Diageo India eyes growth in Tier 2 cities

Diageo India, the makers of Johnnie Walker, Black & White and Black Dog whiskies, is eyeing Tier-II cities to fuel its growth in India. Abhishek Shahabadi, head of marketing for the luxury and premium portfolio of Diageo India, said: “For the longest time, we have been focused on the top 5-6 cities for selling premium scotch and premium whisky brands.” The company is in the midst of repurposing its advertising and marketing spends to focus on the top 25-26 cities as growth in the sector is coming from smaller towns like Indore and Guwahati. The India unit of Diageo Plc has about a 45 per cent volume share in the three million case per year scotch whisky market and is growing at a rate of 8-9 per cent. The growth rate in non-metro towns, in early- mid double digits, is outpacing the overall market growth rate, said Shahabadi. Penetration is also being driven by growing affluence and the younger consumer who is open to experimentation. Out-of-home consumption accounts for 64 per cent of domestic sales. The company is focused on driving this by presenting scotch whisky with a whole range of new experiences-like the Johnnie Walker Gourmet Experiences, a curated tasting session where food is paired with a drink.