Whisky revolution: How Indian-made single malts are set to be the toast of the world

“A shrinking world and increasing exposure to social media are leading to increasingly evolved consumer preferences and awareness of niche categories like Single Malts, aged rum and whisky, tequila, etc. Equipped with advanced manufacturing technologies and product expertise, these entities craft high-quality products that cater to the nuanced tastes of the consumers of alcoholic spirits,” Kapoor, whose lobby group represents foreign liquor companies in India, told The Federal.

For the uninitiated, single malts are produced traditionally but are sourced from a single distillery, whereas blended whisky is made by combining different single malts from different distilleries. The most significant acknowledgement of the growing craze for Indian-made whiskies has come from foreign liquor multinationals like Diageo and Pernod Ricard, among the world’s top liquor makers. Diageo launched the artisanal made-in-India single-malt whisky, Godawan, in 2023, reflecting the growing popularity of Indian single malts. The whisky is named after a large, endangered Indian bird and sells across five countries.

Names of the game: Variety and innovation

Pernod Ricard, one of the largest in the world, also announced its foray into the made-in-India single malt called Longitude 77. It is inspired by the longitude that runs through the length of India at 77° east, which marks India’s position on the world map. The whisky, made in small batches at the company’s plant in Nashik, is now exported to a clutch of countries. The company’s chief marketing officer and head of global business development, Kartik Mohindra, believes their Indian-made whisky will be a game-changer. “We have ensured that the whisky is perfectly tailored to the Indian market and caters to the diverse palate of the Indian consumer,” he said.

Abhishek Khaitan, who studied engineering in Bengaluru before joining his father’s Delhi-based liquor company, Radico Khaitan, was one of the earliest to spot an opportunity in the whisky market. The 8 PM whisky, known as Indian-made foreign liquor, launched in 1999, was a runaway success; it sold over 1 million cases of nine litres each within the first year, and featured in the Limca Book of World Records.

It was just a matter of time before Khaitan, now the managing director of the listed entity Radico Khaitan, realised that if his master blenders could come up with something unique in single malt, his whiskies could one day break into the international market and shed the Indian-made foreign liquor (IMFL) tag for its products.

The company’s Rampur Distillery, set up in 1943, sits at the foot of the Himalayas in Uttar Pradesh, the northern part of the country, and became the birthplace of its single malts. The master blenders use six-row barley from Rajasthan and Punjab, Himalayan water and proprietary yeast, which gives fruity, floral notes to the drink. Combining it with varying temperatures from zero to 40 degrees, the whisky casks lend a unique taste to the brew.

The results of this effort have been so fruitful that last year, Rampur Asava Indian Single Malt Whisky was awarded the John Barleycorn Award for the best world whisky, making it the only Indian whisky brand in the top 100 premium wine and spirits brands in 2023. The John Barleycorn Award is an international spirits competition that takes place every year in the US, with a series of experts tasting the spirits unthinkingly.

“Indian distilleries have been experimenting with various aging techniques, cask finishes, and unique flavour profiles, leading to a diverse range of single malts that cater to different tastes and preferences. This variety and innovation appeal to consumers looking for something new and exciting. Global recognition and awards at international whisky competitions has further boosted their reputation and desirability among consumers, both in India and abroad,” says Sanjeev Banga, President, International Business, at Radico Khaitan.

He adds that there is also a sense of national pride associated with supporting and consuming locally produced malts. “Indians take pride in the fact that their country is now producing high-quality spirits that can compete on a global scale. Therefore, it’s a combination of superior quality, variety, national pride, global recognition, and evolving consumer preferences that have contributed to the growing preference for Indian single malts among Indians,” Banga underlines.

Among the world’s top whiskies

The awards for Indian-made whisky keep pouring in, which indicates that not just Indians but the rest of the world is getting hooked on Indian spirits. Last year, another made-in-India whisky, Indri, a triple cask (based on the individual contribution of each wood in which it is stored) single malt from the Delhi-based Piccadilly Group, won ‘Best in Show’ at the Whiskies of the World Awards blind tasting in San Francisco in August, beating competition from Scotland and the US. Piccadilly’s website claims it is India’s largest independent malt maker and started producing it in 2010. The group also runs several hotels in the country in collaboration with Hyatt, a global hospitality group.

