{"id":110663,"date":"2026-08-25T12:22:12","date_gmt":"2026-08-25T12:22:12","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/110663\/"},"modified":"2026-08-25T12:22:12","modified_gmt":"2026-08-25T12:22:12","slug":"diageo-discusses-spirits-trends-shaping-india","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/110663\/","title":{"rendered":"Diageo discusses spirits trends shaping India"},"content":{"rendered":"<p class=\"standfirst u-standfirst\">The chief innovation officer of Diageo India believes vodka and Tequila have \u201cmassive opportunities\u201d for growth while gin is expected to see a \u201cconsolidation phase\u201d.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-776219 size-medium\" src=\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/Godawan-single-malt-640x404.jpg\" alt=\"Godawan whisky\" width=\"640\" height=\"404\"  \/>Diageo revealed its Indian single malt brand Godawan in 2022<\/p>\n<p>Speaking to The Spirits Business last month, Vikram Damodaran, chief innovation officer of Diageo India, believes vodka presents the larger opportunity due to its big base.<\/p>\n<p>On the other hand, he expects Tequila to see the fastest rate of growth due to its \u201cvery small base\u201d,\u00a0adding that the category benefits from its perception of being a low-calorie, \u201ccleaner drink\u201d.<\/p>\n<p>Damodaran notes an \u201cappreciation for Tequila\u201d and its agave profile but says it has a perception of causing fewer hangovers, \u201cthough I don\u2019t personally believe in it\u201d.<\/p>\n<p>IWSR data shows double-digit growth figures for both vodka and Tequila in India last year, with agave spirits <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/tequila-surges-34-in-india-in-2025\/\" rel=\"nofollow noopener\" target=\"_blank\">forecast to continue rising by double digits<\/a>.<\/p>\n<p>Diageo\u2019s Indian arm, United Spirits, has a gin portfolio that includes local labels Hapusa and Greater Than, as well as international brands Tanqueray and Gordon\u2019s.<\/p>\n<p>In terms of its agave portfolio, Diageo focuses on Don Julio and recently <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/don-julio-appoints-india-brand-ambassador\/\" rel=\"nofollow noopener\" target=\"_blank\">appointed its first brand ambassador for Don Julio<\/a> in India. Diageo also <a href=\"https:\/\/www.thespiritsbusiness.com\/2024\/04\/united-spirits-invests-in-indian-agave-spirit\/\" rel=\"nofollow noopener\" target=\"_blank\">owns a minority stake in Indian agave spirit brand Maya Pistola<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-774512 size-thumbnail lazyload\" src=\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/Hapusa-Gin-350x350.jpg\" alt=\"\" width=\"350\" height=\"350\"  data- style=\"--smush-placeholder-width: 350px; --smush-placeholder-aspect-ratio: 350\/350;\"\/>Diageo took ownership of Hapusa gin last year<\/p>\n<p>Despite <a href=\"https:\/\/www.thespiritsbusiness.com\/2025\/06\/diageo-ups-stake-in-nao-spirits-for-15-2m\/\" rel=\"nofollow noopener\" target=\"_blank\">taking control of Hapusa and Greater Than owner Nao Spirits last year<\/a>, Damodaran notes that gin is \u201cnot a big growth category\u201d when compared with vodka and Tequila.<\/p>\n<p>\u201cIt is growing, yes, but at a much lower rate,\u201d he explains. \u201cHowever, the penetration of gin is far lower compared to, let\u2019s say, vodka. Therefore, as repertoire increases, as occasions increase and as consumption grows, gin will have a role to play.\u201d<\/p>\n<p>Regarding Indian gins, he recalls a \u201cflurry of activity\u201d in the craft space but \u201cover the last few years, there\u2019s a lot of consolidation that has started happening because at one point in time, [there were] about 108 different gin brands from India. I think that\u2019s fallen down to about 80 now because people have realised that not everybody can scale at the same rate. And I think this consolidation wave will continue for a bit as new gins start coming into the country because of the [UK-India] trade deal with better pricing.\u201d<\/p>\n<p>He foresees a \u201ctwo- to three-year cycle for gin to come back\u201d after a period of consolidation and the \u201cadvent of new gins in the country\u201d that will \u201cdrive new trials and therefore growth in consumption\u201d.<\/p>\n<p>IWSR data shows gin sales by value in India grew by 11% last year and volume increased by 3%. Looking to 2030, its five-year CAGR projection puts gin at a 5% volume gain and a 7% value increase.<\/p>\n<p>Indian single malts versus Scotch<\/p>\n<p>Whisky remains the leading spirit in India, where Diageo focuses on international Scotch Johnnie Walker, alongside Black &amp; White, Signature, Royal Challenge and McDowell\u2019s.<\/p>\n<p>The business also <a href=\"https:\/\/www.thespiritsbusiness.com\/2024\/10\/diageo-on-taking-indian-single-malts-global\/\" rel=\"nofollow noopener\" target=\"_blank\">tapped into the Indian single malt segment<\/a> when it created the Godawan brand in 2022.<\/p>\n<p>Scotch whisky is expected to grow slightly ahead of Indian whisky over the next five years. IWSR data shows a 6% CAGR volume rise for Scotch (2025-2030) versus the 4% gain for Indian whisky. In terms of value, Scotch is set for a 5% increase and Indian whisky is forecast to grow by 4% over the same five-year period.