Tag Archives: Premium Spirits

RANGEELA Vodka marks a vibrant debut for ABD Maestro and Co-Founder Ranveer Singh

ABD Maestro has announced the launch of its homegrown contemporary spirit — RANGEELA Vodka, co-created with Ranveer Singh.

Priced at ₹2,400 for 750ML in Maharashtra, RANGEELA will be available across select outlets in the state, followed by roll outs in Goa, West Bengal, and key northern markets in the coming months.

The RANGEELA vodka is conceptualised under Ranveer Singh’s creative direction and much like him screams vibrant and expressive. The brand also draws inspiration from India’s colourful personality, lively, confident, and unapologetically bold, while aligning with the growing trend of premiumisation and cocktail experimentation among young Indian consumers.

The vodka is triple-distilled and platinum chill-filtered for exceptional smoothness and clarity, combining world-class technique with Indian flair.

Commenting on the launch, Ranveer Singh, Co-Founder and Creative Partner, ABD Maestro, shared,

“RANGEELA celebrates the spirit of India — colourful, creative, and full of life. It’s for those who express themselves freely and live with unfiltered energy.”

Bikram Basu, Managing Director, ABD Maestro, added,

“With Ranveer as Co-Founder and Creative Partner, RANGEELA aims to set a new benchmark for Indian vodka. It combines superior quality with innovative design and communication that celebrates colour, character, and fun — created for India and the world.”

With its vibrant design, smooth texture, and creative positioning, RANGEELA Vodka marks a bold new chapter for ABD Maestro, reaffirming the brand’s place at the forefront of India’s premium vodka movement. Stay tuned for a review.

D’YAVOL Vortex wins ‘Best New Scotch Whisky of the Year’

D’YAVOL Vortex has been crowned the ‘Best New Scotch Whisky of the Year’ and honoured with a Double Gold at the 2025 San Francisco Spirits Competition. A contemporary blended Scotch, D’YAVOL Vortex is crafted from a selection of single malt and single grain whiskies sourced from the Lowlands, Highlands, Speyside and Islay regions.

It opens with notes of vanilla fudge and soft peat, followed by layers of ripe orchard fruit, sherried richness, warm pecan pie, and smoky malt, before culminating in a smooth finish. With a malt-forward profile, gentle Islay influence, and a non-chill-filtered body, Vortex delivers exceptional texture, layered depth, and a nuanced palate.

On Vortex’s success, Shah Rukh Khan said, “We set out to create a brand that reflects who we are—bold, modern, and uncompromising in quality. Seeing D’YAVOL celebrated on the most coveted global stage is deeply gratifying, and a reminder that excellence will always find its audience.”

Leti Blagoeva, CEO, D’YAVOL Spirits, added, “The recognition from San Francisco comes on the heels of a remarkable run of international acclaim for Vortex, including the title of ‘Blended Scotch of the Year’ at the London Spirits Competition 2025.”

Amar Sinha, Chief Operating Officer at Radico Khaitan, commented, “Vortex exemplifies the collective ambition at the heart of D’YAVOL Spirits; to craft world-class expressions that seamlessly unite authenticity, innovation, and masterful craftsmanship. It’s immensely rewarding to see that vision resonate so powerfully across global markets and with discerning whisky connoisseurs.”

D’YAVOL’s award winning portfolio of luxury spirits also includes D’YAVOL Single Estate Vodka and D’YAVOL Inception Blended Malt Scotch, both globally awarded. The brand is currently available in India, the UAE and the UK, with further international markets to follow.

DeVANS’ GianChand Collection Positions Indian Single Malt on the Global Map

Three whiskies—GianChand, Adambaraa, and Manshaa—trace the brand’s gradual climb from heritage to international acclaim.

Indian single malts have entered a stronger phase. Once the outsiders of the whisky world, they now find recognition among collectors and bartenders alike. Across India, distillers are treating whisky-making as both science and art; experimenting, observing, and letting the climate define their spirits’ tone and temperament.

That same focus filled the evening at The Quorum, Gurgaon, where DeVANS Modern Breweries Ltd. hosted an immersive tasting session for a select audience. The spotlight was on GianChand, the brand’s single malt range, introduced in three distinct variants: GianChand, Adambaraa, and Manshaa. Each bottle told a different story, tied by a common pursuit of integrity and finesse.

