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Diageo India acquires Nao Spirits

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

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

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

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

Imaginative Limited Editions

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

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

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

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

Teacher’s Whisky Unveils a Bold New Identity

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

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

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

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

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

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

The Regular, The Semi-Premium, The Premium and Super Premium target audience

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India’s alcoholic beverage sector is the world’s third largest. Despite a lack of uniformity in state excise rates, state-specific regulations, and limited opportunities for the marketing of alcoholic beverages, the sector continues to record significant growth.

The alcoholic beverage industry is one largest processed beverage industries in the world. Globally, the alcohol market is valued at 2.4 trillion dollars. In India, the alcohol industry was valued to be at 55.84 billion dollars in 2024. The Indian alcoholic industry is one of the fastest growing and most diverse alcoholic beverages market globally. The sector has a high-growth potential given favourable demographics and increasing social acceptance.

Alcoholic Beverages industry (Alcobev) is a portmanteau for a large variety of alcoholic drinks. These drinks are categorised into Beer, Wine and Other Spirits. They are generated from variety of sources such as corn, wheat, grapes, molasses, and other agricultural products. The Alcobev Industry directly supports the agriculture and food processing industry in India. In India, alcohol consumption stood at 4.9 litres per capita with male alcohol consumption at 8.1 litres per capita. 18.8% of men and 1.3% of women in India consume alcohol.

India has one of the youngest populations globally. The total population of India is estimated at 1.43 billion for 2025. The median age in India is estimated to be 28.2 years in 2023 and is expected to remain under 30 years until 2030.

Regular

The population pyramid of India is bottom heavy with growing working age population and low dependence ratio. This trend is expected to lead to rising income levels per household as well as higher levels of discretionary expenditure.

The Indian middle class constitutes 31% of the population and is expected to be 38% by 2031 and 60% in 2047. Households with annual earnings between USD 5,000-10,000 grew at a pace of 10% between 2012 and 2020. These households are leading to an increase in discretionary spending on food and beverages, including alcoholic beverages, apparel and accessories, luxury products, consumer durables, and across other discretionary categories.

Women Participation: Increasing education, workforce participation, and urbanisation is leading to a change in the socio-economic status of women in society.

This increase of women in the workforce has resulted in a shift of patterns in terms of household activity, an increase in incidence of eating out coupled with entertainment which may lead to higher acceptability of women consuming alcohol.

Semi Premium

Young consumers are better educated, more tech savvy, well informed, and willing to try new products. Alcobev manufacturers are focussing on craft premium spirits at higher price points to capitalise on margins, while premium brands also tend to command greater loyalty among consumers.

The proportion of people who drink alcohol varies considerably low in a global context. This raises the expectation of significant growth potential in per capita consumption, especially as the acceptance of alcohol is spreading. A major consumer base that has emerged over the past five years is the rising acceptance of drinking amongst women.

The Indian alcobev industry is segmented majorly into Indian Made Foreign Liquor (IMFL) and Indian Made Indian Liquor (IMIL). Based on the type of products, Alcobev is classified as Beer, Whiskey, Wine, Rum, Brandy, Vodka, and other alcohols. The two segments of IMFL and country liquor cater to different sections of society. Country Liquor caters to the low-income groups in rural areas while IMFL caters to the middle-and high-income groups in both urban and rural areas.

Beer, a popular alcoholic beverage made from water, malted barley, yeast, and hops. It contributes approximately 8% to the recorded consumption of pure alcohol in India. The beer market in India is evolving from manufacturing usual beer products such as strong-lager beers to flavoured beers owing to the adoption of foreign trends and technologies. Today, more than 140+ beer brands exist in the Indian beer market, which could address the palate of each customer segment. The per capita beer consumption in India is still very low compared to other countries in the Asia Pacific region, and therefore the market could witness rapid growth in the coming years.

Super Premium

Ranked on its own as a country, India would have a population of 140 million spread across 30 million households, and would be the 10th-largest country in the world. Its per capita income would stand at $15,000 (about ₹12.80 lakh).

This would place it at 63rd position on the list of countries by per capita income. For perspective, Oman, which is at 54 on the real list, has a per capita income of $20,000.

Premium

The Indus Valley Annual Report 2025, published by venture capital firm Blume Ventures, divides India into three categories: India 1, representing the wealthiest 10% of the population; India 2, representing the middle 23%; and 3, 67% the rest of India.

The “aspirant class”, consisting of about 23% of the population, would be made up of 70 million households and 300 million people, and would have a per capita income of $3,000 (about ₹2.55 lakh).

Country

India 3 would consist of 1 billion people across 205 million households, the entire “bottom” 67% of the economy. Per capita income here stands at $1,000 (about ₹85,000).

How badly do averages skew perception? In 2023, India’s average per capita income was placed at $2,500, or about ₹2.12 lakh.

Super Premium

Who are the wealthiest?

3.7% of the world’s HNI individuals are Indian citizens, according to the Knight Frank Wealth Report 2025, released in March. They define HNI as a net worth of $10 million or more. 85,698 Indians met this mark, according to the Knight Frank report.

India is third on the list of countries with the wealthiest billionaires. Indian billionaires collectively hold an estimated $950 billion in wealth, coming in immediately after the US ($5.7 trillion) and Mainland China ($1.34 trillion).

191 is the number of billionaires in India, as of 2025, according to the Knight Frank report. 26 of these billionaires joined the ranks over the financial year 2023-24 alone. A big jump from seven new billionaires in 2019.

Indian Alcoholic Industry Overview

The Indian alcoholic industry has a high growth potential due to favourable demographics and increasing social acceptance. The alcobev industry in India grew remarkably in recent years because of factors such as rapid urbanisation, evolving consumer priorities, a burgeoning middle-class population, greater purchasing power, and growing liking for premium alcoholic beverages.

Alcohol consumption has surged across geographies, as a growing number of consumers, both men and women, enter the target consumer class. The legal drinking age in India varies from 18 – 25 years, depending on the state, highlighting the enabling environment for the alcohol market’s robust growth.

The consumer landscape in India has traditionally been a pyramid, with many households from low incomes forming the base, and a small number of households with large incomes at top. Similarly, alcohol consumption forms a similar structure with lower brand consumption dominating the larger base while premium brand consumption dominating the upper base. With growth being fuelled by economic development and demographic dividend, the rising “middle class” is divided into groups each with distinct consumption drives and needs.

In India, the alcohol consumption is expected to increase. Alcohol consumption stood at 4.9 litres per capita, with male alcoholic consumption at 8.1 litres per capita and female alcohol consumption at a mere 1.6 litres per capita. Alcohol consumption is expected to increase to 5 litres per capita in 2025 and to 6 litres per capita by 2036.

