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“Bourbon, Welcome to India”

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

UBL, AB InBev, Carlsberg jointly form Brewers’ Association of India

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In a move that might not be surprising to many, India’s leading beer manufacturers United Breweries – controlled by Dutch manufacturer Heineken, AB InBev, and Carlsberg have come together to jointly forming a new industry body Brewers’ Association of India (BAI). The three companies own the 85% of the beer market in India via their brands Budweiser, Hoegaarden, Corona, Carlsberg, Tuborg among others.

While UBL leads the Indian beer market with its brands Kingfisher, Kalyani Black, Heineken, Amstel Bier. BAI, which is formed in partnership with the World Brewing Alliance (WBA), and is expected to focus on growing the beer category in India, drive innovation, moderation, and sustainability in the Indian beer market.

WBA is the global industry body consisting of brewers and brewing trade associations from leading markets, including Australia, Canada, the US, Europe, Japan, Korea, Latin America, Brazil, and New Zealand.

BAI is headquartered in Delhi and is going to be headed by Vinod Giri, who will assume office on June 1, 2024. Giri until now was heading the Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of the Indian alcoholic beverage industry.

“The time is right for brewers to raise their voice on these issues. The Brewers of India will be a vital part of promoting moderate drinking, promoting our industry,” said Justin Kissinger, President and CEO, WBA.

The new association will also be open to other brewers, Indian and international both, who share the belief in growing the Indian beer industry responsibly.

AB InBev India President Kartikeya Sharma said, “There are many barriers to the growth of India’s beer category, including inequitable taxation, accessibility, and the ease of doing business. We will continue to advocate to unlock a new era for the beer category.”

Carlsberg India MD Nilesh Patel said, “The beer industry is an important sector for the states as it provides significant direct and indirect employment and generates significant revenues for the state to invest for its citizens.

“Through the Brewers’ Association of India, the industry expects to bring best global practices and further strengthen the sector.”

UBL MD & CEO Vivek Gupta said, “Together, the industry can help shape policies promoting responsible choices for consumers around moderate alcohol beverages, a robust taxation and regulatory framework and promoting investments for socio-economic benefits. We look forward to collaborate with governments and other stakeholders.”

The three companies have significantly invested in India. While Carlsberg operates seven breweries, UBL has 19 and AB InBev India has 10 of them across the country.

Indian Single Malts Outperform Global Single Malts

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Indian single malts have come of age, truly. And they have been savoured in India and elsewhere too. The good news is that in 2023, Indian single malts outperformed global brands, with promise of doing better. According to early estimates by the Confederation of Indian Alcoholic Beverage Companies (CIABC) Indian single malts accounted for approximately 53% of total sales in 2023, a very impressive performance considering that Indian single malts are a decade old phenomenon.

As per CIABC estimates out of the total sales of around 675,000 cases of single malts in 2023, Indian-origin makers sold around 345,000 cases and the rest was sold by Scottish and other international brands. Indian brands such as Amrut Fusion; Amrut Kurinji; Rampur Indian Single Malt; Paul John Mithuna; Indri; Kamet; and GianChand have all given the global players a tough competition. The Indian brands have been competing with well established brands such as Glenlivet, Macallan, Lagavulin and Talisker.

Domestic brands grow 23%

In 2022, Scotch brands sold 2,96,000 cases with a 35 % increase in sales, while Indian brands sold about 2,81,000 cases with a 2.4 % increase. With growing popularity, the overtaking by Indian single malts was given. In 2023, the domestic brands have registered a growth of about 23 per cent, compared to 11 % by imported brands.

Indian whiskies have been making global waves too since 2010 when Amrut Fusion got global recognition with Jim Murray’s Whisky Bible ranking it third, after blind tasting of over 4,000 whiskies. In the 2022 International Wine and Spirits Competition, of the 11 awards that came India’s way, four were for single malts.

In sync with premiumisation

The Director General of CIABC, Mr. Vinod Giri said that this has been made possible due to the premiumisation drive that is happening across all segments of the alcohol sector. Indian single malts have upped the game, in terms of quality, presentation and reach, hence the stunning turnaround was expected. Indian distilleries have worked hard to come to this level, matching international brands. CIABC, he mentioned, is working with the Indian players and government agencies to evolve product and process standards that ensure product quality uniformly and consistently.

What is heartwarming is that the Indian consumer, many of whom have travelled globally, knows that Indian brands are making it to the global stage. This endorsement of the ‘Make in India’ products has largely helped sales.

