SPIRITS OF CHANGE

Will the alcoholic beverages sector's bet on clean energy, circular packaging, water conservation and responsible sourcing pay off?

- SMITA TRIPATHI

LIQUOR stores in India are booming, selling premium whiskies, craft beers and homegrown gins at a staggering pace. Little wonder India’s alcohol industry is one of the fastest-growing in the world. It is projected to grow at a compound annual growth rate of 5.8% and anticipated to reach $68.75 billion by 2034, up from $39.30 billion in 2024, according to Market Research Future.

However, as awareness about the adverse impact created by businesses on the environment spreads, every industry is reorienting practices to reduce its carbon footprint. The alcoholic-beverage (alcobev) industry, too, is aligning growth with sustainable practices. From the millions of litres of water used in brewing to the mountains of glass bottles discarded every year, the industry’s environmental impact is difficult to ignore. The concerns have made leading players such as Pernod Ricard India, Diageo India and Chandon India rethink everything from packaging to water conservation to ensure that sustainability is more than a buzzword.

“Globally, and in India, our sustainability agenda is guided by Diageo’s ‘Spirit of Progress’ ESG action plan. This agenda is built on three strategic pillars: pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting positive drinking,” says Srinidhi Rao, Head of Sustainability, Diageo India, which has brands such as Godawan, a Made-In-India single malt whiskey that supports conservation of the Great Indian Bustard and uses locally sourced six-row barley.

Since 2020, the company has reduced water use by 54% in its distillation processes and 35% in its packaging. ing operations. What's more, it has replenished more than 1.1 million cubic metres water across water-stressed sites, provided 264 sanitation units, and 13,000 litres per hour of clean drinking water across villages in Maharashtra, UP, Odisha and Rajasthan.