According to industry executives, in 2022, traditional gin brands owned by large companies reclaimed their market share, which had been disrupted by the rise of small, locally-made batches of gin, particularly from Goa, in the past three years. While both big and small brands experienced sales growth in double digits, Bombay Sapphire, Jaisalmer, Beefeater, and Big Ben surpassed craft gin brands by more than doubling their sales, as stated in the latest IWSR Drinks Market Analysis report. Additionally, newer players such as Samsara, Hapusa, and Stranger & Sons saw their sales rise by 50-70 percent.
“While startups surely helped in popularising the gin category, consumers turned to established companies which have better infrastructure, production capabilities and quality control,” said Amar Sinha, Chief Operating Officer, Radico Khaitan.
In 2022, the sales of Radio Khaitan’s Jaisalmer brand experienced an impressive surge of 400 percent.
To take advantage of the increasing demand for the white spirit, the company recently introduced a new semi-premium gin called “Happiness in a Bottle.” This launch occurred last week.
“We had to triple our production capacity due to increased demand,” said Sinha.
In 2022, Bombay Sapphire gin, which is owned by Bacardi, experienced a remarkable surge in sales, recording a growth rate of 196 percent. This impressive performance allowed Bombay Sapphire to reclaim its leading position, surpassing Greater Than, one of India’s pioneering artisanal gin brands. As the gin market gained momentum, mainstream companies began to enter the scene through various means, including acquiring startups or establishing their own gin brands.
A notable example is United Spirits, the largest alcoholic beverages company in India, which acquired a minority stake in Nao Spirits in March of the previous year. Similarly, Tilaknagar Industries agreed to acquire a 10 percent stake in Spaceman Spirits Lab, the parent company of Samsara. These strategic moves demonstrated the interest of established companies in the craft gin sector.
In addition, major local distillers also dipped their toes into the craft gin market with notable offerings. Amrut Nilgiris gin and Malhar, produced by John Distilleries, are among the recent additions to the portfolio of craft gins introduced by these prominent distillers. This trend indicates the growing importance of the craft gin segment and the willingness of established players to explore and expand their presence within it.
Although the IWSR declined to provide specific details regarding company market share or growth, it acknowledged that the Indian gin category has undergone significant transformations in the last five years. These changes were primarily expedited by the Covid-19 lockdowns rather than solely initiated by them.
“In 2018 it was almost all value-priced and low-priced IMFL (Indian-made foreign liquor), with domestic craft gins very much in their infancy, and imports only 2 per cent of consumption. Demand for both has exploded, doubling in 2022 alone, and now the split of imports to local products is 60:40. Inevitably, more and more brands are now available in India,” said Jason Holway, market analyst, IWSR, adding that cocktail culture, both at home and out of home, has upgraded, with overall gin consumption still below 2018 level. For many years, IMFL gin brands in the value segment (INR 240-900) such as Original Choice and Blue Riband dominated the gin market in the country. However, over the past few years, their demand shrunk as consumers traded up for pricier brands.