The talks, if successful, will help ABD expand its product portfolio, largely… whiskey to a large number of spirits segments such as vodka and ScottishWhile the two global companies will gain entry into the world’s largest alcohol-consuming country with a strong partner that has robust distribution and manufacturing capabilities, executives said.
ThaiBev’s global portfolio, through its subsidiary International Beverage, includes Old Pulteney, Speyburn, Balblair Scotch whisky, Reid’s vodka, Phraya rum and Source gin brands. The company is owned by Chinese-Thai billionaire businessman Charoen Sirivadhanabhakdi and is listed on the Singapore Stock Exchange. Russian Standard is the largest vodka brand, owned by billionaire Roustam Tariko.
ABD, Russian Standard and ThaiBev did not respond to emails seeking comment.
Kishore Chhabria-promoted ABD is the third-largest Indian Made Foreign Liquor Company (IMFL) in the country, selling nearly 33 million cases in fiscal 2023. Unlike its rivals, Spirits united and Pernod Ricard, which derive more than 65% of their sales from the semi-premium and higher segments, ABD’s sales are skewed towards Officer’s Choice. While the brand contributes the bulk of its sales, its share has been declining in favour of newer, more expensive products.
Its premium portfolio accounts for a third of the company’s sales. ABD has been expanding its portfolio with more expensive products across all categories over the past three years. Iconiq White Whisky sold 1.6 million cases in 2023 to lead the world’s fastest-growing million-case mark, after expanding sales by 1,500% in one year.
An estimated 100 million people will reach legal drinking age in India over the next five years, and most global companies, including Diageo and Pernod Ricard, consider the country among their top three priority markets.
“The Indian market has gained importance largely due to nearly 20 million people reaching the legal drinking age (a year ago) as cities and small towns have become more expensive, which is now attracting the attention of global companies,” said Sandeep Arora, director of luxury spirits consultancy Spiritual Luxury Living. “For global companies, their strong markets are also slowing down compared to India, where people are drinking more thanks to the proliferation of bars and restaurants. Also, Indian malts are now respectable globally, which has helped it gain ground.”
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