India’s alcohol market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 3.3% from 2022 to 2027, making it the fifth-largest market globally, according to IWSR.

The role of the alcoholic beverage industry in India’s economic landscape is expected to grow. Recognising its potential and addressing the existing hurdles will help spur economic growth. The Indian alcohol beverage market is the third largest in the world and is poised to become a key player in the global spirits industry, with products made in India rapidly gaining prominence internationally. Valued at US$ 59.8 billion in FY24, the sector contributes significantly to India’s economy, accounting for nearly 3% of the nation’s GDP. As India becomes a manufacturing hub, the alcoholic beverage sector will play a key role in this growth. Both global and local players view India as a thriving domestic market and a potential exporter, particularly for home grown single malts. This growing segment aligns closely with the “Make in India” initiative, showcasing India’s potential in premium spirits production.

Whisky dominates the Indian spirits industry by a wide margin. By consumption patterns, Telangana, Maharashtra, West Bengal, Odisha, Karnataka, Uttar Pradesh, and Punjab, are among the largest consumers of alcobev in India. Liquor stores serve as the predominant sales channel nationwide, especially since alcobev consumption and sales primarily occurs outdoors.

The Indian alcohol industry is in a nascent stage compared to the global liquor industry. The growing economy supports the sector through an interplay of demographics, urbanisation, and policy reforms.

Young Population:

In 2024, revenue in the alcoholic beer market in India is projected to reach USD 9.8 billion, and exports experience a value of 34 million in 2023. The market is expected to experience an annual growth rate of 6.89% (CAGR 2024-28).

Whisky market

India is the largest whisky market in the world, with almost one out of every second bottle of whisky sold in India. The Indian whisky market was projected to reach USD 17.4 billion in 2024 and was expected to reach USD 22.4 billion by FY 2025 by leveraging demographic trends, new customers and premiumisation. Indian whisky market can be divided into four segments including popular (up to ₹450), prestige (₹450-1000), premium (₹1000-2000) and luxury segments (More than ₹2200). The value segment, consisting of popular and prestige segments, contributed close to 86% of the total volume for the Indian whisky market.

The contribution of the premium and luxury segment by value is projected to reach around 34% of the overall whisky market by FY 2028 from 33% in FY 2023. However, its contribution by volume would still be close to 16% in FY 2028. The Whiskey industry is expected to grow annually at 5.3% (CAGR 2024-2028). The Indian whisky sector generates the highest revenue among all alcoholic beverages in India.

Wine Market

The consumption of wine in India constitutes a small share but is one of the emerging alcoholic beverage categories. Growing awareness, underpinned by income growth, westernisation and a changing profile of consumers, is driving growth in the wine category.

Domestic wine manufacturers have invested in both the upstream and downstream operations of value chain. To leverage the growing acceptance of wines in the premium and luxury segments in metro cities in India. Metro cities including Mumbai, Bangalore, Delhi-NCR, Hyderabad, and Pune are the major consumption centres for wines in India. The Indian wine market is a concentrated market with domestic players controlling the market and steadily increasing their prominence in the market.

The wine segment was valued at ₹2,660 crore, with the domestic wine industry constituting 73% of the market size in 2023. It is expected to grow to ₹6,425 crores in 2028, with the domestic wine industry constituting 77%. The wine market sold 3 million cases in 2023 and is expected to sell 3.9 million cases in 2025 (Provisional). It is expected to experience an annual growth rate of 14.57% (CAGR 2024-2028).

Rum market

Rum is made by fermenting and then distilling sugarcane molasses or sugarcane juice. It is available in dark rum and light rum. Dark rum is the more popular category with a share of ~98% followed by light rum. Dark rum differs from traditional rum due to the addition of caramel or by the maturation in oak containers. Canteen stores department or army canteens are the primary drivers of rum sales in India. Rum is also the preferred alcobev drink in the northern and eastern states of India.

The Rum segment was valued at ₹21,074 crores in 2023 and is expected to increase to ₹30,240 crores by 2028 (provisional). The sale of Rum, which stood at 51 million cases in 2023, is expected to increase to 68 million cases in 2028 (provisional). The sector is expected to grow at 5.65% (CAGR 2024-2028).

Brandy market

Brandy is a beverage made by distillation of wine. It may be aged or matured to possess aroma and taste of brandy. Indian blended brandy is a mixture of minimum 2% of pure grape brandy with any other fruit or flower brandy as recommended by the Indian Law. Indian brandies are permitted to use extra neutral alcohol (ENA) from other agricultural origin sources.

Indian Brandy market can be divided into four segments, including popular (up to ₹450), prestige (₹450-800), premium (₹800-1500) and luxury segments (More than ₹1500). Brandy consumption is price sensitive as most brandy brands are in the popular and prestige segment. There is a high degree of variation in the price structure of brandy in different states, with each having an independent cost structure with unique excise duties and other applicable taxes, which leads to varying prices from state to state.

In 2024, the revenue from the brandy market in India was estimated to reach USD 3.7 billion. The Brandy segment is projected to grow annually at 4.33% (CAGR 2024-2028).

Vodka market

Vodka is a clear distilled alcoholic beverage. It is made from a fermentable base which can be grains, potatoes, or other starchy or high-sugar plant matter. The vodka industry in India constitutes a small part of the overall alcoholic beverage industry, but is experiencing one of the highest growth rates among all the alcoholic industry. Magic Moment, a core Vodka brand in India recorded sales of 6.3 million cases during the year and crossed sales value of 1,000 crore.

The revenue of the vodka segment amounted to USD 37.8 million in 2024. It is projected to grow annually at 2.13% (CAGR 2024-2028).

This is attested by the growth in sales, profit, along with projected capacity addition by alcobev companies. The alcoholic drinks sector will witness strong growth prospects in the alcoholic drinks sector over the years, driven by an improving macroeconomic growth, positive demographics, shifting cultural values, expanding young, middle class, rising sophisticated retail channel, a progressively more adventurous consumer base, and a burgeoning premiumisation trend.

The increasing focus on streamlining state excise policy, increasing support from the government, entry of international brands, effective promotion and branding by the companies, and improving the standards of alcoholic beverages available in India will provide further impetus to the growth of the alcobev industry in India. Concerted attempts to relax the cumbersome complex regulatory framework, simplify its operational complexities, enhance its Ease of Doing Business (EODB), and unlock its full growth potential will provide tailwinds to this industry. However, rising consumer inclination to consume non-alcoholic beverages may constrain market growth.

