ABD in talks with Russian Standard, ThaiBev for India product distribution | Company News

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Photo: Allied Blenders & Distillers

Photo: Allied Blenders & Distillers


Allied Blenders & Distillers (ABD), the company behind the popular Officer’s Choice whisky brand, is reportedly in advanced talks with two global spirits giants — Russian Standard and Thai Beverage (ThaiBev) — to market and distribute their products in India, according to a report by The Economic Times.

 


The potential partnership would allow ABD to diversify its product offerings beyond whisky, venturing into segments like vodka and scotch. Meanwhile, the two international brands would gain a foothold in India, the world’s largest alcohol-consuming market, with the support of a well-established local partner.


Background on ThaiBev and Russian Standard


ThaiBev, owned by Thai-Chinese billionaire Charoen Sirivadhanabhakdi, boasts a diverse global portfolio through its subsidiary International Beverage. This includes scotch brands like Old Pulteney and Speyburn, Reid vodka, Phraya rum, and Source gin. On the other hand, Russian Standard, led by billionaire Roustam Tariko, is the largest vodka brand in the world. The potential partnership would not only allow ABD to enter new spirit categories but also provide these global brands with access to ABD’s distribution and manufacturing network in India.


ABD: Whiskey to vodka spirits expansion


The move comes as ABD, the third-largest Indian-made foreign liquor (IMFL) company, seeks to expand its presence in the premium spirits market. While Officer’s Choice remains a significant contributor to ABD’s sales, the company has been shifting its focus towards premium and pricier products. ABD’s product portfolio, which currently includes 16 major IMFL brands across whisky, brandy, rum, and vodka, is set to grow if the talks with Russian Standard and ThaiBev materialise.


ABD, promoted by Kishore Chhabria, sold nearly 33 million cases in FY23, with an estimated 11.8 per cent market share in the Indian whisky market, as earlier reported by Business Standard. The company is one of only four spirits firms in India with a pan-India distribution network, making it an attractive partner for global brands looking to enter the Indian market.


Premiumisation in liquor: A growing trend in India


The Indian alcohol market is poised for significant growth, with an estimated 100 million people expected to reach the legal drinking age over the next five years. This demographic shift, coupled with increasing premiumisation in both urban and rural areas, has made India a top priority market for global spirits companies like Diageo and Pernod Ricard, the report further noted.


If ABD successfully partners with Russian Standard and ThaiBev, it could significantly enhance its market position by offering a broader range of premium products. This move aligns with ABD’s strategy of expanding its premium portfolio, which already accounts for a third of the company’s sales. Notably, ABD’s Iconiq White Whisky achieved impressive growth, selling 1.6 million cases in 2023 and becoming the world’s fastest-growing million-case brand with a 1,500 per cent sales increase in just one year.

First Published: Aug 12 2024 | 12:05 PM IST



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