Jack Daniel’s maker Brown-Forman bets on premium push, wider drinking ‘repertoire’

As Indian consumers move beyond single-brand loyalty and expand their spirits “repertoire” across categories, Brown-Forman, maker of Jack Daniel’s, is banking on India’s boom in premium spirits to sustain strong double-digit growth, even as competition in imported whiskey segments intensifies and supply chain risks remain.

Preferences have changed and expanded during pandemic quarantines.
“Covid has given consumers the confidence to experiment. Earlier, people had a fixed way of drinking. Now they want flavor profiles, stories and experiences,” said Gaurav Sabharwal, managing director, India and South Asia. “There is also more democratization in drinking. Women are now drinking their own choices, not what is expected of them. This includes whiskey.”

The Kentucky-based maker of Jack Daniel’s is also expanding its India portfolio this month to bring in other Scotch and single malt products such as Woodford Reserve and The Glendronach range.

Sabharwal said its domestic business currently stands at around 300,000 cases (9 liters each), including retail and travel retail, and expects strong double-digit growth to continue, driven by premiumization and experimentation among younger consumers.

While Jack Daniel’s remains its flagship brand in India and one of the most well-known American whiskey brands in the market, the company also launched its premium portfolio this week to appeal to a wider range of whiskey consuming drinkers. Super premium bourbon costs approx. ₹7,500 in Maharashtra, while Highland single malt Scotch Glendronach ₹9,700 and ₹25,000 depending on age.

This is part of its sharpening focus on the growing single malt segment. “People are not drinking just one brand anymore. They are drinking more brands and categories more frequently. The repertoire has really increased,” said Sabharwal. He added that consumer behavior varies across price points and categories.

India consumption trends

Nita Kapoor, independent spirits consultant and former director general of the International Spirits and Wines Association of India, said: Mint there is growth opportunity in the segment; While this may be true, it will be non-linear given competition and structural constraints at the category level.

“These sales figures (of Brown-Forman’s) – in the advanced whiskey market – are extremely doable, as Jack Daniel’s is the leading and best-known US whiskey brand. However, all US-based whiskeys, whether bourbon or Tennessee, will face stiff competition at the import category level – first Irish whiskey, then Scotch,” said Kapoor. “Indian malts have a complete monopoly on the canteen shop segment (retail consumption of the defense sector) channel, which contributes greatly to the total volume in the domestic market.”

Indian single malts, led by Amrut, Paul John and Indri, have rapidly expanded the category locally, intensifying competition from imported Scotch and American whiskey brands.

Sabharwal agrees: “Consumers in India have always known about Jack Daniel’s. But the bourbon category has been less understood. Now the timing feels right to bring newer spirits to the country.” This may be because American whiskey is less popular in the country. Bourbon/Tennessee whiskey is less popular in India.

Jack Daniel’s is the flagship premium Tennessee whiskey brand. Bourbon and Tennessee whiskeys are typically sweeter and smoother “corn-based” American products; Scotch single malts, on the other hand, are “barley-based,” known for their more layered flavor profiles shaped by region, aging, and barrel styles.

“Today, the local consumer has a wide range of options and is not limited to whiskey products only. Given the cyclicality of consumption according to daily episodes and occasions, American whiskeys will be one of the options, although not a very important one,” said Kapoor.

India is one of the world’s largest consumers of whiskey. According to international beverage consultancy IWSR, India remains one of the world’s fastest-growing beverage alcohol markets, with imported spirits volumes growing at an average CAGR of 16% between 2019-2024. Premiums, socializing trends and a rising legal drinking age population are driving this growth, he said, but companies continue to face complex state-level regulations, pricing controls and distribution challenges.

Geopolitical factors

Brown-Forman has so far been unaffected by the West Asian war because U.S. exports are largely from Europe, helping avoid exposure to shipping disruptions or regional supply chain risks linked to the ongoing crisis, Sabharwal said.

However, Kapoor said the geopolitical situation is evolving. “With the uncertain geopolitical scenario, supply chain disruptions will be a challenge that most international players importing finished products to India will have to overcome. Implementation of the free trade agreement (proposed FTA with the US) is also another point to consider.”

On the FTA issue, Brown-Forman’s Sabharwal said, “The India-US trade deal has not been finalized yet and I believe talks are still ongoing.” The company is awaiting the outcome and its impact on their brand.

“You may recall that India unilaterally reduced the tax on bourbon (from 150% to 100%) towards the end of last year. The commercial impact of this is yet to be determined, as state-by-state implementation will occur from the current consumption year,” he said.