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Indian whisky

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An advertisement forBagpiper whiskyon a building in Pondicherry

As of 2006mostdistilled spiritslabelled as "whisky"in India were a form ofIndian-made foreign liquor,commonlyblendsbased onneutral spiritsthat are distilled from fermentedmolasseswith only a small portion consisting of traditionalmalt whisky,usually about 10 to 12 percent. Outside India, such a drink would more likely be labelled arum.[1][2]According to theScotch Whisky Association's 2013 annual report, unlike in theEuropean 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 frommaltand othergrains,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[edit]

The drinking of Scotch whisky was introduced to India in the nineteenth century, during theBritish Raj.In the late 1820s, Edward Dyer moved from England to set up the first brewery in India atKasauli.The brewery was soon shifted to nearbySolan(close to the Britishsummer capitalShimla), as there was an abundant supply of fresh springwater there. TheKasauli Brewerysite was converted to adistillerybecoming India's first distillery, which is currently operated byMohan 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 1990sled to the moderate reduction ofimport 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 byAmrut Distilleriesin 1982.[13]Amrut Distilleries began procuring barley from farmers inHaryana,[13]PunjabandRajasthan,in addition to molasses,[14]and launched Prestige Blended Malt Whisky in theCanteen Stores Departmentin 1986.[15]The first batch ofsingle malt whiskywas 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 theCentral Food Technological Research Institute(CFTRI), we had to find our own ways to learn about improved distilling methods ".[12]Amrut Distilleries launchedAmrut,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 wasageingfar 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, themaster blenderat 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 Distillerieshad been making blended whisky since its foundation, but decided to manufacturesingle malt whiskyin 2008 in an attempt to enter the premium end of the market. The first bottling ofPaul 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]UnderVijay Mallya's direction, the Indian companyUnited Spirits Limitedacquired a number of noted whisky brands and distilleries in Scotland, includingDalmore,Isle of Jura,andWhyte & Mackay.[19](In 2012,Diageoacquired 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 UKScotch 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[edit]

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 bothCentralandState 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 alsoprohibited in some States.

Whisky accounts for nearly 60% of theIndian-made foreign liquormarket. 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]

Trade controversy[edit]

The consumption of native-distilled, molasses-based whisky in India is encouraged bytariffbarriers of up to 150%[25]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 theScotch Whisky Association(SWA) as "pure protectionism".[26]Indian distillers accuse theEuropean Unionof 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".[26]In a lawsuit brought in India by the SWA, theDelhi High Courtin April 2006 enjoined Indian whisky manufacturers from labelling their product with the words "Scot" or "Scotch".[27]However, on 27 May 2008, theSupreme Courtruled in favour of distillerKhoday India Limited,allowing the company to keep itsPeter Scotwhisky brand trademark.[28]

In 2019, India was the world's second largest Scotch whisky market by volume (the equivalent of 131 million 70cl bottles exported)[29]and 7th largest by value (£166 million).

Manufacturers[edit]

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[edit]

The following manufacturers have ceased operations.

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

See also[edit]

References[edit]

  1. ^"Where 'Whisky' Can Be Rum"[permanent dead link],fromThe 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 AfricaMail & Guardian.Archived fromthe originalon 1 June 2008.Retrieved14 May2014.
  3. ^"Scotch whisky group threat legal action against Indian blends".The Economic Times.PTI.12 May 2014.Retrieved12 May2014.
  4. ^"Europe cries foul on Indian whisky".Hindustan Times.PTI. 12 May 2014. Archived fromthe originalon 12 May 2014.Retrieved12 May2014.
  5. ^"Scotch whisky makers threaten action against Indian blends".Business Standard.PTI. 12 May 2014.Retrieved12 May2014.
  6. ^"India stretches whisky market lead"Archived15 December 2007 at theWayback Machine,Beverage Daily, 13 January 2004, accessed 25 June 2007
  7. ^Official web siteArchived5 August 2004 at theWayback MachineofAmrut 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. ^abCharu 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 IndiaArchived2 September 2013 at theWayback Machine.Livemint (29 December 2011). Retrieved on 23 December 2013.
  11. ^abIndian liquor industry moves towards spirits made from authentic source materials – Economic TimesArchived28 September 2013 at theWayback Machine.Articles.economictimes.indiatimes.com (16 March 2013). Retrieved on 23 December 2013.
  12. ^ab"Bangalore's Amrut Distilleries high on success".Daily News and Analysis.Retrieved21 June2013.
  13. ^abcdAravind, Indulekha (18 February 2012)."The malt of India".Business Standard.Retrieved21 June2013.
  14. ^Poornima Mohandas (5 March 2010)."Blend it like Amrut".Livemint.Retrieved21 June2013.
  15. ^ab"High Spirits".Outlook.18 February 2012. Archived fromthe originalon 8 March 2012.Retrieved21 June2013.
  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 fromthe originalon 14 July 2013.Retrieved21 June2013.
  17. ^Ishani Duttagupta (29 April 2012)."How India's first single malt brand Amrut Distilleries cracked luxury market in West".The Economic Times.Retrieved21 June2013.
  18. ^"Indian whisky in scotch's back yard".Drinks International. 5 October 2012.Retrieved4 July2013.
  19. ^"Whisky giant sold to billionaire"Archived23 May 2007 at theWayback 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.Archivedfrom the original on 18 August 2016.
  23. ^ab"Indian Spirits Market".Credit Suisse.27 September 2012.Retrieved12 May2014.
  24. ^Modi Illva plays smart in launching premium whisky, but Rockford Reserve faces challenges ahead – Economic TimesArchived8 November 2013 at theWayback Machine.Articles.economictimes.indiatimes.com (10 February 2013). Retrieved on 23 December 2013.
  25. ^BBC News – Scotching the trade protection racketArchived26 July 2016 at theWayback Machine.Bbc.co.uk (19 January 2012). Retrieved on 23 December 2013.
  26. ^ab"The Whisky Rebellion",Timemagazine,7 June 2007, accessed 25 June 2007
  27. ^"If it's Indian it can't be Scotch, court tells India's whiskey makers",The Standard,25 April 2006, accessed 28 June 2007.
  28. ^Dhananjay Mahapatra (28 May 2008)."Scotch or not, 'Peter Scot' won't be banned: SC".The Times of India.TNN. Archived fromthe originalon 16 July 2013.Retrieved11 August2013.
  29. ^"The Indian market for Scotch Whisky".Scotch Whisky Association.Retrieved5 June2022.

Further reading[edit]

External links[edit]

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