Alcobev players ramp up single-malt portfolio to cater to surge in demand

As Indian single malts gain global recognition, distillers are ramping up their portfolio to meet the increasing demand from consumers.

Leading industry players like DeVans, AABL, Diageo, and Radico Khaitan are innovating and diversifying their single-malt offerings, indicating a promising future for the palatable scotch in India.

According to a Confederation of Indian Alcoholic Beverage Companies (CIABC), Indian single malts commanded the market in 2023, comprising 53 per cent of total sales.

Out of 675,000 nine-litre cases of single malts sold in India last year, domestic whisky producers accounted for around 345,000 cases, with Scottish and other foreign brands selling the remaining 330,000 cases.

Jammu-based DeVans Modern Breweries is gearing up to launch two new, more matured variants of its GianChand single-malt whisky later this year, ahead of the festive season. These exclusive variants will be available in select markets and duty-free outlets nationwide.

On market expansion, DeVans plans to make a significant entry into Maharashtra this year while also strengthening its foothold in Goa.

“Apart from this, our focus would be on improving market share in our present markets. On the international front, we have just restarted our exports to the US and are slowly expanding our GianChand network,” said Prem Dewan, chairman and managing director, DeVANS Modern Breweries.

Associated Alcohols & Breweries (AABL), based in Indore, is gearing up to inaugurate its single-malt production plant in the fourth quarter FY25.

The company anticipates launching its single-malt whisky within the following three-four years.

While the exact pricing is still under consideration, AABL plans to position the whisky in the premium segment, with a price range of Rs 4,000-5,000. The initial launch will target metropolitan cities and international markets.

“We are planning to invest a capex of around Rs 100 crore in establishing a bottling plant in Uttar Pradesh during FY25.  Additionally, we are also planning to tie up with bottling plants in other states to expand presence,” said Tushar Bhandari, whole time director at AABL.

“We are currently present in seven states across the country and plan to expand to other territories, including Maharashtra, Goa, West Bengal, Karnataka, Pondicherry, Odisha, and the Northeast. We do not have plans to expand to international territories this year but it is something we can look at in the future,” Bhandari added.

Bengaluru-headquartered Diageo India is set to introduce two fresh variations of its Godawan Artisanal single-malt whisky. This follows the recent debut of variants 01 (Rich and Rounded) and 02 (Fruit and Spice), enhancing the brand's line-up.

“A traditional Whisky Flavour Map contains four quadrants of flavour profiles – light, rich, delicate, and smoky – and most Indian single malts are smoky and rich. Godawan aims to bring to life Indian single malts that cater to every palate – light and floral, fruity and spicy, rich and rounded, full-bodied and smoky,” said Vikram Damodaran, chief innovation officer, Diageo India.

“The distiller's batch Indian single malt marks a new chapter for the McDowell's brand. The brand aims to launch a slew of exquisite liquids, beginning with a single-malt whisky crafted in India,” added Damodaran.

Godawan has made its mark in 12 key markets across India, with Diageo now setting sights on Tier II cities and other regional markets within the country. Internationally, Godawan has ventured into Australia, New Zealand, the UK, Ireland, Dubai, and the Middle East, solidifying its global presence.

Radico Khaitan introduced the Rampur Asava single-malt whisky in the domestic market.

Having gained traction internationally in key markets like the UK, US, Europe and Dubai, the Rs 10,000 spirit debuted in Uttar Pradesh. It will extend to Delhi, Chandigarh, Punjab, Uttarakhand, Haryana, Telangana, Goa, and canteen stores department (CSD) outlets nationwide this financial year.

“With the investments made in the past, Rampur Indian single-malt volumes have increased last financial year (FY24) by 140 per cent. We expect the volumes to double from here in the next three years given the malt is under maturation already,” said Abhishek Khaitan, managing director (MD) of Radico Khaitan.

According to International Spirits and Wine Records (ISWR), premium-and-above blended Scotch volumes are predicted to grow at a compound annual growth rate (CAGR) of more than 13 per cent between 2022 and 2027. And, premium-plus malt Scotch may grow at above 19 per cent CAGR.

Indian single malts and craft gins are also expected to post strong double-digit CAGRs up to 2027.

On a High

- Indian single malts dominated 53% of 2023 sales: Ciabc

- DeVans launching two matured GianChand whiskys

- AABL inaugurates single-malt plant in Q4

- Diageo India to launch two new Godawan variants

- Radico Khaitan introduced Rampur Asava whisky domestically