Tag Archives: Responsible Drinking

Diageo India Delivers Tangible ESG Gains in FY25

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Diageo India recently released its fourth annual ESG Reporting Index, spotlighting advancements on its ‘Spirit of Progress’ ESG action plan. The Reporting Index outlines the company’s impact across three pillars of its Spirit of Progress framework: pioneering grain to glass sustainability, championing inclusion and diversity, and promoting positive drinking, all anchored in doing business the right way.

 Developed in line with the globally recognised GRI Standards, the Index also maps Diageo India’s performance against the UN Sustainable Development Goals (UN SDGs) and provides additional sector-specific disclosures under the Sustainability Accounting Standards Board (SASB) framework.

Jitendra Mahajan, Chief Supply and Sustainability Officer, Diageo India, said, “Our Spirit of Progress ESG agenda reflects the business we are deliberately building—one that grows responsibly, leads with integrity, and creates long-term value. From strengthening water security and accelerating our transition to renewable energy, to advancing inclusion and promoting responsible consumption, our actions demonstrate that a focus on ESG powers performance. As we deepen this momentum, we remain committed to working with partners to build resilient communities, protect natural resources, and shape a more sustainable future for India.”

Under its grain-to-glass sustainability pillar, Diageo India reported major gains in water efficiency, replenishment and collective action, improving water-use efficiency by 54% in distillation and 35% in packaging since 2020 while replenishing 182,000 cubic metres of water in FY25 (cumulative 1.1 million cubic metres) across Maharashtra, Uttar Pradesh, Rajasthan and Meghalaya, continuing to expand WASH interventions and maintaining AWS certification for its Alwar unit, while also co-founding The Godavari Initiative to restore aquifers and build watershed resilience in the Godavari basin.

On carbon and energy, the company has cut GHG emissions by 93% since 2020 by moving all distilleries to biomass-powered boilers and now sources 99% of its energy from renewables including 2.7 MW of in-house solar, achieving zero waste to landfill, reaching 99% recyclable packaging, and integrating 33% r-PET into its PET bottle portfolio, alongside community-led carbon projects including 31,500 mangrove seedlings in Odisha, 1 lakh trees for residual offsetting, and 2 lakh trees planted under Rajasthan’s TOFR programme, while regenerative agriculture efforts have trained 430 farmers—80% smallholders—across 2,000+ acres.

Advancing inclusion and diversity, Diageo India reported women’s representation at 28% of the executive workforce, 30% of the leadership team and 50% of the Executive Committee, supported by active ERGs such as the Spirited Women’s Network and Rainbow Network, while Project Saksham enabled the hiring and upskilling of 43 Persons with Disabilities and Learning for Life trained 1,922 individuals—including 1,282 women and 303 PwDs—bringing women’s participation across Diageo skilling programmes to 67%, and the Diageo Bar Academy trained over 9,400 bartenders and bar owners, as the company continued to strengthen inclusive workplaces recognised by a Gold Employer ranking at IWEI 2024 and a 16th position in Equileap’s Emerging Markets Gender Equality Report 2024.

Diageo India’s responsible drinking initiatives continued to scale nationwide, with Act Smart India reaching 200,000 youth in FY25 (cumulative 500,000), the Wrong Side of the Road anti-drink driving platform implemented across 79 RTOs in 10 states engaging 500,000 consumers in FY25 (total reach 1.2 million since 2021), and the DRINKiQ platform reinforcing moderation and awareness around alcohol-related harm.

Strengthening governance remained foundational to Diageo India’s ESG agenda with a diverse Board led by an Independent Chairperson, all key committees chaired by Independent Directors, and ESG oversight embedded through cross-functional teams reporting quarterly to the Executive Committee, reinforcing the company’s commitment to doing business the right way and driving sustained ESG leadership in India’s alcobev sector.

