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Economic Times
30-07-2025
- Business
- Economic Times
Big Scotch tariff cut to bring little cheer for Indians after UK trade deal
Agencies Representative image. At first glance, halving import tariffs on Scotch to 75% under the India-UK trade deal should bring the biggest cheer to India's whisky lovers. But there is little to celebrate once you look closely at India's complex tax regime. In the world's most populous nation, each of the 28 states and eight federally-controlled territories regulate alcohol independently and impose heavy local taxes that contribute richly to the exchequer. That means the price consumers pay for their drink in India includes state excise tax, handling charges, a social welfare fee, and distribution and retailer margins, and once they are taken into account the industry estimates final prices of imported Scotch will come down by less than 10%, four liquor industry executives said. Some fear states may even increase taxes, cancelling out the reduction from the trade deal. One executive at a foreign company said the tariff cut "won't be a gamechanger." Another said the share of customs duty as a percentage of the total product price was less than 25% in most states. Both declined to be named as they were not authorised to speak to the media. Naveen Malpani, consumer and retail industry leader at consultants Grant Thornton Bharat, said the import duty made up only about 10% to 20% of the retail price on average across India, with the rest from local levies and other costs. "The deal is likely to enhance premiumisation and brand variety rather than trigger an immediate spike in demand," he said. A breakdown provided on the website of the government of southern Kerala state shows the high taxation regime: a bottle of Pernod's Chivas Regal blended Scotch aged for 18 years costs 6,288 rupees ($72) with import tariffs, but local taxes and levies take the price to 13,560 rupees ($156). Similarly, Johnnie Walker Blue Label costs 30,570 rupees ($352) in Kerala. In California, after discounts, that brand costs around $180, according to shopping website Despite the high taxes, Euromonitor estimates India's spirits market was worth $37 billion last year, lagging only China and the United States, and it remains an attractive market - Diageo, which produces Johnnie Walker, and Pernod Ricard together had India revenues of almost $6 billion last year. India is Scotch whisky's largest export market by volume, with the equivalent of more than 192 million bottles exported to the country in 2024, and the volume growing by more than 200% in the past decade, according to the Scotch Whisky Association. But doing business in the whisky-loving country is challenging. As well as the layers of taxation, companies must contend with a web of regulation, which requires they seek approval for bottle labels and prices each year. In 2022, Pernod's then South Asia CEO told Reuters in an interview that India was "probably the most complex market" in the world for the industry. Amid the complexity, local producers have also stepped up. Made-in-India single malts are offering stiff competition to the established international brands as Indians develop a taste for bespoke cocktails and more sophisticated drinks. Young Indians "are all going for Indian single malts rather than Scotch," said Rajesh Chopra, director general of Indian Malt Whisky Association, adding lower tariffs could spur collaboration among Indian and UK whisky makers.
