The world of luxury spirits is witnessing a significant transformation, driven by changing consumer preferences for premium products. Radico Khaitan, an Indian spirits major, has announced its intention to launch a new tequila brand as part of its strategy to tap into this growing market. The company’s plans are ambitious and aim at driving 20% growth in the premium liquor segment.
Radico Khaitan’s decision to enter the tequila market comes on the back of high demand for vodka, which has seen a significant rise in recent years. The company’s flagship vodka brand, Magic Moments, has emerged as a key growth driver and achieved sales of 3.25 million cases in June alone.
The Indian spirits major is confident that its strategy will drive premium growth by focusing on higher-value alcoholic beverages. Radico Khaitan aims to improve profit margins by over 125 basis points through this shift towards premiumization, which involves moving the product mix toward higher-priced options that typically carry better profitability.
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