Indian single malts & craft spirits driving global demand

In a recent episode of “Food Frontiers,” hosted by India Business and Trade, Mr. Sanjeev Banga, President of International Business at Radico Khaitan, shared insights into the company’s global expansion strategies. Radico Khaitan, a prominent Indian beverage alcohol producer. During the discussion, Mr. Banga emphasised the company’s commitment to innovation, quality, and cultural storytelling.

He highlighted how Radico Khaitan integrates India’s rich heritage into its products, appealing to both the Indian diaspora and mainstream consumers worldwide. Mr Banga also addressed the challenges posed by regulatory complexities in international markets and outlined the company’s strategies to navigate these hurdles while maintaining a focus on premiumization and global growth.

IBT: What is Radico Khaitan’s strategy for expanding international exports, and which key markets are driving growth?

Sanjeev Banga: We are a proud Indian company with the vision of taking Indian beverage alcohol products global, not just catering to the Indian diaspora but also mainstream consumers. Our brands are available in over 100 countries and have been well-received by a wide audience. We offer a broad spectrum of brands across value-for-money, premium, super-premium, and luxury segments, catering to various consumer preferences and price points in categories like whiskey, vodka, rum, brandy, Indian single malt, Indian craft gin, and even the emerging Indian dark rum.

Our strength lies in our production and distillation capabilities, supported by an innovative blending team that tailors products to individual markets. We also have region-specific brands. We are present in markets from the USA to Fiji, with strong luxury products in markets like the USA, Europe, the Far East, Australia, the Middle East, and global travel retail channels. Our premium-category brands are significant in Africa, the Middle East, and the Gulf region. Overall, our global presence spans diverse regions.

IBT: Indian single malts are gaining popularity worldwide. How has the response been to Radico Khaitan’s offerings, and what potential do you see for this segment?

Sanjeev Banga: Our malt distillery was established in 1995, but it wasn’t until 2016 that we launched our first single malt, Rampur Select, after 21 years of careful preparation. We wanted to ensure that our product was of the highest quality, and the response validated our efforts. Rampur Select was introduced in Las Vegas in April 2016 and quickly received widespread appreciation.

In its first year, Rampur Select won the Double Gold Medal at the San Francisco Spirits Competition, confirming that we were on the right path. The demand was so high that we ran out of stock within three years, a testament to the meticulous ageing process of single malt. In response, we tripled our malt production capacity and are continuing to expand.

Today, we offer nearly 19 expressions, all of which have won awards and accolades, with many being recognized as some of the best new world whiskies by esteemed forums. The journey has been incredibly encouraging and fulfilling.

IBT: Comment on the role of innovation and customisation in the success of Radico Khaitan in the domestic and international market.

Sanjeev Banga: Consumers today are seeking something new, and they are open to experimenting with fresh, innovative products. This is where we excel—by consistently delivering unique offerings, whether it’s our single malts, craft gin, rum, or other exciting products that are still in development. Our vision is to bring India to the forefront of the global beverage alcohol space, showcasing the mysticism and cultural richness of our country.

Many traditional Indian drinks have been forgotten or remain confined to specific regions, and we aim to bring these to the global stage. We focus heavily on innovation with an Indian touch. Even our brand names, like Rampur, Jaisalmer, Sangam, and Kohinoor, have deep Indian roots, each with a unique story.

For example, Rampur Asava is the first single malt ever to be finished in an Indian red wine cask, a groundbreaking achievement. Our Rampur Jugal Bandi series, inspired by the traditional Indian musical duet, features eight expressions, six of which are already launched, with the remaining two set to debut next year. Sangam, meaning the confluence of two rivers, symbolizes the blending of traditional and new-world malts. Each brand and expression we create tells an Indian story, and that’s the essence we share with the world. Our innovation is deeply rooted in our culture, and it resonates in everything we do.

IBT: What are the most significant product consumption trends in the global liquor market going forward, and how is Radico Khaitan aligning its portfolio to meet these demands?

Sanjeev Banga: One positive outcome of the pandemic was that people started drinking less, but drinking better. In-home consumption increased significantly, and consumers are now leaning more toward premium products. They are also exploring newer and more innovative offerings, which is exactly what we aim to deliver to our global audience.

In the on-trade segment, such as bars and restaurants, we offer exceptional products and unique cocktails, reflecting the growing cocktail culture. We have products designed to cater to every segment and price point.

