McDowell’s Reinvents Tradition: Diageo India’s New White Spirits Strategy
Mumbai: Globally, social dynamics have shifted post-Covid, with a growing desire for active, vibrant living when it comes to socializing, connections, and celebrations. This is no different in India, where the rise of Middle India, alongside Gen Z entering adulthood and millennials seeking more refined experiences, has led to the emergence of new status symbols. There’s an increasing demand for elevated drinking experiences, moving beyond traditional whisky, and the rise of cocktail culture reflects this shift, with both young and older consumers embracing experimentation.
In this context, variety is the buzzword. It’s the perfect moment for McDowell’s & Co., one of India’s most iconic and legendary brands, with a 125-year legacy, to reinvent itself with a consumer-centric transformation. With seven distilleries spanning the country and sourcing raw materials from both India and the world, McDowell’s X Series is redefining how consumers will enjoy a diverse range of spirits, from vodka and gin to a fresh citron rum and a rich dark rum. By blending the finest Indian ingredients with globally exotic flavors, the X Series introduces a new portfolio that India has never seen before. With authentic ingredients, innovative recipes, and bold new packaging, this range is designed to deliver a truly unique and unparalleled taste experience.
This exciting new offering is poised to shake up the scene, redefining fun for the young men and women eager to try something new. With the X Series, McDowell’s continues its tradition of innovation, tailored for a new generation of adventurous consumers. Each variant is crafted for specific occasions and taste profiles, offering a harmonious blend of flavours for those who seek fresh, sophisticated, and versatile experiences that transcend the ordinary.
MadeInMedia.in’s Kalpana Ravi caught up with Varun Koorichh, Vice President and Portfolio Head, Marketing, Diageo India and Vikram Damodaran, CIO, Diageo India, on the sidelines of the launch event in Mumbai. They both discuss the strategies, the innovations, marketing initiatives and way forward…….
Excerpts:
Vikram Damodaran, CIO, Diageo India.
The strategy to launch this new range of white spirits
Vikram shares the dual approach behind the launch of a new range of white spirits under the iconic McDowell’s brand, emphasizing the reinvention of its rich 125-year legacy. McDowell’s, which initially launched Brandy, Rum, and Vodka, is undergoing a progressive transformation to cater to today’s consumers’ sensory and experiential needs.
White spirits, like Gin, have seen exponential growth over the past decade. From selling just 20,000-30,000 cases annually, the market now boasts around 400,000 cases, evenly split between imported and Indian Gins. This rise reflects the demand for distinct, versatile experiences that align with various occasions, from brunches to sundowners. Unlike whiskey, which has specific codes of consumption, white spirits offer continuous opportunities for exploration.
The strategy to refresh McDowell’s brand image involved reconnecting with its roots across different spirit categories, showcasing its versatility. Although no flavoured variants are planned at the moment, insights suggest that flavours play a crucial role for Gen Z and young consumers, who prefer smoother, more palatable options.
The technological innovations
Diageo’s approach to innovation follows a three-step process: fore sighting, development, and communication. The company prioritizes understanding unmet consumer needs, identified through both lab development and collaboration with bartenders and mixologists, who have first-hand insight into consumer preferences. This collaboration ensures that the new spirits are not only unique but also highly mixable.
Experiential events have played a crucial role in the launch, with consumers invited to immerse themselves in the versatility and mixability of the new spirits. Communication is as vital as the product itself, and events like these are designed to let consumers experience the brand in action.
The pairing of food with the spirits
Varun apart from being a great chef has worked with us on various events, and recently we had gone with him to Cannes Film Festival this year and we had done the whole Single Malt Godavari experience. Varun singlehandedly is also very experimental with food. So when we presented the ‘X Range’ to him, he came up with this wonderful idea of pairing different characters of each spirit with different types of food so that it brings the best of flavour to the consumer.
Responsible drinking and educating mixologists, Chefs etc. on the new range.
Promoting responsible drinking and educating mixologists, chefs, and others on the new range is just as crucial as the other components of our strategy. A major focus for us in building the ‘X’ brand is advocacy. We’re actively engaging with restaurants, bar owners, managers, and bartenders to create strong partnerships. Given that white spirits play a key role in cocktails, building a brand within the thriving cocktail culture in India is essential. With craft cocktail bars rapidly emerging across the country, this culture is growing and here to stay. For us, being deeply rooted in this cocktail culture is absolutely vital.
Varun Koorichh, Vice President and Portfolio Head, Marketing, Diageo India,
From Soft Drinks to hard spirits
Both roles came with their own challenges. I began my career at Pepsi, which was a dream come true at the time, especially straight out of business school. I had visions of creating ad campaigns with stars like Shah Rukh Khan and Shahid Kapoor, but instead, I was assigned a sales role in Jalandhar. I spent two and a half years managing that market, which gave me invaluable grassroots experience, before eventually moving into marketing.
