counterfeiters have been able to pull off frauds that would have looked impossible a decade ago, now with the help of technologies. And by leveraging e-commerce platforms and social media they are able to distribute their products across the world as well.

But what is fake liquor? Fake or illegally produced alcohol is that which is produced in unlicensed distilleries or people’s homes and intended for sale. Production of fake alcohol is more likely to use cheaper versions of alcohol, and contain potentially even more dangerous chemicals, unlike alcohol which primarily uses ethanol. There is no way of knowing for certain the ingredients contained in fake or illegally produced alcohol, there lies the risk of drinking it.

The Food Safety and Standards (Alcoholic Beverages) Regulations, 2018 has in detail listed out what companies need to take care of, including labelling, while manufacturing and selling all kinds of spirits, beer and wine. However, the illicit and fake liquor business in India is thriving and many times with impunity. So, it is for the liquor manufacturing companies to secure their businesses, using technologies, intel and other means.

Fake market growing

Reports indicate that in India alone there were over 6,000 deaths due to poor-quality or fake liquor in the last six years. With the Indian alcohol market growing at a CAGR of 8.8% and it was to reach 16.8 billion litres of consumption by end 2022, the fake market too is growing. As per the Federation of Indian Chambers of Commerce and Industry (FICCI), the illicit alcoholic beverage market size in value terms stood at ₹23,466 crores in 2019-20.

As excise comes under the purview of the State and each of the 29 States (Gujarat, Bihar and Nagaland have prohibition) and seven Union Territories have their own ways of regulating liquor trade. There are avenues for fake liquor, interstate smuggling of liquor etc. depending upon where the market is lucrative. The onus lies on the brands to protect their interests as counterfeiting goes beyond the labels, bottle designs and caps.

Counterfeit trade flourishes

Says Vikas Jain, “Counterfeit beverages are being abundantly available in the market and there doesn’t seem to be an end to it. Fake alcohol products that are produced illegally or use sub-par ingredients and don’t meet security and safety standards. The counterfeit trade has already cost the Indian government a loss of ₹1 trillion in taxes in recent years.”

Common malpractices

Mr. Jain mentions that the most commonly used malpractices in the alcoholic beverage industry include –

Bottle Recycling: Counterfeiters collect empty authentic bottles, refill them with inferior or fake products, and reseal them with counterfeit labels and closures.

Label Forgery: By using high-quality printing techniques and materials, counterfeiters create fake labels that closely resemble authentic branding and design.

Blending and Dilution: One of the most widely practised counterfeit techniques is to mix lower-quality alcohol or water base with small amounts of original ones to create the illusion of authenticity. This leaves the consumers convinced that they have purchased the original product and won’t raise much suspicion.

Implementing a clear and standardised labelling

Asked how brands can protect themselves from counterfeiting, Mr. Jain mentions that the starting point would be implementing clear and standardised labelling with detailed information about the product, including origin, production methods and quality certifications. “One of the best visual identifiers to prevent counterfeiting is to use a highly recognisable and unique bottle shape. This helps the customers to directly identify the brand and verify its authenticity without using another method of authentication. Conduct regular campaigns to raise awareness about the risks of counterfeit alcohol and the importance of purchasing from reputable sources. Work closely with retailers to ensure that they are educated about the risks of counterfeit alcohol and can guide consumers in making informed choices. And obtain and display recognised quality certifications on the product packaging to signal authenticity and adherence to industry standards.”

Incorporating non-replicable labels

Asked about how Acviss helps in combating the counterfeiting menace, Jain stated that “Acviss’s Certify helps to incorporate non-replicable, unique labels into your product or packaging. The best part is that they are tamper-resistant and act as a digital certificate for the products. Customers can easily scan and verify the authenticity of these products and quickly glance through the product and manufacturer information.

Acviss’s Origin tracks your product through each stage of its lifecycle, from the manufacturer to distributor and the end consumer. This helps to learn the behaviour of the supply chain, increasing the visibility and locating the vulnerable points.”

Long run benefits

On the issue of anti-counterfeit solutions being expensive, Mr. Jain mentioned, “Yes, most companies see anti-counterfeit solutions as an unnecessary cost. But, frankly, anti-counterfeit solutions are an investment that can benefit the brand in the long term run. Not just to recover the profits, but also to retain customer trust and reach out to new audiences. The plus side with Acviss is, that our solutions can be customised according to the requirements of the brand which is more effective than a one-size-fits-all solution.”

