Indian distillers winning the single malt game

India in the past decade has become a major market for 'desi' single malts. Several Indian distillers have forayed into the single-malt whiskey segment. The pioneers of Indian single-malt Amrut Distilleries and John Distilleries have seen their sales increase 36% to Rs 1,543 and 24% to Rs 7,849 crore, respectively, in 2023-24. In 2023, these companies reported 23% and 14% growth, respectively.

Team WhatPackaging? interacted with Ganesh Narayanswami, head of packaging at John Distilleries, on the single malt market in India. Narayanswami mentioned that his company offers single malt in various price categories, making their offerings very versatile. The single malt portfolio of John Distilleries appeals to those who want to try Indian single malts as well as the premium category. John Distilleries is the fourth-largest alcobev player in the Indian market.

Narayanswami while speaking at Pack.Nxt 2024 said, "The brand has evolved from country liquor to the Indian-made foreign liquor (IMFL) segment." He mentioned that the single malt segment in India is seeing a boom, and that has led to several Indian brands entering the segment, which will bolster the industry's growth.

On being asked about the cost factor, he added that cost is always a factor; the primary brands that put food on the table for the company are the economy brands, which are currently packed in multi-layered packaging. He continued, "The one that gives glory to our organisation is the one that is packed in bottles (premium offerings)."

The single malt industry growth isn't due to the change in demographics; the younger generation is taking to single malts, and Indians are gravitating towards other malts that aren't Scotch, American, and Japanese. The single-malt segment is creating a lot of buzz, which is proving to be beneficial for all the stakeholders involved.

Sanjay Ghoshal, head of packaging, packaging sustainability, & strategic packaging productivity at Diageo, while speaking at Pack.Nxt 2024 on counterfeiting and tracking of raw materials mentioned the potential of digital product passports that can help track raw materials not only for production but also for the end user. He added that the West Bengal government has allowed the implementation of QR codes on alcoholic beverages for authentication and supply chain tracking. This has not been done in any other Indian state, as alcohol is a prohibitive beverage.

He added that policy incentives are crucial to driving sustainable practices. He called for structured support in the same manner as electric vehicles are being promoted in the country. He argued, “Incentives can offset the higher costs of sustainable alternatives and accelerate adoption.”

According to the International Wine and Spirits Record (IWSR), India offers a beverage alcohol market with strong growth prospects. Against a backdrop of a +1% volume growth for global total beverage alcohol in 2022, spirits volumes in India increased by +12%, with beer up +38%, wine up +19%, and RTDs up +40%. In all cases, value grew ahead of volume. IWSR forecasts suggest a continued upward trajectory.

The aura of single malts goes hand in hand with their age (the older the better), which isn't the case with Indian single malts as no age is mentioned. The demand for Indian single malts has led to newer players entering the segment.

India is one of the largest whiskey-drinking nations with a market size of USD 16.9-billion in 2024. The single-malt segment in India is under-sold as the majority have been drinking blended whiskies. There is a huge opportunity in the single-malt segment and Indian distillers offer single malts in various price brackets catering to all.