Beer maker AB InBev enters the whiskey category in India

Image: Reuters

In a first, brewing company Anheuser-Busch InBev or AB InBev entered the spirits market in India with the launch of blended American whiskey under its brand Magnum Double Barrel in select markets. The move also is in line with its strategy to tap the trend towards premiumisation in the alcoholic beverages market in the country.

The company has already introduced the product in leading alcohol retail outlets in Maharashtra at Rs 2,800, Goa at Rs 1,800 for a 750ml bottle, and soon will be available in Karnataka, Haryana, West Bengal, Uttar Pradesh, and Punjab.

The company plans initially to test market the product in select markets before rolling it out across the nation.

“India is the second biggest spirits market globally. Alcohol consumption is rapidly increasing in the country with new generations reaching the legal drinking age and, hence, we thought it was the right time to set foot in this segment,” said Vineet Sharma, vice president, marketing, AB InBev.

Given the large consumer base for whiskey in the country, which according to estimates accounts for 72 percent of the total consumption in the country, the company decided to foray into the spirits market through this category.

“For most Indian drinkers, a population that is predominantly male, whiskey is an aspirational drink and the elemental choice for most. Widespread up-trading was evident pre-pandemic; 2021 has seen the trend accelerate significantly,” shared Sharma.

According to drinks market analysis company IWSR, the category of premium blended whiskey segment is dominated by the standard blended scotch whiskey a 530KHL segment that contributes 3 percent of the total whiskey volumes and 6 percent in value.

AB InBev is known for its beer brands such as Budweiser, Corona, Hoegaarden, etc. According to the company, India is now amongst the top five markets for Budweiser globally. Of late, the company has been on a premiumisation drive.

“We see a huge opportunity for premium offerings across the beverage category, in line with our overall premiumization strategy,” said Sharma.

“Beer will continue to remain our core offering for AB InBev India, but we will introduce India-specific innovations across beverage categories (alcoholic and non-alcoholic segments),” Sharma added.

The company last year launched its first offering in the non-alcoholic energy drinks category in India - Budweiser Beats.