Friday, November 22, 2024

Indian Gins are creating quite a stir

Discerning drinkers are going for India-made craft gin brands, mostly made of juniper berry from the Himalayas. Almost all are distilled in Goa with local botanicals

PRAVASISAMWAD.COM

There was a time when Vodka was the preferred drink of the young in India. No more. Today, the younger generation has become choosy. Discerning drinkers are going for India-made craft gin brands, mostly made of juniper berry from the Himalayas. Almost all are distilled in Goa with local botanicals.

These small handmade batches of local gin account for nearly half of the mass-premium gin segment in the country that have sales of about 168,000 cases (of nine litres each) last calendar year, up from 84,400 cases just two years ago, data from global alcohol market analysts IWSR show.

Greater Than, one of India’s first artisanal gins (yes, that is what it is named), outsold long-time segment leader Bombay Sapphire owned by Bacardi and other popular global brands such as Tanqueray and Gordon’s last year, despite each of these brands also growing in volumes, according to the latest IWSR Drinks Market Analysis report.

ET talked to Anand Virmani, cofounder of Nao Spirits and Beverages, maker of Hapusa and Greater Than gins and he said that the bar environment in India was evolving with higher demand for negronis or martinis. “We have managed to build a strong relationship with customers and bartenders, helping people enter the category with a balance of accessible pricing and quality,” he said.

“These brands have the potential to be India’s answer to globally competitive craft gin, appealing to the millions of Indian-origin consumers living abroad.”

— Hina Nagarajan, Managing Director of USL

Gins priced between Rs 1,300-2,700 are considered mass-premium or standard by IWSR and include brands such as Greater Than, Terai, Beefeater, Samsara and Hapusa among others.

“Locally produced craft gins have shifted the centre of gravity in the category and enjoyed particular success, gathering momentum in the last two years,” according to IWSR analyst Jason Holway.

Indian craft gin category is expected to grow with a strong likelihood of more brands and investment from large and small players alike, as industry insiders believe smaller towns will soon join the party.

Aditya Aggarwal, founder of Spaceman Spirits Labs that sells Samsara pointed out that the drinking pattern had changed in India and people wanted to consume what was trending and looked good on social media. “Gin has the advantage of being a refreshing option with greater mixability for cocktails compared to brown spirits.” He also said that smaller towns would drive the next level of growth for the category “even as the market for premium gins in cities is still a nascent one”.

For many years, IMFL (Indian-made foreign liquor) gin brands in the value segment (Rs 240-900) such as Original Choice and Blue Riband dominated gin market in the country. However, over the past few years, their demand shrunk as consumers traded up for pricier brands. As a result, the value segment of gin fell to about 413,000 cases in 2021 from 895,000 cases in the pre-Covid year of 2019.

The success of local craft gin brands has caught the attention of the big players, reported ET. United Spirits, the country’s largest alcobev company, acquired a minority stake in Nao Spirits in March and said it has significant expansion plans, both domestically and in international markets. “These brands have the potential to be India’s answer to globally competitive craft gin, appealing to the millions of Indian-origin consumers living abroad,” Hina Nagarajan, Managing Director of USL, told analysts sometime back.

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Tirthankar Ghosh
Tirthankar Ghosh
Tirthankar Ghosh is a senior journalist and presently Managing Editor, Newsline Publications. He has also been writing for well over 15 years for the New York-based Air Cargo News Flying Typers.

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