Brown-Forman Shifts Focus to Premium Products and Diversified Beverage Offerings

India's Premium Spirits Boom Drives Brown-Forman's Double-Digit Growth

As Indian consumers expand their drinking "repertoire" across categories, Brown-Forman, the maker of Jack Daniel's, is banking on India's premium spirits boom to sustain strong double-digit growth, even as competition intensifies across imported whiskey segments and supply chain risks persist.

During the pandemic lockdowns, preferences shifted and broadened, with consumers gaining confidence to experiment. According to Gaurav Sabharwal, managing director for India and South Asia, consumers are now looking for flavor profiles, stories, and experiences. This shift has led to democratization in drinking, with women now choosing their own drinks, including whiskies. Brown-Forman is expanding its India portfolio this month to bring in other Scotch and single-malt products such as Woodford Reserve and The Glendronach range.

Brown-Forman's Domestic Business Reaches 300,000 Cases

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Sabharwal stated that the company's domestic business is currently at about 300,000 cases (with 9 litres each), including retail and travel retail. The company expects continued strong double-digit expansion driven by premiumization and experimentation among younger consumers. Jack Daniel's remains its anchor brand in India, but the company has also launched its premium portfolio to cater to the wider whiskey-consuming drinkers. The super-premium bourbon is priced at around ₹7,500 in Maharashtra, while The Glendronach, a Highland single malt Scotch, retails between ₹9,700 and ₹25,000, depending on the age.

India Consumption Trends

Nita Kapoor, an independent spirits consultant and former International Spirits and Wines Association of India chief executive, believes there is a growth opportunity in the segment, but it will not be linear due to category-level competition and structural constraints. "These sales numbers (of Brown-Forman)—in a whiskey forward market—are highly doable, as Jack Daniel's is the leading and most recognizable US whiskey brand," Kapoor said. "However, all US-based whiskey, whether bourbon or Tennessee, will face stiff competition at an imported category level—first with Irish whiskey followed by Scotch."

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Geopolitical Factors

Sabharwal stated that Brown-Forman has not been impacted by the West Asia war so far, as exports from the US largely go through Europe, which helped the company avoid exposure to shipping disruptions or regional supply chain risks linked to the ongoing crisis. However, Kapoor warned that the geopolitical situation is evolving, and supply chain disruptions will be a challenge to overcome by most international players importing finished products into India.

On the proposed FTA with the US, Sabharwal said that the India-US trade deal is yet not finalized and believes the talks are still ongoing. The company is waiting for the outcome and its impact on its brands.