Time of India
30-07-2025
- Business
- Time of India
Big scotch tariff cut to bring little cheer for Indians after UK trade deal
Cutting Scotch whisky import tariffs to 75% under the India-UK trade deal may offer limited benefit to Indian consumers due to India's complex tax regime. State levies, excise duties, and fees still keep prices high, reducing the impact of tariff cuts to under 10%. Despite growing demand and Scotch being India's top import by volume, local single malts are gaining ground. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads At first glance, halving import tariffs on Scotch to 75% under the India-UK trade deal should bring the biggest cheer to India's whisky lovers. But there is little to celebrate once you look closely at India's complex tax the world's most populous nation, each of the 28 states and eight federally-controlled territories regulate alcohol independently and impose heavy local taxes that contribute richly to the means the price consumers pay for their drink in India includes state excise tax, handling charges, a social welfare fee, and distribution and retailer margins, and once they are taken into account the industry estimates final prices of imported Scotch will come down by less than 10%, four liquor industry executives said. Some fear states may even increase taxes, cancelling out the reduction from the trade executive at a foreign company said the tariff cut "won't be a gamechanger." Another said the share of customs duty as a percentage of the total product price was less than 25% in most states. Both declined to be named as they were not authorised to speak to the Malpani, consumer and retail industry leader at consultants Grant Thornton Bharat, said the import duty made up only about 10% to 20% of the retail price on average across India, with the rest from local levies and other costs."The deal is likely to enhance premiumisation and brand variety rather than trigger an immediate spike in demand," he said.A breakdown provided on the website of the government of southern Kerala state shows the high taxation regime: a bottle of Pernod's Chivas Regal blended Scotch aged for 18 years costs 6,288 rupees ($72) with import tariffs, but local taxes and levies take the price to 13,560 rupees ($156).Similarly, Johnnie Walker Blue Label costs 30,570 rupees ($352) in Kerala. In California, after discounts, that brand costs around $180, according to shopping website the high taxes, Euromonitor estimates India's spirits market was worth $37 billion last year, lagging only China and the United States, and it remains an attractive market - Diageo, which produces Johnnie Walker, and Pernod Ricard together had India revenues of almost $6 billion last is Scotch whisky 's largest export market by volume, with the equivalent of more than 192 million bottles exported to the country in 2024, and the volume growing by more than 200% in the past decade, according to the Scotch Whisky doing business in the whisky-loving country is challenging. As well as the layers of taxation, companies must contend with a web of regulation, which requires they seek approval for bottle labels and prices each year. In 2022, Pernod's then South Asia CEO told Reuters in an interview that India was "probably the most complex market" in the world for the the complexity, local producers have also stepped up. Made-in-India single malts are offering stiff competition to the established international brands as Indians develop a taste for bespoke cocktails and more sophisticated Indians "are all going for Indian single malts rather than Scotch," said Rajesh Chopra, director general of Indian Malt Whisky Association, adding lower tariffs could spur collaboration among Indian and UK whisky makers.
Boston Globe
22-07-2025
- General
- Boston Globe
What a sports writer eats when he's on assignment in Maine
So I spent two nights in Portland, which has not-so-quietly become a When I lived in Louisville, Ky., before moving to Boston 10 years ago, locals endorsed the city's seafood scene because of its status as a UPS hub, positing that the fish were fresher there because they arrived on nonstop flights. I recoiled and stuck with bourbon. Get Winter Soup Club A six-week series featuring soup recipes and cozy vibes, plus side dishes and toppings, to get us all through the winter. Enter Email Sign Up There is no such issue living in Boston, of course. But the waterfront charm can be disguised by steel and glass. Portland just feels like seafood, with fishing boats bobbing steps from harborside restaurants. Advertisement For dinner on my first night, I landed on The waterfront spot with high ceilings and wood floors was bustling this Monday, but not to the point that one had to yell. Fish and shellfish sat on ice outside the open kitchen, with a sign displaying the day's oyster selections. Advertisement For an appetizer, I ordered local mussels served in a broth of hard cider, local mustard, cream, and dill. They were plump and sweet, with a touch of salty ocean. The