<\/p>\n<p>\u201cTo give you a perspective, the total volume of single malts sold in the country is somewhere between 850,000 cases to a million cases,\u201d says Damodaran. \u201cThe total volume of spirits sold in the country is about 400 million cases. So we\u2019re talking about a million cases out of 400. It fundamentally tells you that the category itself is nebulous, so there is so much runway up ahead in terms of people beginning to appreciate a single malt.\u201d<\/p>\n<p>As such, Damodaran believes the growth for single malts has a \u201cvery, very long trajectory\u201d that will \u201ccontinue to grow\u201d.<\/p>\n<p>He says Indian single malts have slightly \u201ctaken the lead\u201d compared with Scotch single malts, but there is \u201cgrowth happening on both ends\u201d.<\/p>\n<p>For Indian single malts to continue growing, Damodaran cites the importance of \u201cconsistency and quality\u201d as they lack a \u201clong history\u201d and must \u201cstand up on their own feet\u201d to rival Scotch.<\/p>\n<p>His second point also points to how there will be \u201cfar more offerings in terms of pushing the boundaries on what Indian single malts truly stand for\u201d.<\/p>\n<p>He says these Indian examples currently only come from \u201cfour or five players\u201d when compared with Scotch, which has \u201c200 different distilleries with 1,000 different offerings\u201d.<\/p>\n<p>\u201cI think there\u2019s so much more for Indian producers to do in order to establish Indian single malts as a category to contend with. So I think Indian single malts have their work cut out in front of them in order to be able to grow their growth momentum,\u201d he adds.<\/p>\n<p>\u201cScotch will also continue to grow because as more and more people start appreciating what a single malt stands for, again discovery [is] at the core of a single malt consumer, and therefore [they] will want the best of what the world has to offer as well.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-918915 size-medium lazyload\" src=\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/Smirnoff-India-vodkas-640x404.png\" alt=\"Smirnoff flavoured line in India\" width=\"640\" height=\"404\"  data- style=\"--smush-placeholder-width: 640px; --smush-placeholder-aspect-ratio: 640\/404;\"\/>Smirnoff introduced three flavours for Indian palates last summer<\/p>\n<p>Vodka drives white spirits growth<\/p>\n<p>Looking at the main alcohol categories, Damodaran says spirits, wine and beer are \u201call growing consistently\u201d in India, based on Diageo\u2019s own research every five years.<\/p>\n<p>\u201cBeer is recruiting faster than spirits and wine,\u201d he notes. \u201cBut having said that, the world of spirits is changing a lot from what used to be a whisky-dominated market to now a market that is seeing growth across the spectrum, driven by white spirits.\u201d<\/p>\n<p>He cites the likes of vodka, Tequila and gin, but pinpoints flavoured vodka as \u201cdriving tremendous growth\u201d in India.<\/p>\n<p>\u201cTequilas are fundamentally powered by premium Tequilas, luxury Tequilas and on the gins, it\u2019s fundamentally the Indian craft gins that are driving growth,\u201d he says.<\/p>\n<p>Vodka is being driven by its versatility in cocktails. Damodaran says consumers \u201cdon\u2019t want just another regular flavour\u201d, believing it\u2019s \u201cmore about flavours with a twist that tell a story or go back to the roots of your origin\u201d.<\/p>\n<p>Last summer Diageo launched three flavoured Smirnoff vodkas designed for the \u201cevolving tastes of modern India\u201d. It comes in three flavours, the \u2018nostalgic\u2019 Minty Jamun, the \u2018sweet-spicy\u2019 Mirchi Mango, and Zesty Lime, which was made for \u2018group occasions and cocktail starters\u2019.<\/p>\n<p>Damodaran explains that \u2018jamun\u2019 is an Indian word which translates to \u2018java plum\u2019. \u201cIt\u2019s a fruit that is extremely popular in multiple parts of India,\u201d he says. \u201cAs kids, that\u2019s what you\u2019d eat in the afternoon. It\u2019s astringent and sour as hell, but it just gave you that tang. It woke you up, and it\u2019s something that people carry as a memory.\u201d<\/p>\n<p>Alongside the nostalgia effect, Damodaran says Smirnoff Minty Jamun vodka went viral on social media with its \u201cbeautiful purple colour \u2013 imagine drinking it out of a Martini glass with crushed ice\u201d.<\/p>\n<p>He adds: \u201cIt ended up creating an entire industry around \u2018jamun\u2019 as a category,\u201d noting that it\u2019s everywhere from sodas to non-alcoholic drinks and Spritzes.<\/p>\n<p>\u201cSo I think flavours are here to stay,\u201d Damodaran emphasises. \u201cBut it\u2019s not just about launching a flavour for flavour\u2019s sake. You need to have the right taste profile, but more importantly, a flavour that has a story to tell.\u201d<\/p>\n<p>In terms of the wider trends driving spirits consumption in India, Damodaran highlights three areas: young population, wealth generation, and demand for differentiated experiences.<\/p>\n<p>\u201cIndia is home to one of the world\u2019s youngest populations,\u201d he explains, adding that the market \u201cisn\u2019t ageing anytime soon for the foreseeable future\u201d.