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.”
Walk into a liquor store today and you’ll spot it: the distinctive label, the sleek bottle, the growing shelf space. Rockford has carved its own path in the premium whisky segment. Behind it is Abhishek Modi, Executive Director of Modi Illva India Pvt. Ltd., a third-gen entrepreneur with a sharp instinct for what works, what sells, and what sticks. He has got degrees in chemical engineering and business, sure, but what drives him is an eye for detail and a taste for building things that last.
Modi Illva is a 50:50 joint venture between the Umesh Modi Group—whose businesses span pharmaceuticals like Betadine, cosmetics like Revlon, and large-scale distilleries—and Italy’s Illva Saronno, the makers of global staples like Disaronno and Tia Maria, with a presence in over 160 countries. Together, they’ve built a spirits company that continues to expand its footprint across India, with flagship labels Rockford Reserve and Rockford Classic at the forefront.
The company has recently announced an INR 100 crore investment in a dedicated malt distillery at its Modinagar facility, scheduled to go live by December 2025; a move that will support its ambition to produce premium single malts and scale up existing production.
In this conversation with Ambrosia, Modi shares insights on scaling distribution, why Tier 2 cities are key to their strategy, what shapes consumer loyalty in premium segments, and how the company is building for long-term relevance in a competitive alco-bev market.
Modi Illva’s growth in the premium spirits segment has caught the industry’s attention. What factors do you believe are driving this momentum today?
Several elements have contributed to this momentum, both within the company and in the broader market. A key reason is the change in buyer behaviour; particularly among younger, aspirational drinkers, towards quality and authenticity. At Modi Illva, we’ve responded by creating products that match these evolving tastes. Consistency remains central to our production philosophy. We’ve also developed a strong brand narrative rooted in our heritage while incorporating innovation. This blend has helped us connect with audiences, even in areas where brand loyalty is hard to earn. Our long-term investment in regional markets and ongoing relationships with customers has played a crucial role in maintaining this trajectory.
What’s your roadmap for the House of Rockford over the next few years? Can we expect new variants or entries into different whisky sub-segments?
Innovation continues to shape our direction at the House of Rockford. We’re not only working on new expressions but also rethinking how premium whisky can evolve for Indian palates. The coming years will bring considered portfolio additions and renewed trust-building. While Rockford Reserve and Rockford Classic are already well-established, we are examining avenues in craft, blended segments, and age-specific offerings. Collaborations with select distilleries are also being explored for limited releases that appeal to both existing patrons and first-time buyers. All future launches will uphold the standards Rockford is known for.
You’ve built a premium whisky portfolio that resonates with a discerning audience. Which markets or cities are you focussing on currently and why do these matter in your expansion strategy?
Tastes across the country are becoming more sophisticated, and whisky is increasingly tied to individual identity. While major metros such as Mumbai, Delhi, and Bengaluru remain integral, there’s substantial growth in locations like Jaipur, Indore, and Lucknow. These cities are seeing a rise in purchasing power and interest in elevated options. Our attention on Tier 1 and select Tier 2 hubs stems from the pace at which these regions are transforming. Early engagement helps us decode local nuances and develop meaningful connections with new audiences.
Distribution often makes or breaks a brand in the alco-bev space. What is your current approach to building a strong, scalable distribution network and how are you aligning it with consumer demand?
Ensuring availability across the right retail formats, pricing tiers, and channels is essential. We’ve already secured placement in 80% of relevant outlets nationwide. Our framework is structured to be both agile and robust, enabling us to respond to demand patterns swiftly. We rely on trusted partnerships across distribution and retail, built over time. As we continue expanding, our supply chain is being reinforced to maintain visibility without compromising on the aspirational nature of our labels. The system is designed to progress alongside the audiences we serve.
Is there a conscious push towards investing in marketing to strengthen brand recall, especially in newer or emerging markets? How do you measure that impact?
Our campaigns prioritise building real-world resonance rather than chasing volume alone. In newer geographies, we’ve increased our digital presence and local outreach—particularly in Tier 2 and 3 areas—where authenticity and regional relevance shape perception. We measure success through repeat sales, brand stickiness, and customer feedback loops. Meaningful interaction outweighs visibility metrics, and our approach reflects that principle.
We’ve seen an increased interest in Indian single malts, both locally and globally. Is that a category you’re actively exploring or building towards?