Price-sensitive consumer gravitating towards Indian brands

Hemanth Adapa, founder of Single Malt Amateur Club (SMAC) said “Indian whiskies are riding the third wave of global recognition and success. It is no simple feat that high quality single malt whiskies are being made from scratch in India and repeatedly being featured in the top whiskies of the world. While the awards and ‘expert views are giving the whiskies a thumbs up what is most encouraging is the consumer gravitating towards these. It is an extremely difficult task to convince the price sensitive Indian consumer to reach for an Indian made brand as against a Scotch which has been the mainstay for premium whiskies in India. This has taken a lot of effort by the manufacturers of repute to encourage this transition. While there are other factors to be considered such as the supply chain issues and global shortage of aged Scotch whisky causing many brands to follow an ‘allocation’ strategy towards India, this is no small feat and perhaps the greatest recognition to the quality of these fabulous whiskies.”

Asked whether the short supply of aged Scotch whisky and supply chain issues had led to increased sales of Indian single malts, answered in the negative, adding “This has not been a flash in the pan for it to be short lived. There are many risks around the governance and quality control of the newly formed category of Indian single malts which is very similar to the challenges in the Japanese whiskies but surely not a doubt around the whiskies being recognised today.”

Amrut started it all

The fact that brands such as Amrut and others have been performing consistently is testimony to the popularity of Indian single malts, not just in India, elsewhere too. One cannot forget what Jim Murray the legendary whisky critic of the world had said in 2010 that “Amrut Fusion, whisky from India, can only be a dream of many Scottish distilleries.” Prior to that, Indian whisky was not even considered as a whisky as it was only producing molasses-based whisky. ‘Amrut Fusion’ changed that as it is made of 80 per cent Indian malted barley and 20 % Scottish peated barley.

In 2022, Amrut which soared by 183 % dethroned Pernod’s Glenlivet which grew by 39 %, according to Euromonitor data. In 2022, two Amrut offerings topped the list, much more sales than Glenlivet, followed by Paul John. Amrut Fusion sold 99,000 cases and Amrut Amalgam 94,000, Solan Gold 20,00 and Rampur 10,000 cases.

Global players go local

Such impressive sales have led to global players in India to start Indian brands such Godawan from the stables of Diageo in 2022. Godawan the artisanal single malt whisky is finished in special casks selectively curated with Indian botanicals. In 2023 Pernod launched Longitude 77, its first Indian single malt with plans to export to the UAE and later to other markets. Further endorsement has come India’s way from the Scotch Whisky Association (SWA) which said that India has overtaken France to become the largest market for whisky sales by volume and single malts are also contributing significantly.

Awards galore

From 2010 onwards, Indian single malts have been cornering global awards at regular intervals. The latest is Radico Khaitan’s Rampur Asava Indian Single Malt Whisky which bagged the ‘Best World Whisky’ at the prestigious John Barleycorn Awards. Rampur’s innovative approach to the ageing process distinguishes it from other world whiskies. The Himalayas provide polar opposite climate conditions throughout the year with the flavour of the famous Indian Summer giving Rampur an added dimension and depth. The malt interacts extensively with the cask, resulting in maturation almost four times faster than in Scotland.

Sanjeev Banga, President of International Business at Radico Khaitan Ltd, and the creator of the iconic Rampur range of whiskies says, “Our position as possibly the only Indian company in the industry with products such as Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin and Sangam World Malt Whisky in the super-luxury space, alongside international alcohol companies is testament to their quality. The global availability of our products, coupled with the admiration and recommendations from top experts including this latest achievement in the John Barleycorn Awards, stands as proof of our unwavering commitment to product quality and consumer satisfaction.” Banga further added that Rampur Asava will soon be available for Whisky aficionados in the Indian domestic market.

In emphasising the global significance of Indian whisky, Kunal Madan, Vice President of International Business at Radico Khaitan added, “India commands a staggering 48 % share of the global whisky market. While the majority stays within our borders, the efforts of producers like us have successfully introduced our exceptional Indian whiskies to markets such as the US and UK. In a landscape dominated by only a handful of Indian whiskies, Rampur has earned its place as one of the most highly regarded brands. This recognition reinforces the impact of our journey, guided by quality and innovation, beyond national borders.”

