Das remarked that Indians have evolved from traditional whisky on the rocks or a simple gin and tonic. “Today, wines and spirits are becoming mainstream, and premiumisation is here to stay,” TOI quoted Das as saying.
She further added that the growing popularity of tequilas, although on a smaller scale, is another sign of changing preferences.
The company’s growth prospects are further boosted by ongoing Free Trade Agreement (FTA) negotiations, particularly with the UK. These agreements could lead to relaxed duty structures, making foreign liquors more affordable in India. “An FTA could really boost consumption by making these products more accessible to Indian consumers,” Das explained.
However, high taxes remain a significant challenge for foreign liquor companies. India imposes a 150% customs duty on imported alcohol, one of the highest globally, coupled with varying state taxes. “For example, a bottle of Moet & Chandon costs 45 euros in Europe but around 100 euros in India, depending on the state. This creates a lack of parity, making it harder for consumers to reconcile the price difference,” Das told TOI.
Despite these hurdles, made-in-India wines are carving out their own space in the market. Moet Hennessy India’s Chandon line of still and sparkling wines has been performing well. “Our Indian wines are doing very well, reflecting the shift in consumer preferences,” Das said. As India’s consumers become more discerning and well-traveled, the country’s liquor market continues to grow in sophistication. With potential policy changes and a focus on premium offerings, the industry is poised for further evolution.(With inputs from TOI)
