HERALD: Tell us about Diageo’s foray into small format packs and what was the insight behind introducing a hip mini version of existing scotch brands?
NITESH CHHAPRU: Scotch whisky in India is significantly under penetrated as compared to other Indian spirits. This is due to the higher price of Scotch whisky which in turn restricts usage within older consumers and in more formal and special occasions.
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Legal purchase age and millennial Indian consumers are seeking premium lifestyle experiences that reflect their modern, active and evolving status. Being pioneers in the liquor category, we wanted to introduce an innovation with the aim of positioning Scotch whisky as a contemporary category for the new order of social occasions.
The Scotch Hipster is a 180ml hip-flask-size pack designed to meet the changing millennial culture of buying a smaller pack before transitioning to a larger bottle. However, it is now more relevant than ever and serves as an innovative and affordable alternative to full-sized bottles.
HERALD: What is the importance of Goa as a market for you?
NC: Goa is the trend leading market for India which offers a unique culture of fiesta and amazing experiences for consumers to immerse themselves. In these times when travel in general and international travel in particular has been constrained over nine months, Goa is a really important market for seeding any new idea or innovation and the same applies to Scotch Hipster.
HERALD: Who is the hip mini versions of scotch brands aimed at?
NC: Scotch Hipster is a premium scotch format designed to fulfill the need for ‘stylish spontaneity’. The range has been able to target existing consumers that consume premium products as well as recruit new consumers, especially millennials, and expand occasions for our Scotch trademarks.
HERALD: What was the need for Diageo to adapt products to millennial culture and their lifestyle changes?
NC: At Diageo we are always looking for new ways for people to enjoy our award-winning Scotches. It is this same spirit of experimentation and innovation that led us to create this compact new style that gives people a new way to share our scotch whiskies.
We find ourselves living in a dynamic ecosystem where the consumer is at the forefront, driving new trends every single day. The ever evolving and aware consumer coupled with rapidly increasing competition has given rise to a need for marketers to continue to innovate, in order to satisfy their audiences and survive the industry.
By making premium scotch portable, the Scotch Hipster allows new age consumers to share and cherish informal, lively and spontaneous moments.
HERALD: The Alco-bev sector saw a complete shutdown during the lockdown. What challenges you have had to face in this period? How are you coping with it?
NC: The pandemic has had an impact on businesses and people alike. It definitely was a challenging time for everyone. Our business heavily depended on on-trade consumption. Given the lockdown our business was heavily affected. We are cautiously optimistic as on-trade opening up slowly, in-home consumption takes precedence and there is a prolonged phase of festivities in the air.