broth was delightful, the mustardy flavor a nice departure from more traditional white wine or tomato-based recipes. Scenes from Portland, Maine, last month. Adam Himmelsbach Breads are baked in-house and have their own section on the menu, which made me eager to try the toasted slice added to this plate for dipping. There was a satisfying crack when breaking off a piece, with crumbs fluttering into the dish, and the inside was light and airy. I'm fine being cliché, so I looked past the grilled branzino and fried fluke and zeroed in on the warm buttered Maine lobster roll. And the fact that the lobster would sit atop more fresh-baked bread was hard to resist. I asked for the mayonnaise on the side, because warm butter doesn't need distractions. The roll was overflowing with plump, sweet, delicious chunks of lobster. I sprayed a lemon wedge on top and enjoyed every bite. The fresh-cut fries were excellent, too, although the plate did not need so many. Nevertheless, the meal was a very good start. Dallas Mavericks forward Cooper Flagg drives the ball against Los Angeles Lakers guard DaJaun Gordon during the second half of an NBA summer league basketball game Thursday, July 10, 2025, in Las Vegas. David Becker/Associated Press The next day was spent in Newport, where I visited a taxidermy store, a marina, and a school, among other places, to talk to people about Flagg, who was drafted first overall by the Dallas Mavericks I walked to Advertisement The outdoor seating on a brick sidewalk was full, so I was led to a wood chair at a wood table pressed against a wall inside. Another night of lobster was tempting but would have been redundant. I ordered the scallops in Pernod and cream, with farro and haricots verts. Feel free to roast me in the comments, but I was unfamiliar with After about 20 minutes, my server said my entrée would be out in about 20 more minutes. That seemed like a lengthy wait and an unusual announcement. Then the food arrived moments later anyway. Scenes from Portland, Maine, last month. Adam Himmelsbach It was served in the pan, which felt trendy. The scallops were rich and flavorful, although the insides were more lukewarm than hot. Cream sauces can be off-putting if excessively heavy, but this one was light and did not dominate the shellfish. The farro was a nice semi-crunchy complement, and it tasted even better when brushed through the sauce. I declined dessert because I wanted to visit a local ice cream shop. Much to my dismay, though, both nearby options closed at 9. Europeans are just sitting down for dinner at 9, and we're shutting down our ice cream shops. That doesn't sit right. Thankfully, Advertisement Celtics beat writer Adam Himmelsbach can be reached at . Follow him @adamhimmelsbach Adam Himmelsbach can be reached at
Time of India
24-06-2025
- Business
- Time of India
Suntory looks for a high with Imperial Blue buy
Japanese alcobev giant Suntory has revived plans to acquire the Imperial Blue whiskey brand in India from France's Pernod Ricard , said people in the know, sensing rival Tilaknagar Industries ' continued struggle to raise funds. Imperial Blue is the third-largest whiskey brand in the country though sales have lagged in recent years as many Indian consumers moved to upgrade to premium brands over mass or prestige offerings. The proposed sale is part of a broader global restructuring exercise initiated by Pernod Ricard—the owner of best-selling brands like Absolut vodka and Jameson whiskey—since last year. This includes a portfolio reshuffle, job cuts, and splitting its global brands into two blocks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She Was The Dream Girl In The 80s, This Is Her Recently Learn More Undo Suntory, the world's third-largest spirits maker after Diageo and Pernod Ricard, had last year pursued the acquisition but eventually dropped its plans due to the high valuation of $1 billion for Imperial Blue. Live Events The sale exercise, managed by Goldman Sachs, has seen a lukewarm response so far with two contenders – entrepreneur Ravi Deol-led Inbrew Beverages, and Tilaknagar Industries – making offers that were far below the ask. After a hiatus, the divestment process is believed to have resumed in recent weeks. Binding offers are due in the next 10 days, said the people cited above. Pernod has cut its demand for Imperial Blue and is believed to be currently seeking $600-$650 million for the brand. That too has faced a lukewarm response. 