The traction around Indian single malts is undeniable, and we’re observing the space closely. Rockford has firmly established its place among premium blends, and we continue to track shifts in craft spirit preferences. Introducing a single malt would require a label that mirrors the quality benchmarks we uphold. For now, we’re expanding our existing portfolio while evaluating future entry points with care.
Production scalability becomes critical when a brand starts accelerating. Are there any backend developments or facility expansions in the pipeline to support your growth goals?
Yes, we are actively upgrading infrastructure to support upcoming requirements. This includes capacity enhancement, improved distillation technology, and streamlined logistics. Environmental responsibility is built into these upgrades. We’ve also fortified our quality assurance systems to deliver consistency, whether the batch size is small or scaled up. These steps are essential as we look to meet rising domestic demand and enter additional global territories.
From a consumer trends perspective, what shifts are you observing in India’s premium alco-bev consumption and how is Modi Illva adapting to meet those expectations?
There’s a marked movement among younger drinkers toward experiences tied to cultural connection, storytelling, and identity. At Modi Illva, we’ve responded with offerings such as Singhasan, a 100% Indian whisky designed for those seeking local relevance. The goal is to create products that reflect this mindset, while maintaining brand integrity and delivering a richer journey for the buyer.
Sustainability is no longer optional. Are there efforts underway at Modi Illva to make production, packaging, or sourcing more environment-conscious?
Yes, ecological responsibility remains a key area of action. We’ve taken steps to reduce our carbon footprint during distillation, introduced recyclable packaging solutions, and engaged with suppliers aligned to our sustainability goals. These initiatives are reviewed regularly to ensure alignment with industry benchmarks. As operations scale, these commitments will remain embedded in our practices.
With AI and digital tools reshaping every sector, do you see them influencing the alco-bev industry? If yes, how are you integrating tech into operations or consumer engagement?
Digital tools and artificial intelligence are helping brands operate with sharper insight and responsiveness. We use these to assess buying patterns, optimise supply logistics, and fine-tune campaign strategies. Real-time input enables us to test new formats and strengthen distribution agility. Whether through customisation, product planning, or service, tech is infused into our everyday decision-making.
You belong to a legacy known for building bold, category-defining ventures. What’s your approach to balancing tradition with modern disruption in your current role?
I work to retain the values that have shaped our foundation, while introducing newer methods suited to today’s context. We combine legacy knowledge with contemporary tools. This mix allows us to evolve while holding on to the consistency and ethics that define us. Progress doesn’t require replacing the past; it calls for building on it thoughtfully.
India’s position in the global alco-bev map is evolving fast. Are you seeing opportunities to export Indian premium spirits? Is that part of Modi Illva’s next phase?
Absolutely. India is gaining attention globally for spirits with character and quality. We believe our brands have the depth to connect with international audiences. Regions like Southeast Asia, Europe, and the Middle East are receptive to well-crafted Indian whisky. We’re actively assessing overseas entry points and see this as a natural extension of our domestic progress.
Looking ahead, what are the biggest milestones or breakthroughs you’re hoping to achieve, either as a business or personally as a leader?
Our target as an organisation is to become India’s third-largest alco-bev player. I would like to shape a label that delivers clarity, originality, and high standards. Rockford has established itself among premium blends, but the journey ahead involves stronger global recognition. This next chapter is an opportunity to contribute to India’s presence in the world of whisky.
Rapid Fire
Blended whisky or single malt: what’s your go-to?
Blended whisky.
One Indian city where you would love to launch an exclusive limited edition?
Keeping state policy in mind…maybe Goa or Gurugram.
Big branding campaign or silent disruptor, what’s more your style?
Definitely silent disruptor. I believe in the product to speak for itself.
Your favourite bar anywhere in the world?
The Connaught in London
If you weren’t building spirits, what would you be doing?
Building a disruptive retail brand in grocery business
What’s one thing people would be surprised to learn about you?
I am quite an open book. What you see is what you get!
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.
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.”
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.
spiritsEUROPE has regretted that the EU-US political agreement has, for now, failed to secure the long-overdue restoration of the zero-for-zero framework for spirits. European Union spirits exports to the US are subject to a 15% import tariff.
Hervé Dumesny, Director General of spiritsEUROPE
“We welcome the broader principle of an agreement to de-escalate trade tensions and provide greater predictability to businesses,” said Hervé Dumesny, Director General of spiritsEUROPE. “While we thank the European Commission for its ongoing efforts to include spirits in the list of exemptions, the failure thus far to reinstate zero-for-zero for our products is a missed opportunity. The continued application of US tariffs on EU spirits, now at 15%, places our products at a substantial competitive disadvantage, limits consumer choice, and undermines investment and growth in our sector on both sides of the Atlantic.”
