Diageo says vodka sales dip in India

India has been held back by the Smirnoff vodka, whose sales fell two per cent over last year. However, the company has strong underlying momentum in the scotch category with Johnnie Walker Red and Black, which are growing in strong double digits, it said. Smirnoff is Diageo's largest selling brand in India. It also sells Johnnie Walker and VAT69 in good numbers, besides a range of other brands. According to observers, Smirnoff, present in the premium vodka segment in India, still controls around 80 per cent of the market. But it has been hit by slow growth in the segment as a whole. "Many people are opting for whisky and that is one of reason why the vodka segment is seeing sluggish growth," an industry noted.

Gilbert Ghostine, president, Asia-Pacific, Diageo, in a recent discussion with investors, said the company was able to gain a good market share in the scotch whisky segment through the Johnnie Walker bouquet, a result of its continued F1 motor racing sponsorship programme and Step Inside the Circuit campaign.

The company hopes for a breakthrough in the ongoing talks between India and the European Union over a free trade agreement, which would include India reducing import duties on scotch.