Indian coffee liqueurs brew premium play; Diageo backs Quaffine, Bandarful scales bean sourcing
Home-grown coffee liqueurs Bandarful and Quaffine are carving out a premium niche using Indian beans. Diageo India took a 25% stake in Quaffine in 2024, with the brand growing 2.5x. Bandarful doubled coffee sourcing from 3 to 6 tonnes. Category is under 1% of alco-bev but riding a 60-70% premiumisation wave at the Rs 1,650 price point.
What happened
Indian coffee liqueur category is gaining traction with home-grown brands like Bandarful and Quaffine using local beans. Diageo took 25% stake in Quaffine in
Key facts
- 25% stake
- 2.5x growth
- 3 tonnes to 6 tonnes coffee
- Rs 1,650 price point
- <1% of alco-bev market
- 60-70% premiumisation driver
Why this matters
With Diageo already anchored in Quaffine, Bandarful's 2x sourcing scale-up makes it the next logical strategic or PE target in a sub-1% category primed for consolidation.