Transitioning from sales to marketing was quite different between the two companies. Pepsi, being a pure FMCG giant, had a vast distribution network of 2.5 to 3 million outlets, whereas here, we operate with around 80,000 outlets. At Pepsi, distribution was key, especially since it was a cyclical business. During the summer months, more outlets were set up to sell Pepsi, and the focus was on tapping into new outlets—from small paanwalas to large grocery stores. It was all about impulse purchases. In contrast, in the spirits industry, the consumer usually knows exactly what they want before they buy. So, the emphasis in marketing here is on whether the advertising resonates and if the messaging is right. While at Pepsi, you could go all out with celebrity endorsements and platform-wide promotions; in the spirits industry, advertising is more restricted.
In the Indian market, where the demand for spirits is high, we face different challenges. Consumers have strong opinions about the brands they associate with, especially younger consumers. That’s where good advertising and meaningful brand communication come into play. For instance, the Signature brand is built entirely around sustainability, and it’s highly respected in the category for “walking the talk.” The Signature Music Festival is eco-friendly, and when communicating with the audience, Ayushmann Khurrana says, “One Signature, My Signature,” which ties the brand to environmental causes like regenerating mangroves.
Aspirations play a role, too. For example, partnering with Virat Kohli for Royal Challenge resonates with younger consumers in the mid-prestige category, who see Kohli and think the brand is “cool.”
Market Share
The key trend across industries right now is “premiumization,” and it’s not just limited to one category—it’s happening everywhere. Consumers are increasingly choosing quality over quantity, driven by the direction the country is heading. People are doing well financially, finding new ways to earn, and are willing to invest in what they perceive as premium. For instance, influencers today are juggling multiple jobs. Despite having the money, consumers are focusing on quality, especially in this category, where it’s about drinking better, not more. Consumers want to associate with brands that genuinely live up to their promises.
The rapid urbanization, the rise of smart cities, and the growth of tier 2 and tier 3 towns have given more people access, and alcohol is gradually becoming more accepted. In particular, more women are now drinking socially, feeling empowered—a trend that has emerged over the past 5 to 7 years. India is moving closer to the lifestyle seen in the Western world.
Digital advancements have also played a major role. Today’s youth want to mirror the experiences of their peers abroad. The conversation is no longer about India versus the international scene—it’s now all about India, and particularly the Indian music scene. This younger generation is willing to experiment with different categories, and whiskey, once dominant, is no longer the most exciting. Instead, white spirits are gaining traction. More brands are exploring this space, and today’s digitally native consumers don’t see a difference between local and global brands because they’re constantly connected to friends around the world.
This is an exciting time for us at McDowell’s, with current numbers standing at 55 million. The white spirits market is at around 10–12 million cases, and we’re enjoying this space relatively unchallenged. As a 125-year-old brand with credibility and heritage, McDowell’s has the trust of consumers. The label proudly reads, “Buy McDowell’s—world’s largest whiskey brand.” We know the market, we know our whiskeys, and we know how to serve our consumers.
When we started studying the younger consumer, we realized they want to be heard. This led to the creation of the disruptive design for the X Series. Moving forward, it’s about refining our communication and learning the language this generation understands. We can’t just rely on the tagline “No. 1 Whiskey” anymore. There’s significant work ahead in ensuring that we speak to this younger audience in a way that resonates with them.
Marketing Initiatives
The X Series is designed for the younger consumer who loves to experiment, whether it’s trying new flavours or enjoying different drinks on various occasions, all while tying it back to the brand’s core value of friendship. The marketing approach here won’t be traditional—it’s going to focus heavily on digital and experiential strategies. We are collaborating with influencers to better understand the language this audience uses, ensuring McDowell’s stays closely linked to the theme of friendship. By identifying festivals, pubs, and bars that promote such events, we aim to create meaningful connections with consumers, targeting warm, social gatherings where friends come together at their favorite spots. The goal is to seize the right opportunities rather than adopt a broad-brush approach.
The McDowell’s Yaari Jam, a decade-old event, is also being leveraged as a platform for innovation, especially with the launch of our Single Malt and the X Series. We’re bringing in younger performers who resonate with today’s audience, inviting them to experience this exciting new chapter. This ensures that we stay relevant in the minds of younger consumers. Each year, we’ll continue to introduce fresh talent—those who are trending among this demographic.
Marketing today has evolved, and loyalty is no longer the key driver. Instead, it’s about staying relevant and engaging with consumers in ways that matter to them.
Global v/s Indian
This shift is not limited to just this category, but is happening across the board. While penetration has not been as deep in the past, alcohol is now becoming more accepted by society. As we introduce new, exciting expressions into the market in innovative and disruptive ways, the category itself is becoming more normalized. Coupling this with initiatives like Diageo’s ‘drink responsibly’ campaign, we are seeing positive progress, though there is still a long way to go. For marketers, this presents a significant opportunity to explore how much further the category can grow and how to tap into that potential.
Looking Ahead
As India’s alcohol market continues to normalize and expand, Diageo sees immense potential in further penetrating Tier 3 and Tier 4 markets. The company is committed to understanding the evolving preferences of these consumers, who are increasingly influenced by global trends and eager to experiment. With McDowell’s X Series leading the charge, the future looks bright for white spirits in India, with Diageo poised to tap into this growing trend responsibly and innovatively.
