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Tag: India Whiskey Market

  • Tilaknagar Industries Acquires Imperial Blue Whisky from Pernod Ricard for INR 4,150 Crore in Landmark Deal

    According to a formal announcement, Tilaknagar Industries, the company behind Mansion House, the best-selling brandy brand in India and the second-best-selling brand worldwide, has finalised the agreement to purchase the Imperial Blue whisky business division from the Indian branch of the French liquor giant Pernod Ricard for INR 4,150 crore.

    Moneycontrol was the first to disclose on 7 July that a listed spirits company located in Mumbai had beaten out other bidders and started exclusive talks with Pernod Ricard to acquire Imperial Blue whisky. According to the article, a final agreement between the parties might be reached later this month provided the negotiations continue according to plan. Moneycontrol has reported that Tilaknagar Industries intends to use a mix of loan and equity to finance the planned deal.

    Imperial Blue: A Top Contender in India’s IMFL Sector

    Tilaknagar gave an explanation of its acquisition strategy, stating that it aims to establish a nationwide Indian-made foreign liquor (IMFL) industry. The establishment of a pan-India IMFL business is one of the company’s main goals in relation to the acquisition of the Imperial Blue business venture, according to its official statement.

    The purchase represents the company’s entry into the Indian whisky market. With the acquisition, Imperial Blue, which is now the third-largest brand in the Indian-made foreign liquor (IMFL) market, will rise to prominence in the brandy and whisky markets, which are the two biggest IMFL markets, according to the business.

    Imperial Blue will be the foundation of Tilaknagar Industries’ premium portfolio approach, the business announced. Additionally, this acquisition would improve the company’s distribution network.

    What this Acquisition Means for the Indian Liquor Industry?

    Having established supremacy in the brandy market, it is now time to diversify the company’s product line and serve India’s varied and changing customer base, according to Amit Dahanukar, chairman and managing director of Tilaknagar Industries Ltd.

    He further added that the company can now join the whisky market with one of the most reputable and well-liked brands in the nation thanks to this smart acquisition, even though the brand is still expanding organically. According to Pernod Ricard, the deal will allow it to promote sustainable growth and fully capitalise on premiumization trends.

    The deal, as per Pernod Ricard, enhances the company’s portfolio in India, allowing it to capitalise on premiumization trends and foster steady, sustainable growth. India is a strategic priority for Pernod Ricard as its second-largest market, and this reorganisation enhances the capacity to leverage the nation’s solid macroeconomic foundation and long-term prospects.

    It is anticipated that the purchase will instantly and significantly increase Pernod Ricard India’s operating profit and net sales growth rate after it closes.

  • Excellence in Every Sip, India’s Whiskies Stand Tall Globally

    India holds a dominant position in the global whisky market, representing nearly half of its share. Surpassing France, India has emerged as the largest consumer of Scotch whisky globally. Noteworthy is the fact that seven out of the top ten whisky brands globally, in terms of volume, originate from India, including well-known names like Officer’s Choice, Royal Stag, and McDowell’s, enjoying substantial popularity domestically. Alongside these, established international labels such as Glenlivet and Talisker compete for shelf space with local contenders like Indri, Amrut, and Radico Khaitan’s Rampur.

    Despite the prevalence of affordable molasses-based spirits referred to as “whisky” locally, the focus shifts to the remarkable growth and recognition of Indian single malts. These premium offerings, produced with local barley, distilled, and matured within the country, have made significant strides in the global market, garnering praise from a widening circle of whisky connoisseurs.

    Vinod Giri, Director General of the Confederation of Indian Alcoholic Beverage Companies, notes a significant shift wherein Indian malt whiskies now command nearly half of the market share for premium single malt whiskies in the country, poised to surpass competitors in the coming year. Globally renowned, Indian whiskies consistently receive acclaim as some of the world’s finest spirits, with malt whiskies being exported to over 60 countries within a relatively short timeframe.

    The evolution of Indian whiskies, often overlooked globally, has been noteworthy in recent decades. Initially overshadowed by Western counterparts, Indian whiskies have gained international recognition for their innovative approaches and exceptional craftsmanship. The roots of Indian whisky production trace back to the colonial era when British distillation techniques were introduced to the Indian subcontinent. Distilleries established in the mid-19th century, such as Mohan Meakin founded in 1855, played a pivotal role in shaping the trajectory of Indian whiskey.

    Indian six-rowed barley, offering a distinct flavor compared to Scottish two-rowed barley, and an accelerated maturation process in India’s warm climate, up to five times faster than in Scotland, contribute to the uniqueness of Indian whiskies. This results in a three-year-old whisky in India achieving a maturation effect equivalent to a Scotch whisky aged 9–15 years.

    India’s demand for hard liquor, with spirits and ready-to-drink beverages constituting 40% of the country’s alcoholic beverage market by volume, is driven by a growing economy. India, already the fifth-largest alcohol market globally, accounted for a third of the industry’s global growth in 2021-22. Premium drink consumption, including Scottish single malts, doubled between 2020 and 2022, and India has become the largest export market for Scotch, despite a hefty 150% import duty.

    Size of Whiskey Market in India From Financial Year 2015 to 2021, With an Estimate for 2025
    Size of Whiskey Market in India From Financial Year 2015 to 2021, With an Estimate for 2025

    This rising demand, coupled with import costs, has led to the emergence of Indian premium products. Pioneering distilleries, through experimentation with grains, aging techniques, and flavor profiles, are at the forefront, with the global whiskey community eagerly anticipating the next innovations from India. The surge in Indian premium whiskies spans all price categories, outpacing Scotch whiskies in growth rates.

    Data from the International Wine & Spirit Research indicate that 93% of all whisky traded in India falls into the “value” segment, leaving room for the development of higher-end segments. Jason Holway, a market analyst at IWSR, attributes this growth to strong consumption and growing premiumization in India, driven by higher middle-class disposable incomes, the lifting of pandemic restrictions, and improved quality, variety, and availability in retail.

    The introduction of the first Indian single malt, Amrut, in 2004 marked a significant turning point. Competitors like Paul John from Goa and Indri from Haryana have entered the scene, gaining international recognition and awards. Indian single malts, often priced higher than imported Scotch, are gaining traction globally.

    Three key factors propel this boom: India’s overall economic growth, the prosperity of the educated middle class, and the increasing social acceptance of alcohol. Additionally, a growing confidence in homegrown products aligns with India’s “self-reliance” policy, restricting imported liquor sales in certain outlets. Responding to escalating demand, distilleries like Paul John plan to expand production capacity, while global giants like Diageo have entered the Indian single malt market with Godawan. As the industry gears up for heightened competition, the future of Indian whiskies appears promising. Recognizing the significance of the Indian whisky market, Holway emphasizes its crucial role in the global well-being of the whisky category.

    The Liquor Industry in India – All You Need to Know
    Discover fast-growing liquor industry in India with a market size of 52.5 billion USD in 2020, according to ICRIER. Explore trends and insights.
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