Another Indian single malt to walk away with another prestigious award is the Indri Diwali Collector’s Edition which won the ‘Double Gold Best in Show’ at the 2023 Whiskies of the World Awards, beating over 100 other varieties including scotch, bourbon and British single malts. Indri, the peated Indian single malt whisky is a product of the Haryana-based Piccadilly Distilleries, launched in 2021.

“The industry can offer much more and consumers want much more as well. This growing appetite for experimentation could translate into a brighter future for the Indian spirits market, beyond the projected flatline of 2024,” Vinod Giri added.

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.”

The Indian Single Malt Whisky Landscape

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Indian Whiskies are experiencing a new high. With a growing drinking population the Indian alcobev industry is likely to boom to a new high.

In recent years, a formidable challenger has emerged from an unexpected corner of the world – Indian single malts. With their unique character and exceptional quality, Indian single malts have proven that they are more than capable of matching their Scottish counterparts.

One of the key factors that differentiate Indian single malts from their Scottish counterparts is the influence of terroir. India’s tropical climate, with its soaring temperatures and high humidity, creates a whisky maturation process unlike any other. The angel’s share – the amount of whisky lost to evaporation – is significantly higher in India, resulting in an accelerated aging process and intensifying the flavours within a shorter timeframe. This unique maturation process infuses Indian single malts with bold, robust flavours that tantalise the taste buds.

Amrut’s recognition placed India on the global whisky map, but Mohan Meakin pioneered Indian single malt whisky back in 1858, long before Amrut.

While Indri Diwali Edition’s win is celebrated in India, the perception differs internationally. Even though India strives for quality whisky production, global recognition is a work in progress.

Unlike established producers like Japan, India’s whisky prominence is relatively recent – the industry is shifting from the traditional older consumer to younger audiences, by diversifying consumption methods through cocktails.

More distilleries venturing into malt whisky production – Amrut, Paul John, Rampur, and newcomers like Piccadily aim for global market penetration amid rising Scotch whisky imports.

Indian single malts proudly celebrate the country’s rich heritage while incorporating modern techniques and influences. Distilleries often draw inspiration from local ingredients, spices, and cultural traditions to create whiskies that are uniquely Indian. From the use of Indian barley to the incorporation of regional flavours like cardamom, cloves, and saffron, these whiskies encapsulate the essence of India, offering a sensory experience that is both nostalgic and forward-thinking.

The meteoric rise of Indian single malts has not gone unnoticed in the whisky world. They have garnered numerous awards and accolades, winning over skeptics and enthusiasts alike. The recognition from renowned whisky experts and critics has solidified the position of Indian single malts as a force to be reckoned with in the industry. As more people discover the quality and complexity of these whiskies, their popularity continues to soar.

The emergence of Indian single malts has undoubtedly shaken the foundations of the whisky industry, challenging the long-standing dominance of Scotch whisky. With their distinct character, unique maturation process, and unwavering commitment to quality, Indian single malts have proven that excellence in whisky knows no geographical boundaries. As whisky enthusiasts and collectors seek out new and exciting expressions, Indian single malts stand ready to captivate their palates and leave an indelible mark on the world of whisky.

Despite the hype about the magnitude of Indian whisky compared to Scotch, actual consumption statistics show no drastic increase. However, global recognition for quality Indian whiskies has notably risen.

The bulk of India’s whisky market comprises blended and daily drinking whiskies, not just the premium single malts like Amrut/Paul John – underscores the dominance of everyday brands like Signature and McDowell’s. The knowledge and information of seasoned whisky enthusiasts have expanded significantly over the past five years, and they demand whiskies that are: high-quality; limited editions; priced conveniently available in a broader market.

Newer or curious consumers are gradually transitioning from lower-end to mid-segment whiskies, amplifying affordability in the ₹1500-₹2000 range.

While single malts garner recognition and elevate the industry’s stature, the substantial demand driving the industry’s profit lies within these affordable mid-tier whiskies.

Amrut’s pioneering strategy of launching single malts in the UK, rather than India, set a precedent for others like Paul John and Rampur. The idea was to create international demand that would pique curiosity domestically, a strategy that continues to shape the market.

The entry of big players like Diageo and Beam Suntory into India reflects the strategic shift to safeguard their market shares. Diageo’s move from importing Scotch to producing locally aims to counter the rising curiosity for Indian whiskies among consumers, particularly when price points are comparable.

Comparing Indian single malts with global counterparts – blind tastings often unveil the impressive quality of Indian whiskies.

Market acceptance remains a challenge due to the stronghold of brands like Johnny Walker and Chivas, deeply entrenched in the Indian consumer psyche.