Later, I interacted with Prem Dewan, Chairman and Managing Director of DeVANS Modern Breweries Ltd., who outlined the brand’s journey and the meticulous ethos behind its whiskies.

A heritage that progressed with time

DeVANS’ step into the single malt category came from decades of hands-on expertise, not impulse. “For more than thirty years, we supplied matured and fresh malt spirits to various companies across India,” Prem Dewan said. “The quality of our matured stocks was exceptional. Eventually, we decided to bottle them ourselves rather than sell them away. That decision led to the birth of GianChand.”

The name, he explained, carried both sentiment and symbolism. “We wanted an identity that reflected Indian origins,” he said. “Our founder, Shri Gian Chand, had begun as a journalist before entering the liquor business in the 1940s. He built DeVANS on ethics, precision, and quality; values we continue to uphold. The single malt honours that legacy.”

Three whiskies, one intention

At the tasting, guests sampled the three expressions sequentially, noting how each carried a separate flavour identity. “GianChand has a gentle peat layer and matures for around four years,” Prem Dewan explained. “Adambaraa and Manshaa age for over seven. Adambaraa is unpeated, while Manshaa introduces peat for the first time in our lineup.”

All are matured in once-used American bourbon barrels. “We work with first-fill casks because they provide richness and subtle sweetness,” he added. “They lend character without overpowering the malt.”

Adambaraa delivers notes of barley, caramel, and dried fruit; Manshaa introduces restrained smoke with malt sweetness and earthy undertones. The original GianChand balances spice and soft oak. “Our whiskies carry a texture people instantly recognise,” Prem Dewan mentioned. “It’s refined and coherent across the collection.”

Technique moulded by terrain

Prem Dewan described DeVANS’ process as faithful to traditional whisky-making yet flexible to Indian realities. “The fundamentals remain constant: fermentation, distillation, maturation,” he said. “We allow natural fermentation, letting yeast perform at its own rhythm. Distillation is where innovation thrives. That’s where we influence the spirit without losing authenticity.”

The company’s custom-built copper pot stills help preserve uniformity and definition. Jammu’s natural environment does the rest. “Summers are warm, winters are crisp, and both have strong day–night contrasts,” he explained. “This variation promotes ideal interaction between wood and spirit. Our water source, pure and mineral-rich, adds clarity to the whisky.”

India’s temperature accelerates maturation, but Jammu’s geography adds poise. “One year of ageing here equals several elsewhere,” Prem Dewan said. “Yet it happens with balance, not haste. The outcome is layered complexity rather than intensity.”

Recognition and practice

Acknowledgement soon followed. DeVANS’ single malts have earned international distinction, reinforcing the quiet discipline behind their creation. Adambaraa won Best Indian Single Malt at the IWC 2025 in Las Vegas, while Manshaa received International Whisky of the Year at ISW 2025 in Germany.

“Such honours affirm years of disciplined work and a clear production philosophy,” Dewan said. Yet he quickly grounded the discussion. “Awards matter,” he said, “but maintaining quality is our real goal. We have detailed systems and trained teams ensuring each batch meets our benchmark. The bottles reflect a process we never compromise.”

From Jammu to the wider world

DeVANS’ legacy in brewing continues to influence its approach to whisky. “Brewing taught us control and hygiene,” Dewan said. “Those same principles guide our distilling operations. Precision ensures consistency, and consistency builds trust.”

Exports have expanded steadily. “We’re now present in the United States and Australia,” he said. “Canada and several other markets are in line. The response has been remarkable. International buyers appreciate our structure and purity, while Indian consumers feel pride seeing homegrown malts performing globally.”

Looking forward

Before we concluded, I asked Dewan about upcoming releases. He offered a glimpse without revealing too much. “Our production units are actively developing new ideas,” he said. “Fresh expressions and limited editions are in progress. Once ready, they’ll extend the GianChand narrative. Innovation is ongoing; it’s a part of our DNA.”

As the evening drew to a close, one thing was evident: Indian whisky no longer seeks validation. It has earned its standing through intent, technical precision, and an unwavering commitment to progress. GianChand represents that maturity; an Indian malt that speaks clearly, without excess, and leaves an impression built on substance.

