For alcohol beverage companies, India has become the go-to destination, with no two ways about it, said Kartik Mohindra, Managing Director of William Grant & Sons India. He expects premium liquor demand to continue outpacing overall industry growth as the company pursues aggressive expansion plans in the country.
Further, a price cut of 7-10% following the India-UK FTA has given an additional boost to the sector.
“India represent hot bed of growth and premiumisation for the foreseeable next 5-6 years, especially when you are in the world of single malts and whiskey like we are. For everyone, India represents the biggest opportunity in the world,” Mohindra told TNIE in an interaction.
India’s alco-bev industry is estimated to have a market size of Rs 6.2 lakh crore in CY2025 and is expected to grow at a compounded annual growth rate (CAGR) of about 4% over the next few years, according to International Spirits and Wines Association of India (ISWAI). In a recent report, ISWAI stated that premiumisation is increasingly becoming a key growth engine for the industry. The premium segment grew at a 10.2% CAGR between 2022 and 2025, compared with 1.1% for cheap and 1.4% for regular products.
William Grant & Sons, which owns brands such as top-selling single malt Glenfiddich, The Balvenie, Monkey Shoulder and Hendrick's, will also launch new brands in India next financial year as it eyes a bigger play in the premium segment.
“We operate in the top-end segment which is growing at a significantly faster pace than the entire pyramid. This is not a surprise. Every premium sector in the Indian economy is growing at a faster pace. This can be attributed to economic growth, good policy and higher disposable income. Self-indulgence in the luxury alco-bev space has seen a significant rise,” said Mohindra.
He also expects that the India-UK free trade agreement (FTA) will provide an additional boost to its imported spirits portfolio.
“The net result of the FTA at the national level is that consumers will benefit from a 7-10% reduction in buying prices. It is not huge but very significant. While a few states have revised prices, the full impact will be reflected in the next few months,” said Mohindra.
While many positives for the alco-bev continue, rising commodity prices and rupee devaluation against the pound, dollar and euro have become a headwind for the sector. Competition in the premium segment too has intensified with Japanese, American and Indian brands eyeing a bigger pie.
“Indri, Rampur and some of the other brands have done a superb job in putting India on the global map of quality products. But as far as we are concerned, we operate in a different price point and category. They operate in the niche segment called Indian single malt whereas we operate in the imported single malt market. We believe the pie is growing strongly and there is room for growth for everyone,” said Mohindra.
William Grant & Sons is also eyeing to tap the growing trend of gifting premium liquor during the festive season. The company has collaborated with designer Rajesh Pratap Singh to develop a festive gifting offering for Glenfiddich consumers, particularly those buying its 12-, 15- and 18-year-old expressions.
