The growing preference for premium liquor is pushing up sales of single malts and the industry says that this segment will carve out a niche for itself.

“Premiumisation is the strategic direction that most Indian liquor companies are focussing on now as they see great potential in this area. Greater disposable income and increasing social drinking in urban areas have led to consumers shifting to single malts, and companies are capitalising on this opportunity,” said Ms Sunitha Barlota, Research Analyst, Euromonitor International. According to Euromonitor International, volume sales of single malt Scotch whisky are expected to increase by 20 per cent in 2011-12 and 19 per cent in 2012-13.

And companies are trying to cash in on this trend. Tilaknagar Industries is looking to launch Seven Islands Vintage in India by September 2012 and the company's Chairman and Managing Director, Mr Amit Dahanukar, said, “Currently, we are looking at premiumisation as a strategy for future growth. Upper end products are also observed to be recession proof.”

This is important for whisky companies because they are being threatened to an extent by a preference for alternatives like wine. But many companies in this segment are unfazed. “Over the last four years, premium category whisky sales have grown by more than 27 per cent in India and single malt sales grew 39.9 per cent, so clearly business is looking good despite growth in other spirits segments,” pointed out Ms Aparna Batra, Country Manager, William Grant and Sons India, which makes the Glenfiddich Single Malt.

Another interesting change is the age of connoisseur. While Euromonitor's Ms Barlota said that consumers of single malts, who are connoisseurs of whisky, is mainly the older generation, she said that factors such as more disposable income and increased global travels contribute to the consumers' age dropping to involve younger connoisseurs as well.

> balaji.n@thehindu.co.in

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