Diageo has launched the X Series by McDowell’s & Co., marking an expansion into white spirits and dark rum. The lineup includes Vodka, Dry Gin, Citron Rum, and Dark Rum, reflecting the brand’s move into new categories.
“You will need an ideal mix of mass media to reach a brand like McDowell’s. We want to connect with our audience of 180-190 million people across India. We need to ensure our media mix effectively conveys the message that Diageo is premiumizing and evolving,” says Varun Koorichh, Vice President and Portfolio Head, Marketing, Diageo India.
Koorichh emphasizes the importance of connections during the festive period and hints at a big camapign coming up around Durga Puja. “This festive season, mixability is at a new high, and our new launch of X series aims to encourage inventiveness and experimentation,” he says.
While addressing whether Diageo’s premiumization strategy is driven by inflation and regulation, Vikram Damodaran, Chief Innovation Officer, DIAGEO India said, “Premiumization fundamentally stems from changes in core consumer behavior. India’s disposable income has been growing over the years, particularly among the youngest drinking population. These new consumers are seeking a repertoire that spans multiple categories. The only way to address this demand is through premiumization in value, offerings, and variety. As disposable incomes rise, especially among the young, there is a growing demand for premium, diverse, and bespoke alcoholic experiences.”
He pointed out that smart cities in India such as Indore and Nagpur are experiencing similar lifestyle trends as major metros. “Consumers in these cities are well-versed in global trends and demand similar experiences and products.”
“India is witnessing significant entrepreneurial value creation, closely trailing China. There is notable economic activity and affluence emerging from smaller cities due to shifts like those seen in “Shark Tank.”
While speaking about Diageo’s focus on two kinds of consumers – affluent and young, Damodaran says that affluent consumers desire unique products and personalized experiences, such as limited edition bottles while younger consumers are embracing cocktail culture, seeking a wide variety in terms of flavors and categories.”
Premiumization fundamentally stems from changes in core consumer behavior. India’s disposable income has been growing over the years, particularly among the youngest drinking population. These new consumers are seeking a repertoire that spans multiple categories. The only way to address this demand is through premiumization in value, offerings, and variety.
“There is an increasing trend towards abstinence and sobriety within some consumer segments. The Indian market has seen significant growth in craft spirits and microbreweries over the past decade, translating to a vibrant startup ecosystem for alcobev (alcoholic beverages).
Diageo’s Investment in native spirit companies and offerings, such as Gin and Agave spirit, highlights its focus on introducing Indian flavors into the global spirit portfolio.
“Four years ago, as we started our journey with craft spirits as a large company in India, we interestingly observed a vibrant startup system for alcobev.
What used to be 10 microbreweries in India 13 years ago has grown to 1,000 now, and what was once just 1 gin company 9 years ago has expanded to 90 today. We continue to focus on our core brown spirits while also investing in white spirits like gin and rum, with investments in Nao Spirits and Pistola, as well as the Indian agave spirit, offering products that complement the global portfolio, including Don Julio. The idea is to create native Indian offerings that enhance our global portfolio,” he concludes.