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Indian whisky

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An advertisement for Bagpiper whisky on a building in Pondicherry

As of 2006 most distilled spirits labelled as "whisky" in India were a form of Indian-made foreign liquor, commonly blends based on neutral spirits that are distilled from fermented molasses with only a small portion consisting of traditional malt whisky, usually about 10 to 12 percent. Outside India, such a drink would more likely be labelled a rum.[1][2] According to the Scotch Whisky Association's 2013 annual report, unlike in the European Union (EU), "there is no compulsory definition of whisky in India, and the Indian voluntary standard does not require whisky to be distilled from cereals or to be matured. Very little Indian 'whisky' qualifies as whisky in the EU owing to the use of molasses or neutral alcohol, limited maturation (if any) and the use of flavourings. Such spirits are, of course, considerably cheaper to produce than genuine whisky."[3][4][5] Such molasses-based blends made up 90 percent of the spirits consumed as "whisky" in India in 2004,[6] although whisky wholly distilled from malt and other grains, was also manufactured and sold.[7] By 2004 shortages of wheat had been overcome and India was one of the largest producers. Amrut, the first single malt whisky produced in India, was launched in Glasgow, Scotland in 2004.[8] After expanding in Europe it was launched in India in 2010.

By 2022 India produced many whiskies both for the local market—the most lucrative market for whisky in the world—and export. Indian single malts comprised 15% of the local market in 2017, increasing to 33% in 2022. In the three years to 2022 sales of Indian malts increased by an annual average of 42%, compared with 7% for imported rivals.[9]

History

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The drinking of Scotch whisky was introduced to India in the nineteenth century, during the British Raj. In the late 1820s, Edward Dyer moved from England to set up the first brewery in India at Kasauli. The brewery was soon shifted to nearby Solan (close to the British summer capital Shimla), as there was an abundant supply of fresh springwater there. The Kasauli Brewery site was converted to a distillery becoming India's first distillery, which is currently operated by Mohan Meakin.[10] Production of alcohol from grain was hampered by shortage of extra grain, due to food shortages. Allowing grains to be used for alcohol manufacture is a controversial subject in India, due to poverty and alcohol's ambivalent reputation.[11] Economic liberalisation in the 1990s led to the moderate reduction of import duties, to about 35%, giving distillers access to better technology.[12]

Amrut single malt whisky

The manufacture of whisky from malted grains in India was pioneered by Amrut Distilleries in 1982.[13] Amrut Distilleries began procuring barley from farmers in Haryana,[13] Punjab and Rajasthan, in addition to molasses,[14] and launched Prestige Blended Malt Whisky in the Canteen Stores Department in 1986.[15] The first batch of single malt whisky was ready within 18 months. Because India had no culture of consuming single malts at the time, the company did not consider bottling it as a single malt. Instead, the whisky was blended with alcohol distilled from sugarcane to produce MaQintosh Premium Whisky.[16] According to Neelakanta Jagdale, "The alcoholic beverages industry was not a priority in the country. Although we received help to a certain extent from the Central Food Technological Research Institute (CFTRI), we had to find our own ways to learn about improved distilling methods".[12] Amrut Distilleries launched Amrut, the first single malt whisky to be made in India, on 24 August 2004.[17] The production of Amrut single malt whisky was the result of the distillery having malt that was ageing far in excess of what was needed for its medium range Prestige Malt Whisky.[13] Initially, Amrut aged malt whisky for around a year before blending it. However, due to changing customer preferences, less malt whisky was being added into blended variants.[15] Surinder Kumar, the master blender at Amrut Distilleries, has estimated that because of climate differences, one year of barrel ageing in India is equal to three years of ageing in Scotland.[13]

John Distilleries had been making blended whisky since its foundation, but decided to manufacture single malt whisky in 2008 in an attempt to enter the premium end of the market. The first bottling of Paul John whisky, branded "Paul John Single Cask 161 Whisky", was launched on 4 October 2012.[18]

