Anheuser-Busch InBev, which makes Budweiser and Corona beer, has forayed into the whiskey segment in India, a first for the brewer globally, with the launch of Magnum Double Barrel. This is part of the brewer’s 'Beyond Beer' and premiumisation strategy.
CNBC-TV18 reported in September that the company will be entering the Whiskey, Gin and ready-to-drink beverage segments. The company launched Magnum Double Barrel in Goa six weeks ago, and more recently in Mumbai and Pune. An expansion in Maharashtra will be followed by Karnataka, Haryana, West Bengal, Uttar Pradesh and Punjab.
"So Budweiser Magnum, which has been an extremely successful local line extension of our global brand, Budweiser is the brand that we're using as an offshoot into the adjacent category of whiskey. So the brand is going to be Magnum Double Barrel. It's an American blended whiskey where we take American corn whiskey from Kentucky and blend it with Indian single malt through our partnership with Sazerac Group here in India," Kartikeya Sharma, president, AB InBev - India & South East Asia told CNBC-TV18.
In one of the world's largest whiskey markets, Magnum Double Barrel, priced at Rs 2,800 in Maharashtra and Rs 1,800 in Goa for a 750ml bottle, is being positioned in the Premium Blended Whiskey segment, dominated by brands such as Black & White and Red Label by Diageo), and brands such as Ballantine, Jameson, 100 pipers by Pernod Ricard, Teachers, among others. Sharma says the company chose a price point consistent with Budweiser Magnum beer.
According to IWSR drinks market analysis, nearly one in every two bottles of whisky bought around the world is sold in India. Furthermore, Indian-made whisky brands have also been gaining global prominence with seven of the top ten global whisky brands currently being Indian.
The Indian alcohol market has been dominated by darker liquids, with 72 percent of total spirits' consumption in the country being whiskey. The Indian whiskey market projected is projected to grow at a CAGR (2021-26) of 4.2 percent and a CAGR (2021-22) was 17 percent. According to the company. the standard blended scotch whiskey segment grew by 43 percent in 2021 over 2020.
As part of its beyond beer initiative, the company forayed into non-alcoholic beer and energy drinks last year, followed by seltzers in India. Sharma said the company will now focus on expanding whiskey before foraying into other categories.
"For now, we’ve put all our energy into trying to establish these categories that we've entered. Any future entry into any future category would also depend on having the right proposition, having the right time to be able to feel that the focus will be well served. So we'll see over the coming months when would be the right time to explore and enter a new category if you have to," Sharma added.
However, beer will continue to remain a core offering for AB InBev India.
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