Allied Blenders & Distillers Expands Manufacturing with PET Unit, Bets Big on Single Malt

Allied Blenders & Distillers Ltd (ABD) has commissioned a polyethylene terephthalate (PET) bottle manufacturing facility at its integrated complex in Rangapur in Telangana. With an annual capacity of over 600 million bottles, the new plant is equipped with robotics, automation, recycling, and energy-saving technologies—part of the company’s backward integration strategy to boost self-reliance and cut costs.

The inauguration was led by founder Kishore Rajaram Chhabria, alongside managing director Alok Gupta and executive director Arun Barik. “This facility will significantly strengthen our supply chain while improving profitability through savings in logistics and packaging costs,” said Gupta.

The Rangapur complex is among ABD’s flagship assets, housing a 65-million-litre extra neutral alcohol (ENA) distillery, an Indian Made Foreign Liquor (IMFL) bottling unit, and now, the PET facility. Regulatory approval was recently granted to increase grain spirit production to 615 lakh bulk litres per year.

In addition, the site is witnessing fresh investment with the setup of a single malt whisky plant at an outlay of ₹75 crore. The facility, expected to commence production by the end of this fiscal year, will mark ABD’s entry into the premium single malt segment. Once distilled, the whisky will mature for at least three years before hitting the market—meaning ABD’s first single malt is expected post-2029.

Betting on Premiumisation and Global Demand

Alok Gupta highlighted that single malt whisky is one of the fastest-growing categories globally, and Indian brands are gaining traction with international accolades. “This will be a fascinating opportunity for ABD as Indian single malts have captured the imagination of global consumers.”

The company already exports to 27 countries and plans to expand its footprint to 35 markets. Exports currently contribute 8% of ABD’s topline.

ABD has also recently introduced five luxury brands since January 2024, diversifying beyond its mass-market Officer’s Choice whisky and Zoya premium gin. Historically known for its sub-₹1,000 price segment, ABD is now positioning itself to compete head-on with international premium players.

Capex-Driven Growth Story

ABD is in the midst of a ₹527 crore capital expenditure programme aimed at operational efficiency, premiumisation, and capacity expansion. About 25% of this investment was completed in FY24, with 60% earmarked for FY25 and the remainder in FY26. The spend will also support the company’s plan to expand total distillation capacity from 71 million litres per annum (mlpa) to 121 mlpa by FY27.

According to Gupta, these investments are expected to lift EBITDA margins from 7.5% to 17% and improve return on capital from 18% to above 20% by FY28. ABD has guided for 14–15% annualised growth in net sales over the next three fiscals, projecting its topline to double in just over five years.

Beyond expansion, ABD continues to embed sustainability in operations. The Rangapur site incorporates water recycling, biomass fuel handling, and energy-efficient automation across production. These measures not only reduce environmental impact, but also improve cost structures, complementing the company’s growth-driven investments.

Listed on Indian stock exchanges in July 2024, ABD reported revenues of ₹3,541 crore in FY25. With backward integration through packaging, aggressive capex in distillation, and a strategic push into single malt, the company is betting on premiumisation and global growth to shape its next decade.

“Consumers are upgrading, regulations are becoming more supportive, and Indian spirits are getting their due recognition globally,” Gupta said. “We see this as the perfect time for ABD to expand beyond our traditional base and build a strong premium portfolio for India and the world.”

Monarch Legacy Edition Brandy Enters Karnataka

  • Tilaknagar Industries, India’s largest brandy maker, expands its premium offering in Karnataka 
  • 98% of brandy consumption concentrated in South India 

Monarch Legacy Edition, the first luxury brandy from Tilaknagar Industries Ltd., has been launched in Karnataka, one of India’s key brandy markets. First introduced in November 2024, Monarch is already available in Maharashtra, Goa, and Pondicherry, making Karnataka its fourth market.  

In a country where brandy makes up over 22% of total spirits consumption by volume, second only to whisky, 98% of this demand comes from South India, with Karnataka playing a key role. From Bengaluru’s thriving cocktail scene to the long-standing appreciation for the spirit across the state, Karnataka is no stranger to brandy.

Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries Ltd., commented, “South India has always had a deep connection with brandy, and Karnataka has been a key part of that. Our flagship Mansion House Brandy has been loved here for decades. With Monarch Legacy Edition, we are introducing something new for both loyal and curious consumers—a more refined, expressive take on Indian brandy that reflects evolving tastes, while staying true to TI’s legacy and over 40 years of brandy-making expertise.” 

Earlier this year, Monarch Legacy Edition became the only Indian brandy to win at two of the world’s most prestigious spirits competitions, taking home Gold at the World Drinks Awards 2025 and Bronze at the London Spirits Competition.

Sanaya Dahanukar, Marketing Manager, Tilaknagar Industries Ltd., added, “Karnataka is one of the most exciting markets for spirits right now as there is a huge interest in quality, craft, and new experiences. We have seen a great response to Monarch Legacy Edition in our other markets, and we are excited to see how it’s received here. It’s a great sipping spirit, but what surprises a lot of people is how well it works in cocktails too. We are looking forward to seeing it find its place on menus across the state, for consumers looking for something new in the luxury space.” 

Monarch is the 100% pure grape brandy made from a blend of French grape spirits aged up to eight years and Indian grape spirits from Maharashtra’s Sahyadri region. Distilled in traditional copper pot stills and matured in French oak ex-wine casks, Monarch combines the finesse of Cognac-making with the character of Indian terroir. The same care has gone into how Monarch is presented—from its beautiful decanter-style bottle to the deep navy and gold colour palette inspired by Indian royal heritage. 

The Monarch Legacy Edition has 42.8% ABV and the price in Karnataka is ₹5,000 for 750 ml. The price in Maharashtra is ₹6,750; Goa ₹4,000 and Pondicherry ₹3,500.  

Tasting Notes  

  • Aroma: Rich grape and fruit notes with subtle hints of apple, nutmeg, and tobacco.  
  • Palate: Velvety sweetness balanced by creamy oak and indulgent dried fruits.  
  • Finish: Long and warm with cinnamon, peach, and clove nuances. 

Glasgow Distillery’s Limited Release of 1770 10-Year-Old Single Malt

Glasgow Distillery has announced the release of its second limited 10-Year-Old single malt, to mark a decade of whisky production. This special edition has been bottled in collaboration with one of Scotland’s leading whisky retailers, Royal Mile Whiskies. The limited release (340 bottles) to be released at Whisky Fringe in Edinburgh, will be available on royalmilewhiskies.com from August 11.

Glasgow 1770 10-Year-Old Sauternes Cask Matured is a single cask, unpeated single malt fully matured in a re-fill French Sauternes sweet wine barrique. The result is a fruity, delicate whisky with notes of poached pear, salted caramel, honey and tropical fruit, with a hint of cinnamon spice.

The bottling follows the inaugural 10-Year-Old release, which sold out in under twenty minutes in March and July’s trio of Small Batch Series expressions also matured in wine casks.

“It’s a big year for us at The Glasgow Distillery, as we celebrate 10 years since our first casks were filled. This is a truly special 10-Year-Old release, an American white oak cask that previously held Sauternes wine. Being a refill barrique, the Sauternes influence is present but not overpowering, adding depth and flavour, resulting in a perfectly balanced single malt while still showcasing our decade-old spirit. The caramel and malty characters of the American oak are complemented by the rich poached pears and tropical fruit imparted by the Sauternes wine, creating a harmonious balance of whisky and wood,” said Mike Hayward, Founder

“We’re delighted to have collaborated with The Glasgow Distillery on this exciting release. We’ve long supported the new wave of Scottish distilleries, and The Glasgow Distillery has firmly established itself as one of the most innovative and inspiring producers right now. Their diverse core range, along with an impressive Small Batch Series, showcases great flavour quality and accessibility. It’s no wonder they’ve built such a passionate community around their whiskies.”

