Raising the bar

The beverage industry in India as a whole has seen tremendous growth, which is destined to carry on into the future. Here is what Asif Adil of Diageo India, believes about what the future has in store. By Sayoni Bhaduri

Asif Adil Managing director Diageo India

With the recent decision of the Prime Mi nister's office to implement uniform excise duties for the liquor industry, the alcoholic beverage industry in India has just taken its first steps towards adolescence. This growth can be much more dynamic if the true potential of the sector is discovered, believes Asif Adil, managing director of Diageo India. The challenge lies in the fortitude in designing and executing a strategy appropriate to a company in starting position in the market. Strategies need to be formulised and target markets laid down. Accordingly, Adil discusses how Diageo has chosen a top down strategy starting with luxury and the premium end.

Focus India

Presently, the biggest challenge that India faces is the disproportionate rates for custom duties and interstate differences in excise laws. "It would do the industry a great deal of good if the government realises that there is a win-win situation for all if they are able to harmonise the state excise structure and lower prices for the consumer," he says. Thankfully, there is a glimmer of hope with the decision from the PMO. Eventually even the consumer will be more aware of the various brands and its nuances. "We understand this love of Indians for luxury brands and adding to this is the growing awareness, rising disposable income and frequent travel, which are making luxury aspirations more accessible to the Indian consumers, resulting in the growth of the super premium and premium spirits categories," says Adil. "Volumes of wine are expected to grow 10 times in 10 years to 50 million cases in 20 years," says Adil, who recently launched an Indian wine brand - Nilaya - with its own vineyards in Maharashtra. With the stage set towards future innovations like wine bars, vineyard tours and holidays, etc which are part and parcel of the development, regions like Maharashtra and Karnataka, which are the largest wine producing states in the country have a great potential to take India to a position of being a new world wine destination, thereby attracting more global tourism.

Way ahead

Adil speaks of the great opportunities that lie within the marketing of luxury spirits. "We will continue to promote our luxury spirit brands that include Johnnie Walker Gold Label, Johnnie Walker Blue Label, Cîroc, Talisker, etc. We have established the Reserve Brands Group consisting of top-class professionals working towards delivering the luxury experience," he says. In the wine sector Diageo has developed a wine ladder beginning with the domestic wine brand, Nilaya and then moving towards selection of premium international wines like Barton & Guestier, Piat d'Or and Blossom Hill and finally the Thomas Barton Reserve Wines. "We will continue to build on the great response to our Guinness and Baileys brands received from consumers as we see a great growth potential for these brands," he adds. There are also plans to focus on modern retail, corporate sales and on-premise sales and increase width of distribution. "The consumer luxury experience begins from sampling at the bar. It is imperative to educate the trade and enhance the consumer experience at the bar," ends Adil.