John Distilleries, the producer of Paul John Single Malt Whisky, has launched the second phase of its Malt Plant in Goa, increasing the facility's production capacity from 1.3 million litres to 3 million litres annually.
This is in response to the growing demand for its whiskies, says chairman Paul John.
Paul John Single Malt Whisky was introduced by John Distilleries in 2012, marking the company's entry into the international spirits arena. The company claims to have received over 330 international awards since then.
In an exclusive interview with Outlook Business, John describes the company's vision of introducing more drinkers to premium whiskies and explains how it has grown to help India compete in liquor manufacturing on the global level.
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Edited Excerpts:
What gives you confidence in this major expansion, and more importantly, why do you believe this is the right time to pursue it?
Single malt is something that takes a long time to get established, especially in India, where it's still a novelty. Over the last four or five years, we've been able to seed the market, generating a lot of interest, particularly among Indian consumers. Our volumes are starting to grow. As you know, single malt takes at least six to eight years to mature, so we need to plan at least 10 years ahead based on expected volumes. Until now, we were waiting to see if single malt, and our brand specifically, would gain acceptance in India.
In recent years, we've seen clear signs of growing demand, putting us in a better position to predict future volumes. It seems we’re already running short of liquid. Unlike other spirits, where supply can be adjusted quickly, single malt production takes five to six years to meet demand. So, we feel the need to act now to ensure that, in four to six years, we can meet the projected demand. Currently, we’re already unable to supply some variants due to limited liquid, as demand is outpacing our supply.
If we don’t start expanding now, we’ll face challenges six to 10 years down the line. That’s why we’re here. We've already expanded – this is actually our third expansion. Initially, we moved from four units to ten, and now we’re aiming for ten to twelve.
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With such rapid expansion, how have you managed funding?
Fortunately, we have a strong partner in Sazerac, a US-based company, and our funding is currently supported through a combination of their partnership and bank backing. So, I don’t foresee any issues with funding.
Has the trend of premiumisation, with consumers increasingly purchasing higher-end products, been reflected in the liquor industry?
Absolutely, the trend is definitely evident. In the single malt category, we’ve seen financial growth of 30-40 per cent. There's a noticeable shift among middle-income consumers, who are now more willing to spend and eager to taste high-quality products. This trend is not only visible but continues to grow. Given the current development trajectory in the country, I don’t foresee any slowdown.
This is also why we’re forecasting rapid expansion. We’re planning to multiply our efforts with new plants and facilities to keep up with the demand.
From a business perspective, what shifted your focus to single malts?
My attraction to single malt started from a personal enjoyment of it. I realised India didn’t have a high-quality Indian single malt, so I thought, why not create one? Thankfully, I was able to think ahead—well before companies like Diageo and Pernod, who only noticed the potential after we launched. Now, they're scrambling to source aged liquid, as it takes at least six to eight years from decision to launch for single malts. My decision was based purely on experience and passion for single malts, and I'm glad I took that leap.
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There has been a perception that the best single malts could only be made in European countries like Scotland and Ireland. What convinced you to go against it?
I initially started in the alcohol trading business before moving into whisky manufacturing. After college, I tried different ventures but ultimately secured a license to produce alcohol. We started in the domestic market, with our brand Original Choice Whisky, which now sells over 22 million cases a year.
As I travelled and tasted single malts and wines, I thought, 'Why not make single malts in India?' That idea stuck, and I began exploring the process. At the time, no one had made single malts in India. I made numerous trips to Scotland, as you said the general belief was that single malts could only be produced there, given the unique qualities attributed to their water and environment.
After extensive research, I realised that much of the belief around Scotland’s unique water was just marketing. I even brought back some Scottish water to test it here, just to see if anything essential was missing. But it turned out we have excellent water in India too, so there was no reason we couldn’t produce high-quality single malts ourselves.
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But how do you promote it abroad because India has never been seen as a manufacturer of whiskies?
The first strength I had was the confidence in the quality of the single malt I was producing, based on the extensive tasting I had done. However, alcohol marketing is not easy, and we faced a big challenge with limited funds.
One of our main hurdles was convincing people that age doesn’t necessarily define quality. The traditional marketing in Scotland emphasised 12 to 14-year-old whiskies, but that's because their colder climate slows maturation. In India, our tropical climate speeds up the process, with an evaporation loss of about 10 per cent annually, compared to just 2 per cent in Scotland.
We began pushing the idea that age doesn't determine quality after winning awards with our six-year-old single malts, competing against 18-year-old Scotch whiskies. It became clear that age isn’t the key factor, and now many Scotch whisky brands have started removing age statements from their bottles. The so-called 'age bluff' has been called. It's not just India—countries like Japan and Taiwan have also begun producing high-quality single malts with fewer years of aging. In the beginning, we focused a lot on tasting programs, like the 'liquid on the lip' approach, and I travelled extensively to spread the word.
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How much have you invested in research and development (R&D) to produce whisky locally and compete on a global scale?
Honestly, we didn’t spend much on R&D. It was more about diving in and getting my feet wet. Initially, I had some apprehensions—wondering if we could really produce a quality product, if we were missing something like the right water or climate. But once I was convinced, there was no looking back.
