Tilaknagar to launch Seven Islands, its first premium whisky
Tilaknagar Industries, India’s largest brandy producer, will enter the premium whiskey segment with the launch of its $1,000,000 pure malt whiskey Seven Islands later this month. ₹5,200 in Maharashtra. The whiskey marks the company’s second major launch under its new luxury and premium vertical, House of TI, after grape brandy Monarch Legacy Edition.
Seven Islands comes right after Tilaknagar ₹The acquisition of Imperial Blue from Pernod Ricard for Rs 4,150 crore is a deal that gives the company its first meaningful national distribution network. This also marks Tilaknagar’s entry into a new category at the higher end of its portfolio, where it plans to introduce more brands over the next few years.
“Seven Islands will have more expression. Plans for single malt are also on the drawing board,” said TIL marketing manager Sanaya Dahanukar.
Return of the Seven Islands
Seven Islands is not new to Tilaknagar. More than a decade ago the company launched a limited-edition, high-priced Scottish single malt under the same name, produced in Scotland by BenRiach. Priced around ₹The product was introduced long before the current single malt boom in India and was eventually discontinued.
New Seven Islands is a 100% malt whiskey made from four different single malts: two Indian (from the Himalayas and Vindhyas) and two Scotch (from Speyside and the Lowlands). Each ingredient is originally distilled and matured for up to eight years in ex-bourbon and ex-wine barrels before being brought to the company’s distillery in Nashik to be blended. The product is positioned towards consumers who move fluidly between domestic malts, Scotch whiskey and boutique blends.
Tilaknagar sees room to build brands at price points between Imperial Blue and Seven Islands. “There is still a big gap between Imperial Blue and Seven Islands, with plenty of price tiering opportunities in the premium and super-premium categories,” said Dahanukar.
Today, Mansion House Whiskey operates tactically in several states, but the larger footprint remains open. The company is also exploring expansion into the Seven Islands, including the possibility of incorporating malts from other whiskey-producing countries. A single malt is planned, and the blending team is considering ideas such as peated expressions, a style that exists in India but has not yet been scaled.
Getting out of the brandy belt
Established as a sugar factory in 1933, Tilaknagar entered the alcobev business in the 1980s and achieved growth mainly through brandy. Brandy accounts for almost 90% of Tilaknagar’s sales; this is aided by its long-standing strength in southern India, where people drink almost all of the country’s brandy. The Imperial Blue deal is expected to change this balance and provide Tilaknagar with a much larger national market. “Our dependence on southern markets will come down from about 90% to about 50%. Brandy will come down to about 30%,” said Dahanukar. He added that once Imperial Blue is fully integrated, North and West India are expected to together constitute about half of the portfolio.
Consumer behavior is part of the context of the switch to whisky. “It’s very, very difficult to get people to switch from whiskey to brandy. Brand loyalty can change with good products and strong marketing, but category loyalty is extremely difficult to change,” said Dahanukar. Brandy is generally growing, either attracting younger drinkers or attracting substitutes from other spirits; both are slower routes than serving the current whiskey-dominated market.
Interior of T.I. House
Seven Islands will appear alongside the Monarch Legacy Edition in House of TI. The vertical also includes brands developed in partnership with portfolio companies: Samsara from Goa-based Spaceman Spirits (in which Tilaknagar holds a 21% stake) and artisanal cocktail mixer brand Bartizans, in which it holds a 36% stake.
Samsara expands Tilaknagar’s reach across categories by adding gin, rum and vodka to its portfolio. Bartizans, meanwhile, attributes the company to a younger, cocktail-first demographic. “Bartisans have a very different demographic,” said Dahanukar. “We are exploring collaborations to reach this audience and introduce them to our spirits in a way they will already understand.” House of TI brands have also started to gain early traction in export markets, including the UAE, Canada and Australia, said Dahanukar.
For Tilaknagar, the move into premium spirits is largely based on distribution scale, which is expected to accelerate the acquisition of Imperial Blue.