The Indian diaspora has become our biggest brand ambassador. They take immense pride in seeing luxury brands emerge from India, sharing them with friends and family, and using them for gifting purposes. Additionally, Indian fine-dining and Michelin-star restaurants worldwide now proudly feature Rampur and Jaisalmer, introducing them to mainstream consumers.

Even among mainstream consumers, our unique offerings have gained significant traction, particularly in travel retail at airport duty-free shops, where they are highly sought after. The response has been overwhelmingly positive, reflecting the growing global appreciation for our products.

IBT: Which product categories are seeing the most growth internationally, and what factors are driving their success?

Sanjay Banga: Consumer preferences vary across regions, with each region having a different affinity for specific product categories. A few years ago, gin was experiencing strong international growth, and today, tequila has taken the lead. Consumer tastes are constantly evolving, and people are eager to try whatever is new or different. This shift is not confined to any one category.

In India specifically, white spirits are seeing strong growth, along with single malts, which are also on the rise. Wine consumption is increasing as well. Overall, we are witnessing an all-round growth across various categories.

IBT: How do you view the role of Indusfood in showcasing Indian brands globally, and what are your plans for participation in the 2025 edition?

Sanjay Banga: I think it was a brilliant move by the Trade Promotion Council of India, various government ministries involved, and APEDA to include the Indian beverage-alcohol industry in Indus Food. Honestly, there was a kind of taboo in the government to showcase Indian beverage alcohol products in an F&B. But honestly, without beverages and alcohol, the F&B category is incomplete.

We’ve observed globally in countries like Scotland, Japan, the USA, and France the significant interest and revenue generated by the beverage alcohol, wine, and spirits industries. This includes contributions through local taxation and exports. I’m thrilled that the Government of India, along with various organisations and ministries, has finally recognised the need to showcase Indian beverage alcohol brands and products to the world. Last year marked the first edition of such an initiative, and we were among the first to participate and support the government in this endeavour.

The response last year was positive, but I’m expecting a much stronger response this year. Previously, the beverage alcohol category was new, and the information or communication to various buyers and countries about its inclusion went out relatively late. This year, however, everyone is anticipating beverage alcohol to be an integral part of Indus Food, which gives us a lot of confidence that the response will be outstanding. We expect Indus Food to continue growing and evolving, ultimately becoming one of the most prominent and popular food and beverage shows in the world.

A lot of exporters, or the importers from various countries or the buyers from various countries who go to Gulfood would now start coming to Indus Food, and surely, this will be the most prominent food and beverage show in the world in years to come.

IBT: What is your perspective on the Indian alcobev industry’s potential to compete globally, particularly in premium and craft segments?

Sanjeev Banga: I think it’s just the tip of the iceberg. We have a long way to go. Earlier, it used to be the Scotch industry, and then the Japanese came to the scene. But now, Japanese is also mainstream. So there is a lot of interest in terms of the Indian beverage and alcohol industry, and I think the Indian industry is well geared up to counter the competition from international players in the international markets as well, and as more and more players become conscious of the international product requirements, I think the potential is huge. I don’t want to put a number on that, but a couple of billion dollar worth of exports is very much possible in the very near future.

IBT: How do regulatory and logistical complexities impact your export operations, and what solutions or policy changes would help address these issues?

Sanjeev Banga: India’s liquor exports face significant challenges due to the diverse rules and regulations across states. This presents numerous disincentives and obstacles for exports. To streamline operations, discussions with APEDA have been conducted, and they have been proactive in supporting industry initiatives. Standardizing label requirements, registration processes, and addressing taxes and duties is crucial to enhance efficiency and align with the central government’s goal of no duties or taxes being exported. Collaborating with government agencies and state excise departments, stakeholders are considering progressive changes to improve export ease of doing business. The hope is that these reforms will be implemented in the coming financial year, providing a significant boost to the export of Indian beverage and alcohol products.

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Sanjeev Banga is the President of International Business at Radico Khaitan Limited. Mr. Sanjeev Banga has spearheaded the global reach for Radico Khaitan Limited since 2008. He is an international business veteran with almost 4 decades of experience in FMCG companies, such as Philip Morris, Nestle, Seagram, and Kohinoor, to name a few.

Mr. Banga has created brands like Rampur, Indian single malt whisky, Jaisalmer Indian craft gin, Sangam World Malt Whisky, and Kohinoor Indian Dark Rum APC for global audiences, and his division has been an integral part of the growth and premiumization journey for the company. Today, Radico is one of the largest exporters of beverage alcohol from India, and their brands are available in over 104 countries.