Khukri, Nepal’s Award-Winning Iconic Rum, Makes Its Grand Entry into India

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MCKT Beverages Pvt. Ltd. Recently announced the arrival of its internationally acclaimed Khukri Rum in India—an icon of heritage and craftsmanship, set to redefine the premium spirits landscape. Produced by Nepal’s first distillery, and revered as the rum from the top of the world, Khukri carries over 65 years of Himalayan legacy. This celebrated spirit embodies the pinnacle of Nepalese rum-making tradition, offering authentic and timeless flavour profiles that seamlessly blend tradition with innovation. With its entry into India, Khukri Rum not only expands its global footprint, but also reinforces MCKT’s vision to elevate the Indian spirits market by offering superior quality products.

The current variants launching in the Indian market include three premium expressions, each thoughtfully crafted to cater to diverse palates and preferences. Khukri XXX Rum offers a bold, dark blend with earthy undertones and a smooth, long caramel finish. It carries the notes of toffee, vanilla, and prune, with a rich taste of honey complemented by hints of Himalayan herbs and fruits. Khukri Spiced Rum is a tasteful concoction of assorted spices enriched with dry fruits, delivering a warm, subtly sweet taste that ends with a smooth, long finish. Infused with cardamom, ginger, and hints of toffee, its flavour unfolds into woody cinnamon notes enriched with dry fruits. Khukri White Rum presents delicate tropical notes and a creamy character, meticulously charcoal-filtered for exceptional smoothness. It delivers a crisp, clean finish, making it perfect for refined cocktails and refreshing serves.

Each expression in the Khukri collection tells a unique story of Himalayan heritage while upholding the exceptional quality that has earned the brand global acclaim. Khukri Rum has been recognised with prestigious awards, including the Bronze Award at the 2024 International Wine and Spirit Competition, Silver at the 2004 World Selection of Spirits & Liqueurs, and Gold at the International Rum Festival, among many others.

Crafted with passion and precision, Khukri Rum is made from the finest Nepalese sugarcane and distilled with pristine Himalayan waters. It is the only rum aged in Shorea Robusta casks, a unique feature that enhances its depth and character. Traditional open-flame caramelisation adds richness, while high-altitude aging in cool mountain temperatures allows for a slower, more refined maturation. Select batches, some aged for over 45 years, are expertly blended with younger rums to create a spirit of exceptional complexity and smoothness.

For centuries, alcohol has been central to Nepalese culture, deeply rooted in traditions and celebrations. Passed down through generations, the craft of brewing preserves heritage while embracing innovation, elevating Nepal’s spirits industry with world-class craftsmanship. A testament to this legacy, Khukri Rum draws inspiration from the legendary Gurkhas and the precision of the Khukuri knife. Distilled in the pristine Himalayan foothills using pure Himalayan waters, Khukri Rum exemplifies the purity, tradition, and indomitable spirit of Nepal.

Harsh Sinha, Country Director – India, MCKT Beverages Pvt. Ltd. said, “We are thrilled to introduce Khukri Rum to Indian consumers, marking a pivotal moment in our journey. With a rich legacy dating back to 1959, Khukri Rum embodies the finest craftsmanship, heritage, and quality. India’s growing appreciation for premium spirits makes this an opportune time to bring our iconic blend to this dynamic market. This expansion is a strategic step in our commitment to sharing Nepal’s proud distilling tradition with a discerning audience, and we look forward to establishing Khukri as a preferred choice among connoisseurs.”

Now available in Uttar Pradesh, Goa and Maharashtra, Khukri is set to expand further across India. Already established in key global markets like the USA, UK, Japan, Italy, Australia, and the UAE, it continues to build on its rich legacy by offering a premium convivial experience while setting a new benchmark for rum enthusiasts nationwide.

From Bar Counter to Global Stage

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Observe the whisky’s colour.

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

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

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

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

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

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

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

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

Telangana Hikes Beer Prices

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The Congress-I government led by Chief Minister, Revanth Reddy has permitted the Telangana State Beverages Corporation Limited (TSBCL) to increase beer prices by 15%, following a request from the Brewers Association of India (BAI) and a brief supply halt by United Breweries which wants the government to clear its dues.

According to the revision, popular brands are going to cost more by ₹30 to ₹50 per bottle. While officials termed it a 15% increase, the actual maximum retail price (MRP), including taxes, has gone up by 15% to 19% for consumers.

Beer prices in Telangana (650 ml)

Brand	Old MRP	New MRP	Difference
Heineken	230	270	40
Kingfisher Ultra Witbier	320	370	50
Kingfisher Ultra	210	250	40
Kingfisher Ultra Max	220	260	40
Amstel Strong	190	220	30
Kingfisher Premium	150	180	30
Kingfisher Strong	160	190	30
RCL	150	180	30
Green Deer	150	180	30
Haywards 5000	160	190	30
Knock Out	170	190	20
Budweiser	210	250	40
Budweiser Magnum	220	260	40
Corona (330ml)	210	250	40
Hoegarden (330ml)	230	270	40

On January 8, United Breweries Ltd (UBL) had suspended the supply of its beer to TSBCL due to unpaid dues for past beer supplies. UBL in a regulatory filing also stated that this decision was made due to the non-revision of the company’s beer prices since 2019-20 leading to significant losses in the state. Later, UBL resumed supplies.

BAI Welcomes Hike

The Brewers Association of India has welcomed the Telangana government’s decision to hike beer prices and urged the government to release the dues to the beer industry at the earliest. “Though the increase being allowed is less than the increase in the cost of production or what the industry was expecting, we welcome it as it signals that the government is mindful of the concerns of the industry on business viability in the state and has followed through on its promise of looking into it,” the BAI said in a statement.

A market-driven system is the most efficient way to benefit everyone, and we will continue to engage with the government to advocate for this approach, said Vinod Giri, Director General of BAI. “We have full confidence in Chief Minister Reddy’s leadership and wisdom, and we hope the issue of outstanding payments for beer supplies made between February and August last year will also be resolved promptly,” he added.

Giri further emphasised that Telangana is a key state for the beer industry. Being a high-volume product, locally-made beer has a significant economic impact on the state’s supply chain, employment, ancillary industries, logistics, and the hospitality sector.

The government, it must be mentioned, had set up a price-fixing committee, comprising a retired judge, a retired senior IAS officer, and a chartered accountant. The committee, it is said, considered the price inflation in raw materials and beer prices in neighbouring states, before arriving at the revised prices.

According to official data, there are nine distilleries and six beer factories in Telangana, including one belonging to UBL. There are seven other beer companies that sell beer in Telangana but manufacture them in other states. Overall, 51 liquor and beer companies are selling 1,031 varieties of hard liquor and beer in the state through 2,620 liquor shops and 1,117 bars and pubs. These include 50 locally manufactured brands and 36 non-local brands. Every month, 45 lakh to 55 lakh cases of beer are sold, making Telangana one of the largest beer-consuming states. In comparison, only 30-35 lakh cases of hard liquor were sold, highlighting that beer is sold more in the state. The excise department’s annual contribution to the state exchequer is about ₹36,000-₹40,000 crore in revenue.

