NEW DELHI: Primarily whisky drinkers, Indians are now more and more taking to wines and different spirits too. The market right here is seeing a shift in the direction of premiumisation, which Moet Hennessy India – part of the world’s largest luxurious group Louis Vuitton Moet Hennessy – views as an enormous alternative to develop right here. And as soon as in-the-works free commerce agreements (FTAs) are signed with the UK and extra nations, the responsibility construction on overseas liquor will make it extra reasonably priced in India, giving demand an extra fillip, Ipsita Das, Moet Hennessy India MD, informed TOI.
“Indians used to drink straight ups earlier whiskey on the rocks, or just a gin and tonic. Now the format of consumption is changing here. Wines and spirits have become very mainstream today. The story of premiumisation is here to stay.” That is an “advantage for us as Moet Hennessy is the only pure play luxury player in this segment, and premiumisation has given us a boost in the last three years. On a smaller scale, we’ve also seen tequilas gain popularity,” she added.
However, steep pricing on account of excessive taxes in India stays a problem for overseas liquor firms. “Wines and spirits in India is a very complex topic. It is a state subject and doesn’t come under GST. Every state has its own regulations and policies which keep changing. That clearly adds to the lack of ease of doing business in this segment,” she added.
“When it comes to duty, India levies a 150% custom duty which is one of the highest in the world. Then there are state taxes, which also differ from state to state. With all this taxation, there’s very little parity which makes it difficult for the consumers because they buy a bottle of Moet & Chandon in Europe for 45 euros. But the same costs 100 euros in India, plus or minus 10%, depending on which state you are drinking it in,” she mentioned. With the Indian client being very well-travelled now, it’s not simple for firms to “set expectations” even if the previous is aware of the identical is because of responsibility and taxes right here.
“There have been some very active FTA conversations going on, such as with the UK. We really hope that an FTA will be able to give some relaxation in India over time, which could really boost consumption.” Das mentioned.
Like Indian whisky, made-in-India wines are additionally turning into more and more common. Moet Hennessy India makes each nonetheless and glowing wines right here beneath the identify of Chandon. How are they doing? “Our Indian wines are doing very well,” Das mentioned.