Economic liberalisation also lead to the entry of foreign companies to the market, whose brands were seen as more authentic and attractive by affluent Indian consumers. This led several Indian manufacturers to acquire foreign liquor companies.[11] Under Vijay Mallya's direction, the Indian company United Spirits Limited acquired a number of noted whisky brands and distilleries in Scotland, including Dalmore, Isle of Jura, and Whyte & Mackay.[19] (In 2012, Diageo acquired a 55% stake in United Spirits.[20]) Since export of single malt whiskies in any container other than sealed bottles labelled for retail sale was banned by the UK Scotch Whisky Regulations 2009,[21] a limited amount of exportable Scotch whiskies are used in Indian blended whiskies. Whyte & Mackay has since been sold as of 2014 to Emperador, a company based in the Philippines.

Domestic market

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In terms of volume, India is the biggest consumer of whisky in the world.[22][9] It has a complex tax structure with taxes levelled by both Central and State Governments. Import taxes are applied by the Central Government on imported spirits. State level taxes are levied by each individual State, with taxation levels and methods varying significantly.[23] The sale of alcohol is also prohibited in some States.

Whisky accounts for nearly 60% of the Indian-made foreign liquor market. India accounted for nearly half the global whisky market by volume in 2010.[23] The market is generally divided into segments based on price.[24]

Awards

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  1. Rampur Asava Indian Single Malt Whisky by Radico Khaitan has been awarded the title of Best World Whisky in the 2023 edition of the prestigious John Barleycorn Awards.[25]
  2. The Godawan 100 Single Malt won the best single malt at London Spirits Competition(LSC) 2024[26]

Trade controversy

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The consumption of native-distilled, molasses-based whisky in India is encouraged by tariff barriers of up to 150%[27] that impose a significant markup on imported whiskies in India. Imported Scotch whisky bottled under its own brand names makes up only 1% of the total market share. The substantial tax markup on imported whiskies has been categorised by the Scotch Whisky Association (SWA) as "pure protectionism".[28] Indian distillers accuse the European Union of erecting its own sort of trade barriers by means of rules that forbid the marketing of molasses-based spirits as "whisky". Mallya has objected to the EU's refusal of entry to molasses-based whiskies, claiming that the "imposition of British imperialism is unacceptable".[28] In a lawsuit brought in India by the SWA, the Delhi High Court in April 2006 enjoined Indian whisky manufacturers from labelling their product with the words "Scot" or "Scotch".[29] However, on 27 May 2008, the Supreme Court ruled in favour of distiller Khoday India Limited, allowing the company to keep its Peter Scot whisky brand trademark.[30]

In 2019, India was the world's second largest Scotch whisky market by volume (the equivalent of 131 million 70cl bottles exported)[31] and 7th largest by value (£166 million).

Manufacturers

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See also: List of whisky brands § Indian whisky

Following is a list of whisky producers in India in alphabetical order. The location of the company headquarters is given in brackets.

Defunct

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The following manufacturers have ceased operations.