With summer around the corner, beer drinking in Telangana is going to see a surge, price hike or no price hike.

India’s Love Affair with Flavoured Rum: A Trend on the Rise

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Flavoured rum is redefining India’s spirits industry, appealing to modern drinkers with its versatility and unique profiles. As new innovations emerge, the segment continues to grow, transforming traditions and opening new markets

India’s fast-expanding $52.4 billion alcobev sector now contributes approximately 2% to the nation’s GDP. This achievement, largely attributed to the past two decades of remarkable growth, reflects an industry that continues to adapt to evolving consumer preferences. With the market forecasted to expand by nearly 7% in the coming years, experts believe the country is only beginning to tap into its enormous alcobev potential.

Within the broader industry lies the rum category, which, despite its longstanding presence, is now experiencing significant transformation. Currently valued at just under $1 billion, the segment is projected to exceed $1.4 billion by 2029, driven by consistent annual growth of 2% to 4%. This momentum is further amplified by innovative players introducing flavoured rum varieties, enhancing the drink with unique tastes and vibrant appeal.

For industry stakeholders, the objective is to build on these advancements to catalyse further growth across the entire alcobev ecosystem. Flavoured rum, in particular, has become a regular feature in bars, nightclubs, and ready-to-drink formats, catering to consumers who prefer enjoying rum at home.

Exploring the growth of flavoured rum in India

**Vicky Chand, Managing Director of Radiant Manufacturers North East**

India’s rum industry is an emerging force within the larger alcobev landscape. According to Vicky Chand, Managing Director of Radiant Manufacturers North East, flavoured rum in the country is produced in two distinct ways: one adhering to the global standard of using a sugarcane-based spirit as the foundation, and the other employing alternative blending materials. Chand highlights that these approaches are chosen by distillers based on style and preference.

**Raju Vaziraney, Advising President of IMFL, India Glycols Ltd.**

Radiant’s award-winning product, Lost Treasure Coffee Rum, is gaining popularity with its unique blend of grain, cane, and malt spirits infused with cold brew coffee. This combination delivers three distinct yet harmonious profiles that connect with flavoured rum enthusiasts. Explaining the growing appeal of flavoured rum, Raju Vaziraney, Advising President of IMFL, India Glycols Ltd., credits it to the adventurous nature of young consumers.

“Young Indian consumers are dynamic and aspirational. They actively seek new recipes and flavours to share experiences with their peers. This curiosity sparked the popularity of flavoured vodka over a decade ago, followed by gin, and now it’s rum’s turn,” Vaziraney explains. “Flavoured spirits are accessible and versatile, allowing consumers to enjoy them without the complexity of crafting cocktails. This is especially appealing to those unfamiliar with mixology.”

**John Royerr, Founder of Ochre Spirits**

The perception of rum as a “winter drink” has also progressed, with new varieties dispelling the notion of seasonality. Flavoured rum has broadened the drink’s appeal, making it a choice for all seasons. John Royerr, Founder of Ochre Spirits, notes that consumers are increasingly discerning.

“Drinkers now value smoother, more flavourful spirits. Artisanal rums, often crafted in small batches, deliver a premium experience distinct from mass-market brands. This shift is reshaping traditions and creating space for innovative offerings,” Royerr adds.

He also points to India’s growing cocktail culture, which has fuelled demand for flavoured rums. These spirits add variety and depth to home bars and social occasions, appealing to consumers seeking a sophisticated drinking experience.

For instance, Bacardi Mango Chili combines the beloved flavour of mango with a spicy kick, demonstrating how brands are creatively leveraging local tastes. This product is now widely available across several states, from Pondicherry to Uttarakhand. Ashish Jha, Brand Lead at BACARDÍ India, highlights the strategy behind such launches. “Understanding Indian consumers’ preferences is essential. Mango is a beloved flavour, while chili adds a zestful edge. This blend is in line with local tastes and offers something fresh to the market,” he says.

Assessing the opportunities

The burgeoning flavoured rum segment presents significant opportunities. While traditional rums are often viewed as occasional beverages, flavoured varieties cater to younger audiences unafraid to experiment. However, the premium nature of some flavoured rums necessitates a focussed market approach.

For Chand’s Lost Treasure Coffee Rum, the current strategy involves targetting the Northeast, a region with a growing appetite for distinctive rums. “We use cone spirit, a scarce ingredient, which limits our initial reach. By concentrating locally, we aim to establish our brand and later diversify into categories like white rum,” Chand shares.

Vaziraney’s Zumba Spiced Rum is similarly carving out its niche. “Younger consumers prefer new flavours, while traditionalists stick to classic blends. We’re catering to adventurous drinkers, aiming for nationwide presence and eventual international expansion,” he remarks.

Tarun Samvedi, Director of F&B at The Resort, Mumbai, observes this evolution. “Our venues often attract guests looking for distinctive experiences, including flavoured rum. Signature drinks like tropical punches and spiced mojitos highlight the versatility and visual appeal of these options. For instance, the tropical punch is ideal for summer-themed gatherings, while the spiced mojito offers a warm, aromatic touch perfect for cooler evenings or celebrations. Patrons who may not usually enjoy the intensity of traditional rum are drawn to the lighter, more refreshing character of flavoured options,” he notes.

Discussing his preferred brands, he adds, “Bacardi stands out for its diverse range of flavours, which work beautifully in various cocktails, from tropical punches to classic daiquiris. Captain Morgan delivers a rich complexity with its spiced and flavoured offerings, making it a favourite for mojitos and hot toddies. Malibu is also a staple, known for its signature coconut rum, a perfect choice for tropical or beach-inspired drinks.”

Apurva Bhatia, Beverage Manager at The St. Regis Goa Resort, highlights the importance of ice and presentation. “Crushed ice enhances the chill and adds a slushy texture to tropical cocktails, while clear ice blocks offer stunning aesthetics for showcasing rum’s vibrant hues. Two of my most requested flavoured rum cocktails are Susegado Daiquiri – a blend of coconut rum, homemade jackfruit, palm sugar, vetiver cordial, house citrus, topped with jackfruit marshmallow – and Spiced Island Julip, which combines spiced rum, spearmint, house citrus (grapefruit, lime, orange), brown syrup, and homemade ginger beer. Personally, I lean toward Diplomatico Mantuano for sipping and Ron Matusalem for mixed beverages,” Bhatia elaborates.