Originally agreed in 1997, the zero-for-zero arrangement eliminated tariffs on virtually all spirits traded between the EU and the US. It proved to be a powerful engine of economic exchange, boosting transatlantic spirits trade by 450% between 1997 and 2018, spurring cross-investment, and strengthening the cultural and economic bonds between our two sectors. European spirits enjoy strong demand among American consumers, driving substantial growth and job creation both in US retail and hospitality and in the EU regions where these products are made.
“This situation remains unbalanced and unsustainable,” Hervé Dumesny added. “We call on both the EU and the US to stay engaged at the negotiating table and secure the full restoration of the zero-for-zero framework as soon as possible. This must include the permanent removal of US tariffs on EU spirits and the complete repeal of any suspended EU retaliatory measures on US spirits. A truly tariff-free environment is essential to unlock the full potential of our shared industry and safeguard the many jobs it supports, from farmers and distillers to logistics, retail and hospitality across the Atlantic.”
It said that spiritsEUROPE is ready to work constructively with the European Commission, US counterparts, and industry partners to achieve a durable, balanced, and tariff-free solution that reflects the longstanding spirit of EU-US cooperation in the spirits sector.
After a successful debut in India, Indri Single Malt Indian Whisky has launched its limited edition ‘City Series’ global with the Dubai Duty Free Series. This special edition features two distinct and exclusively crafted Single Cask expressions — Sauternes Cask and Oloroso Sherry Cask — each bottled at a bold 58.5% ABV, created specifically for discerning global travellers, whisky connoisseurs and collectors at one of the world’s busiest international airports.
Adding to the exclusivity, each bottle is individually numbered with only 210 bottles of the Sauternes Cask and 348 bottles of the Oloroso Sherry Cask available worldwide. These rare expressions are a true collector’s delight, showcasing Indri’s signature craftsmanship and India’s rising prominence in the world of fine single malts.
“Crafting the City Series has been a journey of storytelling through flavour. For the Dubai editions, we wanted to capture the city’s dual essence—its deep-rooted traditions and its modern, global outlook. Both the Oloroso Sherry and Sauternes cask expressions reflect that harmony through bold character, complexity and elegance. These are not just whiskies, they are our tribute to Dubai in a bottle,” said Surrinder Kumar, Master Blender, Piccadily Distilleries.
“With the City Series, we aim to create rare experiences through our whiskies by capturing the soul of great cities around the world. Dubai, with its global flair and cultural richness, was a natural choice for our first international release,” said Madhu Kanna, Head International Business, Piccadily Distilleries.
The Indri City Series Oloroso Sherry Cask expression opens with a rich nose of sweet caramel, subtle smoke, and hints of leather, vanilla, dried fruits, and roasted nuts. On the palate, it reveals a warm, fruit-forward character with layers of toffee, gentle spices, elegant nuttiness, and earthy undertones. The finish is long, sweet, and delicately smoky, leaving a refined and lingering impression.
The Indri City Series Sauternes Cask expression offers a rich nose of dried apricot, peach, honey, and roasted nuts, with soft vanilla and a sweet, fruity cupcake-like aroma. The palate unfolds with layers of honey, butterscotch, dry apricots, and roasted nuts, enhanced by notes of pineapple, gentle oak, and warm spice. The finish is medium to long, leaving a lingering sweetness balanced by subtle oak and a vibrant fruity lift.
Following the successful Bengaluru Duty Free edition, Indri continues to make bold strides in international markets, firmly establishing itself as one of the most exciting new names in global whisky. It is priced at about USD150.
ISWAI says Cheers to India-UK FTA as a Historic Moment
Tariff Reduction may provide Greater Choice and Access To Premium Products
The International Spirits and Wines Association of India (ISWAI), has applauded the signing of the India-UK Free Trade Agreement (FTA) calling it as a historic moment that underscores the shared commitment of both nations to strengthen economic ties and advance fair trade. ISWAI said – that for the alcobev sector, this agreement paves the way for a more balanced and equitable trade environment, particularly given that Indian alcohol exports to the UK have zero import duties.
