India's RTD Market Sees Smirnoff ICE Launch

Diageo India has launched Smirnoff ICE, introducing variants with 4% and 8% alcohol by volume to capitalize on India's growing ready-to-drink (RTD) beverage market. The company is initially rolling out these products in Goa, Bengaluru, and Mumbai. This expansion targets changing consumer habits and increasing interest in flavored alcoholic drinks.

The RTD category in India is experiencing significant growth, with a reported 12% increase in volume year-on-year. Diageo aims to attract younger legal-drinking-age consumers, noting that this demographic often has different socializing preferences and is driving trends like premiumization and increased gender participation in alcoholic beverage consumption.

Globally, Smirnoff RTD is a prominent brand available in over 100 countries, including the US, Brazil, and Australia. The introduction of Smirnoff ICE in India, particularly ahead of the festive season, is expected to encourage experimentation with new beverage formats among consumers. Diageo India views India as a crucial market, ranking first globally by volume for the company.

Praveen Someshwar, MD and CEO of Diageo India, stated that RTDs are expected to broaden the beverage choices for younger consumers, who are increasingly drinking more in terms of value. Different alcohol strengths, such as 5% and 8% ABV, cater to various occasions, with lower-ABV options competing with beer and sparkling beverages. Diageo employs a phased approach for new product expansions nationwide.