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Time of India
19-05-2025
- Business
- Time of India
Spirits market loses its zing in FY25
Demand for spirits across categories slowed down to 1.6% in FY25, falling from 4.2% a year ago, after distribution changes in a few states, higher taxes and tipplers cutting back on most discretionary spends including alcobev. With sales improving in the December quarter, most companies had expected gradual recovery, which was belied by a tepid 0.5% January-March sales performance. Volume sales of whiskey, which accounts for roughly two-thirds of the market, saw a muted 1.5% increase in volume last fiscal while brandy and vodka sales were flat, according to latest excise department data. Brandy grew less than 1% while gin sales increased 3.6% on a lower base. "We are seeing some moderation especially in Gen Z consumers, who choose quality over quantity, and in time to come, we should start looking at value growth as a better measure instead of volume," said Alok Gupta, MD at Allied Blenders & Distillers. Despite being the world's most populous nation with more than 1.4 billion inhabitants, India's drinking consumer base is estimated at around 300 million-of whom nearly half rely on cheap, unbranded liquor. In categories including whiskey, rum and brandy, consumption in the mass-premium segment declined, which impacted the overall market demand. "The previous year's first two quarters were bad, and there is a low base. So the growth in the next two quarters would be healthy. And there were many issues, relating to specific states, with regard to the industry, that is also normalising," said Amar Sinha, chief operating officer at Radico Khaitan . There were temporary disruptions in Telangana, a key state, which slowed down sales growth for most companies while Delhi excise policy reversal has led to low distribution by national brands. "A softer third quarter sales was impacted due to the implementation of new Customs clearance procedures affecting sales of imported spirits, and a temporary production interruption in a major state, which is now resolved," Pernod Ricard chief financial officer Helene de Tissot told analysts last month after posting a 1% sales growth in India. However, there have been favourable policy changes too. Karnataka, for instance, reduced state duties by 10-15% across various alcoholic beverages while Andhra Pradesh opened the retail alcohol market to private players. Globally too, liquor sales fell 1% by volume in 2024, according to alcohol market researcher IWSR, which attributed this to large markets such as China and India failing to live up to growth projections. The world's top 20 markets fell short of growth estimates by 1-2% in 2024, equating to more than 300 million nine-litre cases.
Time of India
18-05-2025
- Business
- Time of India
Spirits market loses its zing in FY25
Demand for spirits across categories slowed down to 1.6% in FY25, falling from 4.2% a year ago, after distribution changes in a few states, higher taxes and tipplers cutting back on most discretionary spends including alcobev. With sales improving in the December quarter, most companies had expected gradual recovery, which was belied by a tepid 0.5% January-March sales performance. Volume sales of whiskey, which accounts for roughly two-thirds of the market, saw a muted 1.5% increase in volume last fiscal while brandy and vodka sales were flat, according to latest excise department data. Brandy grew less than 1% while gin sales increased 3.6% on a lower base. "We are seeing some moderation especially in Gen Z consumers, who choose quality over quantity, and in time to come, we should start looking at value growth as a better measure instead of volume," said Alok Gupta, MD at Allied Blenders & Distillers. Despite being the world's most populous nation with more than 1.4 billion inhabitants, India's drinking consumer base is estimated at around 300 million-of whom nearly half rely on cheap, unbranded liquor. In categories including whiskey, rum and brandy, consumption in the mass-premium segment declined, which impacted the overall market demand. Live Events "The previous year's first two quarters were bad, and there is a low base. So the growth in the next two quarters would be healthy. And there were many issues, relating to specific states, with regard to the industry, that is also normalising," said Amar Sinha, chief operating officer at Radico Khaitan . There were temporary disruptions in Telangana, a key state, which slowed down sales growth for most companies while Delhi excise policy reversal has led to low distribution by national brands. "A softer third quarter sales was impacted due to the implementation of new Customs clearance procedures affecting sales of imported spirits, and a temporary production interruption in a major state, which is now resolved," Pernod Ricard chief financial officer Helene de Tissot told analysts last month after posting a 1% sales growth in India. However, there have been favourable policy changes too. Karnataka, for instance, reduced state duties by 10-15% across various alcoholic beverages while Andhra Pradesh opened the retail alcohol market to private players. Globally too, liquor sales fell 1% by volume in 2024, according to alcohol market researcher IWSR, which attributed this to large markets such as China and India failing to live up to growth projections. The world's top 20 markets fell short of growth estimates by 1-2% in 2024, equating to more than 300 million nine-litre cases.
