AB InBev to enter spirits category launching whisky and gin in India

AB InBev, world’s largest brewer, has revealed plans to enter the spirits category for the first time, launching whiskey and gin brands in India.

Speaking to Indian daily Economic Times, Kartikeya Sharma, India and South East Asia president at AB InBev, said the move is part of the company’s wider strategy to enter premium categories beyond beer, especially in the world’s largest whiskey market.

“For Indian consumers, the attitude towards premiumisation is category agnostic and the openness to become repertoire users and not be married to one category has never been higher. We have looked at the consumers and we saw they really want to indulge, as opposed to abusing alcohol and we now have propositions—ready to drink, whiskey and gin—that are ready to be launched,” he told the paper.

The report said the company is already piloting Mike’s seltzer and will launch blended scotch and premium gin in the fourth quarter of the calendar year. India is the largest whiskey market in the world and the second-largest importer of Scotch behind France.

“A big part of our development cycle went on the production side because that’s the muscle we needed to create since we are entering into a distilling space, which is relatively new to us. Being a company that was already selling premium and super premium beers, we were quite aware of the route to market channels, the classification of those channels and partners that will help us launch these brands the right way,” Sharma added.

AB InBev however noted that beer will remain a core focus in India, the fifth largest market for Budweiser by volume globally. The company generated nearly a third of its sales from premium brands in India two years ago. The contribution of premium brands that also includes Stella Artois, Hoegaarden and Corona has now increased to nearly 60 per cent.