“Transformation in the alcobev retail environment, with larger browsable retail formats with a range of imported and domestic brands and category innovations, is opening up a world of opportunity,” said Nita Kapoor, chief executive officer of International Spirits and Wines Association of India (ISWAI).
The report mentioned that the rise in sales from these stores was seen during the last calendar year, a trend which has been sustaining so far in 2023.
The report said these premium stores are leading to more women shopping since they find these stores safer compared to regular stores; overall shoppers find these retail formats as offering more ‘relaxed browsing’, and states are generating better revenues from the premium outlets.
“There is an imminent generational shift in the way alcobev drinks are being bought and consumed,” said Rahul Singh, chief executive and founder of Beer Cafe, which operates about 35 outlets. “Mass products are pivoting into craft and consumers drinking better has led to premiumisation of the category. We have witnessed this across spirits, wines and beers,” Singh said.
Executives added that overall, shoppers find these premium gourmet-style stores to be higher on experience, variety and offering relaxed browsing during weekdays and non-peak time, which is leading to more trials, experimentation and impulse consumption, as well as offering brands activation opportunities.
“Earlier, customers used to fulfil their premium liquor requirements either from duty-free shops or from the black market, which had limited availability of brands. This has now been taken care of by high-end liquor stores.” said Prem Dewan, managing director of DeVans Modern Breweries, which makes beer and single-malt whisky.
“The high-end liquor stores are equivalent to five-star outlets with their ambience, ample space for the consumers to pick brands of their choice, coupled with competitive rates,” Dewan said.
Vineet Sharma, vice-president, marketing, AB InBev India, said premium liquor stores helped drive sales of their high-end brands across urban centres. “By offering a premium purchasing experience, these outlets attract more footfalls than traditional ones, especially women consumers.” He added that the retail experience across smaller towns remains a challenge.
According to a related ISWAI report along with global research agency IPSOS, bigger sizes for whisky are more popular at premium stores, while smaller ones are driving more beer consumption. It said 18% whisky brands and 34% beer brands have higher offtake at premium stores compared to regular outlets.
