2024-10-23 05:30:05 :
Companies such as Radico Khaitan, Diageo India and DeVANS Modern Breweries (makers of Godfather beer and Gianchand whiskey) are gearing up for strong growth in the current quarter, spurred by rising consumer spending. Likewise, a strong quarter is expected due to slow sales earlier in the year due to dry weather and national elections.
Amar Sinha, Chief Operating Officer of Radico Khaitan said Mint The market for high-end and above brands is very strong at the moment. The “better consumption” or premiumization trend that emerged during the COVID-19 pandemic continues, with the high-end product market growing in the high single digits year-on-year, and even higher in some premium categories.
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“We will see 15% growth in our premium and premium brands between October and December, including Jaisalmer craft gin, Royal Ranthambore whiskey, Magic Moments vodka, etc. Generally, demand increases during this time of year We also sell special edition bags from all over the country, not just the northern states,” he said.
biological products
Festival and wedding demand accounts for approximately 40-45% of revenue for most alcoholic beverage companies. It’s a similar story for spirits giant Diageo India, which is focused on super luxury whiskeys and tequila. “We are seeing positive consumer sentiment towards luxury and bottled-of-origin (BIO) products in states like Haryana, Punjab and Chandigarh, especially in the premium, ultra-luxury whiskey and tequila categories, while North Overall optimism in states such as states with higher retail sales quota for the quarter. We are optimistic that with increased retail buying and consumer interest, the start of festivities and the return of a strong wedding season, we are optimistic that we will have better prospects in the coming months. We will see a rise in premiumisation,” said Ashish Parikh, chief operating officer, Diageo India.
BIO spirits are imported into the country. Parikh was referring to the fact that UP is a state-regulated market that determines the allocation and distribution volume of alcohol.
Moody’s credit rating agency Icra, which assesses companies’ creditworthiness, said the alcoholic beverage industry expects revenue growth of 8-10% in FY25, driven by stable demand and a shift towards premium products. Despite rising grain prices, operating margins are also expected to stabilize at 12-13% due to lower packaging costs.
Festive spirit is high
Earlier this year, the spirits industry reported a 9% year-on-year revenue increase in the first quarter of fiscal 2025, with prices increasing by 5-7% and sales volume increasing by 2-4%. The beer industry performed better, with sales volume increasing by 3-5%, prices increasing by 7-9%, and revenue increasing by 12%. Icra’s sample set includes companies such as Mohan Meakin Ltd, Radico Khaitan Ltd, Som Distilleries & Breweries Ltd, Tilaknagar Industries Ltd, United Breweries Ltd and United Spirits Ltd.
Sanjit Padhi, chief executive of the International Spirits and Wine Association of India (ISWAI), which represents the interests of international liquor companies in India, said there is also a festive boom in Telangana, where $A total revenue of Rs 1,057 crore was collected during the 10-day festival (in October this year), with liquor sales increasing by 20% compared to the previous period.
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Sales in the city of Kolkata alone recorded nearly $Sales this festive season stood at Rs 1,500 crore, up 20% over last year, as compared to average sales in non-festival months across West Bengal $14 billion rupees. “Karnataka’s revised tax policy is also a positive development for the liquor industry. The reduction in taxes will make premium brands more accessible and affordable to consumers,” he told us Mint.
new product launch
It’s been a strong year for Godfather brewer DeVANS, with beer sales up about 65% in the first six months of the year. However, there were major disruptions in late September and early October due to changes in the excise tax portal software in several northern Indian states. This has resulted in a significant drop in current sales.
The company has moved into premium beer in September, expanding its range of “Six Fields” premium beers, and hopes to address these issues before festival demand fully kicks in to expand sales of its new brand. “Now that the situation is improving and with the receding monsoon, we expect strong sales during the festive season,” said Prem Dewan, chairman of the company.
Ahead of the holiday season, many companies have also announced special editions as well as new product lines. Last week, Tilaknagar Industries launched Mansion House Gold Barrel whiskey and single malt brand Indri launched this year’s Diwali Collector’s Edition, produced by Piccadily Agro Industries Ltd, founded by Siddhartha Sharma.
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“Typically, the holidays are very exciting for us as the trends we are observing show a general uptick in sales for many of our ready-to-drink spirits. Overall, we expect growth of 20-25%, with Markets such as Kerala and Karnataka will drive growth as there is a huge demand for parties and other events. The festive season in general, especially during festivals, is our peak period and hence the demand increases significantly.” said Ajay Shetty, CEO and Founder, Salud Beverages Pvt. Ltd.
Likewise, small-batch spirits producer Fullarton Distilleries, maker of Pumori gin and Woodburn’s whiskey, expects the momentum in premium consumption to continue. Against this backdrop, the company is launching in a few new states, including Haryana, ahead of the festive season, whereas earlier it was mainly present in Goa and Maharashtra. The company’s founder, Rajiv Thadani, expects sales to rise 30% this holiday season, driven not only by organic sales but also by new states where the company currently sells.
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