  • Shaw Wallace (Kolkata, West Bengal) – Merged with United Spirits Ltd

See also

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References

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  1. ^ "Where 'Whisky' Can Be Rum"[permanent dead link], from The Wall Street Journal, 26 August 2006, accessed 27 January 2012.
  2. ^ Paul Peachey (3 March 2006). "Battle for the world's largest whisky market – India". South Africa Mail & Guardian. Archived from the original on 1 June 2008. Retrieved 14 May 2014.
  3. ^ "Scotch whisky group threat legal action against Indian blends". The Economic Times. PTI. 12 May 2014. Retrieved 12 May 2014.
  4. ^ "Europe cries foul on Indian whisky". Hindustan Times. PTI. 12 May 2014. Archived from the original on 12 May 2014. Retrieved 12 May 2014.
  5. ^ "Scotch whisky makers threaten action against Indian blends". Business Standard. PTI. 12 May 2014. Retrieved 12 May 2014.
  6. ^ "India stretches whisky market lead" Archived 15 December 2007 at the Wayback Machine, Beverage Daily, 13 January 2004, accessed 25 June 2007
  7. ^ Official web site Archived 5 August 2004 at the Wayback Machine of Amrut Distilleries, accessed 25 June 2007.
  8. ^ Duttagupta, Ishani (29 April 2012). "How India's first single malt brand Amrut Distilleries cracked luxury market in West". The Economic Times.
  9. ^ a b Charu Sudan Kasturi (4 June 2022). "How India's new taste for local whisky is shaking up the global drinks market". The Guardian.
  10. ^ Whisky in India Archived 2 September 2013 at the Wayback Machine. Livemint (29 December 2011). Retrieved on 23 December 2013.
  11. ^ a b Indian liquor industry moves towards spirits made from authentic source materials – Economic Times Archived 28 September 2013 at the Wayback Machine. Articles.economictimes.indiatimes.com (16 March 2013). Retrieved on 23 December 2013.
  12. ^ a b "Bangalore's Amrut Distilleries high on success". Daily News and Analysis. Retrieved 21 June 2013.
  13. ^ a b c d Aravind, Indulekha (18 February 2012). "The malt of India". Business Standard. Retrieved 21 June 2013.
  14. ^ Poornima Mohandas (5 March 2010). "Blend it like Amrut". Livemint. Retrieved 21 June 2013.
  15. ^ a b "High Spirits". Outlook. 18 February 2012. Archived from the original on 8 March 2012. Retrieved 21 June 2013.
  16. ^ Mahalingan, Kripa (18 February 2012). "High Spirits; Amrut Fusion is the only Indian brand to find global acceptance in the rarefied world of single malt whiskies". Outlook Business. Amrut Distilleries. Archived from the original on 14 July 2013. Retrieved 21 June 2013.
  17. ^ Ishani Duttagupta (29 April 2012). "How India's first single malt brand Amrut Distilleries cracked luxury market in West". The Economic Times. Archived from the original on 4 August 2013. Retrieved 21 June 2013.
  18. ^ "Indian whisky in scotch's back yard". Drinks International. 5 October 2012. Retrieved 4 July 2013.
  19. ^ "Whisky giant sold to billionaire" Archived 23 May 2007 at the Wayback Machine, BBC News, 16 May 2007, accessed 25 June 2007
  20. ^ Kazmin, Amy (25 February 2016). "Diageo pays $75m to Vijay Mallya to step down from United Spirits". www.ft.com.
  21. ^ "Regulation 7: Movement from Scotland to another country". The Scotch Whisky Regulations 2009 - Guidance for Producers and Bottlers (PDF) (Report). Scotch Whisky Association. p. 19.
  22. ^ Crowe, Portia (24 June 2015). "Indians drink way, way more whiskey than Americans". Business Insider. Archived from the original on 18 August 2016.
  23. ^ a b "Indian Spirits Market". Credit Suisse. 27 September 2012. Retrieved 12 May 2014.
  24. ^ Modi Illva plays smart in launching premium whisky, but Rockford Reserve faces challenges ahead – Economic Times Archived 8 November 2013 at the Wayback Machine. Articles.economictimes.indiatimes.com (10 February 2013). Retrieved on 23 December 2013.
  25. ^ "This Indian whiskey has bagged the 'Best World Whisky' title in John Barleycorn Awards".
  26. ^ "This Indian whisky has been named World's Best Single Malt".
  27. ^ BBC News – Scotching the trade protection racket Archived 26 July 2016 at the Wayback Machine. Bbc.co.uk (19 January 2012). Retrieved on 23 December 2013.
  28. ^ a b "The Whisky Rebellion", Time magazine, 7 June 2007, accessed 25 June 2007
  29. ^ "If it's Indian it can't be Scotch, court tells India's whiskey makers", The Standard, 25 April 2006, accessed 28 June 2007.
  30. ^ Dhananjay Mahapatra (28 May 2008). "Scotch or not, 'Peter Scot' won't be banned: SC". The Times of India. TNN. Archived from the original on 16 July 2013. Retrieved 11 August 2013.
  31. ^ "The Indian market for Scotch Whisky". Scotch Whisky Association. Retrieved 5 June 2022.

Further reading

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