Premium Whiskies Step into Spotlight The young generation’s preference for premium and unique experiences is fuelling the demand for more premium, new and craft whiskies in India. Additionally, By Spiritz Desk 13 Sep 2024 in Cover Story New Update The young generation’s preference for premium and unique experiences is fuelling the demand for more premium, new and craft whiskies in India. Additionally, there has been a substantial increase in per-capita whisky consumption, in India, with a nearly 2.5 times rise over the last decade. Given this optimistic scenario for whisky consumption, Shivam Ginglani, Founder and CEO, Ginglani Distillers Private Limited sheds light on how whisky makers in India need to strategise their growth plan. Indian single malt, a relatively new entrant in the global whisky scene, have seen remarkable success. Considering India is the largest consumer of whisky in the world, it is just a matter of time and effort before Indian whiskies are renowned globally. In fact, the demand for whiskies has significantly evolved, particularly in markets like India, which has become one of the hottest destinations in the global alcoholic beverage space. Several factors have contributed to this shift, one of them being rising affluence. India’s upper-middle-income and affluent classes are growing rapidly, with their spending expected to account for more than 50 percent of the total consumption by 2030, up from 34 percent currently. By 2030, an additional 60 million upper[1]middle-income and 20 million high-income households are expected to emerge in India. Secondly, there has been a demographic shift. Young consumers today are increasingly seeking authentic products across industries and are open to exploring newer options as well. “Millennials and Gen Z, who make up approximately 76 percent of India’s population, are driving retail spending. Their preference for premium and unique experiences is fuelling the demand for more premium, new and craft whiskies in India,” explains Shivam. The trend towards premiumisation is evident in the Indian whisky market. “There has been a substantial increase in per capita whisky consumption in India, with a nearly 2.5x rise over the last decade. The premium whisky segment is growing at 10 per cent CAGR, as consumers are increasingly opting for higher[1]quality products,” he adds further. Indian single malt, a relatively new entrant in the global whisky scene, has seen remarkable success. In 2023, Indian single malts outsold Scottish single malts in India, which is a testament to the growing preference for locally produced, high-quality Indian whiskies among Indian consumers. “These trends highlight the evolving demand for whiskies, particularly in emerging markets like India, where economic growth and changing consumer preferences are driving significant shifts in the industry,” says Shivam. Riding the Wave With Indri, Amrut and Paul John leading the Indian single malt industry domestically and gaining traction internationally, Ginglani Distillers has launched Woodsmen Mountain Whiskey in the premium segment to cater to the young, modern and aspirational Indian whisky consumers. Made with Himalayan water and Himalayan malts Woodsmen’s revenue has increased two-fold in the past financial year. And given the demand, Ginglani Distillers has plans to launch a single malt in the future to cater to these premium segments. With Woodsmen Mountain Whiskey - Made in the Himalayas, India’s first mountain whisky, the company is serving the urban, young, aspirational consumers in the 25-35 age group, many of whom seek novel experiences. “We are driving up trials via tasting sessions in events and building a community around the mountains on Instagram and the social media. We have completed over 25,000 trials in Q1 of FY25,” Shivam informs. Driven by Premiumisation The trend of premiumisation in India is significantly shaping the company’s strategy for introducing new whiskies. “As the Indian market becomes more sophisticated, with consumers increasingly seeking premium experiences, Ginglani Distillers has chosen to position its Woodsmen Mountain Whiskey at the top end of the premium segment. This strategic choice is driven by three key factors,” points out Shivam. The first is distribution muscle. Building a strong distribution network is essential, even if the product aims to compete in the ultra-premium and super premium segments in the future. “Establishing our presence in the premium segment allows us to create a solid foundation, much like major single malt brands, which have roots in more accessible segments,” Shivam avers. The second factor is the brand’s alignment with the purchasing power of its target group. “By focusing on this segment, we ensure that our products are within reach of a significant portion of the market,” explains Shivam. The premium segment is large and competitive, featuring well-established brands from the 1980s and 1990s. This presents an opportunity for Ginglani Distillers to differentiate its offerings and capture market share by introducing a product that resonates with modern consumers while competing with both Indian and imported brands. Given these aspects, premiumisation is a crucial factor for Ginglani Distillers’ whiskey portfolio, as it reflects the evolving preferences of Indian consumers who are increasingly looking for higher-quality and more refined products. However, balancing the demand for both premium and mass-market products is essential in the diverse Indian market. “While the premium and super premium segments are growing, the mass market segments like semi-premium and deluxe still represent a substantial portion of the market, accounting for nearly 52 percent of the Indian whisky industry. To balance this demand, we maintain a diversified portfolio that caters to both ends of the spectrum,” Shivam informs. Innovation and Storytelling This approach involves continual innovation and introducing premium products that appeal to consumers seeking premium experiences, while also ensuring that the company’s mass market offerings remain strong and competitive. This dual strategy allows it to capture a broad audience, catering to both the emerging middle-class and the more affluent consumers, thereby ensuring long-term growth and sustainability in the Indian market. The bottom-line is that building a whisky brand in today’s dynamic Indian market requires a fresh approach, which the company is doing with Woodsmen Mountain Whiskey. As Shivam elaborates, this process is deeply personal and involves a lot of learning and adaptation. As newer brands rise and challenge the status quo, it’s crucial to stay connected with the evolving preferences of Indian consumers. It is not just about making whisky—it’s about understanding the pulse of the market and responding to it in real-time. To remain competitive, the company focuses on: innovation and storytelling. “We are not just selling whisky; we are telling a story. Every week, I share insights into what goes on behind the scenes, debunk myths about the industry, or highlight interesting facts about the market. This helps us build a stronger connection with our audience; keeping our brand relevant and engaging,” he states. “Apart from the launch of Woodsmen Mountain Whiskey, we are expanding to 2-3 more states in the coming quarter to expand distribution, besides doubling down in our existing markets. We also plan to launch a Himalayan single malt in the future to cater to the exciting rise of Indian single malts,” Shivam discloses. Being Responsive to Demands India is one of the largest and fastest-growing markets in the world and staying informed about these trends allows companies to anticipate shifts and adapt their strategies accordingly. Agility and responsiveness are crucial too. “Unlike some of the more established brands, we are nimble and can quickly adjust to changing consumer demands. Whether it’s launching a new blend or tweaking our marketing approach, we are always looking for ways to stay ahead of the curve,” Shivam says. In a market where consumer tastes are rapidly evolving, staying competitive means being proactive, staying informed, and continuously engaging with the audience. Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news Subscribe Now You May Also like Read the Next Article