A naukri.com initiative
Bloomberg Quint
1M
106
Image Credit: Bloomberg Quint
India Might Finally Be Swapping Its Desi Daru For Premium Whisky
- India's liquor industry is shifting from mass-market bottles to premium labels, favoring quality over quantity.
- Premium whisky now constitutes 39% of the volumes for top brands, with the regular segment shrinking by 5% annually over five years.
- ICICI Securities noted that leading players are focusing on premiumization for higher margins, with a 'buy' rating on Radico Khaitan and Allied Blenders.
- The trend towards premiumization is driven by the evolving Indian consumer, profitability concerns, and market challenges like high taxes and raw material inflation.
- From 2019 to 2024, the regular segment declined by 5% annually, while mid and upper prestige categories grew at rates of 11% and 6%, respectively.
- The P&A segment witnessed a 6% year-on-year growth in 2024, with mid and upper prestige tiers driving demand and increasing market share for top players.
- Notable performers in the premium segment include Iconiq White and Radico Khaitan’s After Dark whisky, with significant volume increases in 2024.
- Conversely, mass-market brands like Imperial Blue, Officer’s Choice, 8PM, and 8PM Premium Black experienced volume declines, prompting strategic exits by companies like Pernod Ricard.
- Pernod Ricard is looking to divest from Imperial Blue to focus on higher-margin brands, while United Spirits is refreshing its lineup with strong growth in brands like Royal Challenge, Signature, and Black Dog.
- While low-priced liquor still has a presence in India, the trend is clearly moving towards premiumization.
Read Full Article
2 Likes
For uninterrupted reading, download the app