With the changing consumption patterns in the Indian market, distributor of premium wines and spirits, Monika Alcobev is keen expand its portfolio. Kunal Patel, MD, Monika Alcobev Ltd spoke to Disha Shah Ghosh about their products and increasing demand from various consumer groups.
Q. Tell us about the growth of Monika Alcobev in the past five years.
Sales have grown at an astounding 120% CAGR in the past 5 years, with exceptional growth in tequila, where we currently stand as the largest suppliers in the country. Our portfolio has grown from 2 brands in 2018 to 92 brands in 2023, catering to almost all categories an outlet can demand with #Onlythebest quality from premium to high-end ultra-luxury.
Q. Where does India rank as a source market for the consumption of alcohol compared to other countries in Asia?
The Indian alcoholic beverage industry is poised to expand to USD 64 billion in the next five years, driven by rising incomes, urbanisation, increased access, premiumisation, and a younger consumer base, as reported by the International Spirits and Wines Association of India (ISWAI). This sector already contributes 2% to India’s nominal GDP and offers employment to over 8 million people across agriculture, food and beverage, retail, and hospitality. In addition to substantial tax contributions, the industry supports farmers’ livelihoods. With India’s changing demographics, a growing middle class, and favourable government policies, the prospects for this sector are promising.
In 2021, the Acobev sector had a market size of USDD 52.4 billion, and it is projected to reach USD 64 billion over the next five years, with an annual growth rate of 6.54% between 2023 and 2027. India is set to become the fifth-largest contributor to global market revenues in the near-medium term, and it currently constitutes 2% of the country’s nominal GDP. The liquor sector is a significant source of employment, providing jobs to over 8 million people directly and indirectly, making up 1.5% of the total workforce in the country, with most employment opportunities found in related sectors like agriculture, food and beverages, retail, and hospitality.
Q. What is your outreach strategy for the B2B segment in India?
Our approach to B2B outreach in India is focused on establishing long-term relationships with important Alcobev sector professionals. We think it is important to recognise each B2B partner’s specific demands. To deliver specialised solutions, our committed account management and sales teams collaborate closely with each customer. To build relationships and keep up with market trends and requests, we regularly engage in industry events. We actively provide our partners with in-depth product information, tastings, and staff training so they are well-versed in the brands we import. Our company takes great pleasure in providing effective logistics and follow-up services to guarantee smooth transactions and satisfied customers. Our goal is to be a trusted and collaborative partner for our B2B clients in India, offering them a competitive edge in the Alcobev industry.
Q. With changing consumption patterns of younger travellers in India, which Alcobev segment has the highest potential for growth?
Among younger Indian travellers, Tequila is the Alcobev sector that has the greatest potential for development. The shifting patterns of consumption show a rising need for exclusive and high-end experiences. Tequila is becoming more and more well-liked because of its unique flavour profiles and adaptability in mixed drinks. Younger generations with discriminating preferences find it appealing because of its connection to artisanal manufacturing and skill. Tequila is also the go-to drink for health-conscious youngsters since it has 0% carbs, 0% sugar and fewer calories compared to other categories. Additionally, the growing popularity of mixology and cocktail culture is driving up demand for tequila. Tequila is a promising growth area in the Alcobev market, positioned to catch the imagination of India’s younger travellers with its rich legacy and the promise of various, high-quality options.
Q. Tell us about your revenue growth in 2022 and plans for expansion by 2025.
With a sales growth of 70% YoY in FY2023, we have successfully grown our presence to 18 states which altogether covers more than 90% of the premium spirits (MRP>1,000) market in India. In the next few years, while we have created a good width in our offerings as well as distribution, it is time for us to focus on bringing depth by covering more outlets and bringing our offerings to a greater number of doorsteps. Apart from that, we also have other major plans including factory setup and new product launches.