W11 Malt Update: New Malt Spirit Distillery Planned in India, North American Market Was Hit by New Malting Barley Varieties

Published 2024년 3월 22일

In W11 in the malt landscape, Pernod Ricard plans to build a big malt spirit distillery in Nagpur, India, with a daily production capacity of 60 thousand liters and plans to invest USD 217 million over the next ten years. The facility is designed to produce popular Indian whiskey brands such as the Longitude77 range using locally produced barley. In addition, declined beer sales in the US caused lower malt barley prices. The 2024 production malt barley contract was set at around USD 6.25 per bushel. Lastly, new barley varieties, such as Connect, Fraser, and Churchill, have been approved by users and hit the North American market.

Pernod Ricard to Build Large Malt Spirit Distillery in Nagpur, India

Pernod Ricard plans to build one of India's biggest malt spirit distilleries in Nagpur, with a daily production capacity of 60 thousand liters. The company plans to invest USD 217 million in the next ten years. The Maharashtra state government and Pernod Ricard India signed a memorandum of understanding for the distillery in Feb-24. The distillery expects to take at least three years to complete. The distillery will focus on producing Pernod Ricard's popular Indian whiskey brands, such as the Longitude77 range, and is expected to consume up to 50 thousand mt of barley per year, which will be sourced from local farmers.

Declined Beer Demand Led to Lower Malt Barley Prices in the US

In 2023, the sale of beer in the United States (US) plummeted, which led to a decline in malt barley prices in 2024. Despite a successful barley harvest, the malt barley contract for the 2024 production was around USD 6.25 per bushel, with further expected decreases.

New Malting Barley Varieties Hit the North American Market Despite Industry Challenges

Malting barley farmers in North America face challenges due to the limited availability of improved barley varieties. In addition, brewers and maltsters are reluctant to use new varieties in their production systems due to concerns about the quality and flavors. The industry requires coordination between both sides and acceptance of new varieties. Despite the challenges, three new varieties have been approved by users and have hit the market: Connect, Fraser, and Churchill.