Quality control emerges as a critical concern. Despite norms borrowed from the Scotch Whisky Association, the lack of a regulatory authority poses challenges. Looking ahead to 2024, manufacturers must grapple with the realities of production complexities and retaining skilled personnel. The absence of a consistent master blender/distiller in India points to the challenges of replicating Scotch whisky’s intricate craft.

Production transparency, along with quality control, demands attention, emphasising the need for a regulatory body to standardise practices. This prevents the replication of the Japanese whisky industry’s pitfalls, where lack of oversight led to a decline in repute.

International market alignment is crucial, but Indian single malt production capabilities are still dwarfed by Scotland. Expansion plans by major players like Amrut, Paul John, and Rampur indicate the industry’s growth trajectory.

The Future of Whisky Production

Accelerated maturation in India for quicker whisky development: The high Angel’s Share poses challenges due to significant evaporation losses. To counter this, distilleries are employing sophisticated warehouse management techniques to minimise losses and maximise output.

Exploration of alternate sources for key ingredients: Distillers are seeking sustainable and efficient means to procure essential elements for whisky production and exploring new avenues beyond traditional sources.

While currently in its nascent stages in India, there’s a growing emphasis on data-driven processes and automation. Techniques like employing spectrometers to analyse whisky flavours and aromas are being explored to ensure consistency and quality.

Manufacturers are associating with clubs and creating limited editions for various festivals like Diwali or Christmas. Brands are diversifying their offerings, aiming to capture consumer interest with specialised releases tied to zodiac signs, festivals, or master distiller editions.

Expansion into different spirit categories: This may redefine the industry landscape and provide diverse options for consumers beyond traditional whisky offerings. The future might also see a more adventurous consumer base exploring a wide array of whisky variants.

Pernod Ricard India Launches Longitude 77, a New Indian Single Malt

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Pernod Ricard India has entered the Indian Single Malt category with the introduction of Longitude 77, marking three decades of the company’s presence in India. The move reflects the increasing popularity of premium Indian spirits, with Longitude 77 aiming to pay homage to India’s rich heritage, craftsmanship, culture, landscape, and terroir.

Named after the line of longitude that runs through the length of India at 77° East, the brand seeks to symbolize India’s position on the world map. The launch event was recently held at DLF Golf & Country Club in Gurugram, showcased what was termed a ‘Reimagined India’, which was led by Arjun Rampal. The evening also featured contemporary Indian luxury elements, including a presentation of Indian soundscapes by musician Karsh Kale, a fashion showcase by designer Ashish Soni, and a culinary exploration by Chef Vicky Ratnani.

Produced in small batches in a distillery in Dindori, Nashik, Longitude 77 brings together locally sourced ingredients with a double-matured single malt is aged in American Bourbon barrels and wine casks, presenting a mahogany colour and a flavour profile described as smooth, full-bodied, and balanced, with hints of caramel, vanilla, and faint peat smoke.

The packaging of Longitude 77 features an indigo-coloured matte finish box and bottle, paying homage to the colour that India gave to the world. Both the box and the bottle depict the map of India with the Longitude 77° passing through, symbolizing the essence of the country.

Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India, said, “As we celebrate 30 incredible years in India, our commitment to delivering quality brands and experiences gets enhanced with the launch of Longitude 77. Inspired by the line that runs through the heart and soul of India, Longitude 77 is a symbol of authentic contemporary Indian luxury. Our Master Distiller has carefully crafted an exquisite liquid to celebrate and showcase India’s rich culture, heritage, terroir and craftsmanship. We believe that Longitude 77 will give the world a taste of “India Reimagined”. We are confident that this exceptional addition to our portfolio will be embraced by whisky enthusiasts across the world and elevate their convivial experience.”

Longitude 77 Master Distiller, R Natrajan shared, “It is an exciting time for Indian single malts as whisky enthusiasts discover the beauty of home-grown spirits. Longitude 77 is an Indian single malt that’s proud of its provenance, crafted with utmost care and attention. Produced in small batches, it seeks to represent the best of India’s rich terroir and local ingredients. The liquid has been double matured and brought to perfection in American Bourbon barrels and wine casks. The result is an exquisite, full bodied single malt with notes of caramel, vanilla, and subtle peat smoke. Longitude 77 is more than just a single malt; it is our homage to the enchanting spirit of India.”