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-871103 size-thumbnail lazyload\" src=\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/08\/Diageo-India-4-350x350.png\" alt=\"Vikram Damodaran\" width=\"350\" height=\"350\"  data- style=\"--smush-placeholder-width: 350px; --smush-placeholder-aspect-ratio: 350\/350;\"\/>Diageo India\u2019s Vikram Damodaran<\/p>\n<p>He adds: \u201cAt least for the next 10 years, the median age is set to drop by another year and a half, and that fundamentally means you\u2019re going to have a burgeoning set of young people with good levels of disposable incomes, looking for new experiences, also spending their money on a variety of beverages that cater to different occasions and motivations.\u201d<\/p>\n<p>Damodaran also points out that wealth generation is rising across all income levels, driving domestic consumption of \u201cservices, experiences and lifestyle\u201d.<\/p>\n<p>His final point notes that consumers are seeking more differentiated experiences, including unique packaging and brand interactions.<\/p>\n<p>As a country, Damodaran believes the \u201cpenetration of economic growth and the fact that this is growth is now not just limited to large cities and metros is beginning to play a very important role\u201d.<\/p>\n<p>He also notes that country is seeing more investment in terms of roads and electricity, boosting consumer access to services and experiences more locally, meaning they are \u201cno longer dependent on their capability to travel to a large town and then spend money there\u201d.<\/p>\n<p>Damodaran is also seeing consumer demand for both \u201clocally differentiated offerings\u201d and \u201caffordable global propositions\u201d.<\/p>\n<p>Could India become a major RTD market?<\/p>\n<p>When asked about the growth potential of the ready-to-drink (RTD) category, Damodaran says the main factor holding it back is the regulatory environment \u2013 but even this is starting to change.<\/p>\n<p>He explains: \u201cBuilding RTDs in the country is like launching Uber where Uber didn\u2019t exist, where you had to overcome regulatory hurdles, route-to-market hurdles in order to make it work, and I think it\u2019s going to be a question of who\u2019s willing to take the challenge of creating this category, building it at scale, so that you\u2019re able to derive the right kind of economic efficiencies in order to drive growth for RTDs.<\/p>\n<p>\u201cSo two things that I would leave with you: one, the consumers are absolutely ready for RTDs. Second, I think states are beginning to realise that the more categories open up, the better it is for the state\u2019s exchequer. So I think gone are the days when regulatory policies used to be a hurdle.<\/p>\n<p>\u201cNow, states are more progressive when it comes to bilateral discussions in order to open up policies that drive better consumption of better propositions. And I think it\u2019s a matter of time before you start seeing a big play in the RTD spectrum.\u201d<\/p>\n<p>In other Diageo-related news, the Food Safety and Standards Authority of India recently <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/fssai-revokes-sales-ban-on-select-diageo-products\/\" rel=\"nofollow noopener\" target=\"_blank\">lifted its ban on certain United Spirits products<\/a>.<\/p>\n<p>Related news<\/p>\n<p>\n                                <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/sazerac-adds-two-whiskies-to-india-portfolio\/\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n                                    Sazerac adds two whiskies to India portfolio<br \/>\n                                <\/a>\n                            <\/p>\n<p>\n                                <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/radico-khaitan-targets-indias-white-spirits-boom\/\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n                                    Radico Khaitan targets India\u2019s white spirits boom<br \/>\n                                <\/a>\n                            <\/p>\n<p>\n                                <a href=\"https:\/\/www.thespiritsbusiness.com\/2026\/08\/tequila-surges-34-in-india-in-2025\/\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n                                    Tequila surges 34% in India in 2025<br \/>\n                                <\/a>\n                            <\/p>\n","protected":false},"excerpt":{"rendered":"The chief innovation officer of Diageo India believes vodka and Tequila have \u201cmassive opportunities\u201d for growth while gin&hellip;\n","protected":false},"author":2,"featured_media":110664,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21250],"tags":[4110,1416,32635,1233,45662,21760,21909,9084,22143,9086],"class_list":["post-110663","post","type-post","status-publish","format-standard","has-post-thumbnail","category-diageo","tag-diageo","tag-features","tag-gin","tag-india","tag-indian-whisky","tag-rtds","tag-scotch","tag-tequila","tag-united-spirits","tag-vodka"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117156128101740763","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/110663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=110663"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/110663\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/110664"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=110663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=110663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=110663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}