Indian Alco-Beverage Market Sees Significant Surge in Premium Liquor Segment
India’s premium liquor market is witnessing a significant surge, with leading alcobev players such as United Spirits Ltd (USL), Radico Khaitan, and Allied Blenders and Distillers Ltd (ABDL) reporting high double-digit growth in their prestige-and-above (P&A) segment.
Premiumisation Strategy Pays Off for Liquor Companies
United Spirits Ltd (USL), the country’s largest beer maker, also reported an increase of 17 per cent in its premium volume, from its brands such as Kingfisher Ultra, Ultra Max, Heineken, and Amstel Grande.
Radico Khaitan reported its “highest ever volume, top line, profitability”, with consolidated net profit rising 76 per cent to Rs 229.60 crore and revenue increasing 13.22 per cent to Rs 5,867.69 crore.
P&A Segment Drives Growth
The volume of Radico Khaitan’s P&A brands, including Rampur Single Malt Whisky, Jaisalmer Indian Craft Gin, Morpheus Brandy, Royal Ranthambore and 8PM Premium Black, rose 35.8 per cent to 5.22 million cases.
Market Impact and Details
- USL reported a 51.6 per cent rise in net profit to Rs 391 crore, supported by the P&A segment.
- Excluding Maharashtra, “our P&A volume has grown by 6.4 per cent. On NSV growth, based on the same construct against the reported P&A growth of 10.1 per cent, eliminating Maharashtra, we have grown 14.8 per cent,” said USL Managing Director and CEO Praveen Someshwar.
- P&A typically refers to brands retailing at roughly Rs 700-800 and above per 750-ml bottle, depending on the state and tax structure.
- It is having strong momentum, reflecting the ongoing premiumisation of the Indian alco-beverage market, supported by rising disposable incomes, evolving consumer preferences, and increasing demand for premium spirits.
Key Takeaways
- Liquor companies such as USL, Radico Khaitan, and ABDL reported high double-digit growth in their P&A segment.
- The P&A segment is driving growth for these companies, with USL reporting a 51.6 per cent rise in net profit to Rs 391 crore.
- The Indian alco-beverage market is witnessing a shift towards premiumisation, driven by rising disposable incomes and evolving consumer preferences.
FAQs
What is the P&A segment?
The P&A segment refers to high-end, premium, luxury spirits including whiskey, vodka, gin, and rum, retailing at roughly Rs 700-800 and above per 750-ml bottle, depending on the state and tax structure.
How is the P&A segment performing?
The P&A segment is performing strongly, with companies such as USL, Radico Khaitan, and ABDL reporting high double-digit growth.
What is driving the growth of the P&A segment?
The growth of the P&A segment is driven by rising disposable incomes, evolving consumer preferences, and increasing demand for premium spirits.
Conclusion
The Indian alco-beverage market is witnessing a significant surge in the premium liquor segment, driven by rising disposable incomes and evolving consumer preferences. Companies such as USL, Radico Khaitan, and ABDL are reporting high double-digit growth in their P&A segment, making it a key growth lever going forward. As the market continues to shift towards premiumisation, these companies are well-positioned to benefit from the trend.