The launch event also had a sipping experience of the whisky, featuring serves celebrating unique Indian ingredients with Geographical Indication (GI) tags. Currently the malt is available in selected regions, including Goa, Maharashtra, Chandigarh, Rajasthan, Haryana, Uttar Pradesh, and Delhi Duty Free, the brand aims to expand its presence in other markets, targeting a premium convivial experience for Indian whisky drinkers.

Heineken’s Five Star Experience

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With millennials leaning towards fresher and lighter tipple, Heineken recently launched their Heineken Silver Draught beer in Maharashtra with the aim to make it available in other States soon. In an effort to educate the industry and the consumer, they also hosted a Star Serve programme that teaches the five steps on how their fresh draught beer should be served. Jacqueline Van Faassen, Head of International Premium Portfolio, Heineken India spoke to Bhavya Desai and Vincent Fernandes about the launch and plans moving forward. Excerpts:

The launch of the Heineken Silver Draught beer marks an important milestone for both, Heineken and United Breweries, who’ve been in India together since 2019. But while Heineken is a popular premium beer amongst the consumers, Van Fassen felt that the company was still missing on the draught experience, considering the trend where younger consumers are looking for a more fresher and lighter beer.

Heineken’s Global Draught Master, Frank Evers demonstrating the Five Star Serve Experience

The beer is already popular and available in the global markets and gets its freshness from utilizing natural ingredients like its A-yeast and 100% malt. And the brand is hoping to have similar success with the product in India as well.

Hence they launched the new Heineken Silver Draught beer with the initial launch market as Mumbai, Thane and Pune, which will be supplied from their Taloja factory with an aim to expand to the other States soon, most likely Karnataka once the draught is started brewing there. Apart from Taloja where most of the Heineken beer is manufactured, the company also has brewing plants in Telangana with development underway for another brewery in Mysore, Karnataka.

But what’s interesting is that Heineken is not only looking to capitalise on their new product but also are making efforts to educate the bartenders on how to serve the beer, thereby hoping to educate the consumer touchpoints and the industry as a whole. “This week we educate 400 bartenders on how to pour Heineken draft beer. This includes 200 today in Mumbai and another 200 bartenders in Pune later this week. They are important stakeholders for us since they make sure that bring it to consumers in the best way,” says Jacqueline.

The training programme was led by Heineken’s Global Draught Master, Frank Evers, which includes the five step serve process to give the consumers the best experience of the tipple. The steps include cleaning the glass with cold water, pouring it at a 45-degree angle with the right amount of foam and finally skimming the extra foam off. The foam protects the CO2 keeping the oxygen out making the beer fresh for a longer time says Evers. What’s also unique to the beer is its brewing process, which is horizontally fermented as compared to the other lager beers which are brewed vertically.

But while serving the beer at the right temperature and with the steps seem interesting, whether the end consumer on-trade is really partaking at these points remains to be seen. But Van Fassen is confident that with the programme and efforts to educate the bartenders, once the consumers are served the beer correctly, they will identify with the quality and freshness of the product. Jacqueline is also aware of the potential of the draught beer category as a whole with a huge market that can be tapped on. She also states that the plans are that unleash the draught beer across India as soon as possible. And to do that they are focusing on activities like partnering with popular sports events like Champions League football. Recently the brand also hosted the F1 races across bars in Mumbai to further build on that social recall.

Delhi Government to grant license for wholesale vends

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The Delhi Government has decided to grant license in form L1, L1F and L2 for the wholesale vend of Indian liquor in the National Capital Region (NCR) of Delhi for the licensing year 2023-24 with effect from October 1, 2023.

The Excise Department has said that the prescribed forms can be obtained from its website and that there would be a processing fee of Rs. 5,000 for each license. The Department said that the terms and conditions for the licensing 2023-24 would be the same as that of 2022-23. The government said that it reserved the right to review the duties / fees to be paid / payable in case of any amendment to the law related to liquor and bonded warehouses.

The Department said that in case of existing licensees / registered brands active up to September 30, 2023 there is no change in the EDP / right structure / label / source warehouse etc. The registered brands for the year 2022-23 may be registered for 2023-24 on the same terms and conditions of the previous year, consequent to the payment of requisite fees and submission of undertaking / affidavit of the same.

It said that for new registration of brands applications received without complete information and supporting documents as required in the prescribed form along with annexures shall be liable to be rejected.

These changes are to ensure continuity of supply and the amendments will be in place till the new policy is formed. This will be third time the Delhi Government is giving the extension.