Expanding consumer preferences

A notable trend driving the growth of flavoured rum is the mounting interest in health-conscious drinking. Consumers are seeking low-calorie, naturally flavoured options that align with their wellness goals. This shift has prompted many brands to explore organic ingredients, ensuring their offerings cater to the sprouting demands of mindful drinkers. This approach has broadened the appeal of flavoured rum, making it a viable choice for those who prioritise balance without compromising on taste.

Additionally, the appeal of flavoured rum extends to culinary applications. Mixologists and chefs alike are incorporating these rums into innovative dishes and desserts, further strengthening their place in contemporary dining experiences. For example, rum-infused cakes and flambéed dishes featuring tropical rum varieties are gaining traction in high-end restaurants and home kitchens alike.

The versatility of flavoured rum has also led to its adoption in events and social gatherings. Wedding planners are now including rum-based cocktails as part of curated drink menus, adding an element of uniqueness to the celebrations. These custom drinks, often inspired by regional flavours, bring a personal touch to festive occasions and elevate the guest experience.

Flavoured rum is further finding its way into experiential marketing campaigns, where brands create immersive experiences for their customers. Pop-up events, themed tastings, and collaborations with lifestyle influencers are becoming common methods to engage consumers. By offering an interactive platform, brands can forge stronger connections with their audience while educating them about the possibilities of flavoured rum.

Pricing, target markets, and upcoming plans

Speaking of pricing, Royerr explains, “Our Nutty Berry Rum is priced competitively at ₹1450 for a 750 ml bottle. Despite the intricate crafting process and premium ingredients, we have ensured accessibility for our customers, balancing quality with affordability.” Adding to the discussion, Vaziraney stresses, “Zumba Spiced Rum caters to younger, adventurous consumers who seek distinct flavours. Our spiced rum has successfully launched in UP and Uttarakhand, with approval for distribution through paramilitary forces nationwide. We’re now preparing to expand into new domestic markets this winter and explore international opportunities in the near future. Despite its semi-premium positioning, we have ensured that pricing remains competitive to attract a broader audience while offering an elevated experience.”

Bringing a regional perspective, Chand shares insights on their market strategy, “Lost Treasure Coffee Rum is designed for discerning palates in the Northeast. Although the scarcity of cane spirit limits distribution, this focus has allowed us to establish a strong foothold locally.”

On consumer response, Royerr observes, “Flavoured and artisanal spirits are transcending geographical boundaries. From bustling metros to smaller towns, there is growing enthusiasm for premium flavoured rums, reflecting their universal appeal.” Chand echoes this sentiment, adding, “In Assam, we’ve noticed that well-travelled consumers often take our spirits to larger cities like Mumbai and Delhi, mirroring the region’s growing expertise in crafting high-quality rums. This organic promotion has been invaluable in building our brand.”

Expanding on innovations, Royerr elaborates, “At Ochre Spirits, we meticulously source ingredients like cherries, oranges, and grapefruits from across the country, complemented by global-quality nuts for depth. Through maceration and distillation techniques, we ensure smooth, natural flavours. This dedication is central to our mission to introduce agave spirits soon.”

Vaziraney adds to the innovation dialogue, “Our journey with Zumba White Rum infused with lemon citrus flavours has been promising. As we solidify our presence, we plan to introduce additional flavours and limited editions, keeping the momentum alive through ongoing consumer research.”

Chand also hints at exciting developments, “We’re exploring barrel aging with coffee beans sourced from diverse regions of India. These limited editions will further elevate our offerings, creating a unique identity in the flavoured rum segment.”

The road ahead

Flavoured rum is poised for continued growth as more and more consumers appreciate spirits for their taste and character rather than solely for their potency. Bhatia emphasises the distinct profile offered by flavoured rums. “These rums provide sweet, fruity, or spicy notes, broadening their appeal to those who may not enjoy traditional blends,” he notes. As this segment grows, the expectation is that more brands will enter the market, each striving to stand out through innovation and quality.

Differentiation is key, according to Chand. His “Think Global, Act Local” philosophy ensures a balance between international standards and local sensibilities. This approach creates a “glocal” brand that resonates with diverse audiences. Moreover, the presentation and marketing of flavoured rums are adapting to meet shifting consumer demands. Stylish, eye-catching bottles and eco-friendly packaging are becoming essential components that captivate the modern buyer. This attention to design and environmental consciousness aids brands in establishing distinction in a highly competitive arena.

Ring in the New Year with these Cocktail Recipes

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It’s the holiday season and what better way to celebrate than to sip on some truly exceptional cocktails? Dive into this list of must-try cocktails to bring in the festivities. Whether you’re throwing a New Year’s party or enjoying a cosy holiday dinner, try your hand at these festive and flavourful concoctions from some of India’s top brands which are bound to bring in the festivities and leave one in great spirits (pun intended)!

Madras Mahura by Six Brothers Small Batch

Elevate your cocktail game with a vibrant and refreshing blend that marries the bold, heritage-rich flavours of Six Brothers Small Batch Mahura with the tangy brightness of cranberry and orange juice. Madras Mahura is the perfect drink to celebrate in style – Six Brothers Mahura’s floral spice notes add depth, while the cranberry juice delivers a crisp, slightly tart kick, perfectly complemented by the sweet and citrusy notes of fresh orange juice.

This holiday season, elevate your celebrations with Six Brothers Small Batch – India’s first global luxury heritage spirit. Made from 100% Mahura flowers, indigenous to India, this exquisitely sophisticated and versatile white spirit is destined to become a global icon. Just as top-tier spirits like Tequila defines Mexico and Scotch represents Scotland, Mahura is set to represent India on the world stage as our global ambassador – a spirit that is uniquely and authentically ours. South Seas brings you the most refined expression to date with a distinct and unforgettable flavour profile. Double distilled in India’s largest copper pot stills, which also distill India’s oldest single malts Crazy Cock Single Malt Whisky, Six Brothers is further platinum filtered for a clean finish.

Ingredients:

Ice cubes
60 ml Six Brothers Mahura
90 ml cranberry juice
30 ml orange juice
An orange peel (for garnish)

Method:

Fill a highball glass with ice cubes
Add Six Brothers Mahura, cranberry juice, and orange juice over the ice
Stir gently to combine the ingredients
Twist a strip of orange peel over the drink to release its oils, then place it as a garnish

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The Spice Route Negroni by Monarch Legacy Edition

If you haven’t explored brandy cocktails yet, here’s your cue. Monarch invites you to experience ‘A Royal Welcome’. This brandy stands out as the world’s only 100% pure grape brandy that marries both French grape spirits aged up to eight years with the finest Indian grape spirits from the Sahyadri region.

