Diwakaran Suryanarayana: Navigating India's evolving alco-bev landscape

The alco-bev industry is undergoing a dynamic transformation, with consumer preferences shifting toward experimentation and premiumization. In this interview, Diwakaran Suryanarayana, Chief Operating Officer of Som Distilleries & Breweries Ltd., shares insights into how the company is leading these changes. By leveraging digital engagement and storytelling, Som Distilleries is building meaningful connections with its customers. The company is also tapping into the growing trend of at-home consumption and addressing the rising demand for premium offerings, redefining strategies to retain and expand its consumer base in an increasingly competitive market.

What are the current marketing trends in the alcoholic beverage (alco-bev) industry that Som Distilleries & Breweries Ltd. is leveraging to retain customers in an increasingly competitive market?

The alco-bev industry is witnessing a shift towards increased consumer experimentation, where customers are eager to try new and unique products. Som Distilleries is tapping into this trend by enhancing its digital engagement strategies, leveraging social media platforms to interact directly with consumers, and building online communities around their brands. Additionally, brands are focusing on storytelling to build a strong brand identity and emotional connection with consumers, highlighting the unique heritage, values, and distinct characteristics of their offerings. While planning to launch new brands we are keeping this at the centre of it and this approach not only differentiates Som Distilleries from competitors but also helps in retaining customers by fostering brand loyalty through continuous engagement and interaction.

How do you see the influence of international brands shaping the Indian alco-bev market, and how is Som Distilleries positioning itself to compete with these global players?

MNCs that play in India come into India with their premium brands that are available globally. This in a way influences Indian companies like ours to foray into premiumization and over a period of time we see the Indian companies take lead in developing and marketing different premium offerings be it beer or spirits. The ISM space is a great example. We are focusing on offering unique, high-quality products such as premium beer unique & different packaging  which resonate with the evolving preferences of the Indian market. By emphasizing local flavours, innovative products, and maintaining competitive pricing, Som Distilleries aims to carve out a niche in the increasingly competitive landscape, appealing to both traditional and modern consumers.

With government policies and regulations continuously evolving, what challenges and opportunities do you foresee for the Indian alco-bev industry, and how is Som Distilleries navigating this landscape?

The Indian alco-bev industry faces significant challenges due to evolving government policies, particularly the high taxes and duties imposed on beer compared to spirits, despite beer having a lower alcohol content. The varied regulatory environment across states also poses challenges. However, Som Distilleries is navigating these challenges by leveraging its deep understanding of state-specific regulations and maintaining ongoing dialogue with regulatory authorities to advocate for more business-friendly policies. On the opportunity side, these challenges also open up avenues for strategic innovation and market differentiation. By staying agile and responsive to regulatory changes, Som Distilleries shall continue to grow and adapt in this complex environment.

Connecting with young beer drinkers is crucial in today’s market. What strategies is Som Distilleries employing to engage this demographic and build long-term brand loyalty?

Som Distilleries is keenly focused on understanding the preferences and desires of today’s young beer drinkers. We are launching brands and campaigns that resonate with this demographic, offering a variety of products at different price points to cater to diverse tastes and budgets. By emphasizing innovation and introducing new and exciting products, we keep the younger audience engaged. Additionally, the company is actively looking forward create interactive and engaging marketing campaigns that appeal to the tech-savvy younger generation in coming times. This multi-faceted approach helps in building a long-term relationship with young consumers, ensuring brand loyalty.

As the demand for premium beers and fine spirits rises, how is Som Distilleries elevating its product offerings to cater to this growing segment of discerning consumers?

Som Distilleries is responding to the growing demand for premium beers and fine spirits by continuously innovating its product line. Our new premium Woodpecker beer caters to consumers seeking higher-quality products. By maintaining a strong innovation pipeline, Som Distilleries ensures that it stays ahead of market trends and meets the expectations of discerning consumers who are willing to pay a premium for a superior drinking experience.

How has the consumption of alcohol in India changed over time, particularly in the post-COVID era, and what trends do you see emerging in terms of at-home consumption and premiumization?

Post-COVID, the dynamics of alcohol consumption in India have shifted significantly. At-home consumption, once considered taboo in middle-class households, has become more socially acceptable. There has also been a notable increase in out-of-home consumption as people seek to enjoy life more fully after the restrictions along with increasing incidences of consumption by female consumers.  The trend of at-home drinking has persisted even as restrictions have eased, fuelled by the expansion of home delivery services across many states.

Moreover, there is a clear shift towards premiumization, with consumers increasingly opting for higher-quality, craft, and artisanal alcoholic beverages. The growing middle class, with its rising disposable income, is driving this trend, as they seek unique experiences and superior products. Som Distilleries is tapping into these trends by focusing on premium offerings and enhancing the overall drinking experience, ensuring that their products meet the evolving expectations of the Indian consumer.

In summary, the consumption of alcohol in India has shifted notably in the post-COVID era, with increased at-home drinking and a marked trend towards premiumization. These changes are shaped by evolving consumer preferences, greater online accessibility, and a growing focus on quality and experience.