“This single cask marks their first 10 years of whisky making and is one of the most interesting examples of Sauternes cask matured whiskies I’ve tried recently, showcasing a balance of fresh apricots, salted butterscotch and honey. We’re proud to be launching it exclusively at the 23rd edition of Whisky Fringe this year at Mansfield Transquair, where The Glasgow Distillery will be joining fellow established distillers in the main hall for the first time,” added Sam Brabbs, Head Spirits Buyer at Royal Mile Whiskies

Tasting Notes:
Nose: Notes of runny honey and rich vanilla with hints of floral orange blossom leading to baked apple pie, stewed pears and dried apricot.
Palate: Honeyed sweetness and notes of vanilla pods meet Seville orange marmalade, ripe mango, rich toffee and baked fruits, all underpinned by a welcome lasting minerality.
Finish: Rich, with a nutty oiliness alongside sweet butterscotch, baked banana, earthy nutmeg and a warming ginger and cinnamon spice.

Suntory Global Spirits Underlines Strong Presence in Indian Travel Retail

Suntory Global Spirits is deepening its imprint in India’s thriving travel retail sector with a clear focus on premiumisation and experiential retail. Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits, outlines the group’s strategic expansion and growing resonance among discerning Indian consumers, especially with the launch of the Bowmore Appellations Collection, now exclusively available at Delhi Duty Free and Ospree Duty Free, Mumbai (Arrivals).

Mandeep Singh Thukral, Senior Regional Commercial Manager, GTR India, Suntory Global Spirits

This exclusive single malt series features four rare, age-statement expressions, each finished in casks from celebrated European wine regions, fusing Islay’s signature smokiness with rich global terroirs. “The Bowmore Appellations Collection reflects our commitment to premium storytelling and innovation in the travel retail channel,” notes Thukral.

Expanding Footprint with Premium Spirits

India’s travel retail market is on a growth trajectory, propelled by surging international and domestic passenger movement and a strong appetite for luxury offerings. Suntory Global Spirits has positioned itself strategically with a comprehensive portfolio that spans across iconic Japanese whiskies—Yamazaki, Hibiki, Hakushu, Chita, and Toki—under The House of Suntory. This is complemented by American legends Jim Beam and Maker’s Mark, Islay favourites Bowmore and Laphroaig, and premium white spirits Roku Gin and Haku Vodka. Notably, Suntory’s portfolio also includes India-specific expressions tailored to local tastes, underscoring a nuanced and market-sensitive approach.

Creating Awareness Through Immersive Experiences

Suntory Global Spirits is not only selling bottles—it’s offering experiences. At the flagship Delhi and Mumbai duty-free outlets, the company has curated immersive shop-in-shop boutiques. These spaces feature Kigumi-style wooden lattice architecture, Marumado-inspired digital screens, Zen garden podiums, and interactive digital panels exploring artistic collaborations, including with Japan’s Chiso Kimono House.

A dedicated section on The Art of Japanese Gifting, complete with customisable Kandji cards, further enhances the shopping journey, reflecting the Japanese spirit of Omotenashi—wholehearted hospitality. “These installations aim to educate and engage, turning a duty-free visit into a meaningful cultural moment,” adds Thukral.

Capitalising on India’s Single Malt Surge

Recent data from the IWSR shows Indian Single Malts (ISMs) overtaking Scotch Single Malts in domestic sales for the first time in 2024, growing by over 25% this year following 75% growth in 2023. This transformation signals a distinct consumer pivot towards premium, character-rich whiskies.

“Such growth validates our long-term investment in India,” says Thukral. “While our Japanese whiskies continue to lead with global prestige, our Scotch single malts—including Bowmore and Laphroaig—are also seeing increasing demand.”

The introduction of travel retail exclusives like Bowmore Appellations is a strategic move to capture this discerning customer base.

Beyond India: Global Footprint with Local Relevance

The same emphasis on curation and premium offerings applies across other key travel retail markets like Dubai International Airport and Singapore Changi Airport. While the core lineup remains consistent, each market receives tailored activations and launches to cater to regional preferences.

The Kogei Collection – Japanese Kimono Edition (2024) and the Bowmore Appellations Collection, both GTR exclusives, have been rolled out in these locations, amplifying global brand synergy while respecting local consumer nuances.

Market Share and Future Pipeline

With a 5.5% share in the Indian market, Suntory Global Spirits is seeing robust growth—particularly at international airports, where average basket sizes and conversion rates are significantly higher. “It’s not just about volume, but the quality and aspiration behind each purchase,” says Thukral.

Looking ahead, the brand promises a pipeline of innovative, limited-edition expressions designed exclusively for travel retail. These are aimed at travellers who seek more than just a purchase—they seek a story.

