Tag Archives: spirits industry

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

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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

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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 Wants Zero Reciprocal Tariff for Spirits between EU and US

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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.

Indri takes ‘City Series’ Global, Launches in Dubai Duty Free

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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, Scotch Whisky Association and industry call FTA ‘a game-changer’

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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 Acquire Imperial Blue from Pernod Ricard India

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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.

Debra Crew Quits as Diageo CEO

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Nik Jhangiani, CFO is interim CEO
Guidance for fiscal 25 and 26 remains unchanged

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 19^th May 2025 in the Q3 Trading Statement, and Diageo will report its fiscal 2025 full year results on 5^th 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.

Jonas Gustav Ax on Patrón El Alto, Tequila’s Rise, and What India’s Drinking Now

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A few years ago, if someone walked into a bar in Delhi and asked for tequila in a tumbler with ice, eyebrows would rise. Today, it fits right in. Spirits that once lived in the background of parties are now selected with care, discussed over meals, and sipped with intention. Tequila is part of this change, gaining recognition not through noise but through dimension.

Now arriving at Mumbai and Delhi airports during peak travel months is Patrón El Alto, the latest premium expression from Bacardi’s portfolio. With passport counters running overtime, new flight routes expanding, and flyers strolling through upscale duty-free stores before takeoff, this launch feels like smart timing.

Behind the scenes of this shift stands Jonas Gustav Ax, Head of Advocacy for Bacardi across India and nearby regions. With two decades of experience behind the bar and in the field—from London’s cocktail scene to Malaysia’s mixology circles—Jonas brings global perspective to local conversations. Based in Delhi with his wife and their rescue dog, he balances his time between bar takeovers, education programmes, and a growing curiosity about Indian ingredients.

In this interview with Ambrosia, Jonas shares why Patrón El Alto speaks to India’s new wave of drinkers, how it blends tradition with ambition, and what makes a tequila feel right at home in a whisky-loving country.

What makes the launch of Patrón El Alto in India timely from a strategic perspective?

India’s premium spirits market is expanding steadily, with consumers making more thoughtful decisions around what they drink. There is growing interest in products that reflect skill, origin, and quality. At the same time, cocktail culture is becoming more expressive, and bartenders are approaching spirits with new energy. This moment presents the right opportunity to introduce a tequila that captures both care in creation and potential for creativity. El Alto aligns with this shift and lands at a time when people are open to discovering something layered and thoughtfully prepared.

Tequila is moving into the premium category globally. What factors are supporting this change and how does El Alto connect with that direction?

Drinkers are becoming more curious about what goes into the bottle. There is growing awareness about where spirits come from, how they are produced, and what kind of character they develop over time. Tequila, which was once seen through a limited lens, is now being explored with the same attention once reserved for whiskies and brandies. For decades, Patrón has focussed on small-scale production and unprocessed ingredients. El Alto builds on that foundation by introducing a blend of aged styles that reflect precision and thought. It continues the journey while also expanding what tequila can offer.

El Alto is described as ultra-premium. How would you define its role in the Patrón collection, and how is it different from the others?

This expression sits at the highest point within the lineup. The core variants—Silver, Reposado, Añejo—highlight clarity and structure, while El Alto introduces additional depth through its blend of long-aged components. It draws from a range of barrels, each bringing something distinct to the final composition. What also shapes its identity is the use of both volcanic stone milling and more modern methods, resulting in a profile that is broad, polished, and complete. The attention to technique sets it apart in both texture and personality.

Tell us more about how El Alto is crafted. What role do blending and production methods play in defining its character?

The entire process begins with two contrasting extraction styles. The Tahona method, involving a circular stone, brings out grounded, mineral elements, while the roller mill introduces freshness and herbal tones. After that, the spirit is placed in a variety of barrels—eleven in total—each lending unique qualities. The final blend is assembled after several rounds of testing, where careful proportions are chosen. The result carries warmth, sweetness, subtle fruit, and a refined finish. It reflects care at every point, from start to final pour.

What inspired the choice to combine Extra Añejo and Reposado tequilas in this expression? Was this primarily creative or strategic?