It may be mentioned here that the previous policy introduced in 2021 by the Aam Aadmi Party (AAP) government had to be scrapped as it ended up in scandal which is currently under investigation.

The excise department has proposed to extend the existing 2020-21 liquor policy by six months till March 31, 2024, to ensure the continuity of liquor supply. The excise department will issue a formal order in this regard.

Expert welcomes policy

Mr. Raju Vaziraney, one of the veterans of the wine and spirits sector and presently Adviser and Business Development Head of Amrut Distilleries, has welcomed the policy saying technically it is a new policy thereby allowing new companies to get registered and pay one-time fees and not fees from retrospective effect. The Companies will be encouraged to bring – in new brands, thus ensure more variety of brands, more consumer choice. However, he said the new policy gave only two days for companies to submit all documents.

However, he reiterated that the salient features are a) Existing Licences to be renewed by giving an undertaking / affidavit; Existing licences are renewed till March 31, 2024; Existing brands with existing EDPs to continue till March 31, 2024; Existing brands to pay proportionate fees of six months and not 18 months as was the practise in the policy of 2022-23.

In order to ensure continuity of supplies the online transparent system worked overnight & supplies commenced from October 3, 2023. However in view of paucity of time lot of prominent brands are under process of being made available. Mr. Vaziraney said that however, the challenges are that Delhi will have to wait till six more months to get a full-term year policy with possible participation of private trade thereby offering a great buying experience. The vends at the airport could also open next year as presently a world class city like Delhi does not have any vends at the airports

It is expected that Delhi will have a full year policy which will bring-in consumer choice brands and also bring – in reforms in terms of more liquor stores, more in trade outlets, he added.

The Rise of Craft Beer and a Burgeoning Microbrewery Segment in India

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Recent years have seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers. There are now strong indications that the growing demand for craft beer is paving the way for new microbreweries in India.

The beer industry in India has emerged in the last two decades to become a thriving money spinner today. Just a few decades ago, it wasn’t commonplace to find modern bars, restobars, lounges, and even friends sitting over a few beers. Today, there’s a new culture of brewing in India, even among millennials and Gen Zs, and beer has become trendy. As of 2022, the beer market was valued at 383.6 billion, growing at a CAGR of 8.1%, and expected to reach 622.4 billion by 2028.

Recent years have also seen the rise of craft beer, a new crop of premium beer produced in small batches by independent producers, with an emphasis on new and evolving flavours, enthusiasm, and techniques. There are now strong indications that the growing demand for craft beer is paving the way for microbreweries in India. Some industry players believe this is only the start of a journey that can transform the beer scene much more significantly.

Craft beer flexibility and a burgeoning segment

There’s a growing crop of craft beer producers and brands in India who seem determined to take over the beer market with what they call a breath of fresh air. “Being true to style and ingredients, the experience that craft beer provides in terms of flavour, aroma and array of styles has led to the growth of craft beer the world over. We often say that once one has tasted true craft, he’ll never go back to industrial lager, especially if craft is available within reach.

“This is the reason that the world and, indeed, India are seeing the growth of microbreweries. Industrial lager literally offers one-style-fits-all products, whereas craft gives the choice back to the consumer for its preferred taste profile and styles,” said Upesh Gulati, Founder, Strategist, and Master Brewer, Effingut Breweries Pvt Ltd.

Over the years, Effingut has taken pride in introducing patrons to various different styles from around the world. With 16 different craft beers on tap, there is a flavour for each and every patron to enjoy. As of today, Effingut has a pan-India presence with three different verticals across four cities that cater to any kind of patron. This includes the Effingut 2 Go boutique stores, Effingut Bistros, and The Effingut Brewpubs and Taprooms.

Rather than release large batches of single-flavour, often mundane beers, microbreweries offer a variety of tastes and flavours based on the changing preferences of consumers and innovativeness of producers. As more adventurous beer enthusiasts emerge, craft beer makers have to continually innovate and expand to meet growing demands. According to Dr. Nishant Grover, Brew Master at Hotel The Royal Plaza, craft beer has quickly become a trend in India.

“There are several factors responsible for the growth of microbreweries in India. First is the shifting consumer tastes and the desire for distinctive and expensive beverages, as well as the fact that they are becoming more daring and discriminatory in their taste preferences. Second, increasing disposable income has also contributed to the growth of microbreweries, and lastly, we must acknowledge the encouraging government policies that are making microbreweries like our own The Royal Brewery Bistro to thrive,” he says.

