Last month, operations commenced at the new Suntory India office in the northern Indian city of Gurgaon. A statement from parent company Suntory Holdings at the time of the announcement spoke of accelerating growth within a country with “a large population and a rapidly growing economy” for its spirits business while establishing “opportunities for soft drinks as well as health and wellness businesses”. Covering plenty of bases then. From a spirits point of view, the reason for strengthening Suntory’s operational reach in the region can be distilled into a single word – whisky.
India is the largest consumer of whisky in the world. According to the UN Comtrade Database, the south Asian country drinks almost half of all the world’s whisky, and according to the latest edition of DI’s Millionaires’ Club, six of the top 10 biggest-selling whisky brands are Indian. But it’s not just the molasses-based domestic giants that are popular – in 2023, India replaced France as the world's biggest buyer of Scotch whisky by volume according to the Scotch Whisky Association, and that is with the 150% tariff that New Delhi places on those imports.
“The Indian whisky market is one of the most dynamic and rapidly growing markets in the world,” a Suntory Holdings spokesperson told DI.
“There is a significant demand for both local and international whisky brands. Indian consumers are becoming more adventurous in their tastes and are increasingly open to trying new and premium offerings. This presents a fantastic opportunity for growth and innovation in the market.”
Increasing exploration
In many developed whisky markets, Japanese whisky, particularly some of the brands in Suntory’s portfolio, has become sought after in a way that used to be reserved for collectable single malts such as The Macallan and Springbank or hard-to-find bourbons like Pappy Van Winkle.
“As consumers actively transition towards experiential and quality-driven spirits, there has been a substantial increase in the preference for the craftsmanship of Japanese whiskies,” the Suntory Holdings spokesperson explained.
“Indians are becoming more discerning and well travelled, and they have displayed a desire to explore and experiment with different flavours, which has contributed to the uptake of Japanese spirits. Due to premiumisation and consumers’ expanding repertoire, at Suntory Global Spirits we are now introducing our high-quality Japanese whiskies from the House of Suntory.”
But in the cover-all-bases style opted for by Suntory Holdings, it won’t be conquering India with only The Yamazaki.
“Over the last two years, we have strengthened our portfolio in India through rapid expansion and new premium launches from the House of Suntory portfolio, in addition to the launch of our first Indian-made foreign liquor whisky brand, Oaksmith, and the continued growth of Jim Beam.
“Suntory Global Spirits launched Oaksmith in 2019 to cater to Indian consumers in the Indian whisky category. This premium yet affordable brand has quickly become a market leader, exemplifying the company’s commitment to the India market, offering premium yet affordable products elevating the Indian whisky segment. Our priority is to build on the current momentum of our premium portfolio across different consumer occasions by leveraging our east-meets-west competitive advantage.”