ISWAI Commends State Governments for Implementing Progressive Excise Policies

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  • Move will provide enhanced consumer experience and generate revenue opportunities
  • Premium-only and Smart Liquor Stores in Karnataka, Telangana, Haryana
  • Industry seeks De-regulation

The International Spirits and Wines Association of India (ISWAI), voice of the Indian Premium alcoholic beverage industry, has commended State governments for implementing progressive excise policies aimed at modernising retail formats, increasing revenue, and enhancing the overall consumer experience.

From Uttar Pradesh’s composite retail formats to Andhra Pradesh’s privatised model, Rajasthan’s premium mall-based stores, Madhya Pradesh’s single-bottle billing system, Haryana, Telangana, Karnataka, and Odisha’s premium-only retail formats, these progressive policies are redefining how the alcohol retail ecosystem operates across the country.

Welcoming the positive change, Sanjit Padhi, CEO of the International Spirits and Wines Association of India (ISWAI), said, “The reforms we are witnessing across different states in India, signal a paradigm shift in how the alcobev sector is perceived and managed, and reflects the state governments positive intent and commitment. Progressive excise policies are not only improving compliance and transparency, but also creating the foundation for sustainable, consumer-centric growth.”

UP’s reform-centric excise policy

ISWAI said at the forefront of this transformation is Uttar Pradesh, which has launched a reform-centric excise policy for FY 2025–26 with an ambitious revenue target of ₹55,000 crore, a 10% increase over the previous year. Structural changes like consolidating over 12,000 outlets into approximately 9,000 composite vends are doubling retail accessibility and ensuring broader market coverage. The adoption of a digital e-lottery system for retail licenses has already generated more than ₹2,250 crore, while retail license fees are expected to contribute over ₹4,200 crore, a testament to how digitization and transparency can directly drive state revenues.

Excise reforms are reshaping the alcobev landscape.

Speaking on these forward-looking changes, Sanjit Padhi said, “Uttar Pradesh has been a leader in driving structural reforms that have seen its revenue jump from ₹24,000 crore in FY 18/19  to a target of ₹55,000 crore in FY 25/26, growing at a rate of 13% CAGR. ISWAI members are the largest contributors to the state’s IMFL revenue (55%+), and we believe that the current changes are part of building a sustainable, growth-oriented revenue model that is also consumer-centric. The new outlets and investments in the retail infrastructure will result in a superior consumer experience.”

The reforms also offer greater operational stability for vendors. The state now grants two-year licenses via the e-lottery system, promotes fair competition by capping ownership at two outlets per individual, and fosters a level playing field for stakeholders.

Uttar Pradesh’s focus on premiumisation is reshaping consumer expectations and retail standards. New composite vends are being upgraded into well-lit, aesthetic, and secure outlets, particularly appealing to women consumers and supporting responsible consumption.

“We’re witnessing the rise of a more inclusive, modern alcobev ecosystem. From premium retail formats to safer consumer environments, these changes are aligning with global best practices and unlocking new growth opportunities. This will also provide consumers with high-quality premium brands and genuine products, deterring counterfeit products and encouraging responsible drinking. We hope that other states adopt the best practices of these progressive states to build consumer-centric, growth-oriented, sustainable revenue models,” added Sanjit Padhi.

Innovative Approaches by Andhra Pradesh, Rajasthan, Madhya Pradesh

Some states are following suit with their innovative approaches. Andhra Pradesh, through its privatised retail model, now supports 3,736 liquor vends and has witnessed a ₹1,800 crore surge in revenues and a 37% rise in Scotch sales, indicating strong premiumisation trends. Rajasthan has declared a four-year excise policy – a landmark reform that ensures stability in the sector. Speaking on this, Sanjit Padhi said, “The industry needs business stability as it allows room for building long-term investment plans. Rajasthan has taken this step, which we hope will inspire many other progressive states to evaluate and build this into their future planning process.”

