Consumers are now more aware and concerned with the quality of everything they consume, and are increasingly willing to pay extra for quality alcoholic beverages. This has created opportunities for liquor companies to offer advantageous price points.

The Indian liquor industry is undergoing a transformation of sorts with increased demand for quality beverages, particularly across urban areas. The ongoing pandemic has only accelerated this process. The premium is one trend that has accelerated during the lockdown. Consumers are now more aware and concerned with the quality of everything they consume, and are increasingly willing to pay extra for quality alcoholic beverages. This has created opportunities for liquor companies to offer advantageous price points.

Diageo India, for example, is launching and relaunching a large number of options in its range of international as well as Indian liquors. The company has taken this time to rethink a lot of its strategies in India, Vikram Damodaran, Diageo India’s chief innovation officer, told Financial Express Online. During the last 2021, Diageo India raised its total stake in liquor company United Spirits Limited (USL) to 55.9 per cent and entered the craft spirits segment, overtaking Pernod Ricard in the premium segment for the first time ever in India, at a premium. her entire portfolio, and hired Hina Nagarajan as Managing Director and CEO of Business India.

The Indian liquor market represents one of the most compelling spirits opportunities in the world. The ever-growing alcoholic beverage market in India is expected to grow at a compound annual growth rate of 7.4 percent during the forecast period 2017-2030, according to a Goldstein Market Intelligence report. The alcoholic beverage market revenue is expected to reach $39.7 billion by the end of 2030.

insurance premium repair

“We have committed to excellence, responsible drinking, inclusion and diversity. And the results are starting to show. We are the owners of the world’s largest selling whiskey brand, McDowells and have a strong portfolio across all segments from Prestige to Luxury,” said Vikram Damodaran. 13.7 percent during the last fiscal year ending in June, as premium business (P&A) now exceeds two-thirds of its total sales.

Following the launch of No1 McDowell’s and Royal Challenge in 2020, this year saw the launch of the all-new Signature, Smirnoff and Black Dog product lines. “Black Dog has undergone a complete makeover, armed with a winning new liquid in Triple Gold Reserve and the introduction of the first 14-year-old variant, backed by a new brand identity, which is reflected in the brand’s packaging and retail assets.

international spirit

Diageo is also increasing its focus on its international spirits portfolio, and the launch of a new pocket-loving format and new Black Dog package are examples of its investment in Scotch and other international offerings. “We have now teamed up with Keira Knightley OBE, to carve out an international profile for the brand, and strengthen our credentials in international whiskey. We have also launched a new product in the world, Royal Challenge American Pride, in the Upper Prestige division,” Damodaran said.

Demand for premium wines caused by a pandemic

The company’s focus on its offering premium has increased after new CEO Hina Nagarajan took over in July of this year. In a statement during its appointment, the company said it has been tasked with returning the company to a growth trajectory, leading to increased revenue and profits in the insurance segment and prestige in the Indian alcohol market.

The Indian alcoholic beverage market saw a sharp decline in the first half of 2020, but recovered quickly as the lockdown eased. Rising leisure needs at home and time off from daily chores have pushed people to buy liquor in bulk. Moreover, the festive season in India and the holidays have given more momentum to the sales. “With the increasing needs of indoor entertainment, people are starting to seek out better and better quality drink experiences. This, combined with less discretionary spending, has led to the growth of international Scotch and whiskey,” Damodaran said.

Diageo expects organic net sales to grow in double digits next year, based on increased brand investment and consumers’ rapid shift toward high-end brands. Diageo’s portfolio includes premium brands such as Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Singleton, Royal Challenge, McDowell’s No 1, Smirnoff, Ketel One, Tanqueray and Captain Morgan. Diageo India is incorporated in India as United Spirits Limited (USL), and is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

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