John Distilleries, which makes Paul John single malts, recently announced a capacity expansion at its Goa facility. The company has invested about ₹500 crore to fund the expansion that will see capacity tripling to nearly 3 million litres annually. But that alone won’t be enough to meet the surging demand for its whiskies, says its eponymous founder, who is also planning to set up a new distillery in Karnataka. John Distilleries, set up in 1996, makes several popular whiskies, including Original Choice, but it was Paul John single malt that put the company on the global map. In 2017, Sazerac, the world’s third largest distiller, picked up an equity stake in the company. Sazerac, which owns over 450 brands across the world, currently has a 60% stake in the company. Sazerac’s backing has helped Paul John whisky make deep inroads internationally. The company also manufactures and markets the American spirits giant’s products such as Fireball Cinnamon whisky in India. John Distilleries will also launch Sazerac’s Weller Bourbon at the end of this month. In this interview with the Hindustan Times, Paul P John outlines his plans for the next decade, and, among others, spills the beans on a premium rum from Barbados that he is readying for launch in India.

You have tripled the capacity of your Goa distillery; a new plant is set to come up by 2030. Clearly, a lot of things are going right for John Distilleries, and especially Paul John single malt.

Certainly. Our overall production is now at about 24 million cases annually, but the expansion is largely for our single malts which are growing at about 20% to 25% CAGR. We sell about 100,000 cases annually. But some of our best-selling liquids, such as the Paul John Bold and Brilliance, are in short supply, and we are now ramping up as much as possible to meet the demand, which, as far as I can see, shows no sign of slowing down. With single malt, as you’d be aware, one has to plan way ahead. We have now realised that within the next couple of years, we will need to have another plant with a capacity of 10,000 litres a day and we are looking to set it up in Karnataka. At the same time, we are also open to looking at other states depending on the kind of incentives they provide.

How has your association with Sazerac progressed?

I’m extremely happy with the relationship we have. I think we all need big daddies and they are the right one for us. There has been a lot of technology transfer which has benefitted us immensely. We now have better insights on the international market and we have the ability to use their distribution networks abroad, especially in countries such as the US and Australia. We source a lot of barrels from them, instead of buying from all over the place. As a result, there is consistency and going forward, that is bound to show in the quality of our products. Our values and ethos also match theirs. They are a closely held business and pretty much like us, they started off with wholesale, then got into distribution and finally started producing liquor. We now manufacture their Fireball Cinnamon Whisky here, and will be launching their Weller Bourbon Whiskey by the end of this month in India. 

Do you think India will develop a taste for premium bourbon?

I think no one has really pushed for bourbon in India, and I feel there is an opportunity there, because if you take a look at Irish whiskey, it has done pretty well. And that’s because Jameson has really pushed it in India. I’m certain that the same thing can be done with bourbon and I’m advocating for that with Sazerac.

Word on the street is that you are also launching an exceptional rum.

That’s right. But I can’t reveal much at this moment. All I can tell you is that it is this great rum from Barbados. We will be bottling it here. That will kind of complete our portfolio of premium spirits. We already have the whiskies, the XO brandy, a premium gin and wine…

Your whisky has been well accepted in the US and Japan, but you have often spoken about the UK and some parts of Europe being especially difficult to crack.

I’d think there are just too many players there and the route to market seems to be a big challenge. But with Sazerac on board, we are in a better position to make inroads into the UK. But they are all very price-sensitive markets. Take France, for instance. It is a big buyer of single malts and among the largest single malt markets globally, but 90% of that volume is coming from whiskies that are priced below 30 euros a bottle. So, we need to assess whether we want to be playing in that category at all.

It’s been about a decade since you set up your winery, Big Banyan. It’s been, kind of, low profile all these years.

We have been very selective with Big Banyan with regard to the states we are present in. I’m quite clear that we do not want to get into a discounting war. I want to focus on quality and our wines are priced higher. We are growing steadily at around 50,000 cases a year and I’d like to maintain my brand quality and image.

Lastly, I noticed that you have also got into specialty coffee with the Paul John Caffeine Company.

We’ve always had these coffee estates in Coorg, and coffee was something I was always interested in. It is among the finer things in life that I like, like food, or whisky, or hospitality. I feel that barring a few brands, Indian coffee has never really been promoted. And I thought there’s an opportunity right there.

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