Bourbon may move beyond ‘fun’ drink

Hitherto seen as a ‘fun’ drink enjoyed typically with colas, bourbon may soon acquire a more serious demeanour akin to that of scotch whisky, thanks to a sizeable reduction in import duties. This could gather in its wake a larger fan following and as Arun Kumar, Co-Founder, Aspri Spirits, states, bourbon players will now be enthused to focus more on the category and work on new developments to elevate its presence and appeal.

A ficionados of alcoholic beverages would no doubt have had a reason to cheer when the Indian government announced a reduction in import duties on bourbon whiskey from 150 percent to 100 percent in February this year. The immediate question for many in the industry would have been that whether bourbon will become more price-competitive, thus opening the doors to a broader consumer base. And if so, it would certainly accelerate category growth, attract a new generation of premium spirits enthusiasts, and pave the way for a stronger influx of bourbon brands into the Indian market.

“The revised tariffs should bring in some benefits in the longer run for the segment,” agrees Arun Kumar, Co-Founder of Aspri Spirits, the company that has developed one of the largest sales and distribution networks for imported alcohol beverages across India and ISC, and constantly adapts to the unique and dynamic needs of the Indian spirits industry.

For Aspri Spirits, bourbon has been a recent addition to its portfolio and the current focus is on expanding both the width and depth of the brands. “We are quite satisfied with the progress in both the domestic and duty-free channels thus far,” Arun adds.

Cheers for Bourbon

Given that the revised tariff may attract a larger consumer base, those in the bourbon game, including Aspri Spirits, are expected to lay greater emphasis on the segment’s development. “The share of our bourbon portfolio in the overall mix is relatively small as of now but we will work on enhancing its presence,” Arun confirms.

India is predominantly a scotch whisky market, with the majority of sales still dominated by that category. However, some bourbon brands have been in the market long before and are already wellestablished. This sets the stage for newer players like Aspri Spirits to focus on increasing visibility and accessibility of bourbon across various channels.

While industry players acknowledge that lower tariffs will bring in some advantages with better pricing, it may still be premature to speculate on specific retail pricing because much will depend on how state excise policies evolve. There’s also the question of perception. Traditionally, bourbon has carried a ‘fun’ image, popularised by its drinking with cola. Now, it may be time to reposition it as a more serious spirit akin to scotch, one that appeals to mature drinkers. Arun concurs, “The bourbons in the Indian context seem to have been targeted towards a younger demographic and usually seen to be consumed as a mixer.”

Premium Push

Interestingly, within the category there are several premium bourbons that have rich taste profiles, suitable for sipping—much like scotch or single malts. Greater emphasis will now be needed on promoting these premium options to attract scotch or malt enthusiasts to bourbon.

When asked about the USPs of Aspri’s bourbon brands, Evan Williams and Elijah Craig, Arun explains, “Both have a great pedigree and are in different price segments.” Evan Williams is younger in profile and works well as a mixer or in cocktails and offers new consumers a fresh taste experience. Elijah Craig, on the other hand, is an exquisite bourbon meant to be savoured on the rocks. Its taste profile is comparable to a well-crafted single malt and has received consistent appreciation.

Given such a status, Aspri Spirits has been pursuing a steady strategy of ensuring the width and depth of distribution which is crucial for the success of any brand in India. “A lot of emphasis at the moment is being placed on tastings and getting consumers to interact with the products through the on-premise channel with also a presence in select retail. The response has been very positive,” says Arun.

Taste Transition

Changing tariffs, evolving consumer tastes, and a maturing market all signal the beginning of a new era for bourbon in India. Until now, consumption in the category was largely driven through mixers but now the bourbon players may shift their focus to premium sipping bourbons, mirroring the journey of premium whiskies, which evolved from blended to single malts.

“If this had been initiated earlier, it would have assisted in building the bourbon category both from a younger profile and at the same time the premium ‘sipping bourbons’ targeted towards a more curious and discerning consumer discovering a new taste profile in the world of whiskies,” observes Arun. Having said that, with the right push, the new journey for bourbon in India should now turn out to be an exotic one!