The Negroni, a timeless classic, is traditionally known for its balance of bitterness and sweetness, usually crafted with gin, Campari, and sweet vermouth. However, when crafted with an exquisite brandy like Monarch Legacy Edition, this iconic cocktail takes on a delightful twist that adds depth and warmth to its profile.

This drink carries a smooth, rich texture and subtle hints of dried fruit, caramel, and oak. These nuanced flavours complement the vibrant bitterness of Campari, while the sweet vermouth introduces a gentle sweetness that harmonises perfectly with the brandy’s complexity. The result is a Negroni that’s both familiar and refreshingly new – a warm, rich take on the classic that stands up to the bold, herbal Campari and brings a unique elegance to the drink.

Ingredients:

Monarch Legacy Edition – 30 ml
Spiced vermouth infused with nutmeg and star anise – 30ml

Campari – 30ml
2 dashes of orange bitters
Glass: Old fashioned
Ice: Block

Method:

Add all ingredients into a mixing glass, stir and serve chilled in an old-fashioned glass over a block of ice. Garnish with star anise.

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Añejo Manhattan by Pistola

A festive twist on a timeless classic, the Añejo Manhattan combines deep amber tones and a smooth, smoky finish that perfectly captures the warmth of the holiday season. Featuring Pistola’s 100% Agavepura Añejo, an additive-free and famously smooth spirit, it pairs beautifully with the sweetness of vermouth and a hint of cinnamon, evoking cosy Christmas vibes. Easy to recreate at home, this cocktail offers a refined drinking experience that’s as guilt-free as it is hangover-free. Cheers to a no-brainer way to toast the season!

Ingredients:

22 ml – Sweet Vermouth
45 ml – Pistola Añejo
5 ml – Cinnamon Syrup

Method:

Assemble all ingredients along with ice, in a beaker and stir
Pour into a Nick & Nora glass
Garnish with a Maraschino cherry

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Down The Chimney by Geist Brewing Co.

Rich, bold, and brimming with festive cheer, Down the Chimney strikes the perfect balance between sweetness and citrusy zest. The warming notes of whisky are elevated with orange bitters and chocolate liqueur. Topped with a gold coin garnish, it’s a sip of holiday magic.

Ingredients:

Whisky – 30 ml
Orange Bitters – 3 dashes
Chocolate Liqueur – 45 ml
Chocolate Coin as garnish

Method:

Add the ingredients into a mixing glass
Stir together with ice
Pour into a chilled glass and garnish with a chocolate coin

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Gold Rush with D’yavol Vortex

Gold is the colour that exudes royalty and sophistication. Take your festive gatherings to the next level with Gold Rush, a cocktail that radiates charm. With D’yavol Vortex as its star, this drink is pure liquid luxury – a toast to the rebels, the dreamers, and the ones who dare to stand out.

Ingredients:

D’yavol Vortex Blended Scotch Whisky – 60 ml
Lime juice (clear) – 20 ml
Sugar syrup – 20 ml
Blue pea tea – 200 ml
Rhubarb bitters – 3 drops
Lecithin powder – 1 gram

Method:

Shake D’yavol Vortex, lime juice, and sugar syrup together
Strain the mixture over ice in an Old-Fashioned glass
Prepare the blue pea and rhubarb foam by blending both with lecithin powder with a hand blender until foamy
Spoon the foam over the cocktail
Garnish with a touch of sweetness for a festive and striking presentation

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Brandy Alexander by Tulleeho

Decorated homes, parties by a fireplace, a huge spread of food and the best of baked desserts, Christmas is a gastronomic delight! Rest assured no matter how cold it gets, they will warm you up, here are some easy-to-whip cocktails for the season, perfect for your Christmas table.

Ingredients:

Brandy – 60 ml
Fresh cream – 30 ml
Chocolate syrup –15 ml
Nutmeg powder – a sprinkling
Ice cubes – to fill shaker

Method:

Fill a shaker with ice, pour in all the liquid ingredients
Shake well and strain into a chilled cocktail glass
Sprinkle the powdered nutmeg on top and serve

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Godawan Espresso Martini by Godawan Artisanal Indian Single Malt

Elevate your holiday celebrations with the Godawan Espresso Martini, a rich and indulgent drink that balances festive warmth and sophistication. The fruity spice of Godawan 02 pairs beautifully with the robust intensity of espresso and the creamy sweetness of almond syrup, creating a luscious blend of flavours. Finished with a sprinkle of nutmeg, this is sure to be a show-stopping addition to any holiday gathering.

Ingredients:

Godawan 02 – 50 ml
Espresso – one shot
Orgeat or almond syrup – 10 ml
Nutmeg for garnish

Method: Shake everything together and fine strain it out into a cocktail glass. Garnish with grated nutmeg.

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Not So Dirty by Mossant Fermentary

Move over, martinis – this holiday season, it’s time to embrace the vodka-forward sophistication of “Not So Dirty”.

Mossant’s clean-label Rosemary Tonic adds a festive, herby twist, elevating this cocktail to holiday showstopper status. This cocktail blends herbaceous and savoury notes with a hint of floral sweetness. It’s also incredibly simple to make!

Ingredients:

50ml Grey Goose Vodka
5ml Elderflower Syrup
30ml Olive Brine
Mossant Rosemary Tonic
Rosemary Sprig (for garnish)
Brined Olive

Method:

Fill a glass with a block of fresh ice
Pour in 50ml Grey Goose vodka
Add 5ml elderflower syrup and 30ml olive brine
Top up with Mossant Rosemary Tonic for that aromatic, botanical punch
Stir gently to mix
Garnish with a fresh rosemary sprig and a brined olive

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Top Products and People honoured at Ambrosia Awards 2024

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The 16th edition of the prestigious Ambrosia Awards 2024, organized by Ambrosia Magazine – the Wine and Spirits Magazine, celebrated the finest achievements in the Alcobev industry at a gala event. Recognizing excellence in products, packaging, and individual categories, the awards showcased the industry’s best and brightest talents.

Ambrosia magazine, now in its 32 nd year, continues to be a hallmark of excellence in the industry. With a focus on blind tastings for the product category, the awards ensure a fair and unbiased selection process, akin to top international standards.

Trilok Desai, MD and Publisher of SAP MEDIA WORLWIDE LTD, remarked, “The Ambrosia Awards stand for excellence, and our international jury ensures that only the best are honored. Each year, we witness remarkable advancements in product quality, packaging, and technology, setting global benchmarks.