Key Highlights – Total Customs Duty to reduce from 150% to 75%, followed by a progressive reduction to 40% over the next decade – Revised tariff structure to apply on both Bottled-in-Origin (BIO) and bulk imports – India sells over 400+ million cases of Indian alcoholic spirits annually – Scotch around 81% of the overall imports of 10.9 million cases of alcoholic spirits
Under the agreement, the Total Customs Duty on imported alcoholic spirits, limited to whisky and gin from the UK, will be halved at the first stage of entry-into-force from 150% to 75%, followed by a progressive reduction to 40% over the next decade. The revised tariff structure will apply to both Bottled-in-Origin (BIO) and bulk imports which are used for making Bottled in India (BIO) products as well as blending with IMFL.
Sanjit Padhi, CEO, ISWAI said, “The India-UK Free Trade Agreement is a historic moment in bilateral relations between the two countries and can become a trendsetter for other FTAs. ISWAI and its members welcome the deal.” Adding further, Padhi said, “For the alcobev sector, the immediate tariff reduction on Scotch whisky and gin imports from 150% to 75%, and subsequent reduction to 40% over the decade, will open up and expand market opportunities for the industry. The deal will significantly benefit Indian consumers, as premium international spirits will become more accessible, thereby accelerating the ongoing trend of premiumization. It will also stimulate growth across ancillary sectors such as hospitality, tourism, and retail, while potentially increasing revenue for Indian states. At a macro level, the agreement will leverage mutual synergies and competencies of both nations. As Indian Single Malts gain global recognition, improved market access can create mutual benefits, just as Scotch whiskies gain better accessibility in India, Indian whiskies can expand their footprint abroad.”
India, one of the world’s largest alcobev markets, which sells over 400+ million cases of Indian alcoholic spirits annually. Yet imported spirits – Bottled in Origin and Bulk Bottled in India, account for a mere 2.6% of the total market. The imported category is dominated by whisky with Scotch being around 81% of the overall imports of 10.9 million cases of alcoholic spirits.
The reduction in import tariffs will also bring a huge benefit to all manufacturers in the Indian Made Foreign Liquor (IMFL) industry as 79% of the Scotch imported into the country is in Bulk form, which is used for bottling in India and for blending by local brands of whisky in the IMFL category.
Padhi added, ‘The FTA agreement is an important step by the Government of India towards facilitating equitable market access while safeguarding domestic industry interests through a calibrated and phased approach.
SWA says FTA will bring long-term benefits
The Chief Executive of the Scotch Whisky Association, Mark Kent, said “The Scotch Whisky industry has long championed a free trade agreement between the UK and India. The signing of the FTA is an historic moment and is an important milestone to reducing tariffs on Scotch Whisky in a growing market. This will contribute to the government’s growth objective, by laying the foundations for further investment and jobs.
“The FTA will bring long-term benefits for the industry, but the industry needs immediate support in order to realise the deal’s full potential. Distillers, especially smaller ones, are under significant pressure now – including as a result of tariffs in the US and a growing tax burden in the UK.
“Action by the UK government to alleviate these pressures will ensure distillers are in the best position to take advantage of the UK-India FTA once it comes into force.”
Diageo calls it ‘great moment’
Nik Jhangiani, Interim Chief Executive, Diageo, said “This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.”
Chivas Brothers says it’s a ‘Sign of Hope’
Jean-Etienne Gourgues, Chairman and CEO, Chivas Brothers said “Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.”
The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!
Tilaknagar Industries to become a PAN-India Player in Alcoholic Beverages
Acquisition is a strategic move to fast-track Tilaknagar Industries’ whisky foray
Pernod Ricard to accelerate focus on Premiumisation and Innovation
IMFL manufacturer Tilaknagar Industries Limited (TI) has entered into a definitive agreement to acquire Imperial Blue business division (IB) from Pernod Ricard India Private Limited via slump sale, for a lump sum consideration, basis enterprise value of €412.6 million (which translates to approx. ₹4,150 crores as on date). The consideration includes deferred payment of €28 million (₹282 crore as on date), to be paid four years after the date of closure of the transaction.
The proposed transaction includes acquisition of the IB, with 22.4 million 9-litre cases sold in the year ended March 2025 across India and other markets, including two owned units and services from co-manufacturing bottlers across India.
Imperial Blue is the third largest whisky brand in India by volume, with over 25 years of brand heritage. The underlying business had reported revenue of ₹3,067 crore for the year ended March 2025. TI is one of the leading IMFL players with leadership in brandy, the second largest IMFL category. Mansion House Brandy, TI’s flagship brand, is one of the largest selling brands in India and globally.