Time of India
18-05-2025
- Business
- Time of India
radico khaitan: India-UK FTA: Duty concession on Scotch to boost premium drive of Indian distillers
ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Indian premium whisky distillers expect that the duty concessions on Scotch imports under the India-UK free trade agreement will help improve their margins and speed up growth. A lower customs duty on bulk Scotch, used by many Indian Made Foreign Liquor (IMFL) companies for blending, will reduce costs and make premium spirits more affordable in the Indian market, which is the world's largest for whisky, they the trade pact, announced earlier this month, India will reduce duties on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent by the tenth players like Radico Khaitan , Allied Blenders & Distillers (ABD), and John Distilleries said the move will give Indian consumers more choices and better access to high-quality Khaitan, the largest importer of Scotch whisky for blending and which owns award-winning single malt 'Rampur' and Jaisalmer Indian Craft Gin, said the FTA has "significant potential" for cost advantages through the expected reduction in customs duties."Radico plans to import scotch malt worth Rs 250 crore in fiscal year 2025-2026, and this treaty, therefore, benefits us substantially," Radico Khaitan MD Abhishek Khaitan told similar views, Allied Blenders & Distillers (ABD), makers of Officer's Choice Whisky, said it has opened new avenues for collaboration, besides helping make the super-premium to luxury portfolio more accessible."...this agreement will also benefit ABD's Super-Premium to Luxury portfolio by making these products more accessible. We anticipate this will offer Indian consumers greater choice and the opportunity to enjoy a wider range of high-quality spirits," the company to data from the Scotch Whisky Association, India was the largest market for Scotch by volume in 2024, with 192 million bottles exported. In value terms, it ranked fourth with exports worth 248 million British Amrut Distilleries MD Rakshit N Jagdale raised concerns about the duty concessions, saying the steep reduction in duties could hurt India's domestic alcohol reduction of import duties on Scotch whisky from 150 per cent to 75 per cent in one step is "alarmingly" steep, he said."This move risks disincentivising future expansion projects within the Indian distillation sector projects that not only contribute to manufacturing GDP but also generate significant direct and indirect employment across the supply chain, from agriculture to retail," he said, adding that it will help increase in import volumes and exports are likely to be openness to global trade is vital, it must not come at the cost of long-term self-reliance, manufacturing growth, and job creation, Jagdale Distilleries Chairman Paul P John said this FTA may have a short-term impact on Indian products, but he hopes that it will allow better ease of business for Indian products in the the impact on retail pricing, John said, "At this stage, it's premature to comment on specific pricing strategies. We are monitoring the developments of the India-Uk FTA and will assess the implications once the details are finalised".According to data from the Confederation of Indian Alcoholic Beverage Companies (CIABC), sales of IMFL have grown 14 per cent by volume to 385 million cases in FY23, in which the premium products priced over Rs 1,000 per 750 ml bottle have grown over three times from the industry average to 45 per FY23, whisky sales volume of 243 million cases of 9 litres each was some of the homegrown brands of single malts as Amrut, Paul John, Indri, Rampur and Gianchand, among others, have even surpassed global brands in 2023.
Time of India
18-05-2025
- Business
- Time of India
India-UK FTA: Duty concession on Scotch to boost premium drive of Indian distillers
Indian premium whisky distillers expect that the duty concessions on Scotch imports under the India-UK free trade agreement will help improve their margins and speed up growth. A lower customs duty on bulk Scotch, used by many Indian Made Foreign Liquor (IMFL) companies for blending, will reduce costs and make premium spirits more affordable in the Indian market, which is the world's largest for whisky, they added. Under the trade pact, announced earlier this month, India will reduce duties on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent by the tenth year. Home-grown players like Radico Khaitan , Allied Blenders & Distillers (ABD), and John Distilleries said the move will give Indian consumers more choices and better access to high-quality spirits. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Radico Khaitan, the largest importer of Scotch whisky for blending and which owns award-winning single malt 'Rampur' and Jaisalmer Indian Craft Gin, said the FTA has "significant potential" for cost advantages through the expected reduction in customs duties. "Radico plans to import scotch malt worth Rs 250 crore in fiscal year 2025-2026, and this treaty, therefore, benefits us substantially," Radico Khaitan MD Abhishek Khaitan told PTI. Live Events Sharing similar views, Allied Blenders & Distillers (ABD), makers of Officer's Choice Whisky, said it has opened new avenues for collaboration, besides helping make the super-premium to luxury portfolio more accessible. "...this agreement will also benefit ABD's Super-Premium to Luxury portfolio by making these products more accessible. We anticipate this will offer Indian consumers greater choice and the opportunity to enjoy a wider range of high-quality spirits," the company said. According to data from the Scotch Whisky Association, India was the largest market for Scotch by volume in 2024, with 192 million bottles exported. In value terms, it ranked fourth with exports worth 248 million British pounds. However, Amrut Distilleries MD Rakshit N Jagdale raised concerns about the duty concessions, saying the steep reduction in duties could hurt India's domestic alcohol industry. The reduction of import duties on Scotch whisky from 150 per cent to 75 per cent in one step is "alarmingly" steep, he said. "This move risks disincentivising future expansion projects within the Indian distillation sector projects that not only contribute to manufacturing GDP but also generate significant direct and indirect employment across the supply chain, from agriculture to retail," he said, adding that it will help increase in import volumes and exports are likely to be outpaced. While openness to global trade is vital, it must not come at the cost of long-term self-reliance, manufacturing growth, and job creation, Jagdale added. John Distilleries Chairman Paul P John said this FTA may have a short-term impact on Indian products, but he hopes that it will allow better ease of business for Indian products in the UK. On the impact on retail pricing, John said, "At this stage, it's premature to comment on specific pricing strategies. We are monitoring the developments of the India-Uk FTA and will assess the implications once the details are finalised". According to data from the Confederation of Indian Alcoholic Beverage Companies (CIABC), sales of IMFL have grown 14 per cent by volume to 385 million cases in FY23, in which the premium products priced over Rs 1,000 per 750 ml bottle have grown over three times from the industry average to 45 per cent. In FY23, whisky sales volume of 243 million cases of 9 litres each was recorded. Moreover, some of the homegrown brands of single malts as Amrut, Paul John, Indri, Rampur and Gianchand, among others, have even surpassed global brands in 2023.
