Restaurateurs expect demand for Indian whiskey instead of Scotch

Indian-made whiskey may be in demand in bars and restaurants, as the market has a demand for inexpensive products in this segment, Sergey Mironov, Ombudsman for the Moscow restaurant market, owner of the Meat & Fish chain, told Vedomosti.

“Today, whiskey and spirits are being rethought. The market is ready for something that did not exist five years ago. [Потребители понимают]that the whiskey may be from another country, not from Scotland, not the USA or Canada. Indian whiskey will be in demand as house [базовая] position for cocktails. House is either the cheapest whiskey that comes from a supplier, or it is a conditional “Russian whiskey” made from imported distillates. As a separate option [индийский виски] will also do, as there is a request for inexpensive whiskey, ”he added.

Earlier February 28, Kommersant informedthat the Indian whiskey producer Allied Blenders & Distillers (ABD) is entering the Russian market with The Officer’s Choice and Sterling Reserve brands. The Siberian Alcohol Group (ASG) became the exclusive distributor in Russia. ABD is one of the largest alcohol producers in India, the company supplies their products in more than 20 countries. According to Drinks International, The Officer’s Choice has become the third most popular whiskey brand in the world in 2021.

The contract with the Indian company was concluded until October 2025, the ASG said. Against the backdrop of the withdrawal of a number of alcoholic brands from the Russian Federation and the rise in price of those remaining on the Russian market, about a quarter of the whiskey market at a price of 900-1200 rubles was released. per bottle, said a distributor representative. India, according to him, produces 60% of the world’s whiskey.

The success of new brands depends on the right market entry strategy, says Vadim Prasov, Vice President of the Federation of Restaurateurs and Hoteliers of Russia. “I don’t think anyone knows much about this whiskey. Everything will depend on the activity of the manufacturer and distributor in terms of promotions,” he told Vedomosti. In his opinion, this is especially important for the implementation of Indian whiskey as a separate item. “A guest, if he understands that such a product exists, he asks him. If a guest does not know anything about this product, then this is a completely different story, and promotions are indispensable here,” Prasov noted.

The sanctions imposed by Europe and the United States after the start of the special operation in Ukraine affected alcoholic products. The US has completely stopped the export of alcohol to Russia, and the EU has limited the supply of products whose value exceeds 300 euros per unit. A number of brands, including major manufacturers, have suspended the sale of their products, including Pernod Ricard (Chivas Regal, Jameson, Absolut, Ararat), Diageo (Bell’s, Johnnie Walker, Captain Morgan, Baileys, Smirnoff), Bacardi (Dewar’s, Martini), Brown-Forman (Jack Daniel’s, Finlandia).

In August 2022, the Association of Retail Companies (AKORT) applied to the government with a request to include a number of alcohol brands in the list of permitted parallel imports, since November it has been allowed. December started the first shipments of foreign alcohol through parallel channels. Thus, distributors import Jack Daniels, Jim Beam, Jagermeister, Johnnie Walker, Macallan and other brands.