The Glenmorangie Eyes India as Key Growth Market

As the landmark IndiaUK Free Trade Agreement lays the groundwork for a new era of Scotch whisky trade, The Glenmorangie Company is poised to not only make a substantial entry into India’s burgeoning Scotch whisky scene but is also looking forward to tapping into the upwardly mobile consumers who are wellaware of brand value, global trends and high benchmarks in quality. As CASPAR MacRae, CEO and President, The Glenmorangie Company (Moët Hennessy - LVMH) tells SHALINI Kumar this ride is certainly going to take Indian whisky experience to unprecedented heights.

As the world turns into a global village, the Indian traveller has found his or her right place when it comes to making a choice about alcohol beverages. In this space, the Indian single malt consumer is, for want of a better word, very ‘worldly’. Leading brands have therefore included the Indian traveller as an important demographic in their global travel retail sales. They believe, these travellers are aware of global trends and have a nuanced understanding of single malt Scotch.

Given this scenario, India is a strategic priority market for a producer like The Glenmorangie Company. “We expect it to be part of the top five markets globally for Glenmorangie, as well as gain a smaller but passionate following for Ardbeg,” says Caspar. Interestingly, as in-market cask finishing of single malt Scotch is not legally viable, all whisky must be distilled, matured and bottled in Scotland. Beyond that, India-specific innovation is possible.

The India Approach

The initial focus of The Glenmorangie Company will be to establish a clear presence as the world’s leading Highland single malt Scotch. “Therefore, there will be a strong degree of consistency in our communications. However, we need to respect local sensibilities and conform to national advertising requirements,” Caspar states. The operational priorities will revolve around building distribution, presence and awareness in India. In terms of distillation, the input cost volatility will be managed through longstanding supplier contracts which will ensure that the brand commands the best quality ingredients and collaborates on important sustainability initiatives.

In Caspar’s view, India represents an exciting opportunity with passionate, educated and perceptive consumers. This is why the company has also taken a collaborative approach, both within its LVMH network and externally with Indian luxury hospitality groups and premium retailers. They are convinced that wellexecuted consumer experiences create strong brand engagement and affinity. “This is even more so for Glenmorangie and Ardbeg, where tasting their award-winning quality gives us a real competitive advantage,” Caspar states.

The brand has already been partnering with Indian luxury hospitality groups, both hotels and the growing bar scene, and expects to extend and deepen those partnerships.

Surely then, The Glenmorangie Company would have had reviewed the competition from emerging Indian single malts.

“We welcome the emergence of local single malts, and we think that the newly formed Indian Malt Whisky Association is working to ensure that high quality standards are maintained. Overall a vibrant, appealing and quality category is likely to benefit all single malt brands,” Caspar says.

 The FTA Booster

Tariff reduction will play an important role when it comes to establishing a strong presence for The Glenmorangie Company in India. The India-UK Free Trade Agreement is a fantastic start to a mutually beneficial increase in the trade of Scotch whisky. In India, fans of single malt whisky have been subject to a 150 percent import tariff, which will reduce to 40 percent over the next decade. However, as Caspar MacRae sees it, there is still work to be done to harmonise some of the state level excise and non-financial barriers to trade before the brand’s customers in India can access the choice and pricing they deserve.

Long Term Vision

As a single malt Scotch whisky company, The Glenmorangie Company takes a very long-term view. It has been in business for more than 200 years and hopes to be present for another 200. Therefore, sustainability is a key priority for the brand, and it is committed to halving its emissions by 2030 and becoming carbon neutral by 2040.

“We take that responsibility seriously and it includes a determination to be a responsible supplier in all local markets,” Caspar adds.