Singapore-headquartered premium spirits brand Loca Loka is all set to foray into the India market in November. Co-founded by entrepreneur Sree Harsha Vadlamudi, along with film actor Rana Daggubati and musician Anirudh Ravichander, the company entered the AlcoBev industry in 2024 with the launch of its first handcrafted tequila in the US market.
The brand intends to initially target duty-free stores first at the airports, aiming to leverage this route as a high-margin discovery channel. “We have launched duty-free as a strategic first step to build international provenance and capture premium travellers. We have already signed up with GMR Airports, with our two offerings, Blanco and Reposado. This gives us premium visibility to travellers and early retail price benchmarking before wider distribution,” says Vadlamudi.
Born from the highlands of Jalisco, Mexico, Loca Loka tequila is distilled from 100% pure highland agave and matured for over six years to lend it a mix of sweet and spicy flavours. For its India launch, the brand is looking to be present in all the top cities in the country within the first 3-6 months. “Our conservative estimate is to garner at least 5% of the tequila market by the end of 12 months,” says Vadlamudi with optimism.
Vadlamudi notes that the increasing popularity of tequila in the Indian market reflects a steady shift in the country’s cocktail scene towards such premium offerings.
According to a report by global management consulting firm IMarc Group, the India tequila market reached $600 million in 2024. The firm expects the market to reach $1,677.6 million by 2033, exhibiting a growth rate (CAGR) of 12.1% from 2025 to 2033. “The evolving consumer preferences, rising disposable incomes, media influence, tequila's cocktail versatility, and aspirational value among a younger demographic represent some of the key factors driving the market,” the report states.
Despite such factors driving consumption, Vadlamudi says that the issue of taxation and heavy duties plays spoilsport for the category. “So, wherever it might be made, for instance, Scotch, which is made in Scotland, or tequila, which is made in Mexico, our import duties and pricing are higher than the home-grown categories. The pricing becomes four times higher, which makes it a premium product to consume in India. If you see any other country, the taxation is not so high,” he says, ruefully.
So, was there a reason why the brand decided to launch later in India and got introduced first in the global markets? Rajiv Ghumman, Global Business Head, Loca Loka, offers a perspective, saying that reverse psychology works even better in the case of Indian consumers. “There are enough examples of brands that have been built globally, and when brought to India, these stand a much better chance of getting consumers to understand it. It’s about building the aura so that the anticipation explodes when it is introduced in India,” he adds, bullish about the road ahead.
Ghumman also addresses the negative perception of the spirit, highlighting that it has its baggage of negativity since it has mostly been synonymous with shots and nursing a hangover the next day. “That is where somebody needs to be the protector of it and basically tell consumers how to drink it and distinguish a good spirit versus a bad one. So, the challenge lies around that aspect too.” He believes that the category will continue to expand, regardless of circumstances.
He elaborates further, stating that the future looks promising for the sector in the country. “India is one of the bright spots going forward for AlcoBev. It’s a great time to be a spirit brand,” he states, enthusiastic about the growing set of discerning clientele back home.
Source Name : Economic Times