The state of Rajasthan has already seen a 55% increase in IMFL sales since FY 2021, thanks to a retail overhaul that includes premium outlets at airports and shopping malls. States like Madhya Pradesh and Rajasthan are also experiencing significant volume growth—27% and 55% respectively—by embracing composite retail formats that ensure equitable access across urban and rural areas while reducing the prevalence of illicit trade and counterfeit products. Madhya Pradesh’s 2025–26 policy has also introduced features like stock carry-forward and single-bottle billing for premium brands, enhancing traceability and efficiency.

Premium-only and Smart Liquor Stores in other States

Similarly, Uttarakhand is launching Smart Liquor Stores in malls and department outlets, while Haryana, Telangana, Karnataka, and Odisha are promoting premium-only retail formats to meet rising urban demand.

Industry seeks Deregulation

Meanwhile, one of the biggest challenges the industry faces is pricing control. In this context, Sanjit Padhi emphasised the need for deregulation in the IMFL sector. “Market forces should determine pricing, and no company will risk its business by arbitrarily pricing itself out of the market,” he said. ISWAI strongly recommends the removal of pricing controls to liberate and unshackle the industry, encouraging greater investment and more robust contributions to state revenues.

In addition, leading states like Madhya Pradesh, West Bengal and UP have digitized their processes and significantly improved the ease of doing business. This is another area where other states can consider increasing efficiencies, which could lead to better resource utilisation.

As more states look to emulate these successful models, India’s alcobev landscape will continue to evolve into a refined, progressive ecosystem that balances public welfare, economic growth, and consumer preferences, marking a significant milestone for the industry.

ISWAI members largest revenue contributors

Members of ISWAI include global leaders Bacardi, Brown Forman, Campari Group, Diageo-United Spirits, John Distilleries, Moet Hennessy, Pernod Ricard, Suntory Global and William Grant & Sons and have almost 98% of the business produced in India through Indian Made Foreign Liquor (IMFL), Bottled-in-India (BII) products and Indian Single Malts, thereby making the sector strong proponents of the ‘Make in India’ ideology, generating employment and business opportunities, both directly and in ancillary services & industries, across states. ISWAI members are the largest revenue contributors, with over 45% share in volume and more than 55% share in value. With over 95 manufacturing plants in the country, ISWAI members have large investments in India.

spiritsEUROPE launches ‘Objective 2030’

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spiritsEUROPE has launched its ‘Objective 2030’, a detailed roadmap for an EU open trade policy to support competitiveness, resilience and growth for the coming years.

spiritsEUROPE President Ian McLernon said, “Trade and exports have been at the heart of our sector for centuries. Often seen as iconic products and symbols of European culture, EU spirits remain a powerhouse for EU exports, supporting countless jobs in rural communities. However, this success should not be taken for granted. We face significant challenges, from the global economic slowdown impacting consumer purchasing power to growing geopolitical tensions and the increasing weaponisation of trade. To overcome these challenges, we need an open trade policy that fosters competitiveness, resilience, and growth.”

The success of the European spirits sector lies in its ability to balance long-standing traditions and quality passed down through generations with innovation to meet evolving consumer preferences. As a high-value, export-driven sector, the spirit drinks producers showcase how external trade can strengthen EU agri-food production, benefitting both the farmers who supply key ingredients and the rural communities where most production takes place.

The ‘Objective 2030’ roadmap published by spiritsEUROPE at its SUMMIT 2024 calls on the EU to prioritise three key areas. First, the EU must foster a stable and open trade environment for EU spirits by protecting them from unrelated trade disputes, prioritising multilateral solutions, and strengthening public-private cooperation. Second, the EU should deepen regulatory cooperation with third countries to remove and prevent trade barriers. Thirdly, the EU must expand market access and support diversification by concluding ambitious trade agreements with key growth regions, backed by economic diplomacy and promotional activities.

“Delivering significant results on these three calls for action will provide us with more options, greater resilience, and the ability to continue innovating and investing in sustainable practices. This is our vision for an open trade policy agenda that promotes competitiveness, security, and sustainability – one that allows us to keep contributing to the EU agri-food success story, the EU’s trade balance, and rural communities,” concluded Pauline Bastidon, External Trade Director at spiritsEUROPE.