Latest news with #McDowell'sNo1
Mint
23-05-2025
- Business
- Mint
Diageo India expects price drop for some spirits after free trade pact with UK
New Delhi: Diageo India, a subsidiary of British liquor giant Diageo Plc, anticipates that the recently-announced India-UK free trade agreement (FTA) will help lower prices for imported spirits, with some categories seeing a high single-digit reduction, potentially lifting demand for its alcoholic beverages. "The India-UK free trade agreement, which has halved the duty on scotch from 150% to 75%, is landmark. It shall enhance accessibility of scotch in the world's largest whiskey market. As a category captain, for USL, it presents a valuable opportunity to drive deeper penetration and introduce new premium offerings that cater to India's evolving repertoire of consumers," Praveen Someshwar, chief executive officer and managing director, said during the company's earnings call on Friday. USL, or United Spirits Ltd, is an Indian beverages company and a subsidiary of Diageo. Earlier this month, India and the UK finalized the FTA, agreeing to reduce the 150% import duty on scotch whisky and gin to 75% initially, with a further decrease to 40% over the subsequent decade. Diageo India manufactures, sells, and distributes brands such as Johnnie Walker, Ketel One, Tanqueray, Captain Morgan and McDowell's No1, with a portion of its portfolio made locally and another part imported. The company's chief financial officer, Pradeep Jain, said that the duty reduction from 150% to 75% may result in approximately a high-single digit decrease in consumer prices. This will also help lift volumes for the company, he added. "Not just we, my sense is that the government will also insist that we pass on the pricing benefit to the consumer. We are absolutely of the same view that we would want to pass on this benefit completely to the consumer. And therefore, keeping the consumer spend constant, it is reasonable to assume that in this part of the portfolio, a high single digit additional volume growth should occur—that's on the bottled in origin (BIO) portfolio," he said. For spirits bottled in India, or BII, the price reduction could be in the range of 4-5%. To be sure, BII refers to spirits that are shipped to India in bulk and bottled within the country, including both international brands and locally blended spirits. These products dominate the ₹ 1,000–2,000 price segment. This includes brands such as 100 Pipers and Teacher's scotch. BIO refers to spirits that are entirely produced and bottled outside of India before being imported for sale—for instance products made and packaged in the UK like scotch whisky. 'There will be a benefit that accrues into the raw material prices also, but again, we will take a call on that as and when that happens. There is still some amount of work to happen before this actually becomes legislation. So, probably the benefit will start coming only in the financial year 2026-2027,' Jain said. Commenting on potential increase in competition due to duty reduction, Someshwar said, "Any play by a competitor will expand the pie—to me, that is an exciting space to be in." Diageo is a large player in the Indian liquor market, competing with companies like Pernod Ricard and Allied Blenders and Distillers Ltd. For the full year ended March 2025, the company reported gross revenues of ₹ 26,780 crore, a 5.4% year-on-year increase. In the March quarter, the company saw a 10.5% rise in reported net sales to ₹ 2,946 crore, attributed to portfolio resilience and the resumption of business in Andhra Pradesh. Profit after tax for the quarter was ₹ 451 crore, up 17.4%, and gross profit increased by 13.4%, leading to a gross margin of 44.5%.
The Hindu
23-05-2025
- Business
- The Hindu
Vodka, gin and two variants of rum comprise McDowell's new X Series
In the early 60s, McDowell and Company began its journey in India with the launch of McDowell's No.1 Brandy, but it is now attending to the needs of the new generation with its X Series, comprising vodka, gin and two varieties of rum. With 35 manufacturing units spread across the length and breadth of the country, the X series is manufactured by United Spirits Limited (USL), a subsidiary of Diageo. Diageo India, a subsidiary of global leader Diageo Plc., manufactures, sells, and distributes premium brands such as Johnnie Walker, Black Dog, McDowell's No1, Smirnoff and Godawan. At the Catamaran Brewing Company, in Puducherry, where the launch of McDowell and Co.'s X Series took place last week, we try the brand's single-grain vodka, Brazilian citric gin, French citron infused white rum, and Jamaican-Indian dark rum mix. Let us begin with the X Series vodka which is smooth, light, and surprisingly creamy. The aftertaste is richer and more polished because the vodka is triple-distilled, charcoal-filtered. The smoothness subtly shows vodka's presence but does not overpower. Next is the gin, with a strong whiff of Brazilian orange peel and lemongrass, giving just the right amount of zing. The orange peel comes from juice industry waste, hence adding a touch of sustainability. The series has two types of rum — citron and dark. The citron is made with French lemon after sampling over 600 varieties. The dark rum is not winter-warming or overly flavoured but rather smooth, tropical and fruity. Comprising Indian and aged Jamaican rum, it breaks the barrier of rum being solely a winter drink. Add some pineapple juice and it turns into a cocktail. X Series is carefully curated for bartenders. Bottles are designed for easy and quick pouring and with colour-coded tags and rubber corks. More importantly, by infusing spirits with lemon or orange flavours, they have eliminated the hassle of using fresh citrus, a necessity in summers when lemon prices skyrocket. The range has already been launched in Karnataka, Goa, Maharashtra, Uttar Pradesh, West Bengal, Haryana, and Rajasthan, with Puducherry now becoming the latest to embrace the series. Varun Koorichh, vice president of marketing at Diageo, understands the evolving market. He says, 'The new generation is not just consuming differently; they are living differently. They value innovation, novelty, and meaningful experiences. The McDowell's X Series is our answer to that shift: a bold new portfolio crafted not just to be consumed, but to be experienced.'
