New Delhi: Diageo India is expanding its presence in the fast-growing ready-to-drink (RTD) alcoholic beverages segment with the launch of Smirnoff ICE, targeting changing consumer preferences, younger legal-age drinkers and rising demand for flavoured alcoholic beverages. The company has introduced two variants, Smirnoff ICE at 4% alcohol by volume (ABV) and Smirnoff ICE MAX at 8% ABV, with an initial rollout planned in Goa, Bengaluru and Mumbai.
According to the company, India’s RTD alcoholic beverage market is growing at approximately 12% in volume year-on-year. Diageo India sees opportunities in premiumisation, flavour innovation and the expansion of social drinking occasions as consumers explore alternatives to conventional spirits and beer.
Ruchira Jaitly, Chief Marketing Officer of Diageo India, said the launch reflects three major consumption trends: premiumisation, greater participation by women and changing social occasions. She noted that around 100 million people are entering or are already within India’s legal drinking-age population, creating opportunities for beverage companies to develop products that cater to evolving preferences.
Flavour innovation is central to the company’s RTD strategy. Smirnoff RTD is among the leading ready-to-drink brands globally, with a presence in more than 100 countries. Smirnoff ICE is available in 111 countries, including the United States, Brazil and Australia. Diageo believes its established global brand equity and experience in flavoured beverages will support the product’s introduction in India.
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Praveen Someshwar, Managing Director and Chief Executive Officer of Diageo India, said younger consumers are exploring a broader variety of alcoholic beverages rather than limiting themselves to traditional categories. He highlighted the potential for products with different alcohol strengths to serve distinct occasions, with lower-ABV offerings competing in some situations with beer and sparkling beverages, while stronger RTDs may appeal to consumers seeking alternatives to conventional cocktails and premium spirits.
Diageo is adopting a phased expansion strategy, allowing time for consumer awareness and familiarity with the category to develop before entering additional markets. India remains a strategically important market for the company, ranking first globally by volume and among its top three markets by value, according to Jaitly.
With the Smirnoff ICE launch, Diageo India is strengthening its focus on product innovation and the RTD segment as it seeks to capture emerging opportunities in India’s evolving alcoholic beverage market.
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