Flavours boost vodka sales by 14% in India

Vodka sales soared 14% in India during the last financial year 2014/15, boosted by several spirits producers “aggressively introducing flavours” to cater for growing consumer demand.

Growing demand for flavours saw India’s vodka sales jump up 14% in the last financial year

As reported by the Economic Times, vodka sales actually declined 2% in 2013/14 as a result of price increases and regulatory taxation changes in certain states.

However, the rising number of innovative flavours such as green bell, chilli and jalapeno pepper resulted in a significant increase to approximately 7.6 million cases, including 12 750ml bottles.

“Vodka flavours come across as gender-neutral and are getting extremely popular, especially when there’s a strong culture among people to drink without getting high,” said Rahul Gagerna, president, sales and marketing, at Radico Khaitan, which controls a third of the vodka market through the Magic Moments brand.

“The idea to drink dark spirits is to get high, which might not appeal to the younger generation that wants to enjoy the concept of drinking.”

Furthermore, according to a 2014 Euromonitor report, flavours were responsible for almost 29% of vodka sales in 2013 – markedly more than 5% four years ago.

The report attributed the increase to a growing number of women finding favour in flavoured alcoholic beverages and higher disposable incomes among younger consumers.

However, the Indian market remains predominantly whisky-forward.

“Vodka as a category is still less than 5% of Indian made foreign liquor market which is heavily skewed towards whisky,” commented Ahmed Rahimtoola, marketing head at Allied Blenders, which sells Wodka Gorbatschow.

“There will always be more people either entering the spirits market through whisky or graduating from vodka.”