Asmita Mukherjee 
Asmita Mukherjee | Hyderabad
The Alco-Beverage industry in India is undergoing a remarkable evolution propelled by shifting consumer preferences, rising income levels, and a heightened consciousness of international developments. This transformation presents a myriad of opportunities and challenges due to varying regulations and duties prevailing in different states. VBev, a prominent player in the Indian alco-bev market, is poised to achieve impressive growth in the next five years. During a conversation with Asmita Mukherjee, Sumedh Singh Mandla, CEO of VBev India, unveiled the company’s visionary strategy for expanding its presence in the dynamic and constantly evolving Alco-Beverage industry in India.
Discussing the thriving Alco-culture has been rapidly increasing in India’s metros and Tier II/III cities, Mandla stated that they have experienced a robust growth in demand for premium quality Alco-Beverages from these cities. The major reason behind this is the rising disposable income and better awareness among consumers has led them to seek a quality experience in food and beverage. Consumers are increasingly following global trends, resulting in a significant demand for segments like Cocktails, Tequila, Gin, and Malt Whiskies.
Mandala highlights that the market for imported liquor in India is shaped by current consumer trends and preferences. Although high taxation and entry costs lead to comparatively higher pricing in many states, the premium segment is growing rapidly. “However, the growth in the premium segment is driven by the consumer base of the young and affluent consumer between 21-45 years with higher spending power. Digital connectivity and international travels further add to their knowledge set and hence they are always looking for the new trends and experience in alco-bev space. That is where we play a key role as an importer,” he added.
According to Mandala, infused alcohol beverages, such as flavoured vodka and gin, have gained popularity in recent years due to growing nightlife culture. However, Whisky remains the leading category in the Indian Alco-Beverage market, followed by Brandy and Rum. “Consumers are now open to trying new categories. However, these have been a growing awareness and demand for Wine, Gin, Tequila, Vodka, Shooters and Cocktails. Infused Whiskey is another growing category and finding some patronage. The growing cocktail culture lead by Cocktail bars, lounges is trendy, and the skilled bartenders are now getting their overdue recognition and credit. The overgrowing Cocktail festivals, growing nightlife, premium lounges are all driving this culture,” he said.
Mandala said that VBev understands the importance of staying attuned to the evolving market landscape in India. With a dynamic portfolio that caters to a wide range of products, the company is constantly adapting to meet consumer preferences, emerging trends, and demands. ”Looking ahead to 2023, VBev plans to introduce premium categories such as Cognac, Whiskies, and Tequila, carefully curated to deliver unique and memorable.”
Recognising the significance of a robust distribution network, brand development, team strength, and strategic partnerships, VBev has developed a large network across the Indian subcontinent. “We have developed a large network across the Indian subcontinent with a strong focus on On-premises, Off-premises and Travel Retail channel.”
With a vision of strong double-digit growth over the next five years, VBev aims to establish itself as a leading player in the Indian Alco-Beverage market. “We are focusing on a strong double-digit growth over the next 5 years. The same will be backed by our focus on distribution, brand development, team strength, and strategic partnerships will serve as the pillars supporting our success,” Mandala concluded.
asmita.mukherjee@saffronsynergies.in