It came from both intention and instinct. From a broader viewpoint, this combination creates something that appeals to seasoned agave fans as well as those more familiar with aged dark spirits. At the same time, it gave the master distiller room to create balance: one part richness, one part brightness. That duality makes it versatile. It performs well in spirit-forward drinks while remaining approachable in simpler formats. The blend brings together structure and softness in a way that adds reach across styles and settings.

What are some common myths about tequila that you’re hoping to change with El Alto and Patrón’s larger storytelling?

One of the most familiar beliefs is that tequila belongs only in party settings or is meant to be consumed quickly. Another assumption is that all tequilas deliver a similar experience, with little variation in quality. Through El Alto, the intention is to introduce a different perspective; one that highlights nuance, aging, and variety. This spirit carries the kind of structure and intensity often associated with dark aged liquors. Whether served neat, over clear ice, or in a well-built drink, it encourages a more considered way of enjoying agave.

Who is the ideal Patrón El Alto consumer in India? Are you targeting connoisseurs, new-age luxury seekers, or both?

Both profiles are part of the audience. El Alto speaks to individuals who already understand the value of process-driven spirits and are looking to explore further within the agave category. It also connects with a newer generation of luxury-minded drinkers who want experiences that feel international yet rooted in authenticity. These are curious people who look for meaning in what they select, and who value elegance and intention in their choices.

What’s the distribution strategy for El Alto in India? Will it be available only in select cities or at premium venues?

The emphasis is on placing El Alto in environments where attention to quality is a shared value. This includes bars and restaurants known for refined menus, thoughtful bartending, and strong engagement with premium spirits. Along with that, the spirit will be available in high-end retail outlets across key locations. This approach allows people to encounter the brand in different ways: through curated pours at hospitality spaces, or as part of their personal collection at home.

Can you share details around the pricing strategy for the Indian market and how it aligns with your global positioning?

This expression is crafted for those who appreciate refinement and are comfortable choosing quality through a well-made product. Its preparation involves selecting agave with care, aging across multiple cask types, and blending in small batches. That level of effort is reflected in the pricing. In Mumbai, El Alto is placed at ₹29,500, which corresponds with its position across other markets. The amount captures the time, materials, and craftsmanship that define its identity.

With India’s luxury spirits market evolving rapidly, what long-term opportunities do you see for premium tequila in the country?

India holds significant promise for growth in this category. As more people look for substance and origin in what they enjoy, tequila becomes a natural addition to their repertoire. Awareness around sipping tequilas is growing, and cocktail menus are evolving to include more agave-based options. The openness to newer formats, ingredients, and cultural references works in favour of this spirit. As people continue to explore spirits with character, tequila has the potential to become a regular part of premium choices in both casual and formal settings.

Are there plans to expand the broader Patrón portfolio in India following El Alto’s launch? What can we expect next?

The core Patrón range—including Silver, Reposado, and Añejo—is already present across India. With El Alto now available, the portfolio feels complete in terms of offering options for both cocktails and sipping. The next phase is not about more products, but about building understanding. That includes working with hospitality partners, creating engaging experiences, and giving drinkers more opportunities to explore how each variant expresses agave differently. Once familiarity grows further, additional introductions may follow, based on what consumers show interest in exploring next.

You’ve travelled extensively for the brand. How does the Indian palate compare when it comes to accepting complexity in spirits?

People in India have always had an appreciation for flavour that carries variation and richness. The way cuisine is prepared and enjoyed already reflects this instinct. When introduced to a spirit that reveals something new with every sip, the response is immediate. There’s curiosity and a willingness to ask questions, explore textures, and notice changes over time. This makes it an exciting space for introducing agave spirits with structure and identity.

How do food pairing and cocktail culture influence how you present tequila in emerging markets like India?

Food plays an important role in shaping how spirits are experienced here. The variety in ingredients, preparation styles, and flavours allows tequila to be presented in creative and surprising ways. Pairing El Alto with bold, well-seasoned dishes enhances both elements, creating an experience that feels complete. On the cocktail side, bartenders are constantly experimenting with new formats, regional ingredients, and storytelling techniques. Their work helps open new doors for tequila and brings it into conversations where it previously had limited presence.

Finally, what’s your favourite way to enjoy El Alto and how would you introduce it to someone trying tequila for the first time?