Creating richer experiences with richer flavours

Microbreweries like The Royal Brewery Bistro are also being fostered by the craze for the culture by both local and international tourists and beer enthusiasts. This contributes to the overall tourism sector in India. Beyond that, the most important changes are the ones seen in the lives of budding beer drinkers in India. Younger Indians are becoming adventurous and seek out newer tastes each new day.

“After a long hectic day at work, people would stop by a bar to relax with a mug of their favourite beer in hand. But now with changing demographics, millennials and Gen Zs, people’s taste for beer is also undergoing a shift. They are looking for something different to explore and experiment including their consumption of alcoholic beverages. It was only 20 years ago that the first breweries opened in the industrial city of Gurugram. Today, there are microbreweries spurring across the country. Well-known internationally trained brewers are brewing international quality beer recipes in new-world pubs and bars across the country. As the best quality raw material is available with ease, production becomes less hassle, this is why craft beer availability is spreading across the country. Multiple yearly events on brewing and brewing equipment have also propelled information sharing and technical know-how for the industry,” explains Sandeep Singh Katiyar, CEO of The Finch, one of the finest premium luxury lounges in India, known for its extensive range of freshly brewed craft beer.

Breaking the odds, surging ahead

There’s still a long way to go. The craft beer culture may be growing in popularity, but it is still relatively young in India. Brewing has certainly become easier because quality ingredients are easier to come by and the manufacturing process has been simplified. However, there’s a long path ahead, and it is rough and rocky. There’s need for both the central and state governments to support the segment and its operators for them to thrive even better and ensure the growth is smooth.

As Katiyar of The Finch puts it, “The new brewery policies in Haryana, Karnataka, Maharashtra, Andhra Pradesh, Karnataka, Rajasthan, and Uttar Pradesh have helped craft beer businesses scale to new heights. However, craft beer and microbreweries yet have a long path to cover and have plenty of hindrances to cross in the upcoming years. The industry requires care, support, and nurture from the state and central governments. With the government’s support, the smooth growth of microbreweries can be ensured.”

The idea of authenticity loved by millennials is what is spurring the growth in the industry, and there’s need to support the over 200 microbreweries in India to succeed, while also ensuring new ones emerge, especially in far-flung cities and towns where they’re currently non-existent.

“It’s no secret millennials live life differently. Things no longer matter. Experiences do. Indeed, the potential rise of craft beer has paved way for many microbreweries in India. Millennials are clearly choosing experiences over things, fuelling the homecoming of microbreweries. They now know that there is much to the world of beer than just the dull and mass-produced bottled hard liquor. With hints of chocolate or sweet caramel, floral hops or fruity notes, rich coffee undercurrents and more – the options are tempting and endless. Today, India is now growing its own craft culture one sip at a time, and it will get even better in the future,” notes Anirudh Khanna Managing Director, Independence Brewing Company.

Experiential shopping: The rise of the flexible liquor consumer

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From local rice beer and wine to the more complex sura, through varieties like palm toddy and cashew feni, India has always had a rich culture of alcoholic beverages. While the fancy bottles now adorn bar tables and home refrigerators, it is important to point out that the industry is more diverse than that. India’s alcobev industry has grown tremendously in recent years to become one of the nation’s star sectors. As of 2020, the industry had a market size of $52.5 Billion, with a projected CAGR of 6.8%, according to ICRIER.

Specifically, India’s liquor subsector is currently undergoing a revolution, triggered, inspired, and sustained by a growing crop of evolving consumers. The culture of experiential liquor shopping has now found a foothold across the urban and suburban cities, where consumers are as interested in the experience of shopping as the product itself. There are several alco-bev companies that now offer such experiences, including liquor tours, tasting, and so on. From Hyderabad to Bangalore, Delhi to Mumbai, Guwahati, and across the other cities, there’s something exciting for every liquor lover.

Transforming the Indian liquor scene with game changing experiences

Why gamble with your liquor purchase when you can choose the brand you like after a round of tasting? In Bangalore’s Mansionz from the stables of Living Liquidz, is a one-of-a-kind experience. Mansionz is a premium brand that offers premium experiences to premium customers. It is a liquor store with a wine-tasting room that offers that up-beat luxury New York feel. So, you can get an elite experience and have a taste of their amazing liquors before making a purchase.

