The premium spirits segment has not been hit by high inflation, while affordability has improved in some states due to changes in excise policy, an official at the US spirits major said. Brown-Forman, the maker of many popular brands, including Jack Daniel’s.
The company sees momentum in the restaurant segment with a faster-than-expected recovery from the pandemic and a “massive shift” in the upgrading and upgrading of retail stores in many cities, including Tier 2, which bodes also good for premium spirits, said Siddharth Wadia – Managing Director – India, Middle East and North Africa (IMENA) at Brown Forman.
India is a “strategic emerging market” for Brown-Forman, where it is building its presence in Tier II cities and actively investing in brand building and marketing initiatives through an increased retail presence.
Brown-Forman, which had a few launches in the recent past with RTD (ready to drink) offerings and a few other variants, intends to bring more innovative products to the Indian market. Additionally, official Jack Daniel’s merchandise has received encouraging responses here, he said.
“We continue to evaluate opportunities for innovation in RTDs, flavored whiskeys as well as the overall premium spirits category,” he said.
“In the premium spirits category, we don’t see any impact on discretionary spending. From what we’ve seen so far, inflation hasn’t really impacted the premium segment albo -bev and therefore continues to experience high growth rates.”
The company believes that even despite this inflation, consumers will continue to enjoy their favorite or favorite beverages as it sees a fundamental shift in a number of markets towards premium spirits.
“That’s not to say that inflation doesn’t hurt, just that we believe the net result of that inflation still doesn’t have as much impact on the imported spirits segment,” Wadia added.
He sees momentum in the restaurant segment with a faster-than-expected recovery from the pandemic. Travel is not lacking and this is a “positive sign”.
“The other thing is that home drinking reserves will continue to decline as a result of the pandemic from a long-term perspective, as it has just opened up comfort around drinking while staying at home. “, did he declare. added.
While talking about Indian market trends, Wadia said here that consumers are not just switching to international spirits but are also looking for new whiskeys and brands.
“Millennials are totally up to date with the latest trends and brands around the world. And with growing aspirations, disposable incomes and exposure to global brands, I think they are more open to experimenting and trying new things. and different whiskeys from all over the world,” he added.
Regarding online sales and alcohol delivery in some states here, Wadia said the channel is still very small but “we think it definitely holds promise for the future of our category.”
“Some states have been progressive and allowed e-commerce and online aggregators to deliver alcohol to consumers. This promotes accessibility and reach, in addition to allowing consumers to shop in a safe and secure environment. practical,” he said.
Jack Daniel’s competes with brands such as Beam Suntory’s Jim Beam and Diageo’s recently launched Royal Challenge American Pride bourbon whiskey through its Indian subsidiary United Spirits Ltd.
“We view competition as a positive development and appreciate it. Given that we have a legacy culture of Scotch drinking, with more brands entering the American whiskey space, not only is accelerating awareness around American whiskeys, but also helps consumers see multiple brands playing in this category, which continues to improve the visibility of the segment,” said Wadia.
Regarding Jack Daniel’s merchandise business, Wadia said it needed a bigger boost and launched its own online store in conjunction with its licensee in India.
“The merchandise helps us leverage the power of our globally iconic brand, Jack Daniel’s, by creating additional revenue streams and connecting with our consumers on a deeper level. And the response has been quite positive and we continue focus on expanding it,” he said. said.
Globally, officially licensed Jack Daniel’s products are hugely appealing to consumers. The Jack Daniel’s t-shirt is the second best-selling item in the world after Jack Daniel’s Old No. 7 whiskey and Jack Daniel’s licensed products sold on six continents and at more than 20,000 retailers worldwide, it said. he adds.