The talks, if fructify, will help ABD to widen its product portfolio from largely whisky to a host of spirit segments such as vodka and scotch, while the two global companies will get an entry into the world’s biggest alcohol consuming country with a strong partner which has robust distribution and manufacturing capabilities, the executives said.
ThaiBev’s global portfolio through its arm International Beverage includes scotch brands Old Pulteney, Speyburn, Balblair, Reid vodka, Phraya rum and Source gin. The company is owned by Thai-Chinese billionaire businessman Charoen Sirivadhanabhakdi and is listed on the Singapore Stock Exchange. Russian Standard is the largest vodka brand, owned by billionaire Roustam Tariko.
ABD, Russian Standard and ThaiBev did not respond to emails seeking comment.
Kishore Chhabria-promoted ABD is the third largest homegrown Indian-made foreign liquor (IMFL) company in the country, selling nearly 33 million cases in FY23. Unlike rivals such as United Spirits and Pernod Ricard that get more than 65% of their sales from semi-premium and above segments, ABD’s sales are skewed towards Officer’s Choice. While the brand contributes a bulk of its sales, its share has been coming down in favour of new and pricier products.
Its premium portfolio accounts for a third of the company’s sales. ABD has been expanding its portfolio with pricier products across categories for the past three years. Its Iconiq White Whisky sold 1.6 million cases in 2023 to top the world’s fastest growing million cases brand, after expanding sales by 1500% in one year.
With 100 million people expected to enter the age bracket for legal alcohol consumption in India in the next five years, most global firms, including Diageo and Pernod Ricard, count the country among their top three priority markets.
“There is an elevated status of Indian market largely due to nearly 20 million people entering the legal drinking age (a year) and premiumisation across cities and small towns which is now grabbing eyeballs of global firms,” said Sandeep Arora, director at luxury spirits consulting firm Spiritual Luxury Living. “For global companies, their stronghold markets are also slowing down compared to India, which is seeing people drinking better amid proliferation of bars and restaurants. Also, Indian malts are now respectable worldwide which has helped gain traction.”
