Suntory Global Spirits in India: Can it Reach USD1 Billion Revenue by 2030?
Suntory Global Spirits, formerly known as Beam Suntory, is setting its sights on capturing a significant market share in India with a goal of reaching USD1 billion in revenue by 2030. The Japanese alcobev manufacturer, known for brands like Jim Beam, Laphroaig, and Yamazaki, has been present in India for over three decades but has struggled to make a substantial impact in the market.
Despite launching new products like Oaksmith, a blended whiskey, the company has faced challenges in gaining traction among Indian consumers. While its premium single malts are renowned globally, in India, Suntory Global is more popular for its bridge-to-premium IMFL, Teacher’s scotch. However, the company’s market share in India remains limited, primarily in the premium pricing segment.
To shake things up, Suntory Global has introduced new pricing strategies and retail initiatives, including launching Oaksmith at competitive prices to compete with popular whiskey brands like Diageo and Pernod Ricard. The company’s portfolio also includes premium gin and vodka offerings.
Despite these efforts, Suntory Global continues to face losses in India, with revenue in FY23 standing at INR1163.25 crore and losses amounting to INR299.7 crore. The company aims to achieve USD1 billion in revenue by 2030, but the question remains whether its new products, pricing, and retail strategies will be enough to meet this ambitious target.
With the Indian spirits market dominated by players like Diageo and Pernod Ricard, Suntory Global faces stiff competition. However, by focusing on creating a volume-building brand like Oaksmith and expanding its presence across different price points, the company is positioning itself for growth in the Indian market.
As the company navigates the evolving preferences of Indian consumers, particularly the rise of Indian single malts, Suntory Global will need to adapt its strategies to stay competitive and achieve its revenue targets. Only time will tell if Suntory Global’s efforts will be enough to succeed in the Indian spirits market.
