USL aims to double Scotch market share

United Spirits, the flagship company of Vijay Mallya-owned UB Group, has decided to launch a slew of Whyte & Mackay (W&M) brands.

United Spirits (USL) acquired the Scotch whisky maker last year. The company expects the brands to double its share in the Indian scotch market in the next two years to 24 per cent.

The company, which has already launched two scotch brands from W&M, will now come out with vodka brand Vladivar and liqueur brand Glavya.

The Indian scotch whiskey market is growing at an annual rate of 40 per cent.

W&M is the fourth largest scotch whiskey player in the world after Diageo, Pernod Ricard and William Grant. USL would use its distribution strength to penetrate other emerging markets like China and Russia as well.

Vijay Rekhi, president of the spirits division of the UB group, said, "With the launch of W&M's scotch brands in India, USL would have brands at various price points in the segment."

The 10 year old (yo) Isle of Jura is priced at Rs 2,500-3,000 per bottle, while Dalmore (13 yo) carries a price tag of Rs 2,750-3,100. While Jura and The Dalmore are being imported from W&M's distilleries in Scotland, Mackinlay would be bottled in India.

The W&M acquisition has complemented not just the the front-end of USL's business through its big brands but the back-end as well.

"Many of W&M scotches are used in blends of USL's own India-made brands," added Rekhi. Currently, the company sells nearly 50,000 cases of scotch a year.

The opening of the organised retail sector is expected to drive volumes. "A leader cannot be a niche player. We will focus not just on scotch but work at building a comprehensive product range in spirits even in terms of cognacs or tequila. In fact, we are on the look out for possible candidates for acquisitions in these areas," Rekhi said.