*Vijay Rekhi launching Cheers 3rd Edition Coffee Table Book with authors Trilok Desai & Bhavya Desai*

Another highlight of the evening was the launch of the 3rd Edition of Cheers – Coffee Table Book, authored by Trilok and Bhavya Desai. The book, inaugurated by Vijay Rekhi, CMD of Vizanar Advisors, and Former President and MD of United Spirits Ltd (USL), commemorates the industry’s journey and milestones.

*Shiv Kumar Reddy, MD, Seven Seas Distillery Private Limited accepting the Award*

*Amar Sinha, COO, Radico Khaitan accepting the Award*

*Abhishek Khaitan, MD, Radico Khaitan Limited acceppting the Award on behalf of Dr. Lalit Khaitan*

*Vijay Rekhi and Mr. Gandhi’s family member accepting the Award*

Among the individuals recognized, Shiv Kumar Reddy, Managing Director of Seven Seas Distillery Private Limited, was awarded Entrepreneur of the Year. Amar Sinha, COO of Radico Khaitan Ltd, was named Business Leader of the Year. Dr. Lalit Khaitan, Chairman and MD of Radico Khaitan Ltd, received the Ambrosia’s Paramount Achievement Award for his outstanding contributions, achieving the status of India’s newest billionaire. The Lifetime Achievement Award (Posthumous) was presented to Mr. S.S Gandhi, Former President of United Spirits Ltd, honouring his significant impact and achievements in the industry.

This Product Jury included:

Bernhard Schafer – A Whisky Expert, Spirit Consulting and A Master of Quaich
Stephen Beal – Senior Master of Whisky, Chairman of The Council of Whisky Master 2024
Dr. Binod. K. Maitin (PhD) – Technical Expert & Former SVP and Head of Technical Centre USL
Eddie Nara – CSE & Spirits Expert
Ajoy Shaw – DipWSET Winemaker, Consultant and International Wine & Spirits Judge
Julie Lee – Industry Expert and Entrepreneur

This Packaging Jury included:

Prof. K Munshi – Industrial Design Centre, IIT Powai
Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre
Pratish Mepani – Founder of SMBD Group

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‘Drink better, not More’ is our Vision – Hina Nagarajan, MD & CEO, Diageo India

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Taking over the reins of one of the biggest companies in the market, can never be an easy task, especially when the daunting objective is to ensure double-digit growth, drive revenue and increase profits. Add to that, the first woman to lead the business, but Hina Nagarajan, Managing Director and CEO, Diageo India has not only successfully achieved this, but also surpassed many other feats. She speaks to Bhavya Desai about her journey, future objectives and more. Excerpts:

Since you took over, you’ve made incredible strides towards ensuring that the company becomes net debt free. How have you managed that?

The task ahead of me when I took charge in 2021 was to bring our Diageo India business on a sustained double-digit growth path, especially driving revenue and profitable share in the premium and prestige segments of the Indian alcohol market. Together with my leadership team, we made some strategic choices to win in this decade and beyond.

I led the execution of our portfolio reshape with the objective of accelerating premiumisation-led growth while delivering our guidance of mid to high teens margin. We completed the strategic review of our Popular brand portfolio, resulting in the sale of 32 mass brands and franchising of 11 brands in September 2022.

______________________________________________________________________________

Box Item:

Our overall business growth has tripled in the period from 2021-23 vs. 2016-21.
Our premium portfolio growth rates have doubled over the same period, P&A is 86% of our portfolio now
Our brands are performing competitively in their respective segments 2-3 years in a row,
And we have doubled the Market Capitalisation of USL since 2021.

______________________________________________________________________________

Our commitment to premiumisation is evident in our investments over the past years. We’ve introduced new products and innovations such as Royal Challenge American Pride, Epitome Reserve’s second limited edition of Peated Indian Single Malt in Goa, and Godawan, a unique single malt from Rajasthan. Additionally, our minority stake in Nao Spirits, the makers of Hapusa and Greater Than, underscores our strategy to grow in the luxury and premium segments, particularly in scotch, where we lead the market.

We also redefined our offerings in the Upper Prestige segment with unique products that resonate with new consumer trends. Furthermore, our efforts to premiumise and reposition brands in the Lower & Mid Prestige segments, such as McDowell’s No.1 Whisky and Royal Challenge Whisky, are part of our strategy to respond to evolving consumer needs.

With the consumer at the heart of our business, the strength of our reshaped portfolio, and the investments we are making to accelerate our strategic priorities, we have been able to deliver our mission of profitable double-digit growth for our business and in the process, wiped out our cumulative losses and declared dividend for the first time since acquisition a decade ago.

Having set on this path, what is Diageo’s next objective – in the coming years?

We feel extremely positive and excited about the future of the alcobev industry in India. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. India is in the middle of deep societal change led by women, youth and boom towns. This along with a massive growing need to ‘drink better, not more’ across all segments, is in line with our vision for the category.

The premiumisation trend will continue to stay strong with rising affluence. By 2030, 45% of Indian households (approx. 175 million households) will be in the upper mid and high-income groups. We see a big opportunity, not only to leverage this trend through our incredible portfolio of global and IMFL brands, but also to position Indian whisky as a characterful, distinct, high-quality offering by bringing the best of people, processes, and ingredients together to create bespoke liquids that are ‘Made in India’ for the world.

Our mission is to be a top CPG (Consumer Packaged Goods) company in India delivering sustained double digit topline growth with mid to high teen margins and long-term value to all our stakeholders. With this new strategy, we aim to deliver our Mission through 3 pillars that form the essence of our mission:

Reshaping our portfolio with a focus on accelerating premiumisation-led growth, while delivering our guidance of mid to high teens margins.
Creating an Organisation of the Future – We are building a future-ready organisation by investing in our talent, introducing market-leading policies and driving digital capabilities.
Defining and executing an ambitious role for Diageo in Society 2030 focusing on promoting responsible consumption, championing inclusion & diversity, and pioneering grain-to-glass sustainability which includes preserving water for life, accelerating to a low-carbon world and lastly, becoming sustainable by nature.

Keeping our customers as our main focus, along with the reshaped portfolio of our products and the investments we’re making to accelatate our strategic goals forward, we are confident of growing our business in a steady and sustainable way.

How has the consumer landscape changed over the years in the industry?

India is in the middle of deep societal change led by rising affluence, women, youth and boom towns. The biggest transformation that we see is a whole new generation entering adulthood driven by a different, positive, and progressive set of values. This trend expands to middle India and boom towns which are undergoing a remarkable transformation, fuelled by high aspirations and digital revolution where consumers are looking for premium brands, products, and experiences. The new consumer cohorts are driven by values of authenticity, individuality, local pride and collaboration with women building a more inclusive consumption narrative.

Digital has also been a big game changer. Most consumer journeys begin on digital with discovery, information, inspiration – informing them of their choices and behaviour and most of all aspiration and desire for what they want. If we look at the alcobev category, consumers are choosing different products for different occasions and need.