“Our mission is to offer travellers a deeper connection to our brands—be it through craftsmanship, cultural heritage, or exclusive taste journeys,” concludes Thukral. “And India remains central to that vision.”

Taxes could affect Indian Alcobev Industry

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

UK Tax Burden Hurting Scotch Whisky

  • 75% of companies expect to defer investment, or invest outside of the UK due to the high tax burden
  • One in four Scotch distillers expect to make job cuts as a result of economic headwinds
  • 76% say an increase in duty would make them less likely to take forward capital investment and recruitment

Three in four Scotch Whisky companies will defer UK investment, or invest elsewhere, due to the high tax burden, according to research undertaken by the Scotch Whisky Association (SWA). The SWA represents over 90 companies from across the Scotch Whisky industry, that collectively account for the majority of Scotch Whisky production (around 97% of the industry).

India is likely to be one of the destinations for investment as enunciated earlier by the SWA Chief Executive, Mark Kent who had stated after the India-UK free trade agreement was signed that “The deal is good for India too, boosting federal and state revenue by over £3bn annually, and giving discerning consumers in a highly educated whisky market far greater choice from SME Scotch Whisky producers who will now have the opportunity to enter the market.”

Kent had mentioned how “India is Scotch whisky’s largest export market by volume, with the equivalent of more than 192 million bottles exported there in 2024. The volume of Scotch whisky exports to India have grown by more than 200% in the past decade alone, and whisky is hugely popular in India. In fact, India is the largest whisky market in the world. But while many Indian consumers are keen to add a bottle of Scotch to their shelves, bars and collections, Scotch whisky has just a 3% share of the Indian whisky market. There is huge potential for that to grow with the free trade agreement announced in Spring 2025.”

Over two thirds of price goes in taxes

Going back to the research, undertaken between February and June 2025, reveals the extent of concern companies face about the current levels of alcohol duty in the UK – with over two thirds of the average-priced bottle of Scotch Whisky collected in tax.

Following a 10.1% rise in duty in March 2023, and a 3.65% rise announced in October’s Budget, 87% of respondents to SWA’s members’ survey expressed concern that the rate of excise duty will rise once again in this Autumn’s Budget.

Any further rise in duty will have an impact not only on investment, but also recruitment, according to the companies – at a time where the whole industry employs or supports 66,000 jobs across the whole UK. A quarter of companies now expect their overall headcount to decrease given the current levels of alcohol duty.

As well as direct job impacts, there is increasing risk of knock-on job losses across the extended supply chain as distillers reduce production in the face of global tariffs impacting exports.

This research comes as the industry faces significant strain. At the start of the year, over half of those surveyed expected operational costs from Government policies – for example, EPR fees, NIC increases, and tariffs – to increase by 10%; with 40% now expecting that figure to be over 20%. Despite the increased duty levels, HMRC data shows that Treasury spirits duty receipts have not increased and failed to deliver the forecasted revenue growth.

Kent added, “The Scotch whisky industry has a long track record of investment and growth that has benefitted communities across Scotland and the supply chain across the UK. It is also an optimistic and confident sector that believes in creating future growth.

“However, the positivity of the industry is being severely tested by the relentless impact of domestic policies and global circumstances.

“The industry is facing the significant challenge of US tariffs and increasing domestic pressures at a time it would otherwise be looking to support the Prime Minister’s growth mission. This high tax burden is not delivering the expected additional revenue for the Government, but it is costing jobs and investment.

“At a time when the country needs economic growth, we cannot fail to back one of the UK’s longstanding successes.”

Scotch Whisky Industry Records £5.4BN Global Exports in 2024

High taxes on Scotch whisky, specifically a recent 10.1% duty increase and a subsequent 3.65% increase, are hurting the UK alcobev industry by increasing costs for consumers and businesses, potentially leading to reduced investment and job losses, and ultimately impacting the economy. The industry argues that these tax hikes are counterproductive, leading to decreased government revenue and stifling growth.

The Scotch Whisky Association (SWA) has released global export figures that show the value of Scotch exports stood at £5.4bn in 2024. The equivalent of 1.4bn 70cl bottles of Scotch whisky were exported last year, equating to 44 per second.