Beyond the tasting experience, Mansionz is also a platform for learning about different kinds of spirits and brews, towards enlightening consumers about tastes, styles, texture, and value. As Moksh Sani, Managing Director of Living Liquids says, the essence is to build a deeper understanding and greater appreciation within the consumers about the beverages available to them. “I am highly enthusiastic about wines and foods, and it is that same passion I intend to share with every customer that walks into Mansionz or has a taste of any of our 1,500 uniquely curated wines at the top floor,” he says.

Beyond the liquors and classic cocktails served to interested tasters, and the exciting assortment of rum, vodka, gin, single malts, beers, and cognacs, the brand has gone a step further with the introduction of a mobile app that allows users to sample at least three spirits based on a predefined sum. Mansionz is just one of the many liquor store brands that are doing amazing things in India. In fact, some like The Liquor Store in Mumbai houses some extremely rare collections including the Special Edition Louis XIII Cognac with a price tag of Rs 3,95,000, the 1800 Milenio Extra Anejo Tequila, and the Taiwanese hotshot Kavalan’s whiskeys.

These rare offerings stand in the midst of around 1,500 different types of wines, 1,000 spirits, 250 champagne brands, and at least 100 different beers from different parts of the world. With side attractions like The Tavern, a London-style restobar that hosts pairing sessions occasionally and bring alco-bev enthusiasts under one roof and the Lift & Learn feature in the Liquor Store which gives a shopper the opportunity to learn about the history, tasting notes, texture, and other details of the beverage through an AR technology.

In the words of Dinesh Kathuria, co-founder of The Liquor Store at Belapur’s Palm Beach Road, the surge in alco-bev demand during the pandemic called for innovative measures to draw in larger crowds and take advantage of new enthusiasts. “It’s increasingly becoming about the experience. People need to see that you’re invested in their feelings and comfort; that you care about them. This involves creating the right environment, and building stronger customer service. It’s all about the service,” he adds.

A rising preference for experience and consumer service

Think of a restaurant and how you’re waited on, attended to, pampered and offered a tour of their menu (if you like). That is what liquor stores are now trying to achieve with such experiential shopping. The importance of adding variety and lifestyle options to liquor stores is a testament to the growing need to not just attract, but also keep consumers by personalising their experiences.

Another major concern is the “taboo” that surrounds women walking into a liquor store. Finding a way around this is what Mayank Shroff, Vikash Musaddi, Anant Shroff, Anurag Murarka, and Vikas Murarka envisioned when they created Hedonne. The Kolkata-based premium shopping hub offers a superb experience, which the founders say is the goal, and not necessarily a transaction. This is a first-of-its-kind in eastern India, offering a delightful walk-in experience for patrons to explore its over 9,000 bottles of various alcoholic beverages. And what about the Alcopedia corner? That’s an innovation that leaves curious customers more enlightened than they were when they walked in.

According to team Hedonne, “Women now have a comfortable space to walk in, ask about alcoholic beverages and even shop for themselves and their partners without any judgement. They can also try out the drinks before making a purchase, a concept that is first-of-its-kind in the city. For us, it’s about making the customers love the experience of shopping from us and enjoying it.”

It’s the same goal for The Whiskey Company, an 8,900 sq ft enclave in Guwahati, the alco-bev capital of North-east India. The moment you walk into The Whiskey Company; you’re greeted by a W-SET-certified sommelier who introduces you to the finest liquors the industry can offer. The Cuban cigar lounge and soon-to-be open tasting room are other amazing features you’ll find. This place, like most innovative settings, operates an open-door policy for expression. “There are no taboos or judgments here. This is why we have more women coming here than any other place in North-east India. We’re also concerned about educating our patrons and expanding their palates,” says Vishal Deorah, the company’s Managing Director.

Hyderabad and Bengaluru are two other places where experiential liquor stores are opening up. In fact, Bengaluru made news when Tonique, a boutique liquor store set up what became Asia’s largest liquor store built on a 25,000 sq ft land. Owned by Anith Reddy, the brand now owns two showrooms between the two cities. A tour of the store showcases the best wines and champagnes from India, Australia, New Zealand, France, Italy, Japan, and several other parts of the world.

Building brand loyalty and long-lasting memories

These trail-blazing brands have offered another side to India’s growing alco-bev industry; one that shows that beyond the magic of the brewers and distillers, great customer service and experience are a no-brainer. Together, they have garnered a growing crop of patrons who understand the value of the moments that lead up to a purchase. It is hoped that this crucial aspect of the liquor industry will continue to expand and add a pleasant flavour to the industry’s value chain.