The Indian government’s decision to reduce import duty on Bourbon whiskey from 150% to 100% is set to enhance the spirit’s market presence, sparking changes in marketing strategies and consumer interest as diverse alcoholic choices become more accessible.
India’s recent decision to significantly reduce the import duty on Bourbon whiskey has noteworthy implications for the country’s spirits market. The government has slashed the import duty from an imposing 150 percent to 100 percent, a move likely aimed at increasing the availability of this popular American whiskey in India.
Bourbon whiskey, which originated in the United States in the 15th and 16th centuries, has a rich history marked by fluctuating popularity and market conditions. Following the Prohibition era, which severely impacted the spirits industry from 1919 to 1933, Bourbon rebounded to become a celebrated favourite among consumers. It is distinguished by its unique production process—genuinely American, Bourbon must be made from a mash that contains at least 51 percent corn, typically sourced from the state’s renowned agricultural heart, Kentucky. The process involves the fermentation and distillation of the corn mixture, followed by maturation in charred new oak barrels for a minimum of two years, contributing to its characteristic flavour profile.
This reduction in import duty is expected to enhance Bourbon’s market presence in India, where consumers are increasingly seeking diverse and high-quality spirits. Moreover, as the market diversifies, the classification of Bourbon as either single or blended—determined by whether it originates from one distillery or a mix of several—provides further avenues for brands to cater to varying consumer preferences.
With the import duty reduction, industry players should consider adjusting their go-to-market strategies to better leverage this expanded accessibility of Bourbon. Marketing efforts could focus on Bourbon’s unique heritage and production methods to attract both connoisseurs and casual consumers. Furthermore, the change presents opportunities for increased collaboration with distributors and retailers to enhance product visibility in a growing spirits market.
In conclusion, the reduction of import duty on Bourbon whiskey by the Indian government is poised to affect market dynamics significantly. As brands adapt their strategies to capitalise on this shift, they will need to effectively communicate the quality and tradition of Bourbon, ensuring it garners increased attention amidst a competitive alcohol landscape.
Source: Noah Wire Services
