John distilleries plans to double whisky output, expand other liquor segments | Mint

John Distilleries Pvt. Ltd, an Indian alco-bev company that makes the Paul John brand of single malts, is looking to expand its vodka, gin, rum, and wine portfolio across price segments, besides doubling whisky production, chairman Paul P. John said.

The firm produces one of the largest-selling, mass-market whiskies, Original Choice, globally, as well as wines under the Big Banyan brand. It also makes premium brandy Mont Castle and Roulette, and Paul John XO. “My intention is to have a range of products across categories—premium, high-end as well as middle and lower end— because then I can also tie up with hotels and bars like the big players of the industry," John said in an interview. “I would like to complete the whole portfolio — vodka, rum, gin…We will add vodka over time," he added.

The company is producing around 4,000 litres of whisky daily, and wants to increase to 8,000 litres. However, even then we will not be able to meet demand, John said. John Distilleries is growing 30% year-on-year. “Last year, we sold 19 million cases . We have products from ₹500 to ₹55,000, like the limited edition Mars Orbiter whisky."

India is one of the fastest-growing alcoholic beverages markets globally. It was worth an estimated $52.5 billion in 2020, growing at a compound annual growth rate (CAGR) of 6.8% between 2020 and 2023, according to a report by the Indian Council for Research on International Economic Relations. The number of people consuming alcohol rose from 219 million in 2005 to 293 million in 2018; and is projected to rise to 386 million by 2030, industry estimates showed.

The share of the upper-middle income group in alcohol consumption rose from 7% to 21%. It is expected to increase to 44% in seven years.

Companies such as Diageo, Bacardi, Allied Blenders, and Tilaknagar Industries, as well as large beer firms, are trying to expand their portfolios, and are launching newer products and premiumising their portfolios to appeal to the youth.

The company is looking to enter the gin market first, and has infused massive funds into this venture, he said. “We are just entering the gin market, and I've been focusing more on quality. I've imported gin stills from Germany. Our gin is priced at ₹3,000-4,500 per bottle, depending on taxes."

US's family-owned spirits company Sazerac owns 43% of John Distilleries. “With our strategic partner, we are adequately funded for expansion, but government regulations are hurting business—80% of what a customer pays goes to government in taxes, and 20% comes to us and I have to manage everything with it," John said adding that 60% of the business comes from India.

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