‘Trade deals won’t hit quality alcohol firms in the long run’
Mint. According to a report by the Confederation of Indian Alcoholic Beverage Companies (CIABC), the FTAs, particularly with the UK, will impact premium whisky companies in India. It said annual scotch whisky volumes has grown 40% in India from the previous year to eight million cases during January-June 2023.
The impact on the Indian premium whisky segment will be determined by the extent of concessions granted under the FTAs. John Distilleries, with a turnover of ₹7,000 crore, expects a 15% growth over a year ago, primarily supported by its whisky portfolio. According to industry estimates, the company produces about 20 million cases per annum across brands and will close the year with a sale of around 24 million cases.
A majority of the company’s sales volumes originate from the southern states. Currently, John Distilleries has no plans to go public, he added. Apart from its acclaimed premium collection of single malts, the primary focus is on mass-market whisky, Original Choice, mainly sold across Karnataka, Tamil Nadu, Kerala, and Andhra Pradesh.
Northern regions such as Chandigarh and Haryana also contribute significantly to its business. Additionally, the company produces premium brandy, including Mont Castle and Roulette, along with Paul John XO. Besides, John Distilleries recently introduced a new variant of gin.
According to John, there is substantial potential for selling brandy, particularly in south Indian markets. Mint had earlier reported that American family-owned spirits manufacturer Sazerac owns 43% in John Distilleries. John said some states have significantly higher taxes, while others impose exorbitant label registration fees for Indian brands.
Read more on livemint.com
