International Investors Vying to Pick Stake in makers of Kadamba Single-malt

Panaji (Goa): The Indian Single-malt whiskies continue to make headlines as the fastest-growing beverage alcohol category. India remains a key market for high-end spirits–especially Indian single-malt whiskies–the country’s luxury market leadership could soon become strong with more international markets savouring this fine spirits.

Goa based luxury spirits company–Imperial Distillers (Cheers group) the producers of globally renowned Kadamba Indian Single-malt whisky, Three Monkeys Indian Single-malt whisky, Labrodog 12 years Scotch whisky and GinSin London dry gin have presence pan India and in international markets like Europe and the US, accounting higher profit margins than industry average is a perfect IPO bet claim leading financial analysts.

Cheers group is led by its visionary founder Dr. Mohan Krishna and CEO Ashwin Balivada who are among the industry’s most innovative and creative builders of beverage-alcohol brands, with a proven history of iconic brands creation.

Seeing the stunning growth factors of Imperial Distillers and the jump in overall sales of the Indian single-malt whiskies globally, few international investors are vying to pickup stake in this very successful award-winning predominantly Single-malt whisky company.

Growth in Indian single-malts is expected to continue, fuelled by the travel retail channel and positive trends in the international markets such as the US. The Indian single-malt whisky market is likely to be driven by the increasing young-adult demographic with high disposable income and consumer demand for premium/super-premium products.

The much higher maturation cycle of Single-malts allows monopoly-like status to it’s existing manufacturers and the category makes it much difficult for the new-entrants with India’s entry barriers that may even take them 10 years to compete with the existing single-malt companies.

India with such a huge population has ‘only nine single-malt distilleries’, each making a style of single-malt whiskies that’s reflective of their own climate, culture and heritage. Hence, the existing single-malt distilleries are upgrading their capacities to cater to the increased demand. Imperial Distillers with international aclodes is increasing it’s single-malt whisky production to 5-KLPD malt spirit to meet the global demand, which already received Government approval for expansion.

Demand for Indian single malts has surpassed that of Scottish and other global brands for the first time ever, according to the Confederation of Indian Alcoholic Beverages Companies (CIABC).

International Drinks companies are seeking M&A opportunities with growing Indian luxury spirits companies having strong distribution network as sales of higher-priced drinks are expected to grow more than moderately priced beverages in the next five years.

Few international spirit companies have already launched dedicated divisions focused on luxury spirits to hunt for opportunities to buy new “niche and precious brands”. Multi-national companies noted that while there are limited independent spirits companies like Cheers group in India making ultra-premium liquors–their valuations have increased even more having ample production capacities with distribution network as an avenue to sell their premium products, and that could help selling its international portfolio too.

The prohibitive current 150 percent Import duty on Scotch whisky also has added to higher demand for ‘Made in India’ Single-malt whiskies within India aswell. Thanks to Indian consumers’ patriotism to uplift the Indian farmers by sipping this great tipple!