McDowell's X series: From mass appeal to premium power

Varun Koorichh still recalls his early days as a management trainee at PepsiCo, polishing coolers in Punjab’s heartland and working closely with shopkeepers. It wasn’t glamorous, but it taught him the importance of empathy and reaching consumers at every level of the socio-economic pyramid. Now, as vice president of marketing and head of portfolio at Diageo India, he’s applying those lessons to a different beverage sector—alcohol—and taking McDowell’s on a bold premiumisation journey with the launch of its X Series.

During its Q1 FY25 earnings conference call, Hina Nagarajan, managing director and chief executive officer of United Spirits Ltd, the subsidiary of global alcohol giant Diageo, stated that the launch of McDowell trademark X series, which will operate in the upper prestige price segment is a huge step in the company's premiumisation journey of the overall portfolio as well as its anchor trademark. "Our initial consumer and trade response is very encouraging. The X Series will scale up to more markets with the target for national distribution," she stated.

Koorichh plays an important role in United Spirits path to premiumise its offerings as the company aims to stay ahead in India’s fast-evolving $32-billion liquor market, as estimated by London-based IWSR. The X Series by McDowell’s is central to this transformation, offering consumers premium spirits in an aspirational and modern avatar. But why the focus on premiumisation now, and why use McDowell’s, a 125-year-old brand synonymous with mass-market appeal, for this shift?

The newly launched McDowell’s X Series is placed in the upper prestige quadrant.

The growing thirst for premium

India's liquor market is growing rapidly, driven by urbanisation, rising incomes, and shifting consumer attitudes. According to a report from IWSR, the industry is set to grow by an additional $7 billion by 2028, with younger consumers, who make up 33% of the country’s legal drinking population, playing a significant role in that growth. For these younger, more affluent drinkers, quality trumps quantity.

Vikram Damodaran, chief innovation officer at Diageo India, told Campaign, “The alco-bev market is evolving. Younger drinkers are exploring diverse options, prioritising premium products, unique flavours, and memorable experiences. This shift from quantity to quality is transforming the industry.” It’s no longer about drinking more but drinking better—and consumers are willing to pay for it.

That’s where McDowell’s X Series comes in. Comprising vodka, gin, rum, and dark rum, it operates in the upper prestige segment, catering to those who want a premium drinking experience without leaving the McDowell’s brand behind. The decision to use McDowell’s for this premium push wasn’t taken lightly.

Vikram Damodaran, chief innovation officer at Diageo India.

Why McDowell’s?

“Why not McDowell’s?” Koorichh laughs when Campaign asked why the brand was chosen to spearhead United Spirits’ premiumisation efforts. “With 125 years of heritage, McDowell’s is the number one whiskey brand in the world. It has credibility, and it’s loved by consumers. We’ve been listening to our consumers, especially Gen Z and millennial buyers, and we noticed a growing appetite for white spirits.”

He added that white spirits, such as gin and vodka, have seen a meteoric rise in India. The category is now growing at 18% annually, making it one of the fastest-growing segments in the alco-bev industry.

“McDowell’s gives us the chance to refresh the brand for younger consumers who are encountering it for the first time. The X Series allows us to take this legacy forward but in a new, modern, premium form,” he further noted.

The Premiumisation marketing playbook

Premiumisation isn’t just about offering higher-quality products; it’s about creating a brand that feels premium at every touchpoint. And that’s where marketing comes into play.

United Spirits has been heavily investing in digital-first campaigns to connect with the younger, tech-savvy audience. In an earnings call, Pradeep Jain, Diageo India’s chief financial officer and executive director, said that the company spent 7.4% of its net sales on marketing in Q1 FY25. This figure is set to increase as they gear up for the October-December peak season. “It’s about driving consumer engagement in the short-to-medium term, while building strong brand equity over the long run,” Jain stated.

And when it comes to marketing the McDowell’s X Series, hyper-personalisation is one way to go. Koorichh explained that today’s consumers want a more tailored experience. Traditional mass media can’t do that.

