Cheaper Scotch nudges buyers up the whisky shelf

BENGALURU: For India’s whisky drinkers, the next label up is moving a little closer. Cheaper Scotch is narrowing the price gaps between familiar bottles, giving some shoppers a reason to reconsider their usual purchase and Indian whisky makers fresh competition on the shelf.At Tonique in Bengaluru, operations head Nandish says some customers who usually buy Black & White are choosing Johnnie Walker Red Label or Black Label. All three are blended Scotches owned by Diageo.Diageo confirmed that Karnataka prices for 750ml bottles fell from Rs 2,810 to Rs 2,620 for Red Label and from Rs 4,005 to Rs 3,645 for Black Label since September. Nandish puts Black & White at Rs 2,365, leaving a Rs 255 step up to Red Label.The India-UK trade agreement halves whisky import tariffs from 150% to 75%. Retail prices also reflect state taxes and where spirits are bottled. Diageo, the first to start discounting prices, said that price revisions had reached seven states and were underway in four other markets. Delhi and Haryana had yet to see changes.Nandish said J&B had dropped from Rs 2,835 to Rs 1,375 per 750ml bottle, attributing the reduction to local bottling. Diageo has not confirmed that explanation. Tonique’s Blenders Pride Premium Collection shelf price was Rs 1,430 for the same volume.The overlap extends to Indian whiskies: 750ml Woodburns was tagged Rs 2,500, while Paul John Nirvana, an Indian single malt, was Rs 2,360.Competition is also sharpening among single malts. At Tonique, Glenfiddich 12 was priced at Rs 5,275 for 700ml, down from Rs 5,610.“Scotch has decades of familiarity, strong equity and cultural associations,” said John Distilleries, which makes Paul John. Nirvana’s appeal rested on Indian provenance, craftsmanship and flavour, it said.“Greater accessibility of established Scotch single malts certainly increases competitive intensity,” the company added. It would assess price dynamics while continuing to introduce more consumers to Indian single malt.Amrut Amalgam was tagged Rs 2,000 for 500ml at Tonique. Amrut Fusion’s Karnataka MRP of Rs 3,500 for 750ml sits just Rs 145 below Black Label, a blended Scotch. Amrut says the growing price overlap has not significantly disturbed its business.“At this point, we are not seeing any indication of Amrut aficionados switching to Scotch purely based on pricing,” said Thrivikram G. Nikam, Amrut Distilleries’ joint managing director. He said there were no specific repricing plans.Radico Khaitan similarly said it was focusing on premium positioning for Royal Ranthambore and Rampur.“Rather than responding and adjusting to short-term price movements, we remain focused on strengthening the premium positioning and value proposition of our brands,” its spokesperson said.Radico said Karnataka’s tax overhaul, effective in May, had already lowered Rampur Indian Single Malt’s price from Rs 7,240 to Rs 6,380 per 750ml bottle. It reported continued double-digit growth in the state.You use AI every day. Now get your AI Quotient. Take the AIQ test.