As Indian consumers move beyond single-brand loyalty and expand their drinking “repertoire” across categories, Brown-Forman, the maker of Jack Daniel’s, is banking on India’s premium spirits boom to sustain strong double-digit growth, even as competition intensifies across imported whiskey segments and supply chain risks persist.
Preferences shifted and broadened during the pandemic lockdowns.
“Covid gave consumers the confidence to experiment. Earlier, people had one fixed way of drinking. Now, they want flavour profiles, stories and experiences,” managing director for India and South Asia, Gaurav Sabharwal said. “There’s also more democratization happening in drinking. Women are drinking their choices now, not what they are expected to drink. This includes whiskies as well.”
The Kentucky-headquartered Jack Daniel’s maker is also expanding its India portfolio this month to bring in other Scotch and single-malt products such as Woodford Reserve and The Glendronach range.
Sabharwal said its domestic business is currently at about 300,000 cases (with 9 litres each), including retail and travel retail, and it expects continued strong double-digit expansion driven by premiumization and experimentation among younger consumers.
While Jack Daniel’s remains its anchor brand in India and one of the most recognizable American whiskey labels in the market, the company has also launched its premium portfolio this week to cater to the wider whiskey consuming drinkers. Its super-premium bourbon is priced at around ₹7,500 in Maharashtra, while The Glendronach, a Highland single malt Scotch retails between ₹9,700 and ₹25,000, depending on the age.
This is part of its sharpening focus on the growing single malt segment. “People are not drinking a single brand anymore. They are drinking more brands and categories more often. The repertoire has really increased,” Sabharwal said. Consumer behaviour is shifting across price points and categories, he added.
India consumption trends
Independent spirits consultant and former International Spirits and Wines Association of India chief executive Nita Kapoor told Mint there is a growth opportunity in the segment; while this is real, it will not be linear, given the category-level competition and structural constraints.
“These sales numbers (of Brown-Forman)—in a whiskey forward market—are highly doable, as Jack Daniel’s is the leading and most recognizable US whiskey brand. However, all US-based whiskey, whether bourbon or Tennessee, will face stiff competition at an imported category level—first with Irish whiskey followed by Scotch,” Kapoor said. “Indian single malts have complete monopoly of the canteen stores department (defence sector’s retail consumption) channel, which adds heft to the total volumes in the domestic market.”
Indian single malts, led by Amrut, Paul John and Indri, have rapidly expanded the category locally, intensifying competition for imported Scotch and American whiskey brands.
Sabharwal concurred: “Consumers in India always knew Jack Daniel’s. But bourbon as a category was less understood. Now the timing feels right to bring in newer spirits into the country.” This could also be because American y is less popular in the country. Bourbon/Tennessee whiskey is less popular in India.
Jack Daniel’s is a flagship premium Tennessee whiskey brand. Bourbon and Tennessee whiskies are typically sweeter and smoother “corn-based” American products, while Scotch single malts are “barley-based”, known for more layered flavour profiles shaped by region, ageing and cask styles.
“The local consumer today has a variety of choices and not just restricted to whiskey products. Given the circularity of consumption by day parts and occasions, American whiskies will be one of the choices, albeit not a major one,” Kapoor said.
India is one of the world’s largest consumers of whiskey. According to international drinks consultancy IWSR, India remains one of the world’s fastest-growing beverage alcohol markets, with volumes growing at a compound average growth rate of 16% between 2019-2024. It said premiumization, socializing trends and an expanding legal drinking age population are driving this growth, although companies continue to face complex state-wise regulations, pricing controls and distribution challenges.
The geopolitical factors
Sabharwal said Brown-Forman has not been impacted by the West Asia war so far, since exports from the US largely go through Europe, which helped it avoid exposure to shipping disruptions or regional supply chain risks linked to the ongoing crisis.
However, the geopolitical situation is evolving, Kapoor said. “With the uncertain geopolitical scenario, supply chain disruptions will be a challenge to overcome by most international players importing finished products into India. Implementation of free trade agreement (proposed FTA with the US) is yet another angle to consider.”
On the issue, Sabharwal of Brown-Forman said that “the India-US trade deal is yet not finalized and I believe the talks are still on.” The company is waiting for the outcome and its impact on its brands.
“You may recall India did unilaterally reduce the duty (150% to 100%) on bourbon towards the end of last year. The business impact of the same is yet to be ascertained, as the statewise implementation will happen from current excise year,” he said.