My favourite way to enjoy El Alto is on a big single block of ice, served super chilled. I also love it in a tall Ranch Water: El Alto in a highball glass full of ice, topped to the brim with soda water. For someone new to this style, that second option works well. It’s refreshing, inviting, and gives space to appreciate the liquid without overpowering the senses.

Simon de Beauregard on AI, Strategy and What’s Next for Pernod Ricard India

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A closer look at operational clarity and structured change. Simon outlines the mechanisms that guide progress across evolving business environments.

Transformation at a global company can look like a long list of frameworks, KPIs, and change decks. For Simon de Beauregard, Chief Transformation Officer at Pernod Ricard India, it looks more like a mix of sharp thinking, local intuition, and the steady rollout of tools that actually work. With over 15 years of experience across strategy, marketing, and digital roles in Europe and the US, Simon now leads a future-focussed mandate in one of the most layered alcobev markets in the world.

His remit spans widely yet stays precise; weaving technology into human behaviour insights, building teams that respond fast, and making room for innovation in a sector that comes with many rules. In this interview with Ambrosia, Simon walks through his approach to AI integration, creative enablement, regional execution, and the expanding role of data-driven intelligence across Pernod Ricard India.

How do you balance innovation with compliance while implementing AI strategies in a regulated market like India?

Responsibility forms the foundation of our work at Pernod Ricard India, and technology helps advance that cover across all areas. Strong compliance protocols shape both digital and physical initiatives, aligning fully with the Digital Personal Data Protection Act (DPDPA). Our AI roadmap prioritises governance, transparency, and sustainable outcomes. The team was designed with diversity and openness in mind, and we continue to strengthen our internal frameworks to maintain consistency, clarity, and long-term trust.

What’s the toughest part of changing internal mindsets while introducing AI into existing systems?

Mindset transformation is often the first, and most persistent, challenge. Encouraging teams to explore what AI can do—be it content creation, prompt development, or image generation—takes regular engagement. This shift begins at the leadership level and extends across departments. Our culture has always supported experimentation, which allowed us to embed AI early through our Key Digital Programs. These programmes focussed on communicating AI’s role, running detailed workshops, and investing in upskilling. Over time, we built internal teams that now manage these systems fully, allowing for tighter integration and stronger capability across the business.

Where do you draw the line on ethical AI usage in alcohol marketing within India’s context?

Our strategy reflects the country’s regulatory framework and its cultural distinctions. Every step—across content, outreach, and digital planning—complies with the DPDPA. Through our Drink More Water initiative, under Pernod Ricard’s global Responsible Party programme, we encourage moderation and hydration among adults of legal drinking age. Digital channels help share this message widely and effectively. The communication remains straightforward: balance matters, and water plays an essential role. The campaign has reached audiences globally and continues to grow through precision-driven distribution.

Could you share an example where AI-led insight shaped a campaign or business strategy?

Digital acceleration supports our premiumisation strategy in India. Tools such as Maestria, Matrix, and D-Star connect intelligence with action. Maestria studies usage patterns drawn from over 18,000 interviews to match each product with relevant occasions. Matrix tracks return on marketing investment, while D-Star enhances retail decisions through outlet-level data.

Maestria helps identify where each SKU fits across premium settings, and D-Star supported adjustments in bottle sizing based on regional preferences. This change contributed to a 46% conversion rate; significantly higher than the standard 10–20%. These platforms also assist more than 1,500 AI-supported sales representatives with real-time insights and agile decision-making.

Campaigns have also gained scale through these tools. During the ICC World Cup, we launched the “One Billion Films for One Billion Fans” campaign under Royal Stag Packaged Drinking Water. GenAI created personalised films placing fans alongside cricketing legends. With over 500,000 downloads, the campaign earned a Cannes Lion shortlist and multiple honours.

In another example, Imperial Blue Packaged Water’s Superhit Nights, in collaboration with Hardy Sandhu, offered personalised voice messages before his performances. This blended live engagement with digital interaction and contributed to a 50% increase in metrics such as click-through and view-through rates.

What are some of the early lessons Pernod Ricard India learned while integrating AI across sales and distribution?