Vijay Deshmukh, a lawyer practising in Bengaluru, known for information technology companies and startups, told The Federal that the pandemic was a game-changer for Indian liquor manufacturers. “Because of lack of access to foreign brands, Indians started buying Indian-made whiskies and found that their tastes were similar to those of foreign brands,” Deshmukh said. Apart from being known as India’s Silicon Valley, Bengaluru is also known as the pub capital of the country and is home to several liquor manufacturers like Diageo India, which acquired United Spirits, the largest home-grown liquor major, in 2012 for $2.1 billion. Amrut Distilleries, based in the north-western part of Bengaluru and owned by the N R Jagdale Group, is already well-known across the world for its eponymous Amrut brand of single malt whisky and is also the first single malt to be made in India.

Apart from Indri, three other Indian-made whiskies were among the world’s top whiskies, all from Amrut’s portfolio. These include Amrut Fusion, Amrut Indian Single Malt and Kurinji from Amrut Distilleries. Amrut has the unique distinction of being recognised by European countries because its whiskies combine barley and Scottish-peated barley, as the Scotch Whiskey Association has never recognised whiskies made from molasses, which Indian manufacturers use as its main ingredient. The Amrut’s Fusion Single Malt, made from barley, was an instant success, with world-renowned liquor taster Jim Murray ranking it the third-best whisky in the world in his Whisky Bible 2010.

Since then, Amrut has sold over 60,000 nine-litre cases of its single malt globally. It outsold Pernod’s Glenlivet, which grew around 40 per cent last year, while Amrut grew over 180 per cent, according to Reuters quoting Euromonitor data. Indian single malts had a share of 53 per cent of total sales in 2023, according to the Confederation of Indian Alcoholic Beverage Companies (CIABC). Out of around 6.75 lakh cases of nine litres each of single malts, around 3.45 lakh cases were from home-grown liquor companies, and the rest were from foreign liquor makers.

What drives the growth

While Indian-made single malts are all over the world now, it begs the question of what drives the natives to consume the spirit in large quantities. Vinod Giri, an industry veteran and the director-general of the Confederation of Indian Alcoholic Beverages (CIAB), believes three factors are driving the unprecedented growth of Indian-made single malts. “This change encompasses all three fronts, beginning with consumers who now believe significantly more in the quality of Indian products. A whole generation of Indians has grown up without experiencing shortages, and hence do not necessarily place a premium on where it is produced.”

Secondly, the consumer mindset has evolved, no longer assuming that imported goods are inherently superior; instead, they determine which products genuinely excel. Indian single malts are indeed meeting these expectations, delivering exceptional quality. This is partly due to the unique characteristics of the barley used, which is smaller and more flavourful, Giri points out.

And lastly, there have always been issues about maturation in India’s warm climate which was seen as a big negative for the production of whisky made in India. Today, people are experiencing flavours unique to whisky because of the maturation in India’s warm climate, which imparts its distinct flavours, resulting in a more robust and distinctive taste, unlike standardised mixed malts. “The accelerated maturation process in India, of five years, is equivalent to 15 years in Scotland, further enhancing the single malt’s profile.”

Giri also believes that another significant factor is the industry itself. It no longer sees Scottish products as the sole benchmark for quality. Initial successes of Indian-made single malts have bolstered confidence, leading to a surge of new players in the market and creating more diverse consumer options. Steps have been taken to establish self-regulation to define what qualifies as a single malt to address this growing industry. This helps maintain the integrity of the product. Despite challenges such as the availability of malt, many companies are persevering, and the growth trend appears to continue.

The CIAB head claims that Indian-made single malts are priced as high as foreign-made ones, and hence, the argument that they are cheaper and get consumed more flies out of the window. For example, Rampur single malt is priced at Rs 12,500 for a 750-ml bottle, and Paul John single malt Mithuna is priced at Rs 22,000. Giri also says that even if India and the UK sign the Free Trade Agreement leading to reduced tariffs on Scotch whisky, it will not impact the sale of Indian-made whiskies. Today, experience and quality matter, and the Indians will pay good money if the product is of good quality.

Valued at approximately $33 billion, the Indian liquor market is on a robust growth trajectory, expanding at an annual rate of about 13 per cent — with Scotch whisky growing at about 8 per cent — over the next five years, according to the International Wine and Spirits Research (IWSR) Drinks Market Analysis. This growth narrative is particularly compelling for Indian single malts, which are emerging as the standout success story for the country’s indigenous liquor producers.