Sazerac Betting Big on Growing Indian Whiskey Market; Plans to Launch Premium Products

Sazerac, one of the largest spirits company in the world, said India is ‘central’ to its long-term growth plans as the largest whiskey market is witnessing premiumisation where people are spending more on quality experience with rising disposable income.

Sazerac is positioned to adapt and respond to the evolving landscape and consumer preferences in India, where it has plans to “roll out new products in the coming years” based on consumer response and market dynamics from its global portfolio, said its Vice President, Global Hubs & Barrel Select, Diego Bianchi.

“What’s exciting about India is that it’s one of the few whiskey markets that’s still growing. Every year, new consumers are entering the category,” Bianchi told PTI in an interview.

The Louisiana, US-based spirits maker, has introduced brands as Buffalo Trace, Weller, Benchmark and Sazerac Rye - into the Indian market, aiming for a pie of the premium whiskey market, which is traditionally dominated by Scotch whisky. “Over the last five years, the premium whiskey segment has more than doubled in volume, which provides Sazerac with a great opportunity.” Though Sazerac did not share any specific investment or revenue numbers or plans, it said its strategy for India is rooted in ‘long-term ambition’ and strategic and sustained growth.

“We don’t have any plans to take our foot of the gas with the expansion of brands across the total Sazerac portfolio, including Buffalo Trace Distillery. Our vision is to prioritise ensuring Indian consumers have access to products that align with their lifestyles and habits,” he said.

Sazerac believes that American Bourbon whiskey, with its sweeter taste profile, will find its place here as people become more curious and willing to experiment in their spirits choices, with the rise in disposable income.

“Indians are curious, they are spending more on quality experiences, and they are looking to explore new spirits. We believe that bourbons, whether served neat, on the rocks, or in cocktails, give it a unique edge in appealing to this evolving palate,” said Bianchi, adding,”We are offering a new and different flavour profile to enjoy.” India reduced import duty on Bourbon to 100 per cent from 150 per cent earlier this year, which, according to Sazerac, is encouraging signs for the spirits category overall.

However, India has also concluded a free trade agreement with the UK, which includes a significant reduction in import tariffs on Scotch whiskey, from 150% to 75% immediately, with a further reduction to 40% over 10 years.

When asked about the impact, as Scotch will become more affordable versus Bourbons in the Indian market, Bianchi said: “The whiskeys made in America versus the UK are fundamentally different products with distinct taste profiles, and we believe there is room – and appetite – for both on the bar. “ Our focus in the coming years will be Bourbon category education and ensuring our products are available and visible for consumers to discover.” Sazerac’s will drive awareness and elevate the Bourbon category’s premium appeal, which includes educating consumers about the unique distillation process and various bourbon mashbills that make Bourbon a distinct whiskey offering.

Sazerac, which now owns a majority 60% stake in John Distilleries, makers of famous Paul John Whisky,  said its relationship with home-grown spirits makers is a ‘productive’ one, which allows us to tap into local market expertise, route to market and production capabilities.

When asked about plans for Paul John Single Malt Whiskey, Bianchi said it is available in 44 global markets, including the US, Canada, Germany, France, the UAE, Australia and the UK.

“With Paul John Single Malt, we are telling the story of Indian craftsmanship as well as our award-winning portfolio,” he said.