To deal with this menace, brands have to think on different levels. “As technology is getting more and more advanced, counterfeiters are also finding new ways to bypass the existing preventive measures. But it doesn’t necessarily mean that the anti-counterfeit solutions are meaningless. If we take Acviss as an example, we have been constantly evolving and innovating new technologies to keep up with changing environments. We have also been able to surpass the existing measures and create groundbreaking inventions in the brand protection field lately by leveraging the AI and ML technologies.”

Mr. Chander S Jeena, Associate Director of the Authentication Solution Providers’ Association (ASPA) said, “The answer lies in the upgradation of current technologies, systems, and regulations to ensure end-to-end secure supply chain. For example, to prevent tampering, refilling, and ensure revenue protection, the tax stamps (excise adhesive label) must be enhanced with new generations’ overt (visible) and covert (hidden) security features to facilitate easy identification by important stakeholders in the supply chain. Further, there is a need for solutions to safeguard the movement of liquor supply. Many States are using geo-tagged ‘digital locks’ for liquor-carrying tankers, with GPS-based tracking services to track in transit consignments through distilleries, bottlers, company-owned bonded warehouses, and transporters. Widespread use of these solutions across the country can bring a drastic change in just a few years.”

VINEXPO Delhi 2023 – All set to Roll

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Keep an eye out for European Wines with Sommelier Devati Mallick

The stage is all set for VINEXPO Delhi 2023 to get underway tomorrow. While there is much to look forward to for the visitors, with many foreign producers gracing the event, the European Union (EU), located at Booth F50 in Hall 1B is expected to have a strong showing as the Region of Honour. The fair will be held from 7^th– 9^th December, 2023.

European wines, beers and spirits are more than alcoholic beverages, thanks to exceptional raw materials, timeless craftsmanship and unwavering safety standards. Europe is the birthplace of the world’s wine industry, and traditions of winemaking are proudly passed from generation to generation; they have defined European rural landscapes for centuries. Nowadays, the EU accounts for 45% of world’s wine-growing areas, 65% of wine production, 57% of global wine consumption and 70% of exports, making it the world leader in each of these categories.

A tradition of quality and excellence

More than 1700 European wines have Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) protections, serving as a guarantee of their authenticity and quality. The consumers can enjoy these products in the knowledge that they have been produced to the highest quality and safety standard. Whatever your preference, you will find something to delight you among the wines of Europe. Red, white, rosé or sparkling wines from Europe can help make any occasion special.

European Union: The Region of Honour at SIAL and VINEXPO in New Delhi

What makes this year’s VINEXPO particularly noteworthy is the presence of over 50 company representatives, including 14representing wines and spirits sector, facilitating B2B matchmaking sessions on December 7 and 8. These sessions offer invaluable opportunities for Indian buyers, retailers, and distributors to connect with European businesses across various food and drink sectors

Moreover, the European Union’s VINEXPO booth will host a series of enlightening masterclasses on wines, beers and spirits. Each Masterclass, lasting 30 minutes, will feature a selection of beverages for tasting. Among these, the EU Masterclasses, led by renowned sommelier Devati Mallick, promises to be a highlight. As you sip and savour the wines, you’ll embark on a journey through Europe’s finest vineyards, guided by the expertise of a true connoisseur.

As we gear up for VINEXPO Delhi 2023, we invite you to join us in celebrating the union of tradition and innovation in European winemaking. Stay tuned for an unforgettable wine experience that promises to captivate your senses and leave you with a deeper appreciation for the world of wine.

Let’s raise our glasses to VINEXPO Delhi 2023, where European wines and spirit drinks will take center stage, and the EU’s commitment to vinicultural excellence, along with the expertise of Devati Mallick, will shine brighter than ever before.

The EU’s participation in SIAL and VINEXPO 2023 is part of its ‘More than Food’ campaign, actively promoting outstanding European agricultural products on a global stage. For the latest information and updates, visit the official ‘More than Food India‘ webpage.

For media inquiries, please contact: sial2023@agripromotion.eu