This means that repertoires are expanding from whisky to gin, vodka, rum, aperitifs, cocktails, etc. Consumers today choose to drink better, not more, leading to premiumisation of the alcobev category. At Diageo , we are responding to these structural shifts in consumer choices and behaviour, pivoted around premiumisation, wellbeing and sustainability. This new, changing, and vibrant India presents a huge opportunity for us.

You are the first woman to lead the business at the company. How do you think this encourages and inspires others across industries?

My appointment sparked interest and garnered positive attention, which reflects the breaking of traditional barriers especially in the alcohol beverage sector. As a woman CEO in alcobev, traditionally a male dominated industry, I see this as an opportunity to change the paradigm of this industry to make it more inclusive and normalise the narrative.

Our efforts are making a difference, leading to an environment where joining our sector feels no different from any other industry for women. At Diageo India, our commitment lies in building a workplace where everyone feels included. 50% of our Executive Committee and 35% of our senior leadership team comprises of women. We believe that a diverse leadership helps create a more balanced and well represented workforce. We’re making this happen by welcoming women into various leadership positions, ensuring we drive change right from the top.

Seeing more women in our company is truly encouraging. Their presence brings fresh ideas and perspectives on how we approach our products, market them, and innovate. This enriches our connection with customers and broadens our talent base, helping us to stand out and succeed in a competitive market. And hopefully, this encourages and inspires others to do more.

With sustainability being a rising factor amongst consumers today, how is Diageo moving towards a more sustainable tomorrow?

We at Diageo strongly believe that social and environmental impact and profitability are not two separate goals but rather interlinked. As one of the world’s largest beverage alcohol producers, we believe that we are ambassadors of our industry and aim to be the best we can – at work, at home, with friends, and in the communities we serve.

Sustainability is at the heart of our business strategy and is outlined in our Society 2030: Spirit of Progress ESG action plan. Our Society 2030 agenda is focussed on pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting responsible consumption.

Pioneering grain-to-glass sustainability plays a pivotal role in our Society 2030 goals and is embedded throughout the process and focusses on three key aspects; preserving water, lowering carbon emissions, and becoming sustainable by design.

In terms of preserving water we have overachieved our water replenishment target by 25% and three years ahead of our 2026 goals. We have improved our water use efficiency by 44% in our distilleries and 30% in our packaging processes, against the 2030 goal of 40%.

Women and girls are disproportionately affected when communities don’t have access to clean Water, Sanitation and Hygiene (WASH) facilities. We’re investing in such projects to empower women by providing sustainable water access and rebalancing their societal roles in more than 30 villages.

At the state level, we have partnered with Forest Department in Rajasthan and Maharashtra for mass plantation projects to improve green cover, protect soil, improve percolation and support biodiversity. In Alwar we have initiated efforts for desilting ponds, constructing check dams, improving drainage systems, to name a few. Measures like maintaining Zero Liquid Discharge status, rainwater harvesting pits, and others were adopted. We have also launched an afforestation drive to plant 2 lakh trees to offset residual greenhouse gas emissions.

We are making good progress in reducing our carbon emissions, and have committed to becoming Net Zero by F26 in our direct operations by mitigating our Scope 1 & 2 emissions and reduce 50% of our Scope 3 emissions by 2030. Our sustained efforts have resulted in industry-recognitions by Sustainalytics recognising the company as a “Top-Rated ESG Performer for 2022 and 2023” and our Alwar unit in Rajasthan,

has achieved the Alliance for Water Stewardship (AWS) certification, making it the first distillery in Asia to attain this certification.

In our efforts to becoming sustainable by design, we have removed mono cartons from 90% of our portfolio. In addition, we have introduced biodegradable packs as well as recyclable PETs in some of our brands and continue to expand it to others. This is aligned to our global mission to ensure 100% of our packaging is widely recyclable or reusable/compostable by 2030. Over 99% of materials used are recyclable. On glass, we have initiated light weighting of our bottles.

Our brands like ‘Signature by Nature’ uses 40% recycled glass for the glass bottle and is associated with Mangrove Plantation in Puri, Orissa where 30,000 Mangroves seedlings are being planted in five villages. These mangroves can sequester carbon up to 2-4 times faster than a mature tropical forest.

Our ESG agenda is owned by senior leadership levels including the board, which monitors the same through a CSR and ESG Committee. The ESG Index report we release annually highlights our progress mapped against each of the three pillars and we have witnessed remarkable achievements.

Our ambition is to be the forerunner in the Indian Consumer Product Goods (CPG) industry on ESG and create enterprise value.

What is Diageo’s roadmap for India with most companies betting big on the Indian markets? What is the next big product category that Diageo is focussing on for the coming years?

Diageo India is responding to structural shifts in consumer choices and behaviour, pivoted around growing affluence, premiumisation across categories, and quest for experiential and experimentation, through its refreshed business strategy focussed on premiumisation and focus on transformational innovation and renovation. We have a future back approach to our innovation pipeline and use a proprietory framework called Foresight to determine where trends will go few years from now.

It is for this reason that we have launched Royal Challenge American Pride which caters to the growing consumer preference for bourbon, renovated Signature to be the most sustainable brand in its segment , developed the Naya Sher campaign encouraging youth to take bold , confident steps forward for our Royal Challenge packaged drinking water as well as launched Walkers & Co – a platform to celebrate bold boundary pushers. We launched Don Julio tequila in the country in response to the growing traction for Tequila consumption in the country. We are also scaling up Baileys given the affinity for desserts in India.

We will continue to use Foresight to guide us on innovations for the future and bring the best of both our global, as well as Made in India portfolio, to cater to the evolving needs of Indian consumers.

While your association ISWAI has been representing centre and states for rationalisation of taxes including GST/Excise etc., do you expect centre to bring reform in the alcobev sector? How do you think this move will be beneficial?

ISWAI has been in talks with State Governments to rationalise high excise duties. It has made representations to the authorities time and again as manufacturers of alcohol beverages (Alco-Bev) continue to face shrinking margins due to high taxes, along with soaring inflation and import tariffs. The biggest barrier faced by the industry is freedom to price its brands. ISWAI continues to advocate for pricing freedom, especially for premium brands, as this will help the industry to overcome inflationary pressures. There are also several other regulatory and operational barriers which hamper ease of doing business for the industry. We have seen positive steps from the government on resolving some of these issues. ISWAI will continue to work proactively with various government bodies on these matters and is hopeful that the state governments will consider a harmonised tax structure as well as an acceptable annual pricing mechanism for the sector and continue to support ease of doing business for our industry.