The figures, released, show a decrease of 3.7% on 2023 exports by value. The Scotch Whisky Association has called on the UK and Scottish Governments to provide more support for the industry as distillers warn that the combination of pressure on consumer spending, increased domestic tax and regulation, and turbulent global trade, may continue to impact exports into 2025.

Exports by volume have increased by 3.9%, which the industry says reflects the changing trends in global consumer preferences and challenging trading environment. 

India has regained its position from France as the world’s number one Scotch whisky export market by volume, with 192m bottles exported, while the United States retains its long-held position as the largest export market by value, worth £971m in 2024. 

However, the whisky industry has warned that global trading conditions remain turbulent at the beginning of 2025 and have called on the UK government to do what it can to mitigate growing domestic pressures on the industry. This includes reducing excise duty on the industry, with 70% of the average priced bottle now collected in tax, reconsider the financial impact of Extended Producer Responsibility (EPR), and accelerate trade talks to reduce tariffs and market access barriers in key markets, like India. 

Commenting on the export figures, Mark Kent, Chief Executive of the Scotch Whisky Association said, “Despite the resilience of the Scotch Whisky industry, 2024 has been a challenging year. 

“At home, distillers are being stretched to breaking point, as consumers bear the brunt of a 14% increase on the tax on every bottle of Scotch Whisky in the last 18 months alone. The cumulative effect of inflationary impacts on input costs such as cereals, energy and shipping, and the increased tax and regulatory costs, including the substantial cost of EPR coming later this year, are being fed through to consumers when they are tightening their belts.  

“Overseas, the tectonic plates of trade are shifting, and exports to traditionally strong markets in the EU and North America have become much more challenging. We continue to support UK Government to promote strong and open trade relations with key export markets around the world, and particularly to advance negotiations on FTA with India, and engage with the US Administration. The United States remains a key market for Scotch, and where the industry contributes to the US economy through direct investment and jobs.

“But support for the industry’s global success starts at home. For too long, the industry has been taken for granted, with the misguided and simplistic belief that decisions taken in Scotland and the wider UK won’t impact an industry which exports 90% of its product, supports a large local supply chain and plays a valuable part in attracting tourists to Scotland. The Scotch whisky industry is a proven driver of economic growth, jobs and investment, and needs an environment free from the shackles of excessive taxation, regulation and uncertain operating costs. The UK government must redouble its efforts to back Scotch producers to the hilt, as promised by the Prime Minister.”

These are challenging times for the beverage alcohol industry. Changing weather patterns and wildfires are affecting production of essential ingredients like grapes, barley, and hops. Many consumers are switching to low- and no-alcohol beverages. And now, tariffs.

Research by the Scotch Whisky Association (SWA) indicates that a high tax burden is causing three out of four Scotch whisky companies to either defer or shift investment away from the UK. This reluctance to invest can impact expansions, infrastructure improvements, and innovation within the industry.

Furthermore, a quarter of distillers are considering reducing headcount due to economic pressures and the current alcohol duty levels.

The industry currently supports 66,000 jobs across the UK, and any further tax increases could lead to a decline in employment within the sector and its related supply chain. High domestic taxes can make Scotch whisky more expensive compared to other spirits, both domestically and internationally, potentially impacting its competitive edge.

Tariffs already add pressure, and high domestic taxes further exacerbate this. When a 25% US tariff was imposed on single malts in 2019 (later suspended), the industry lost over £600 million in exports to the US over 18 months. This highlights how external factors, combined with domestic tax burdens, can significantly hinder export performance.

Despite duty increases, HMRC data hasn’t always shown the expected rise in spirits duty receipts. This suggests that excessive taxation can potentially discourage consumption, leading to lower-than-anticipated tax revenues, a point raised by the SWA.

While recent changes to alcohol duty have included a draught relief to support the hospitality industry, the overall duty increases can still impact the price of drinks, including Scotch whisky, in bars and restaurants. This can affect consumer spending in the on-trade sector and subsequently impact the businesses that rely on alcohol sales.

Alcohol taxes are implemented to generate revenue and address public health concerns, excessive or poorly structured taxes can have detrimental consequences for the UK alcobev industry, particularly Scotch whisky, by impacting investment, jobs, exports, and competitiveness.