There is a steep inclination towards luxury drinking experiences, which has a direct correlation with premiumisation of alcoholic beverages, says Prem Dewan
Highlighting that the focus of premiumisation is directed towards drawing in affluent customers willing to spend more for distinctive experiences, Prem Dewan, the Chairman and Managing Director (MD) of DeVANS Modern Breweries says there is a steep shift towards luxury drinking experiences which has a direct correlation with premiumisation of alcoholic beverages fuelled with more disposable incomes in the hands of the consumers.
The Chairman of the company, which makes the Godfather beer, highlights that while it improves the brand’s reputation with facets like exclusivity, luxury and sophistication, it eventually leads to increased customer retention and brand loyalty.
In an interaction with BW Businessworld, Dewan shared insights on the company’s performance, update on recent tie-ups, strategies regarding tapping the non-metros as well as the trends driving the Indian alcoholic beverages market. Dewan also delved deep into the expectations in the current fiscal year and what new the company is aiming to offer.
Edited Excerpts:
How did the company perform in the fiscal year 2025 (FY25) and what were the crucial factors which drove growth?
Beer sales, which comprise the major component of our revenues, increased by about 50 per cent during FY25, riding on the various production tie-up agreements entered into by us with breweries in other states. We now have production tie-ups in five states in addition to two company-owned breweries in Jammu and Kashmir (J&K) and Rajasthan.
Better availability of our brands, coupled with uniform quality of our products and improved marketing budgets, helped us to post rapid growth in our sales and the momentum is expected to be carried forward this year also.
With your recent production tie-ups in Arunachal Pradesh and Jharkhand, what kind of revenue impact or operational advantage are you expecting in this fiscal year?
Demand for our brands is almost uniform across regions. We have been able to meet these demands efficiently through almost a pan-India presence enabled by our own state-of-the-art production breweries, a robust supply chain network and strategic production partnerships in states like Uttar Pradesh, Assam, Jharkhand, Arunachal Pradesh, Tamil Nadu, etc.
This has given us a significant operational advantage as we are able to cater to demands across different geographies and navigate through the diverse taxation regimes. Local production and distribution are always more conducive for capitalising on the market strength and so has been the case with us.
What are the top trends shaping the Indian beverage industry in 2025, especially in the premium and craft segments?
Consumer preferences are ever-evolving and one trend hogging the light currently is a steep inclination towards luxury drinking experiences which has a direct correlation with premiumisation of alcoholic beverages fuelled with more disposable incomes in the hands of the consumers. The concept or strategy of premiumisation is focused towards drawing in discerning, affluent customers willing to spend more for distinctive experiences as well as the perceived prestige associated with certain products.
While it improves the brand’s reputation with facets like exclusivity, luxury and sophistication, it eventually leads to increased customer retention and brand loyalty. The huge improvements in beer quality, especially of the domestic companies during the past few years, coupled with the easy availability of foreign brands, have fuelled this trend.
DeVANS has always been at the forefront of innovation and experimentation, which has helped us immensely in developing and launching our premium offerings. All our brands have been well-received in the market. We have developed all our products in-house.
How significant are tier two and three cities in your overall growth strategy and what are the unique opportunities or challenges there?
India’s beer market is equally distributed throughout all regional levels, from semi-urban to rural, and from metros to cities. DeVANS has always been very particular about its growth in the tier-two and tier-three cities. Though tier one and tier two cities have the most demand for luxury beverages, strong beers have historically been very popular in the tier-two and tier-three cities. This has enabled us to penetrate deep into such cities.
How would you describe the Indian consumer of today in terms of evolving tastes and increasing experimentation?
Indian consumers today are more open to experimentation and are more than willing to try new offerings with a very open mind. We have a plethora of new products in the market now, products which were just not there a few years back, such as mead, hard seltzers, wine coolers, which are now doing reasonably well, riding on the experimentation wave.
It was never thought that Indian single malts would be a force to reckon with in the Indian markets. However, they are now outselling their foreign counterparts with a variety of price ranges, from the most affordable to the most expensive, an experience that is unprecedented for most. Our single malt, GianChand has gained recognition through word-of-mouth and also bagged awards in India and abroad. We will soon be coming out with two new exquisite expressions of the brand.
What’s your goal for DeVANS in the next five years, both in terms of market presence and brand identity in India and possibly abroad?
We have always been high on innovation and experimentation to bring out fresh products aimed at elevating everyone’s drinking experience. We have just recently expanded our Six Fields family with the introduction of the Six Fields Brute and Six Fields Pilsner beers. We are now set to surprise all with our landmark single malts.
Going forward, we hope to come up with some more earth-shaking single malts, which would be limited editions and expressions finished in wine barrels; our premium liquor offerings- Gins, Vodkas, Whiskies and some lip-smacking RTD’s and hopefully a matured Rum. We also hope to have our beers available in all Indian States.