As for product quality, I didn’t make any compromises. We ensured we picked the best casks and used high-quality pot stills. As the ageing process progressed, our confidence in the product grew. Having tasted many international brands, I quickly realised that our brand was on par with the best.
With that confidence, we ventured into the international market. Initially, it was a challenge. People would ask if we were producing it from molasses because they assumed India only made alcohol from molasses. We had to explain, show slides, and educate them.
The first two to three years were tough, but after that, things changed. Now, most people have tested Indian single malts, particularly our variants. It’s reached a point where they’re saying, 'We love your brand, we love the brilliance, what else do you have.”
The varieties of single malts we’re producing have been very well received. Now, globally, it’s recognised that India produces quality single malts. Other Indian producers have also risen to the occasion, matching high standards, which helped establish India's reputation in the international market. We’re proud to have played a significant role in this achievement.
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With a strong preference for foreign single malts like Glenfiddich, Glenlivet, and Macallan in India, how do you navigate the competition in your home market?
Fortunately, the experience and reputation we’ve built internationally are now starting to reflect in India as well. Single malt enthusiasts here are becoming familiar with our awards and recognition. We’ve also expanded our promotions locally, rolling out our 'Liquid on the Lip' program extensively, allowing more people to experience our product firsthand.
When it comes to international brands, they’re certainly good, but in my view, we’ve done a much better job. Unlike these brands, which are often commercially produced in bulk and chill-filtered, we don’t chill filter our single malts. This distinction in our approach makes a significant difference in quality.
A lot of character is lost during the chill filtration process, which is common in mass production. By contrast, we remain dedicated to a more craft-oriented approach, preserving elements that we believe have contributed to our success. We also extend our fermentation period and bring a high level of personal attention to each batch.
The casks we use are all hand-selected from some of the finest distilleries abroad, ensuring top quality. For instance, we recently introduced new casks for special releases, like the Mithuna, which was aged in a virgin oak cask and won the award for the world’s third-best whisky.
Overall, we’ve made strategic choices that have, in my opinion, elevated the quality of our product. This has allowed us to stand out and gain recognition for the difference in our single malts.
You use Peat in some of your variants, which is generally not found in India. To get a sense of how locally produced the whisky is, do you source any other ingredients from abroad?
Peat is essentially decayed vegetation that has decomposed over hundreds or even thousands of years. Unfortunately, we haven’t been able to source peat in India yet. It's not a direct ingredient but rather a smoking agent used during the drying of barley.
We also continue to import our casks, as we haven’t identified a suitable indigenous wood for cask production here. So, while we import the peat and casks, everything else in our production is locally sourced.
We import peat from Scotland and Ireland specifically for the peating process used with Indian barley. To clarify, while some believe we import peated barley, that’s not the case—we use Indian barley. During the malting process, we add peat to infuse a smoky flavour into certain variants.
How would you compare the ease of doing business as a liquor maker to other industries?
The liquor industry has always been complex, and this is true worldwide, largely due to taxation. In many states, around 25 to 35 percent of revenue comes from alcohol taxes, making it a heavily regulated sector. These challenges have always existed, and while they remain, we’ve adapted and learned to navigate them over time.
Have you considered venturing into beer production to tap into a larger consumer base?
We produce all types of alcohol except beer, which is a completely different market. The manufacturing process for beer is distinct, and it’s a brand-driven industry dominated by major players with significant capital. Right now, beer isn’t a focus for us; instead, we’re committed to other segments of the alcohol business.
For instance, we have our own XO brandy, crafted from 100 per cent pure grape spirit. Unlike many brandies sold in India, ours is distilled directly from grape juice and aged for over eight years in French Limousin casks. This brandy is our answer to cognac, comparable in quality and price to international names like Hennessy XO or Rémy Martin. It has been very well received.
What is the idea behind your limited Christmas edition?
It is more of a collector's edition. Each year, we produce only about 7,000 bottles, representing a unique blend for that season. Once it's gone, it’s gone—never to be recreated. The packaging and blend change annually, giving it a special, seasonal feel, particularly during Christmas. We've maintained this tradition for the past six years, and this year’s Christmas edition has just been launched.
Given the intense competition in the single malt space, do you plan to invest in marketing and promotional strategies going forward, or will you continue to rely on tradition?
Our policy has always been to get the liquid onto people's lips. India has a large whisky-drinking population, but 99 per cent of them mix it with soda or water—this is a habit rooted in British colonial influence. Now that we offer high-quality whisky, it’s time to encourage people to appreciate it for its flavour and taste, to enjoy it as it’s meant to be enjoyed.
Once we can achieve that shift, our job will be done. We’ll continue to focus on increasing our presence in outlets and educating existing whisky drinkers—many of whom may already be familiar with single malts or blended scotch. These are the low-hanging fruits.
Entering this new territory makes our job easier compared to trying to take market share from established competitors. There’s a significant opportunity to introduce more people to premium whisky, and we hope to be among the first to lead them down this path.
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