Campari India Private Limited is working towards establishing itself as the fifth-largest international spirits player by 2025. Its entire products portfolio, which includes Campari, Wild Turkey, Aperol and Skyy Vodka, is likely to double in sales for FY20-23 vis-à-vis the year earlier.
Ashutosh Rajput, Campari India’s country head, said the company changed its business model in 2020, from being a marketing services company to a transacting one. “We also expanded from just having Campari and Skky vodka in our Indian portfolio to adding about eight new brands. We are also going to increase our marketing investments here.”
Rajput pointed out that despite the disruptions brought about by COVID-19, Campari India’s portfolio of premium spirits, which was consumed highly at bars and restaurants, has moved to home consumption or retail. About 75% of Campari India’s business now comes from home consumption.
Vikram Achanta, co-founder and CEO Tulleeho, said American whiskies in India as a category have traditionally done well, largely fueled by Jack Daniel’s and Jim Beam. “The pandemic has also seen an up-trading by consumers across most segments of the spirits market. Many consumers are buying better alcohol for home consumption. Consumers are now more amenable to indulging themselves by buying higher quality and priced pours.”
Campari Group stated that 7.4% of its business came from the Asia-Pacific market in 2020 and 43.7% came from the US – the company’s largest market. About 19% of its entire sales came from Italian bitters aperitif Aperol and about 10% from Campari; and 8% of its entire business came from Wild Turkey whiskey in 2020.
Rajput pointed out that in India, there is demand for Old Smuggler blended scotch whiskey. “In India, of the entire spirits market, 60% is made up of whiskey. Within that, about 2% is the imported whiskey segment. While that is a very small base, it has great headroom to grow. We too are seeing a great demand for premium products.”
Achanta agreed that there is a demand for premium bourbons like Wild Turkey and Maker’s Mark, as well as for more brands in categories like Rye whiskey. Rajput added that while Campari India is one of the last ones to enter the market, it would be the fifth-largest company in the world in terms of spirits. “We also see great opportunities with tequilas and Proseccos in India. Premium rums are also seeing a sort of a global resurgence.”