THE MADE-IN-INDIA WHISKY MARKET
India consumed 237.22 million cases of whisky in 2021 and judging by the volume of sales reported across the country, 2022 saw a major increase in its consumption. North and East India together constitute roughly 27% of the offtake of whisky in India.
Consumer preference for quality whisky is driving the demand for premium whisky at a CAGR of 15.66% over the next lustrum. The super-premium range of whisky is highly priced and in low demand, as it is confined to only the upper-class people of the country. The average price of premium whisky in 2021-22 was INR 1750 and super-premium Rs 3,500.
Malt whisky, made from a fermented mash consisting primarily of malted barley and made exclusively at a single distillery, is the most consumed whisky in India. Single malt whisky is expected to grow rapidly at a CAGR of 22.92% over the forecast period as people demand more flavours that are available in this type of liquor.
Single malt whisky has grown a reputation for being a higher quality spirit than blends. Scotch whisky is the second most demanded whisky type in India with a 19.88% market share in 2021-22 and is expected to be in demand over the forecast period. The urban population in the age group of 35yrs to 50yrs consumes more whisky than the rural population and generally prefers to buy a full bottle of 750 ML. Liquor is preferably bought from a retail shop in India rather than other distribution channels.
What remains a closely guarded secret is that new make in Scotland that may not reach stringent quality levels is sold off at the 1.5-2.5 year stage and freely exported. Given the stringent restrictions emplaced by the Scottish Whisky Association (SWA), it may not be called whisky in Scotland, but there is no such bar in India. Such malts are blended with ethanol from molasses and sold as ‘Whisky with Scottish Malts’. Better brands use reputed grain spirits to add to the malts.
The innovation in the category is helping Indian whisky carve out its own identity. Indian whisky exports tend to follow the path of the large Indian expat communities, particularly in the Gulf. They have also attracted a following in some African markets, serving as entry-level brands for those consumers wanting to upgrade from the illicit spirits market. The next generation of high-end Indian-made malts is already showing that they are of a sufficient standard to capture an audience in Western markets.
Drinkers in India, the world’s most lucrative whisky market – worth $18.8bn (£15bn) last year – have traditionally clinked glasses of blended whiskies or imported single malts. Now several Indian single malts that were launched internationally a few years ago are grabbing a major share of the domestic market. It is a seismic shift for the global whisky industry. Prominent names are Paul John, Amrut, Rampur, Indri Trini, GianChand and Godawan. They are expensive and remain in the elite group.
Currently, the Indian Whisky category is strong and its innovation is bringing new consumers into the category and is building its profile among whisky purists, both internally and externally. Whether this trend will continue with the ever-present threat of federal or state disruption remains to be seen; the category is prone to taking one step forward and two steps back following government regulation or tax changes.
The Indian Whisky Brand Champion 2022 title was given to Sterling Reserve, which achieved the biggest growth among the million-case sellers. Sterling Reserve sales grew by 28.6% to reach 3.6m cases, an impressive feat for a brand that is only four years old.
Sterling Reserve, a brand of premium blended Indian
whisky from the house of Allied Blenders and Distilleries (ABD) is a unique
blend of imported Scotch malts and the finest Indian grain spirits. It has two
editions, the Sterling Reserve Blend 10 and Sterling Reserve Blend 7. It
displays a logo of Jardine Crescent, a famous market in Hong Kong, where Alexandre Jardine first
took his wares before coming to India.
Legend has it that Bordeaux-born Alexandre Jardine first set foot in
Scotland in 1810. There was an instant camaraderie between the Frenchman and
the Scottish Highlands. He found a place and purpose to enrich the skills he
was known for, a discerning palate for food and drink, and his good taste. Fond of
Scotch whisky and the tales surrounding it, the connoisseur in Alexandre took
it upon himself to understand the fine tastes of a wide variety of whiskies.
His curious nature led him to learn the art of blending. Combining craft, care
and love, each of his blends was distinct in its nose, palate and finish. With
a smooth and rich taste, every small batch of Alexandre Jardine's creations had
a select clientele. Stories of his legendary blends spread, and demand grew till it
often ran out of stock. This enabled him to assign his masterful signature on
each of the blends, which the consumers happily lapped up, even at a premium.
That's how a legacy was born and brought to India, to show forth as Sterling
Reserve.
The Sterling Reserve Blend 10 is a blend of imported
Scotch malts and the finest Indian grain spirits. The Scotch malts are from
different barrel origins including bespoke bourbon oak casks. The blend is
chill-filtered to perfect balance with a smooth finish and ten unique tasting
notes. 42.8% ABV, 75 Cl
Nose: honeyed sweetness, nuttiness of the barley, fruity
& heathery
Palate: mouthfeel of rich oak, citrus, vanilla and berries.
Finish: smooth, crisp and lively.
The price segments where Sterling Reserve participates
are driving maximum growth. This is driven by consumers, especially young
adults, premiumising across consumer categories or entering this segment
directly. The brand is planning to expand in key markets across India,
including Mumbai, and globally.
Looking across the other million-case-selling Indian
whisky brands, many of them recorded double-digit growth last year after a
pandemic-affected stretch of time.
The only brands to decline were United Spirits’
Director’s Special Whisky and Old Tavern, while several brands managed to
exceed their best volumes with double-digit growth, including Royal Stag, 8PM,
Hayward’s, and Blenders Pride.
There have been several developments in India that
could affect local producers in the coming year. The UK and India are currently
discussing a free trade agreement that could axe the 150% import tax on
spirits, allowing international brands to compete with the dominant Indian
whisky sector in the country.
SALES: 9L-CASES IN MILLIONS
|
Brand |
Owner |
2017 |
2018 |
2019 |
2020 |
2021 |
%+/- |
|
McDowell’s No.1 Whisky |
United Spirits |
26.4 |
29.0 |
30.7 |
25.7 |
30.1 |
17.2% |
|
Imperial Blue |
Pernod Ricard |
19.0 |
22.7 |
26.3 |
21.3 |
24.1 |
13.4%
|
|
Officer’s Choice |
Allied Blenders & Distillers |
32.0 |
34.0 |
30.6 |
20.8 |
23.2 |
11.5% |
|
Royal Stag |
Pernod Ricard |
18.7 |
21.6 |
22.0 |
18.5 |
22.4 |
20.8%
|
|
Hayward’s |
United Spirits |
8.5 |
9.4 |
9.6 |
9.7 |
12.0 |
24.2% |
|
8PM |
Radico Khaitan |
7.1 |
8.0 |
9.2 |
9.4 |
11.4 |
21.2% |
|
Blenders Pride |
Pernod Ricard |
6.4 |
7.3 |
7.7 |
6.6 |
8.0 |
20.8%
|
|
Bagpiper |
United Spirits |
5.8 |
5.6 |
6.1 |
5.3 |
5.6 |
6.0%
|
|
Royal Challenge |
United Spirits |
4.5 |
5.6 |
5.5 |
4.3 |
4.7 |
8.8%
|
|
Sterling Reserve |
Allied Blenders & Distillers |
N/A |
1.2 |
2.8 |
2.8 |
3.6 |
28.6% |
|
White & Blue |
Alcobrew |
1.6 |
2.1 |
2.4 |
2.0 |
2.4 |
19.0%
|
|
Signature |
United Spirits |
2.0 |
2.3 |
2.3 |
1.9 |
2.0 |
6.5%
|
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