This landmark acquisition, largest in Indian alcoholic beverages space by an Indian company, fast-tracks TI’s foray into whisky segment, the largest IMFL category in India. It also significantly expands TI’s distribution reach, reinforcing its evolution into a truly pan-India player having strong scale across both brandy and whisky with a combined volume of 34 million 9-litre cases for the year ended March 2025.
Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries Limited said, “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base. While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”
Imperial Blue will act as TI’s launchpad for a significant whisky premiumisation journey, enabling TI to build a strong whisky portfolio across premium price-points. “We’re excited to build on Imperial Blue’s strong foundation and take it to new heights”, Dahanukar added.
Tilaknagar Industries reported revenue of ₹1,405 crore and EBITDA of ₹226 crore for the year ended March 2025. The transaction is a result of the continuous assessment and evaluation of strategic opportunities, in line with a longstanding policy to deliver sustainable value for the shareholders, employees and partners of TI.
India, second-largest market for Pernod Ricard
Pernod Ricard said that the sale strengthens Pernod Ricard India’s portfolio, enabling the business to fully tap into premiumisation trends and support sustained, profitable growth. As Pernod Ricard’s second-largest market, India is a strategic priority, and this realignment improves the ability to capitalise on the country’s strong macroeconomic fundamentals and long-term potential. Upon closing, the transaction is expected to be immediately and meaningfully accretive to Pernod Ricard India’s operating margin and net sales growth rate.
Pernod Ricard’s active portfolio management is a key contributor to its dynamic growth across categories and geographies. The transaction is the result of the Group’s continuous assessment of its strategic opportunities, in line with its long-standing commitment to deliver sustainable value to its shareholders, employees, clients and partners.
Alexandre Ricard, Chairman and CEO of Pernod Ricard, stated, “We are pleased to announce the sale of the Imperial Blue business division, a strategic move to sharpen our focus on more profitable and faster growing brands in India, like in the rest of the world. This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”
Jean Touboul, CEO of Pernod Ricard India added, “By exiting the Admix Value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumisation and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands such as Royal Stag, which has already surpassed the 30-million cases milestone, Blenders Pride, and international brands like Chivas, Jameson, Absolut, and Ballantine’s.
Driving the next phase of growth, we are entering an exciting new chapter, one that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer.”
The proposed transaction is subject to approval from the Competition Commission of India, with closure anticipated in about six months from signing the definitive agreement. TI will raise a mix of debt and equity to finance the transaction.
Deutsche Bank and Avendus Capital acted as financial advisors, with Avendus Capital also serving as the exclusive financing arranger to TI. Crawford Bayley & Co. and W.S. Kane & Co. acted as legal counsels while Deloitte served as the diligence advisor to TI.
Diageo on 16th July 2025, announced that Debra Crew has stepped down as Chief Executive Officer and as a Board Director with immediate effect, by mutual agreement. Until a permanent appointment is made, Nik Jhangiani, Chief Financial Officer, will assume the role of Chief Executive Officer on an interim basis.
Diageo said that the Board had begun a comprehensive formal search process, which will include consideration of internal and external candidates.
Debra Crew has led Diageo as Chief Executive Officer since June 2023, having joined Diageo as a non-executive director in 2019, then serving as President of Diageo North America and subsequently as Group Chief Operating Officer.
Guidance for fiscal 25 and 26 remains unchanged from what was shared on 19th May 2025 in the Q3 Trading Statement, and Diageo will report its fiscal 2025 full year results on 5th August as planned.
John Manzoni, Chair, Diageo plc, said, “On behalf of Diageo and the board, I would like to thank Debra for her contributions to Diageo, including steering the company through the challenging aftermath of the global pandemic and the ensuing geopolitical and macroeconomic volatility. On behalf of all Diageo colleagues, I wish her every success in the future. The Board’s focus is on securing the best candidate to lead Diageo and take the company forward. We strongly believe Diageo is well placed to deliver long-term, sustainable value creation.”
Diageo, a global leader in beverage alcohol, saw a huge decline in the company shares since Crew took over, according to a report in a financial daily in the UK. Her career as CEO began with slump in sales in Latin America and during her tenure Crew was not able to convince investors that the decline in sales was not due to operational reasons, but due to a cyclical downturn. Diageo now states that its guidance for fiscal 2025 and 2026 remains unchanged.
