New Delhi: India is among the fastest-growing markets for Scotch whisky and premium spirits maker William Grant & Sons, with the country projected to enter its top five global markets over the next 5 to 10 years, said its India Managing Director Kartik Mohindra.
The company, which owns premium spirits brands such as Glenfiddich, The Balvenie, Monkey Shoulder and Hendrick's, is benefiting from growing consumer affluence, premiumisation and increasing acceptance of international alcoholic beverage brands in India.
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In addition, the India-UK free trade agreement (FTA) will provide an additional boost to its imported spirits portfolio, although the full benefits are likely to become visible over the coming months, he added.
"We have a strong portfolio of brands (imported from the UK) in India, and with the FTA coming into effect, we expect demand to accelerate in the short term," Mohindra told PTI.
The FTA with the UK, which came into effect in July this year, has provided an additional tailwind ahead of the festive season.
"October, November and December are important months for the industry, with Diwali and the wedding season driving demand. We expect the real benefits of the FTA to start becoming visible now," he said.
India, the world's largest whisky market and the biggest export destination for Scotch whisky by volume, is among the top ten markets for William Grant & Sons.
Mohindra expects contribution of India market to the company's global business is expected to rise over the medium to long term.
"If one has to see the longer-term horizon, if you look forward in five to ten years, I think our contribution to the company globally is only going to increase because of the economic tailwinds," Mohindra said.
Asked whether India has the potential to enter the top five markets, he said, "Absolutely. But for that, it will also have to depend on how the other countries in the world recover or do well or how their policies change".
Mohindra said premium and luxury spirits were witnessing strong growth as consumers increasingly experimented with different categories and brands.
While imported and luxury spirits were traditionally concentrated in metropolitan markets such as Delhi-NCR, Mumbai and Hyderabad, demand has expanded across states and into smaller cities, supported by improvements in retail infrastructure and shopping experiences.
"Across categories, the top end of the business is actually seeing the fastest growth. And that is where we are well positioned," he said.
India's established preference for whisky, combined with growing interest in Scotch single malts, provides an opportunity for Glenfiddich, which Mohindra described as the market leader in the category.
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He said demand for single malts was no longer restricted to a handful of states but was emerging across the country.
With the growing presence of American bourbon, Japanese whiskies and Indian desi single malts, competition in the premium segment has also intensified; Mohindra said it reflects the industry's assessment of India's long-term growth prospects.
The company is also seeking to strengthen its position in blended Scotch whisky and premium gin, segments where consumer preferences are evolving.
Mohindra said Monkey Shoulder, which competes with established whisky brands, had been growing faster than its category in recent years and gaining market share annually.
In the gin segment, where it is present with Hendrick's, the company sees opportunities from changing consumption patterns, including greater acceptance of drinking at home and the growing participation of women consumers in the category.
Moreover, improved retail experiences have also made it more comfortable for women to browse and purchase alcoholic beverages, he said.
The company is also working to expand its luxury portfolio, including The Balvenie, a premium single malt Scotch whisky.
William Grant & Sons is seeking to tap the growing trend of gifting alcoholic beverages during Diwali and other social occasions.
The company has collaborated with designer Rajesh Pratap Singh to develop a festive gifting offering for Glenfiddich consumers, particularly those buying its 12-, 15- and 18-year-old expressions.