Mcdowell’s India

BANGALORE Franchise India News : United Spirits’ McDowell’s No. 1 has become the world’s second largest spirits trademark by retail value, dislodging Smirnoff vodka from that spot. The 54-year-old brand crossed $3.6 billion in retail sales in the past calendar year.

New York-based Impact Databank’s Top 100 Spirit Brands list places Diageo’s Johnnie Walker series of scotch as the biggest brand with a trademark retail value of $5.8 billion.

While Smirnoff, also part of the Diageo stable, is second in the pecking order. The combined sales of the McDowell’s No. 1 franchise, which includes whisky, brandy and rum, has surpassed the heritage vodka brand by over $200 million.

With Diageo having picked up a 25.02% controlling stake in United Spirits Ltd (USL) for 594 million pounds last year, the debate over the No. 2 spot could be seen as a friendly family tussle.

London and New York listed Diageo now boasts of having the world’s largest selling scotch brand in Johnnie Walker and non-scotch brand in McDowell’s No. 1.

Diageo’s portfolio of brands, excluding USL, accounts for over 13% of the top 100 brands by volume and almost 23% by retail value.

The McDowell’s No.1 franchise is also the largest spirits brand in the world by volume. Whisky is the largest segment within the franchise with retail sales of $1.95 billion, followed by rum at $975 million and brandy at $665 million.

The brand was launched in 1960 with McDowell’s No.1 brandy and later entered the whisky and rum segments in the 1970s and 1990s respectively.

India’s tryst with alcohol is an old one. With the alcohol consumption story intact, the rise of the McDowell’s No.1 franchise to global fame hasn’t surprised analysts.

“From a sheer volume standpoint, I’m not surprised that an Indian liquor brand is the world’s second largest by retail sales. However, global brands like Smirnoff are more profitable and valuable assets,” said Ramesh Jude Thomas, MD of the brand consulting firm Equitor Consulting.

USL enjoys an over 50% market share in India’s over 300 million cases liquor industry.

Brand expert Harish Bijoor believes that an Indian brand’s global success in the alcoholic beverages space would cascade to other consumer sectors as well. “Give India a decade, and you will have Indian brands fast overtaking overseas brands in several categories of consumption,” he says.



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