Global whisky-makers in high spirits as they set sight on India

With India becoming UK’s largest market for Scotch whisky, the makers of some of the finest distilled liquor in the world are gearing up to rake in the explosion in the Indian market by revving up sales and production cycles.

In this tiny corner of Keith in Aberdeen, which houses a cluster of distilleries, including Dalmunach, Glenlivet, and Strathisla — which dish out the premium brands that are now familiar to the Indian customer — there is palpable excitement about the need to rev up while keeping up their qualitative edge. This corner of Scotland is home to the spirits that have found their niche in the Indian market – Royal Salute, Glenlivet, and Chivas Regal – produced by the world’s second-largest wine and spirits seller, Pernod Ricard. While the company simultaneously produces well-known vodka, gin, and wine brands, it is the whisky segment that is driving the Indian thirst for spirits.

Biggest market

“India is the world’s largest whisky market by a large margin. Whisky is seen as a discerning person’s drink. So, every category of whiskey has different associations. While the aspirational middle class in India is driving away the old taboos attached to alcohol and women have emerged as a big consumption cohort, with whisky, there are imageries of lot more premium, a lot more sophistication than any other drink.

“So, fundamentally India remains a whisky market. Within that, there are different segments where you would have the IMFL association, the price-conscious and yet premium-seeking market that buys brands like Imperial Blue and Blenders Pride. Then there is an upper premium market, where Chivas Regal, Royal Salute is the drink of choice. But there is premiumisation attached to every category,” said Kartik Mahindra, Chief Marketing Officer and Global Head of Business Development, Pernod Ricard.

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There is a noticeable trend even within the overwhelming growth in the whisky segment — scotch sales have shown a bigger jump in volumes even as the lower-end whisky brands show a consistent growth because of the already large base of sales. Overall, scotch whisky sales have nearly doubled in India, with the wealthier middle class shifting to pricier drinks.

Pernod Ricard’s premium segment, which includes high-end brands such as Chivas Regal, Glenlivet and Royal Salute, showed whopping 50 per cent growth in volumes between 2021 and 2022. Other origin whiskies, such as Jameson, showed a growth of 79 per cent in the same period, while the lower-end whiskey admix premium grew at 21 per cent between 2021 and 22.

Premium segments

According to Jean-Etienne Gourgues, Chairman and CEO of Chivas Brothers, there is a new appetite and evolution of the alcohol shopping experience in India. And, it is coupled with the growing premiumisation of the whisky market.

“It is an exciting time in India. We have been around in India for a very long time, but last time I was in Delhi, I noticed an evolution in the alcohol market, especially the whisky segment. There are different trends with the rise of women cohorts as well as growth in various liquor segments. In whisky, we have noticed a discerning taste and appetite and premiumisation,” Gourgues told businessline.

The target now is to tab into the new appetite for whisky and premiumisation of the market.

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“Pernod Ricard was the first company to get premiumisation to India, with the aim to offer value proposition to consumers, as we wanted consumers to drink less but better. The trend now sees great adoption by the industry at large, and continues to accelerate at the back of the resurgent economy, growing disposable income, and consumer aspirations.

“In India, we have been focussing on prioritising premiumisation as a key business strategy through innovation in our existing portfolio of brands and introducing premium global innovations to India. We had anticipated the growth in demand and with Chivas Brothers Limited, we carefully assess the market evolution and future demand which results in long-term supply planning to cater to the needs of the Indian consumers,” said Kartik Mahindra.

(The writer was in Scotland at the invitation of Pernod Ricard)

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