A single framework doesn’t apply across India’s varied markets. Each region operates through unique regulations and distribution structures, which shape how data flows and tools respond. We adopted an 80/20 approach, starting with regions that provided higher return through faster scalability.

This required flexibility, domain-specific insight, and consistent experimentation. Customising global platforms for India played a central role in building long-term utility and relevance.

Does AI align with brand storytelling in a category like alcobev, where creative identity is key?

AI plays a supporting role across content development, audience engagement, and performance measurement. Our transformation framework was built to enhance human creativity by introducing greater speed, relevance, and precision. Tools like GenAI, customisation engines, and live performance analytics enable us to deliver communication that reflects both personal preferences and brand character.

Matrix allows continuous feedback by tracking response patterns and refining outreach strategies accordingly. These technologies work alongside brand teams, helping content stay consistent while adapting in real time to audience behaviour.

How does AI support outreach in India’s tier-2 and tier-3 markets?

We use technology to tailor brand presence in these geographies through specific partnerships and data-led localisation. For example, our activation with Swiggy Dineout introduced Jameson Ginger Ale and Ballantine’s Soda across select regional markets. This expanded both consumption occasions and consumer engagement, leading to a 40% increase in click-through rates. Campaigns like these combine national strategy with local insight, supported by AI-powered targeting.

What steps ensure that AI-led tools developed globally don’t overlook local dynamics in India?

India’s complexity requires finely tuned solutions. We adapt and calibrate every platform to suit market conditions. Maestria draws from extensive Indian research—over 18,000 interviews—and layers this data with pricing, demand projections, and behavioural analytics. This ensures that over 40 brands correspond closely with Indian usage patterns.

Matrix has been tailored to strengthen below-the-line performance, assigning financial outcomes to each tactical investment. D-Star improves store-level decision-making using real-time SKU information. Our local-first activations, including the Hardy Sandhu personalised campaign and the World Cup initiative, have begun shaping practices across other markets as well. These tools now serve as reference points within the group.

Where else across the value chain is AI making a difference beyond sales and marketing?

Forecasting plays a central role in planning, especially in a country as dynamic as India. We rely on AI-based platforms to estimate category growth, consumer preference shifts, and product performance at the state level. Social listening tools such as Radarly help us track emerging conversations, giving early cues for portfolio adjustments.

In operations, we apply computer vision in over a dozen safety-related scenarios; from spotting employees missing safety gear to identifying movement risks in high-traffic zones. At the group level, we’re scaling technologies like predictive AI, PR GPT, and sustainability-linked models for agricultural and environmental optimisation.

Our internal AI platform, Horizon, connects talent with opportunity by linking individual capabilities with business needs. This supports a skill-based workforce model that encourages learning, mobility, and future-readiness. Across the organisation, AI contributes to better planning, engagement, and workplace development.

What area still moves slowly across the industry when it comes to AI adoption?

Wider integration remains key. Value grows when AI reaches across business functions; from demand planning and content to supply chain and hiring. This has guided our own roadmap, where capability has been built across touchpoints. Our approach—framed as “AI meets conviviality”—channels real-world experiences with intelligent technology. This combination drives relevance, consistency, and personal connection across all consumer interactions.

QUICK TAKES

A campaign where AI’s impact stood out most?
The Absolut Vodka X Copy Lab project. The collaboration challenged how training data defines appearance and beauty. Through re-engineered inputs, it produced a set of fashion visuals that reflected inclusion and diversity, showing how AI can support cultural progress when guided with intent.

A skill that will define future leadership?
Integrated sustainability thinking. This area influences everything—from innovation choices and brand storytelling to performance measurement—across digital and product functions.

A professional shift that required personal adjustment?
Working in India brought new perspectives shaped by regional work styles and cultural codes. Immersing in this environment has added valuable depth to my learning curve.

A book or idea that influenced your outlook on innovation?
Tata Stories by Harish Bhat. It outlines how visionary thinking redefined industries while supporting community development. It reinforces how innovation becomes more impactful when anchored in purpose.

A space that helps you recharge and gain perspective?
The ocean. It’s where I reset, reflect, and reconnect with what matters.

A sentence that captures your leadership approach?
Curiosity builds bridges to ideas, people, and possibilities.