In India, traditionally known for whiskey, more people are now turning to wines and other spirits, marking a shift toward premium alcoholic beverages. Moët Hennessy India, part of the luxury group Louis Vuitton Moët Hennessy, sees this trend as a significant opportunity for growth. The company believes that once upcoming free trade agreements (FTAs) with countries like the UK are signed, the taxes on imported liquor will drop, making it more affordable and boosting demand.
Ipsita Das, Managing Director of Moët Hennessy India, shared that the way Indians drink is changing. While whiskey on the rocks and gin and tonic were once popular choices, wines and spirits are now mainstream. Premium drinks are becoming more popular, a trend that Moët Hennessy sees as sustainable. The company is benefiting from this shift, especially since it focuses solely on luxury products, with tequila also gaining some traction in India.
However, the high taxes on foreign liquor remain a challenge. Liquor pricing in India is complicated by state-specific regulations, which can change frequently and are not covered by the Goods and Services Tax (GST). Additionally, India imposes one of the highest customs duties on alcohol in the world—150%—along with varying state taxes. This makes foreign drinks, like Moët & Chandon, much more expensive in India compared to Europe, where a bottle costs around 45 euros but can go up to 100 euros in India, depending on the state.
Despite these challenges, India’s increasingly well-travelled consumers understand that high prices are mainly due to taxes and duties. Moët Hennessy hopes that the FTAs under negotiation will ease these tax burdens and boost consumption. Additionally, domestic wines are gaining popularity, with Moët Hennessy producing both still and sparkling wines under the Chandon brand, which are performing well in the market.
