Whiskey makers eye Indian market

IRISH whiskey makers are trying to crack the world’s largest whiskey market in India with the help of the Irish Government.

Massive import tariffs of up to 500%, imposed by federal and regional governments, have kept foreign spirit makers out of the lucrative Indian market.

Indian whiskey drinkers consume 112 million cases of whiskey a year, with just 1% of this coming from outside the country. Ireland produces close to five million cases a year.

Following lobbying from Pernod Ricard, owners of Irish Distillers, C&C, the makers of Tullamore Dew and Diageo, Bushmills’ owners, Taoiseach Bertie Ahern and Enterprise Minister Micheál Martin have agreed to take up the matter with the Indian Government at high level meetings this week.

The Taoiseach is in India leading a week-long trade mission of more than 80 companies accompanied by Mr Martin, Education Minister Mary Hanafin and Arts, Sport and Tourism Minister John O’Donoghue.

Diageo Ireland’s corporate relations director Michael Patten said gaining access to the Indian market would be a major boost to Irish whiskey producers and the makers of cream liquors such as Bailey’s and St Brendan’s.

“It is such a massive market that if we capture just a small percentage it would be a massive boost to whiskey production in Ireland,” he said.

Mr Patten disclosed that Diageo have already ramped up production of Bushmills to enable the company produce 700,000 cases of whiskey a year, 50% more than current rates. Diageo, which also owns Guinness, purchased Bushmills from Pernod Ricard (Irish Distillers) last summer.

Mr Martin said they were happy to lend their support to the attempts by Irish whiskey producers to gain access to the lucrative Indian market. He pointed out that negotiations were also taking place at EU level and Commissioner Peter Mandelson travels to India in the coming weeks when he too will push for access to the market.

Taoiseach Bertie Ahern said there was tremendous scope for the development of the drinks market in India by Irish companies.

And it emerged that Shannon-based Aer Rianta International has opened up initial talks with Indian airport authorities on the possibility of the Irish company running the duty free operations and two new airports being built under public private partnership arrangements in the cities of Bangalore and Hyderabad.

Elsewhere, the company is in more advanced negotiations with airports in the Caribbean and Eastern Europe for similar contracts.