Indian alcobev market pegged to grow from $55 bn to $68 bn in 4-5 years: Varun Koorichh

McDowell’s & Co, the 125-year-old legacy spirits brand, is known for strengthening the bonds of friendships between ‘Yaars’ or friends and its portrayal of true friendships. It comes with the tagline, ‘No 1 Yaari Ka No 1 Spirit’, further reinforcing the importance it places on genuine friendships. It is ranked as the largest-selling whisky brand in the world according to World’s Million Case Spirits Brand 2020 ranking.

It has recently launched the X series, which is a reimagination of the way consumers will currently get to experience a portfolio of alcoholic beverages that range from vodka and gin to an exuberant new citron rum as well as a delectable dark rum. It blends the superior quality of Indian ingredients with exotic flavours existing worldwide, presenting a unique new portfolio.

This new ‘X series’ range has not been tested or existed before in India with a bright new packaging that catches eyeballs and delivers an exquisite and distinctive drinking experience catering to the rising preferences and inclination of modern drinkers to have an ardent and active lifestyle. There is a growing need to explore new status symbols that go beyond the traditional whisky with the emergence of cocktail culture and consumers of all age groups becoming more experimental and willing to have newer and more distinctive experiences in life that differ from the usual ones.

In conversation with Adgully, Varun Koorichh, Vice President and Portfolio Head of Marketing, Diageo India, speaks about the launch of the X series by McDowell’s, the 125-year-old legacy of McDowell’s, brand strategy, consumer insights, and market evolution. Koorichh also sheds light on McDowell’s foray into the white spirits segment, current trends in the alcohol industry in India, the road ahead, and more.

McDowell’s 125-Year Legacy and Brand Strategy

Highlighting the legacy of McDowell’s, Varun Koorichh said, “McDowell’s is a 125-year-old brand with a rich heritage, one of the first movers in India, and today, it stands as the world’s largest whiskey brand, valued at $2.9 billion. Its growth trajectory continues as it gains market share, establishing itself as one of the most valued brands globally. There’s no question – we understand whiskey and the broader alcohol industry well.”

Consumer Insights and Market Evolution

Reflecting on the consumer insights gathered in the last few years and the market evolution, Koorichh shared, “As we have studied the consumer over the past few years, we have noticed significant shifts. Our research shows that today’s consumer is more experimental. It is no longer about drinking the same whiskey their parents did; instead, they explore what’s new and resonates with their desire for self-expression. This led us to identify an opportunity in the white spirits category, which boasts an 11 million case market and has grown at an 18% CAGR over the past three years. Surprisingly, McDowell’s had no presence in this rapidly growing segment. Given our legacy, we saw this as the perfect opportunity to revamp the brand with X series, offering younger consumers new, premium, and accessible products. With this insight, we decided to enter the white spirits market. Our approach involves crafting products with Indian ingredients and telling stories that resonate with consumers. The focus is on reaching younger consumers who seek premium offerings without compromising accessibility.”

Digital and Experiential Marketing

Discussing the marketing strategy of X Series, Koorichh said, “Our marketing strategy for X Series is centered on digital channels, where younger consumers spend most of their time. This group interacts with influencers and celebrities, so we plan to leverage digital in a big way while staying true to McDowell’s core values of friendship and connection. Recently, we partnered with NH7 Weekender, a music festival that resonates with younger audiences who enjoy social experiences with friends. Our disruptive approach will also extend to pubs and bars, where we will create impactful brand experiences. Our new product line ‘X series’ features disruptive packaging that will grab attention, encouraging consumers to engage with the brand in novel ways, like taking selfies with our products.”

Changing Consumer Preferences and Gen Z Insights

Delving into the changing consumer preferences and Gen Z insights, he shared, “GenZ and millennials now dominate the market, with 65% of India’s population under 35 years old. This demographic values experimentation and identity, often sharing their experiences on social media contributing to their status symbol, aspirations, and everywhere they go they are expressing themselves. Rising disposable incomes allow them to explore new beverages, and we see a trend toward mixed-gender consumption. Women are increasingly independent, making their own choices in social settings, especially with drinks like gin, vodka, rum, and tequila. Furthermore, drinking habits are evolving – it is not about drinking more but drinking better. Rituals around cocktails, premium offerings, and curated experiences are becoming increasingly important. Consumers want beverages that tell a story and offer more than just a drink – they want experiences they can share on social media.”

Launch of McDowell’s X Series

The McDowell’s X Series marks the company’s entry into the white spirits category. The X in the series stands for multiple things: the embrace seen in McDowell's logo, representing friendship, and the unexpected nature of this launch from a heritage whiskey brand. The X Series is tailored to the preferences of younger consumers – experimenting with white spirits, engaging with premium but accessible products, and expressing themselves on digital platforms.

Koorichh said, “If you look closely at McDowell’s logo. It almost looks like an embrace or two people hugging each other, so if you are going to get your creative juices flowing, when two people hug each other and that hug continues, it becomes an X. It is also unexpected from the house of McDowell’s to come out and do this, and hence the X series. Its USP is the disruptive way it comes across as when one looks at it with the X branding on top and the product is made from Indian and local craft ingredients, it has a beautiful story to tell from the embrace of the X  to the beautiful liquids and how they form in a cocktail. I think all of that coming together is its unique selling proposition.”

The Future of the Alcohol Industry in India

Elaborating on the future of the alcohol industry in India, he said, “The future of the Indian alcohol industry is bright, with the market expected to grow from $55 billion to $67-68 billion in the next 4-5 years. With a young, urbanizing population and increasing disposable incomes, alcohol consumption is becoming more accessible, especially for premium products. Social acceptance of alcohol consumption and the desire for quality, shareable experiences are key drivers of growth. Indian craftsmanship, modern flavours, and innovative ingredients are also gaining traction, further fueling the demand for new and exciting products.”

The road ahead

Speaking about future plans, Koorichh said, “We are excited about the potential of the X Series and the future of McDowell’s. The brand continues to grow, and our recent developments position us well to meet the evolving needs of today’s consumers. While we are in a silent period and cannot disclose specific figures, we remain optimistic about the brand's performance and growth shortly.”