Consumers Shape Whisky Preferences

Indian single malts, in particular, have gained acclaim for their unique flavour profiles, which are influenced by the country’s diverse climates and terroir, ranging from the seashores of Goa to hinterland of India and even places like Jammu and Kashmir. And as Vijay Kauthekar, VP Sales and Heemanshu Ashar, Global Brand Ambassador of Paul John point out, this trend is going to gain momentum.

Indian whiskies have indeed seen remarkable growth, both in domestic markets and on the international stage, and this growth can be attributed to several key factors. The primary aspect is the quality and craftsmanship. Indian whisky producers have invested heavily in improving the quality of their products. This includes the use of high-quality ingredients like 6 Row Barley, innovative distillation and maturation techniques, and tropical ageing processes, resulting in products that compete on par with international brands. Further, Indian whiskies have consistently won awards at prestigious international competitions, which has significantly boosted their credibility and appeal in global markets. For example, brands like Paul John, Amrut and Rampur have been recognised at leading global spirits competitions, enhancing their reputation and visibility. Specifically, Paul John has over 335 international awards for taste and quality and is the largest Indian award-winning single malt. Heemanshu Ashar observes that there has been a global surge in demand for single malts, with consumers becoming more adventurous and willing to explore whiskies from non[1]traditional regions. Indian single malts have capitalised on this trend by offering high-quality alternatives to traditional Scotch, often at more competitive price points, with the tailwinds of Asian whiskies from Taiwan and Japan having expanded the palate for single malt connoisseurs. He says that the Indian whisky brands have successfully expanded their presence in key international markets, including Europe, the United States, and Asia. Strategic partnerships with global distributors and targeted marketing campaigns have helped Indian whiskies reach a broader audience. Indian whisky brands have also leveraged their cultural heritage to create a unique identity in the global market. By emphasising their Indian roots and incorporating elements of Indian culture into their branding and storytelling, these whiskies have resonated with both domestic and international consumers.

Premium Becoming More Accessible 

Vijay Kauthekar states that the whisky as a segment is growing at a five-year CAGR of 4-5 percent and a shift towards premiumisation is seen. However, regular and below segments in whisky is stagnant or declining. The semi-premium segment is growing at 10 percent CAGR. The premium and above segment is growing at 13-15 percent CAGR. “As per the above growth rate we can say that consumer preference towards premium whisky brands is increasing,” he says. According to Vijay, Indian whisky lovers have always been willing to spend on super[1]premium and luxury whiskies, although this trend has certainly gone up in the last few years. While earlier spends were limited due to the lack of local options and was confined to purchases made during travel and in duty[1]free, the increased availability of imported brands and specially the newly launched Indian whisky brands which offer world-class, and in quite a few cases, world[1]beating quality and experiences, has allowed consumers to spend locally and has made premium experiences more accessible. The whisky consumers in India are mostly of the growing middle and high-income groups, both salaried and business owners, who find it increasingly acceptable to responsibly consume alcoholic beverages in their homes, social settings or even work environments. The VP informs that while a majority of India’s whisky consumers are from the metro cities like Mumbai, Bangalore, Delhi-NCR, Pune, Hyderabad, Lucknow, etc., the markets for premium and super premium whiskies are evolving and extending to tier 2 and 3 cities as well. From Vijay we could know that Paul John is at the forefront of building the super-premium whiskies category with single casks and has been leading the way in India from the launch of the first Oloroso Single Cask in 2018 to most recent release in May; the first Single Cask for Global Travel Retail at Bengaluru Airport for 300 USD. Paul John Whisky continues to lead the way with private bottlings for whisky collectors and whisky clubs, in India and globally.

Finding a Niche

As per Vijay, Paul John will continue to offer leading, world[1]beating quality whiskies while ensuring that their price for consumers continues to offer excellent value. “Unlike some other manufacturers, we also ensure that the consumer in India is offered the same product that we sell globally as we believe that the Indian consumer deserves the best and is discerning enough to understand the nuances and differences in quality between products and brands,” says Heemanshu Ashar. The company is also offering blended malt whiskies, which allows it to address a much larger consumer base. Its Roulette Whiskey range is one of the first products in this effort and is being introduced around the country as part of the premiumisation strategy. “With our Paul John Indian Single Malt range, we are already an established player in terms of volume, variety and quality,” points out Vijay. The company also offers several limited editions of single malts with a range of cask finished whiskies that address the luxury market effectively and most of them are sold on allocation basis due to high demand. The emphasis is on continuing to grow the volumes and brand awareness so that new consumers can experience the products while the excellent quality ensures that the brand position is consolidated once the consumer experiences these single malts. “We are the only Indian company that offers Indian single malts in a range of different flavour profile expressions, as for example, wine cask finishes – Oloroso, PX and Madeira, Virgin Oak matured malts and the traditional peated and unpeated expressions. This allows us to offer consumers a unique liquid for every occasion,” Vijay avers.

Focus on Premiumisation 

Premiumisation is the current and growing trend and it is a cross-country phenomenon. The mass market product category, especially economy, is now regional and restricted primarily to South India. “We already lead this category in Karnataka, the state with the largest volumes for the said category,” shares Heemanshu. The company is consolidating its leadership in Karnataka and the expansion of premium portfolio across India. Paul John was the first to put Indian single malt firmly on the world map and it is the torch-bearer for establishing the category in India by the sheer power of distribution and awareness. “We are exploring new products and strategies through product innovation that allows us to address a larger consumer base in terms of pricing and create a greater awareness for our premium Indian single malts,” Heemanshu adds. The company feels that the evolving consumer base will work to its advantage due to excellent quality and the exclusive experiences that its products offer. For instance, it is the only company that allows consumers to visit its production facility in Goa to experience and understand the making of the Indian single malt with detailed curated tours and guided tasting sessions.