Diageo taps opportunities in India’s whisky market

Diageo sees significant opportunities to further grow the whisky market in India, where it is already a major player, including “building new marketing capabilities in cultural integration”, according to the local CEO of the drinks giant. 

Why whisky in India matters

The demographics alone present a huge opportunity: within the next decade, some 150 million Indian consumers will enter the legal purchasing age for alcohol. Add in a growing middle class and changing alcohol consumption patterns – the share of socialising occasions is growing – and there is potential to expand repertoires, increase experimentation, and deliver new experiences. So said Hina Nagarajan, managing director and CEO of Diageo India, at a Capital Markets event.

Takeaways

• Whisky is the most valuable category in the total beverage alcohol market in India, accounting for 52% of retail sales value. 
• Scotch accounts for just 13% of total whisky value, and penetration is low at 10%; Diageo claims to have recruited 10 million new consumers to Scotch.
• The Scotch market has seen rapid premiumisation, with lower price segments slowly shrinking over 2019-22, while the mid-priced, primary and imported segments are growing in double digits.
• Diageo has introduced a locally produced, luxury-priced artisanal Indian Single Malt: Godawan is aimed at India’s young affluent who show an “affinity for Indian artisanship and mindful luxury”.
• At the same time it has tapped into a growing market for bourbon with Royal Challenge American Pride, which is marketed with American-style culture imagery. 

Sourced from Diageo