In today’s Finshots, we tell you about the rise of Indian single malt whiskies.

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The Story

Pernod Ricard, the French alcoholic beverages giant, is on a big mission. It wants to catapult Indian whisky onto the global stage, right alongside the Scotch, Irish and Japanese heavyweights. And why not?

Indian whiskies have been quietly building a reputation for themselves, not just domestically but internationally. For instance, last year the Indri Diwali Collector’s Edition 2023 scooped up the prestigious “Best in Show, Double Gold” award. This year, the Amrut Triparva grabbed the “Best in Class World Malt Whisky” title at the Whiskies of the World awards, and Indri Founder’s Reserve 11-Year-Old Wine Cask broke into the Top 15 Whiskies of the Year at the International Whisky Competition — the only Indian whisky to do so.

And that’s exactly why Pernod Ricard is making a ₹1,800-crore bet by setting up its largest Asian distillery in Nagpur. Its goal? To churn out world-class malt whisky that competes with the best globally.

But hey, just about two decades ago, Indian whisky had a very different image. It was seen as cheap, harsh and hardly worth savouring. So what changed, you ask?

Well, one answer ― single malt whisky. Unlike blended whisky, which combines malt and grain whiskies from different distilleries, single malts are crafted at one distillery using malted barley. They’re pure, bold and aged for years — at least three to eight — to develop their rich flavours.

Single malt whisky has long been Scotland’s pride and joy, tracing its origins back to the 15th century. But here’s the thing. It wasn’t sold directly to consumers up until the 1960s. Instead, it served as a crucial ingredient in blended Scotch whisky, with distilleries combining malts to meet soaring global demand.

Then came a rollercoaster of events from the Great Depression to the World War II, that nearly wiped out the Scotch whisky industry. By the 1960s, a few distilleries managed to bounce back, but the focus was still firmly on blended whiskies.

But that changed in 1963, when Glenfiddich, owned by William Grant & Sons, took a daring step to bottle and market single malts independently. The move turned heads and kick-started a global fascination with single malts. And soon, distilleries in places like Ireland and Japan hopped on the single malt bandwagon. But India was nowhere in sight. At least, not yet.

But come the 1980s, and thanks to Bengaluru’s Amrut Distillery, India stepped into the single malt arena. And let’s be honest, they didn’t start as whisky wizards. In fact, their journey into single malts was less about choice and more about necessity.

See, Amrut was already producing malt whisky, but it was used primarily in blended whiskies that were praised for their high malt content. Over time, the industry began favouring lighter, cheaper blends that used less malt. Amrut had to follow suit, but this shift left them with warehouses full of ageing malt whisky.

And that’s when they decided to gamble on the single malt. The distillery took its first steps into uncharted territory, targeting whisky aficionados in Scotland and the UK. It was a gutsy move, considering India wasn’t even on the radar in the global whisky scene. And yes, they faced skepticism. Critics even mocked them, questioning whether their whisky was made from the Ganges or clean water. But once they tasted Amrut’s single malt, they were singing a different tune. They were blown away. Word spread. People brought their friends to try it, screaming, “This is amazing!”

The breakthrough moment came in 2010, when Jim Murray, the renowned whisky critic and author of the Whisky Bible, named Amrut Fusion the third-best whisky in the world. Made out of a blend of Scottish and Indian barley, it was a masterpiece. And this recognition put Indian single malts on the global map, even catching the attention of other whisky makers back at home.

And here’s an interesting twist. India’s hot climate turned out to be a secret weapon for single malt distilleries. Higher temperatures mean that whisky ages faster here, developing unique tropical flavours. So, what takes 40 years in Scotland can be achieved in just 10 years in India. This revelation gave Indian single malts a distinctive edge and boosted their global appeal.

Soon, Amrut’s success inspired others too. In 2008, John Distilleries set up its single malt plant and launched its first offerings a few years later. Today, their products are sold in 44 countries. Radico Khaitan, a veteran in Indian-made foreign liquor (IMFL), joined the race in 2015 by launching Rampur Single Malt, which earned global accolades within just a year.

So yeah, Indian single malts were no longer just a niche experiment now. They were becoming a global phenomenon. And the numbers speak for themselves.

In 2022, domestic sales of Indian malts skyrocketed by 240%, dwarfing Scottish single malt’s 35% growth. And in 2023, Indian single malts accounted for a historic 53% of the 6.8 lakh cases sold in the country, outpacing international giants for the first time.

If you’re wondering how the demand spiked, it’s partly because Indian single malts are more affordable (as they don’t need decades of ageing). Plus, the unique use of six-row Indian barley, known for its higher protein content and robust flavours, gives these whiskies a distinctive edge.

Another reason why Indian whiskies are flavourful is India’s high “angel’s share”. If you’re wondering what that is, it’s simply the portion of whisky that evaporates during ageing. The higher the rate, the smoother your whiskey turns out. In India, the angel’s share is a whopping 10% annually, compared to 2-3% in Scotland. So even without enough ageing, the whiskies still turn out smooth and flavourful.

That’s also why consumers are switching from Scotch whisky to Indian single malts, bumping up the demand even further.

Right now, India’s got about 20 distilleries that produce single malt whisky and export it to over 60 countries. But the future looks bright too.

India already holds the crown as the largest whisky consumer. And its alcoholic beverage consumption is expected to cross a staggering 6 billion litres this year! Besides, spirits brought in over $33 billion in revenue last year, making India the fourth largest market globally, just behind Japan, the US and China. Consumption of Indian single malts is also projected to grow by 13% annually for the next three years.

With numbers like these, the momentum is only set to skyrocket.

Of course, competition is heating up. Companies like Pernod Ricard are investing heavily, and the race to dominate the Indian single malt market is on. The question is ― can Indian distilleries stay ahead of their foreign counterparts?

We’ll get to know that as the single malt ages, eh?

Until then…

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