Bengal Scotch prices are set to fall by 7% to 10% after the UK free trade agreement, with several bottled-in-origin brands expected to become cheaper in the state ahead of the puja season, according to a report by the Times of India. Some brands have already seen price reductions, while further changes are expected in the coming days.
The price cuts are expected to cover brands including Chivas, Black Label, Double Black, Glen-labelled products and Talisker. The report said most of these brands are associated with global companies Diageo and Pernod Ricard. The reductions apply to bottled-in-origin, or BIO, Scotch, a category in which the spirit is bottled in Scotland.
Under the reported revised pricing, some entry-level BIO brands could fall below Rs 2,000 and compete more directly with high-end Indian-made foreign liquor. Certain categories of Chivas and Black Label could be priced below Rs 3,000, while some single-malt categories are expected to fall below Rs 4,000.
The report distinguishes BIO products from overseas spirits bottled in India, or OSBI. In the OSBI category, spirits are imported in casks from Scotland and blended and bottled in India. The reported price reductions specifically concern the BIO segment.
Industry experts cited in the report estimate that BIO products account for 1.5% to 2% of Bengal’s liquor market by volume, but 4% to 5% by value. The state’s total liquor market, excluding beer and country spirits, was estimated at 1.3 crore cases, with each case containing 12 bottles of 750 ml. The broader liquor industry in Bengal was valued by experts at about Rs 38,000 crore.
Beer and country spirits together account for an estimated Rs 10,000 crore to Rs 11,000 crore of that market, while Indian-made foreign liquor and BIO products make up the remainder. The BIO segment alone was estimated to be close to Rs 1,500 crore in Bengal.
A liquor retailer told the Times of India that the price reduction could lead to stronger sales in the category at both retail outlets and bars. The expected increase in demand would be commercially significant because the BIO segment has a relatively small volume share but a larger value share of the state’s liquor market.
The report also provided figures on the state’s wider excise and liquor economy. Bengal recorded liquor sales of Rs 22,000 crore in the 2022-23 financial year, compared with Rs 18,000 crore in 2021-22. Beer sales reached about Rs 4,000 crore in 2022-23, up from between Rs 1,700 crore and Rs 1,800 crore in the previous financial year.
State excise revenue rose from Rs 3,587 crore in 2014-15 to Rs 16,000 crore in 2022-23. For the current financial year, the state government has set an excise revenue target of around Rs 25,000 crore. The reported BIO price reductions therefore come within a market that is important not only to retailers and consumers but also to state revenues.
The remaining price changes are expected to be implemented over the next few days, with the revised rates applying across relevant retail outlets and bars as inventory and pricing updates take effect.