Innovation is reshaping the alcohol industry, as Indian consumers are gravitating toward premium and sophisticated experiences in recent times. 

A Future Market Insights report highlights that growing demand for imported and craft spirits, alongside the rise of microbreweries, is driving significant growth in the sector.

Amid this evolution and increase in demand for innovation, Diageo India has launched the 'X' series by McDowell's & Co., marking a new chapter for the 125-year-old spirits brand. 

While preserving its heritage, the brand is poised to disrupt the market by appealing to younger consumers through innovative packaging, digital marketing, and strategic influencer collaborations that align with modern expectations.

With this venture into white spirits and dark rum, the brand seeks to redefine modern sophistication, offering a fresh, premium appeal that resonates with today’s consumers, especially the youth cohorts. 

During the launch in Mumbai on 24 September, Manifest caught up with Varun Koorichh, vice president and portfolio head, marketing, Diageo India, to delve into the vision behind exploring the white spirits and dark rum segment, its marketing plans for the 'X' series and how it seeks to speak to the evolving tastes of today’s discerning consumers.

Edited excerpts: 

Why did Diageo India expand McDowell's & Co. into the white spirits and dark rum segments, and how does this fit into the brand's larger strategy?

All of this aligns with the broader premiumisation strategy we're seeing across categories in India. It's not just about elevating this specific segment, but about reflecting the overall shift in the country's consumer landscape. The alcohol category, currently valued at around USD 55 billion, is expected to grow to USD 64-65 billion over the next five to six years, driven by rising disposable incomes, rapid urbanisation, and a desire for better drinking experiences. Consumers now prioritise quality over quantity, and they're willing to pay more for premium offerings.

The younger generation, in particular, is leading this shift. They are experimenting with a wider range of options, no longer sticking to the traditional whiskey brands favoured by Gen X. Their exposure to global trends, fueled by connections with friends overseas, has made them more open to exploring new flavours and experiences. Recognising this shift, we saw it was the right time for a brand with McDowell's & Co. 125-year legacy— a well-established whiskey brand—to make its mark in the white spirits segment.

The white spirits category is an exciting space, growing at a rapid 18% CAGR and valued at around 11 million cases. With such dynamic growth, we knew McDowell's & Co. had to assert its authority here with innovative and differentiated propositions.

How do you plan to position the 'X' series within India's highly competitive spirits market, and what distinguishes it from current offerings?

The word is 'disrupt'. Today’s consumers seek premium spirits, but they also want accessibility, and that’s where McDowell's & Co. comes in. We don’t need to prove our credibility; premium liquids have always originated from McDowell’s, and this new offering is no exception. Our approach for this new segment's product, price, place, and promotion carries a disruptive essence. 

The bottle will feature a cork, making it the first in the prestige category to do so. The label design includes a striking 'X' that embodies our theme of 'Unexpected', showcasing something consumers wouldn't anticipate from McDowell's & Co.

Everything from product to pricing, placement, and promotion will reflect this disruption in how we present ourselves to consumers, both on-trade and off-trade. Our strategy focuses on digital engagement, leveraging the right influencers to connect with the younger audience. This category has been relatively dull, and we aim to inject excitement and freshness, positioning ourselves perfectly to deliver that to our consumers.

Will influencers be leveraged for this new launch? 

In this category, it’s essential to be precise in selecting the right properties, experiences, and influencers for activation. At its core, McDowell's & Co. represents friendship, and we’ve evolved from being the 'No. 1 Yaari' brand to a product that embodies 'Yaaron Waali Baat'. We brought in Kartik Aaryan to enhance this new philosophy last year and help with our reach and impact, as he resonates strongly with the theme of friendship through his diverse projects. 

When choosing influencers, they must connect with our target audience—those eager to experiment with flavours, cocktails, and mixers, and who are well-informed about trends. By aligning ourselves with the right experiences and influencers, we ensure that we resonate authentically with both the brand and our consumers.

How will the 'X' series leverage the brand's established ethos of friendship, built on the ‘No.1 Yaari’ philosophy, and now redefined through Karthik Aaryan's 'Yaaron Waali Baat'?

This approach is fully aligned with our premiumisation strategy, moving away from No.1 Yaari to now Yaaron Waali Baat. It’s about front-and-centre brand communication that reflects our commitment to inclusion and diversity. For instance, we brought on board hearing-impaired actor Saad and showcased how Kartik Aaryan learns sign language to better connect with all audiences.

This initiative demonstrates our dedication to walking the talk when it comes to brand values. We aim to remain authentic in our positioning, particularly with this new offering, focusing sharply on engaging younger consumers and resonating with their interests. We’re ensuring our messaging reaches them through the channels they frequent, as our core philosophy revolves around the concept of friendship in various forms.

How is the trend of premiumisation influencing consumer expectations for experiences at Diageo? Has this impacted McDowell's & Co. consumers?

We see it as an exciting challenge presented by our consumers. They are telling us: "We have the money and are ready to pay for premium liquids." 

However, they still want these premium options to be accessible, not purely luxurious. We embraced this challenge, recognising our strong 125-year heritage in the whiskey brand segment. Who better than us to respond to this demand? Our answer isn't limited to just one category; it's a diverse lineup featuring vodka, gin, rum, and dark rum—all encapsulated in our innovative 'X' series.

What are the challenges in the alcohol category?

There are no challenges as such that we foresee. Our approach revolves around actively listening to our consumers. We need to maintain this focus and remain open to discovering new insights that can further drive our innovation and premiumisation journey. For us, it’s all about staying attuned to our audience—being present where they are, observing, and absorbing their feedback. This information is vital as we share insights with our marketing, sales, and dedicated R&D teams, enabling us to continue innovating effectively.