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Business Standard
18-05-2025
- Business
- Business Standard
Indian distillers expect India-UK FTA duty cuts on scotch to boost growth
Indian premium whisky distillers expect that the duty concessions on Scotch imports under the India-UK free trade agreement will help improve their margins and speed up growth. A lower customs duty on bulk Scotch, used by many Indian Made Foreign Liquor (IMFL) companies for blending, will reduce costs and make premium spirits more affordable in the Indian market, which is the world's largest for whisky, they added. Under the trade pact, announced earlier this month, India will reduce duties on UK whisky and gin from 150 per cent to 75 per cent, and further to 40 per cent by the tenth year. Home-grown players like Radico Khaitan, Allied Blenders & Distillers (ABD), and John Distilleries said the move will give Indian consumers more choices and better access to high-quality spirits. Radico Khaitan, the largest importer of Scotch whisky for blending and which owns award-winning single malt 'Rampur' and Jaisalmer Indian Craft Gin, said the FTA has "significant potential" for cost advantages through the expected reduction in customs duties. "Radico plans to import scotch malt worth Rs 250 crore in fiscal year 2025-2026, and this treaty, therefore, benefits us substantially," Radico Khaitan MD Abhishek Khaitan told PTI. Sharing similar views, Allied Blenders & Distillers (ABD), makers of Officer's Choice Whisky, said it has opened new avenues for collaboration, besides helping make the super-premium to luxury portfolio more accessible. "...this agreement will also benefit ABD's Super-Premium to Luxury portfolio by making these products more accessible. We anticipate this will offer Indian consumers greater choice and the opportunity to enjoy a wider range of high-quality spirits," the company said. According to data from the Scotch Whisky Association, India was the largest market for Scotch by volume in 2024, with 192 million bottles exported. In value terms, it ranked fourth with exports worth 248 million British pounds. However, Amrut Distilleries MD Rakshit N Jagdale raised concerns about the duty concessions, saying the steep reduction in duties could hurt India's domestic alcohol industry. The reduction of import duties on Scotch whisky from 150 per cent to 75 per cent in one step is "alarmingly" steep, he said. "This move risks disincentivising future expansion projects within the Indian distillation sector projects that not only contribute to manufacturing GDP but also generate significant direct and indirect employment across the supply chain, from agriculture to retail," he said, adding that it will help increase in import volumes and exports are likely to be outpaced. While openness to global trade is vital, it must not come at the cost of long-term self-reliance, manufacturing growth, and job creation, Jagdale added. John Distilleries Chairman Paul P John said this FTA may have a short-term impact on Indian products, but he hopes that it will allow better ease of business for Indian products in the UK. On the impact on retail pricing, John said, "At this stage, it's premature to comment on specific pricing strategies. We are monitoring the developments of the India-Uk FTA and will assess the implications once the details are finalised". According to data from the Confederation of Indian Alcoholic Beverage Companies (CIABC), sales of IMFL have grown 14 per cent by volume to 385 million cases in FY23, in which the premium products priced over Rs 1,000 per 750 ml bottle have grown over three times from the industry average to 45 per cent. In FY23, whisky sales volume of 243 million cases of 9 litres each was recorded. Moreover, some of the homegrown brands of single malts as Amrut, Paul John, Indri, Rampur and Gianchand, among others, have even surpassed global brands in 2023. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
