John Distilleries Pvt. Ltd, India’s fifth largest spirits firm, is in the process of doubling its malt whiskey production capacity. The company, which sells single malts under the Paul John brand, also plans to launch its higher strength peated and non-peated variants in Goa this year.

John Distilleries currently has a malt production capacity of 60,000 liters per month. The firm will begin to put its additional capacity to use in about two months, its chairman Paul P. John said in an interview.  John also said he wants 20-25% of the spirits maker’s portfolio to consist of premium liquor brands, including single malts, in five years. The company sold 20,000 six-bottle cases of its Paul John brand last year and is targeting 50,000 cases this year.

“I believe there is a great opportunity in the single malt segment because it is completely untapped. It’s been overpriced. Today, companies like ours are coming into the market with pricing that is ideal. And if you see, many people (from India) are traveling abroad now and are getting introduced to wine, whiskeys,” said John, adding that such consumers typically retain their liking for that kind of beverages even when they are back in India. 

The basic Paul John single malt, a non-peated 46% alcohol by volume (ABV) version named Brilliance, retails at Rs3,600 in Karnataka for a 750ml bottle and at $55 in the US. At the higher end is its Peated Select Cask, a 55.5% ABV variant that retails at $100 in the US. In comparison, Amrut Distilleries Ltd’s basic single malt retails at Rs3,300 for a 750 ml bottle in Karnataka and its more premium peated variety retails at Rs3,900.

Peated whiskeys are those that have an added smoky flavor, which can either come from peat fire that is used to dry the grain or from the addition of water drawn from areas rich in peat while making the whiskey. Non-peated whiskey does not have a smoky flavor.

While many states do not permit the sale of alcoholic beverages with an ABV higher than 46%, Goa has given John Distilleries permission to launch its higher ABV malts and the distiller is in the process of doing so.  John Distilleries first launched it's Paul John single malts in the UK in 2012. It began selling that brand in India just a year ago and only in select markets Bengaluru, Mumbai, Pune, Chandigarh, Pondicherry and Hyderabad. 

“Indian players need to get the positioning, taste and quality right. It is a very large market abroad. Even the Indian market today is opening up to premium alcohol consumption. With multiple new avenues opening up in the metros and the digital media influence even on buying alcohol, the market here is getting equally relevant,” said Sridhar Prasad, partner, KPMG in India.

But even four years after its launch, the Paul John brand only accounts for less than 1% of John Distilleries’ overall portfolio. Bengaluru-based Amrut Distilleries launched its first single malt in Scotland in 2004. Single malts now account for 12% of its total revenue and its executive director, Rakshit Jagdale, expects that contribution to go up to 25% in five years. 

Read More at source: live mint