US liquor maker Sazerac to introduce more brands of Bourbon whisky in India

The Louisiana, US-based privately held American alcoholic beverage company looks at India as an "opportunity market" because it is one of the largest whisky consumption country

American spirits makers Sazerac plans to introduce more brands of Bourbon whisky to its priority market India, which is going through premiumisation, a company official said on Wednesday.

The Louisiana, US-based privately held American alcoholic beverage company looks at India as an "opportunity market" because it is one of the largest whisky consumption markets, where the trend of premiumisation is picking up led by the growth of the economy and subsequent increase in disposable income.

Sazerac Company, which owns a stake in Bengaluru-based liquor maker John Distilleries Ltd, also plans to launch and develop the Bourbon category whisky from Buffalo Trace Distillery, in top Indian metros.

 

It will 'leverage' its relationship with John Distilleries while expanding in the Indian market, which is considered to be complex and over-regulated for the spirits business.

"We do expect to continue to invest. India for us, is a priority market. You will see year in and year out, we will continue to bring in more of our award-winning bourbons from Buffalo Trace distillery to India," Sazerac Company GM Emerging Markets & Barrel Select Diego Bianchi said.

The company has introduced Weller Kentucky Straight Bourbon Whiskey from its Buffalo Trace Distillery, the oldest continuously operating distillery in the US.

Now there is a shift in consumer preference to quality, in which Weller fits that profile that the consumers are looking for, he added.

"The other interesting fact is that you have a lot more consumers coming into the category, mainly female. And Weller is a perfect, whiskey for female consumers because it is the softer with a smooth and complex taste profile," Bianchi said.

According to industry observers, Sazerac owns over 40 per cent stake in JDL, owner of the popular single malt whiskey Paul John and has plans to expand it further.

"Our relationship with Paul John distilleries is an important one," Bianchi said, adding, "With their expertise in the market, John distillate provides a tremendous value for Sazerac, both from a growth on Indian whiskey, but also on the Bourbon front."  Sazerac has been investing in JPL since 2017 after it acquired a minority stake. Earlier this month Sazerac CEO Jake Wenz, who was here in Goa, said India is a "priority" market for the company.

"India in general is complex. There are different routes to market. John Distilleries is our partner to help us navigate the complexities and nuances. In terms of our priorities, we want to launch and develop the Bourbon category in our top Indian metros," he said.

It launched Weller in the Mumbai market on Wednesday and has plans to quickly expand in big markets such as Haryana, Goa, Karnataka and Delhi, and John Distillery is going to be the key partner in this, Bianchi added.

In India, still, high-end premium whisky market is still dominated by scotch whisky.

Now the government of India and the UK are working on a free trade agreement, in which tariff concessions on whisky imports are likely to be addressed. Currently, Scotch whisky has to pass through 150 per cent Basic Customs Duty (BCD).

When asked about the possible impact on Bourbon sales in India, still at a small scale after tariff concessions are granted to Scotch whisky, Vijay Kauthekar, Executive Vice President at John Distilleries, said now premium consumers do not stick to one category.

"If you look at the last couple of years, every world whisky is growing in India, in spite of that, scotch is well-dominated. Every international whiskey which is coming from India is growing at a fascinating speed. So that shows that premiumisation is very well accepted," Kauthekar said.