Single malts from Amrut and Rampur to Indri are lifting the spirits of Indian liquor makers, powered by a growing diaspora and thirst for premium labels in foreign markets.
Overseas shipments of alcohol generated $400 million revenue in FY24, a 30% jump over the pre-pandemic period, according to data the Confederation of Indian Alcoholic Beverage Companies shared exclusively with Mint. Volumes surged 52% during the period to eight million cases.
Whisky leads the table with nearly a 67% surge in exports since FY20 to 5.8 million cases (of nine litres each), contributing over half of the overseas revenue at nearly $234 million in FY24. Local single malts, the newest favourite among connoisseurs, accounted for about 150,000 cases (six bottles each).
The boom is fuelled by growing demand in the UAE, Africa, and duty-free shops across the world, as new and innovative products find more takers.
“Our exports are being driven by developed countries where there is a strong concentration of the Indian diaspora and has a large amount of disposable income,” Anant S. Iyer, CIABC's director general, said. Super premium exports are being driven by regions like Europe, Australasia and the Americas, he said.
Indians settled overseas consume iconic spirits at hotels and restaurants, according to Iyer, and the way for premium and higher Indian brands, including single malts, is being paved by Amrut, and more recently, offerings from Radico Khaitan, Piccadily Distilleries and DeVANS Modern Breweries.
These are in addition to key Indian exporters including Allied Blenders, Jagatjit Industries, Alcobrew and Mohan Meakin, who ship premium and popular whisky brands catering to demand from GCC and African countries. There is a very large Indian diaspora in the GCC countries but at the entry level of the economic spectrum, Iyer said. In Africa, a large part of the export market, whisky is popular, followed by coffee rum and vodka, he said.
For Radico Khaitan, which now exports to 100 countries, demand is bolstered by not just the diaspora, but also improved perception about India’s economy.
Luxury alcoholic beverages are finding acceptance worldwide, driven by the demand for new and innovative products, said Abhishek Khaitan, the company's managing director. “This acceptance is no longer limited to the Indian diaspora; international consumers are also seeking out Indian products. This is very encouraging."
The maker of Rampur Indian single malt, Jaisalmer Indian craft gin and Sangam World Malt whisky saw exports rise 10% by volumes in FY24 over the previous year. Its key export markets are the UK, the US, Europe, Middle East, Africa, Southeast Asia, Australia, New Zealand, Singapore, and Hong Kong and Michelin-starred restaurants around the world, said Khaitan.
Allied Blenders, the maker of Officer's Choice whisky and Zoya gin, is now exporting its spirits to 14 countries, including its primary overseas markets like the UAE, Haiti, Oman, Hong Kong and Qatar. Its net revenue from exports surged nearly 40% over the previous year to ₹178 crore in FY24.
Beer, too, is showing early signs of rising overseas demand. Goa's Latambarcem Brewers, the brewer of Maka Di Beer, has just started exporting to the US as well. While the business is still fledgling, Aditya Ishan Varshnei, co-founder & CEO, says the company sent about 10 containers this and last year and is seeing a steady increase in demand from restaurants in the US.
Delhi-based Medusa beer's founder Avneet Singh recently tied up with a UK-based distributor to put its brand on the shelves at restaurants and bars. "We are starting exports to the UK market in the next two months,” he said. “While it is not viable to send beer across the world, if we get a good response from our distribution channel, then we will consider local production, but it is a wait and watch till then."
DeVANS Modern Breweries Ltd exports its beers to the UAE, the US, Japan, Hong Kong, Singapore, Australia, New Zealand, Canada, Seychelles, Oman and Bahrain. “We are heavily focused on building this portfolio further and so our exports are increasing steadily,” said Prem Dewan, chairperson and managing director. “Our average dispatch is about six containers monthly."
Exports are necessary in the development of brands and the company is slowly shifting focus on adding new areas, Dewan said, adding they "we are getting excellent response to our beers”. The maker of Godfather beer recently added Seychelles and Canada to the list of export markets and plans to add a couple of more before the year-end, he said.
The distiller exports limited quantities of its GianChand Single Malt to the US and Australia.
