Bourbon to be in the limelight soon!

It’s not just the price reduction that will boost bourbon’s popularity among whisky aficionados in India—it’s also the growing appeal among a younger generation that is more open to experimental drinking and eager to explore new flavours irrespective of the price tag. As Gaurav Sabharwal, Managing Director – India and South Asia, Forman India Private Limited, puts it, bourbon is all set to attain a glorious peak, thanks to its distinctive flavour profile.

The one discerning fact that most alcohol producers would like to highlight is that the new-age Indian consumers are very discerning, have the ability to pay for premium and luxury brands, and believe in ‘drinking better’. Collectively, this is driving premiumisation and growth in the market. Having said this, there is still low awareness and limited familiarity for bourbons in India, which has traditionally been a very Scotch-dominated market. But the tables may turn soon. The reduction in import duties on bourbon whiskey is good news and a step in the right direction.

It should lead to more brand launches and introductions in the bourbon category and investments behind category development initiatives which will be helpful in building stronger consumer demand for bourbon whiskey. Small wonder then that companies like Forman India Private Limited (Brown-Forman) are currently, and seriously, evaluating the implications of this positive step as pricing in India varies across states and is governed by each state’s excise policies which are announced annually.

“This step definitely makes the bourbon category more attractive for existing as well as new companies,” says Gaurav Sabharwal. 

Portfolio Performance

It would be interesting to note how Brown-Forman’s bourbon portfolio has performed in the Indian market. This would serve as an indicator of the potential that bourbon holds in India. Elaborates Gaurav: “Our American whiskey portfolio in India is growing well with strong acceptance from new-age Indian consumers who are continuously looking to experiment, try new types of spirits and expand their repertoire. To give you an idea about our performance, Woodford Reserve and Jack Daniel’s have more than doubled in volume in the last five years.”

A significant majority of the company’s business in India is driven by these two brands with Brown-Forman India holding leadership positions in the American whiskey category. There are certain factors that sets Woodford Reserve apart from other bourbons available in the market. The art of making fine bourbon first took place on the site of the Woodford Reserve Distillery, a national historic landmark, in 1812.

“Woodford Reserve comes from this place which Woodford Reserve now calls its homeplace. This is something which makes Woodford Reserve stand apart from many other bourbons in the market which are blends of bourbons from multiple distilleries,” Gaurav informs.

From a product perspective, Woodford Reserve has a perfectly balanced taste which comprises more than 200 detectable flavour notes, from bold grain and wood to sweet aromatics, spice, fruit and floral notes. This truly makes Woodford Reserve a spectacle for the senses.

“Whilst we always knew it would be well-received by the discerning Indian consumers and mixologists with its rich and balanced flavourful profile and beautiful premium packaging, it has surpassed our expectations,” Gaurav states. A Woodford Reserve Old Fashioned is a perfect way to enjoy this fine bourbon, he adds.

Defining Bourbon

Bourbon is a type of American whiskey that must be made in the U.S. and is characterised by a mash bill containing at least 51 per cent corn. It’s then distilled and aged in new, charred white oak barrels. The final product must be bottled at a minimum of 80 proof (40 per cent alcohol by volume). Therefore, Woodford Reserve in Brown-Forman’s portfolio, which meets these criteria, is a bourbon whiskey.

Interestingly, bourbons need not only come from any one specific state such as Kentucky. For instance, Jack Daniel’s is a Tennessee whiskey because it is made in the state of Tennessee and follows the Lincoln County process.

Making Bourbon Popular

Brown-Forman feels it is its responsibility as a market leader in American whiskey to develop the category by investing behind building awareness for brands such as Woodford Reserve and familiarity for the bourbon palate with Indian consumers. It does so through several initiatives such as the recent successful Woodford Reserve Old Fashioned Month campaign, which was a step in this direction.

As part of this initiative, it partnered with the country’s leading 35 bars and mixologists in Gurugram, Mumbai and Bangalore. Lair from Gurugram and their head mixologist Amay Bisen won The Finest OldFashioned Bar and Bartender Award, respectively, and Amay will now be travelling to the Woodford distillery. 

“Considering the small size of the American whiskey and bourbon category in India, we believe there is enough and more opportunity for all the companies to grow strongly in this country. Companies with bourbon whiskey portfolio will benefit from developing and expanding the category rather than competing to take a pie of the small opportunity,” Gaurav opines.

Meanwhile, the company is currently evaluating the implications of the positive step regarding price reduction in India, which varies across states and is governed by each state’s excise policies.

New Opportunities

Just like other bourbon producers, Brown-Forman is very optimistic about new opportunities opening up for bourbon in India. “India is a key strategic market for Brown-Forman Corporation. The duty reduction opens more opportunities to invest in India and should positively influence our long-term strategy for the India market,” Gaurav states. The company has always been at the forefront of evaluating fresh potential areas to introduce new brands and variants in India to meet the strong consumer desire for experiencing new premium whiskeys beyond Scotch; and anticipates bringing more innovations from its global Woodford Reserve and Jack Daniel’s portfolio to India in the near future.

Building consumer awareness and driving education for American whiskey and bourbon are critical to grow the category. As such, Forman India is investing in these two areas with consumer marketing and advocacy initiatives. Participating in big consumer experiential platforms such as India Cocktail Week is one of the many ways in which it engages with consumers. At the recently concluded 2024-25 edition of India Cocktail Week, the company gave the consumers an opportunity to experiment with its portfolio of whiskeys and make their own cocktail with a DIY (do it yourself) bar.

“We also engage with more than 400 bars annually through our product and brand training programme,” Gaurav adds. Another initiative, as pointed out earlier, was the Woodford Reserve Old Fashioned Month which is now an annual feature in the company’s activation calendar. With this platform, the company brings together India’s leading mixologists, bars and consumers to build education and awareness – allowing mixologists to discover the versatility of Woodford – and offers consumers their own signature of world’s leading whiskey cocktail – The Old Fashioned. 

Roadmap for Bourbon

Interestingly, there has been more than two-fold increase over the last five years in the number of brands in the bourbon whiskey category. With growing consumer desire to experiment and experience new types of spirits, companies like Forman India believe the bourbon category is at an inflexion point and positioned well for exponential growth. The recent duty reduction will be a key enabler to drive this future growth.

However, this growth will only happen if companies commit to India and strongly invest in developing the bourbon whiskey category. “We at Brown-Forman are committed to invest behind our American whiskey portfolio with a long-term vision for India,” Gaurav says.

India is a key strategic emerging market for Brown-Forman Corporation globally as India is expected to be the fastest growing market in standard and premium whiskey for next five years and will be a key growth market for the spirits’ industry globally.