'This is a carve-out with no plants, organisation or distribution. To expect public market valuations is futile,' said an industry player who evaluated the prospects but opted out. Suntory Global Spirits said as a matter of policy, it does not comment on speculation. "Pernod Ricard regularly reviews strategic options for its development, including its brand / business portfolio. As a matter of policy, the company does not comment on market rumours or speculations," a Pernod Ricard spokeswoman said. Imperial Blue operates in the 78-million-case per year deluxe whiskey category, a bridge between the mass and premium segments. It sold 22.2 million cases in 2024, a meagre 0.5% from the year before. A blend of Indian grain spirits and imported Scotch malts, the brand was launched in India in 1997 by Seagram, which was acquired by Pernod in 2002. With a market share of 8.6%, Imperial Blue trails McDowell's and Royal Stag in 2024, as per latest IWSR report. For Pernod, it accounts for a third of its total whiskey sales in the country even though sales have been declining steadily over the past few years, falling 4% between 2019 and 2024. 'Tilaknagar's market cap is almost at par with what Pernod expects from the Imperial Blue sale,' said an industry official. ET reported in its June 19 edition that the maker of Mansion House and Courrier Napoleon brandy brands is looking to raise up to $500 million to fund the potential acquisition and had mandated Kotak Mahindra Bank and Avendus to raise rupee-based financing in the form of non-convertible debentures (NCDs). 'The challenge for Tilaknagar has been its long-lasting legal tussle with Allied Blenders over the trademark use of Mansion House. Raising financing therefore, may not be that simple,' the official said. With annual sales of 260 million cases in 2024, India is the largest whiskey market in the world by volume. Suntory dominates the Japanese whisky segment in India, with about 95% share, through brands such as The Yamazaki and Hibiki besides owning Teacher's, the fifth-largest scotch brand in India. The company behind Jim Beam also controls 44% of the American whiskey category. Suntory's unlisted Indian arm Beam Global, maker of Teacher's, Hibiki and Roku gin, saw 12% sales growth to Rs 1,304 crore in FY24. Over the past few years, the company has launched India-made whisky Oaksmith, Japanese whiskies The Yamazaki and Hibiki, Japanese gin Roku, as well as Toki whisky. Parent Suntory Holdings aims to touch $1 billion in annual revenue in India by 2030. It operates its own manufacturing plant in Rajasthan and four third-party bottling units in Goa, Maharashtra, Madhya Pradesh and Telangana. Last June, Suntory Holdings set up another local unit, Suntory India to explore potential expansion opportunities for the group in the country, mainly for its soft-drinks and wellness brands. Last year, Pernod Ricard had also agreed to sell the bulk of its international wine portfolio to the owner of Australia's Accolade Wines, allowing it to shed the bulk of its worst-performing division to focus on premium spirits and champagne. The French drinks maker offloaded popular supermarket brands such as Jacob's Creek, Campo Viejo and St Hugo to Australian Wine Holdco Ltd, a consortium of investors, and several other vineyards for an undisclosed sum. In June 2025, it announced dividing its portfolio into two units. The first will include its whiskey, champagne and cognac; the second will include other spirits and aperitifs. ET Insight: With annual sales of 260 million cases in 2024, India is the largest whiskey market in the world by volume
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Business Standard
15-05-2025
- Business
- Business Standard
Liquor giant Pernod Ricard denied Delhi liquor licence again amid probe
The Delhi government has once again rejected French liquor giant Pernod Ricard's request for a licence to sell its brands in the national capital, citing " lack of moral probity", news agency Reuters reported on Thursday. This is the third time the firm has been denied a licence on grounds of allegedly breaching the city's liquor policy in 2021. Moreoever, the denial comes despite an Indian appellate authority advising city officials to reconsider, citing the lack of conviction in investigations against Pernod. Third time unlucky However, on May 9, city excise commissioner Sunny K Singh, noted in his order that "Mere existence of allegations and investigation justifies administrative caution in licensing matters." 'Allowing a company facing allegations of financial misconduct to operate under a state license would not only undermine public trust but also expose state revenue to risk," the order noted. Responding to the rejection, Pernod Ricard said that it did not agree with the decision and is seeking to "securing a fresh licence for the current financial year". Business arrangement under the scanner The firm has been accused of violating the city-state's rules by illegally extending bank guarantees to New Delhi's retailers, which in return agreed to boost the company's market share. Despite denying any wrongdoing, an internal probe commissioned by Pernod Ricard found that its top executives had indeed violated city laws, Reuters reported. Pernod Ricard is a popular liquor company that makes brands like Absolut vodka, Chivas Regal whisky, and Beefeater gin, among others. The Delhi license is important for the company because it has in the past said that New Delhi alone accounted for 5 per cent of its total sales in India, which stood at $3.13 billion last year.