“With digital platforms, we have two-way communication with consumers, which allows us to segment and target based on demographics and psychographics. Hyper-personalisation is crucial for promoting luxury brands, especially when we’re trying to bring a mass-market product like McDowell’s into the premium category,” he elaborated.

McDowell’s recent campaigns, such as ‘Yaaron Waali Baat,’ created by DDB Mudra Group, featuring its brand ambassador Bollywood actor Kartik Aryan, have leaned heavily on digital and print advertising, particularly in key markets like Uttar Pradesh and Assam, where the brand has a strong presence. But it’s not just about celebrity endorsements.

Koorichh emphasised the importance of choosing the right influencers and platforms to reach their target audience. “We’re aligning with properties like the NH7 Weekender music festival, which resonates with the young, experimental consumer base we’re trying to reach with the X Series,” he said.

Premiumisation as a broader trend

United Spirits isn’t the only company chasing the premiumisation trend. The entire alco-bev industry has pivoted in that direction as consumers demand more variety and exclusivity.

Pernod Ricard India has set an ambitious target to triple its revenue over the next ten years by focusing on premiumisation and innovation. As part of this strategy, it introduced two new whiskies—Royal Stag Double Dark Peaty Whisky and Blenders Pride Four Elements Premium Whisky—following the earlier launch of its first Indian Single Malt, Longitude 77.

Meanwhile, Bacardi India has been collaborating with its on-trade partners to offer premium, in-person experiences, particularly promoting the whisky highball culture to elevate its Dewar's brand. It is also responding to emerging consumer trends by expanding its premium product range, including Dewar's luxury whiskies, and hosting exclusive events like bar takeovers and jazz nights.

Radico Khaitan, despite macroeconomic challenges in FY24, reported strong growth in its prestige and above brand categories—its INR 15,484 crore revenue was a notable increase from the previous fiscal’s INR 12,744 crore. The company plans to keep enhancing its core brands with focused marketing and introduce new products in the super-premium and luxury segments.

Varun Koorichh, as vice president of marketing and head of portfolio at Diageo India.

However, Koorichh believes that McDowell’s X Series stands out due to the brand’s legacy and its ability to evolve with the times. “Today’s consumers aren’t just buying a product; they’re buying an experience,” Damodaran also chimed in. “Whether it’s limited-edition releases or experimental cocktails, younger drinkers want variety and exclusivity. Our approach to premiumisation is about offering experiences that resonate with these consumers.”

One example of this is the partnership between Diageo and the Indian Hotels Company Limited (IHCL) to launch a limited-edition artisanal Godawan Single Malt, available exclusively at Taj properties. However, Koorichh is quick to point out that premiumisation isn’t a one-size-fits-all strategy.

“For McDowell’s X Series, our approach is different. We’re not targeting a luxury niche; we’re aiming for upper prestige. It’s about showing consumers the next step up on the ladder,” he explained.

What’s next?

As United Spirits continues rolling out the X Series across India, with a national distribution plan in the works, the company is looking to capitalise on the growing popularity of white spirits and premium experiences. Despite the increasingly stringent advertising regulations in India, which could see indirect alcohol advertising banned, Koorichh is confident that McDowell’s will continue to find creative ways to reach its audience.

“Advertising for alcohol in India is a complex game, but we’ve always adhered to strict self-regulation,” Koorichh said. “We’ve been innovative in how we market our products, from brand extensions like McDowell’s soda, which are legitimate businesses, to experiences like music festivals. It’s about reaching consumers in the right place, at the right time, and in a way that aligns with our brand values.”

With McDowell’s X Series, United Spirits is not just tapping into the premiumisation trend; it’s redefining what premium looks like for an iconic, mass-market brand. As India’s alco-bev industry continues to evolve, and younger, more affluent consumers dominate the market, the X Series could very well be the future of McDowell’s—and United Spirits.

In the words of Koorichh, “It’s about creating a brand that not only reflects the values of today’s consumers but also stands the test of time. With the X Series, we’re doing both.”