A recent report from the International Spirits and Wines Association of India, as well as industry executives in the alcoholic beverage sector, indicates that the growth of upscale, wide-ranging liquor stores is leading to a significant increase in sales of premium alcohol brands, including whiskey, wine, and beer, of up to 30% in markets where these stores are established.
Nita Kapoor, Chief Executive Officer of International Spirits and Wines Association of India (ISWAI), said, “Transformation in the alcobev retail environment, with larger browsable retail formats with a range of imported and domestic brands and category innovations, is opening up a world of opportunity.”
As per the report, the sales growth from these stores was witnessed during the previous calendar year and this trend has continued to persist in 2023.
The report said that premium stores are attracting more female shoppers who feel safer shopping there compared to regular stores. In addition, shoppers are finding these retail formats to offer a more relaxed browsing experience. The report also highlights that states are generating better revenues from the premium outlets. This trend has been observed in the last calendar year and has continued into 2023.
“There is an imminent generational shift in the way alcobev drinks are being bought and consumed,” said Rahul Singh, Chief Executive and Founder of Beer Cafe, which operates about 35 outlets. “Mass products are pivoting into craft and consumers drinking better has led to premiumisation of the category. We have witnessed this across spirits, wines and beers,” Singh said.
According to industry executives, premium gourmet-style stores are providing a more enriching and varied shopping experience for customers, particularly during weekdays and non-peak hours when the atmosphere is more relaxed. This, in turn, is driving greater opportunities for brand activation and leading to increased experimentation, impulse purchases, and trials by shoppers.
“Earlier, customers used to fulfil their premium liquor requirements either from duty-free shops or from the black market, which had limited availability of brands. This has now been taken care of by high-end liquor stores.” said Prem Dewan, Managing Director of DeVans Modern Breweries, which makes beer and single-malt whisky.
“The high-end liquor stores are equivalent to five-star outlets with their ambience, ample space for the consumers to pick brands of their choice, coupled with competitive rates,” Dewan said.
Vineet Sharma, Vice-President, marketing, AB InBev India, said premium liquor stores helped drive sales of their high-end brands across urban centres. “By offering a premium purchasing experience, these outlets attract more footfalls than traditional ones, especially women consumers.” He added that the retail experience across smaller towns remains a challenge.
A related report by ISWAI, in conjunction with the global research agency IPSOS, suggests that larger sizes of whisky are more popular in premium stores, whereas smaller sizes are driving more beer consumption. The report also highlights that 18% of whiskey brands and 34% of beer brands are experiencing higher sales in premium stores compared to regular outlets.