From pink vodka to citrus gin, Indian alco-bev market gets a new spirit

Brands bank on colours, flavours to woo young drinkers

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Incidentally, in FY2016, the sales volume of flavoured vodka constituted 45% of Radico Khaitan’s total vodka sales.

With consumers increasingly seeking unique and vibrant drinking experiences, flavoured and coloured alcoholic beverages are witnessing a surge in popularity in India. Witnessing the rising demand, homegrown liquor brands are also coming out with new products to cater to this small but growing category.

Recently, Radico Khaitan, one of the oldest and the largest manufacturers of Indian Made Foreign Liquor (IMFL) in India, launched Magic Moments Remix Pink Vodka. Crafted with natural flavours of black mulberry, elderflower and raspberry, the pink vodka is the latest addition to Magic Moments’ elaborate lineup in the flavoured/ coloured vodka segment that already includes orange, green apple, lemon, lemongrass and ginger, raspberry, chocolate, grapefruit and watermelon, and cucumber and wild green lemon.

Incidentally, in FY2016, the sales volume of flavoured vodka constituted 45% of Radico Khaitan’s total vodka sales. This figure has increased significantly to reach 65% in the current fiscal year.

The category offers consumers new and unique experiences, attracting the young and urban LDA (legal drinking age) consumer willing to experiment with alcohol and chase new experiences. “This is typically the urban 25-40 years’ age group that has seen their parents enjoy classic alcoholic beverages. Now that they have started drinking, they are looking for something unique that they can identify with themselves,” said Vijay Kauthekar, executive vice president, sales (national), John Distilleries, an Indian alco-bev company that produces the popular Paul John single malt whisky.

Its Fireball cinnamon flavoured whisky is the largest flavoured brand and is an international product from the portfolio of the company’s partners Sazerac. “Apart from flavoured whisky, our gins are also infused with flavours from various natural botanicals,” said Kauthekar. For instance, while Roulette has clean Indian flavours, Malhar comes in two variants—Malhar Classic, a typical dry gin, and Malhar Citrus, a citrus variant.

“Flavoured and coloured beverages have consistently remained in fashion, but they have experienced a noteworthy surge in popularity after the Covid-19 pandemic,” said Amar Sinha, chief operating officer of Radico Khaitan.

More recently, in November, Piccadily Distilleries, an independent manufacturer and seller of malt spirits in India, launched Camikara 3 Years Old (YO), a 100% pure cane juice rum, aged in American oak barrels for three years. This is unlike most Indian rums that are produced using molasses or grain ENA (extra neutral alcohol).

“Camikara was born out of a desire to revive the age-old distilling tradition from India. When we launched the limited-edition Camikara 12YO, it became the first ever Indian rum to win a gold medal at the prestigious IWSC Awards 2023. This inspired us to expand our rum portfolio and make the golden elixir more accessible,” said Siddhartha Sharma, founder, Piccadily Distilleries.

In July last year, Radico Khaitan launched another product in the flavoured category—Happiness in a Bottle – Joy of Pink. An expansion into the company’s coloured gin category, the variant introduces a unique ingredient, ashwagandha, which is known for its vitality and mood-enhancing properties.

“A flavoured alcoholic drink simplifies the process, removing the need for a variety of mixers and offering an easy, straightforward way to enjoy a drink. It delivers the enjoyment of a cocktail without the complexity of mixing several ingredients,” added Sinha.

Not just vodka and gin, even rum is seeing a resurgence in the flavoured category. A standout product in Radico Khaitan’s line-up is the 1965 Spirit of Victory Lemon Dash Rum that was launched in September 2022 and, as the name suggests, infuses the flavour of lemons into white rum. “Its success can be attributed to its outstanding versatility, allowing enthusiasts to create a variety of cocktails while savouring the unique and original flavours that define this spirit,” said Sinha.

Overall, the flavoured and coloured category is still small but growing. “We have seen a lot of interest in our products in this category but the biggest pull is from the urban areas. While sales numbers do not rival traditional alcohol like whisky yet, we see a sustained demand for the products/category going forwards. As a result of this demand, our products like Fireball are already available across premium on-premises like high energy places, pubs, lounges and microbreweries where young cohorts frequent,” added Kauthekar of John Distilleries.

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This article was first uploaded on January twenty-eight, twenty twenty-four, at twenty-five minutes past six in the morning.
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