Overview: India’s alcoholic beverage industry commenced FY27 with strong momentum, driven by a distinct shift toward premiumisation despite rising input costs and regional policy changes. United Breweries Ltd. recorded a 17% rise in premium beer volumes, while Radico Khaitan announced its highest ever volume, topline, and profitability figures for the quarter.
The Full Story
United Breweries Ltd. posted a 17% growth in premium beer volumes during the quarter, led by brands including Heineken, Amstel Grande, Kingfisher Ultra, and Ultra Max. Revenue increased 10%, though consolidated net profit fell 9.64% due to increased expenses and the West Asia conflict. Premium margins have become accretive for the first time in the past quarter, according to UBL CFO Jorn Kersten, adding that the premium portfolio would become a significant contributor to profitability going forward.
Radico Khaitan reported 36% volume growth in its P&A portfolio, with revenue increasing 13.22% to Rs 5,867.69 crore and consolidated net profit rising 76% to Rs 229.60 crore. Brands such as Rampur Single Malt Whiskey, Jaisalmer Indian Craft Gin, Morpheus Brandy, Royal Ranthambore, and 8PM Premium Black saw volume increase 35.8% to 5.22 million cases. Managing Director Abhishek Khaitan stated that performance was driven by the continued success of their premiumization strategy with the P&A portfolio delivering 36% volume growth during the quarter.
United Spirits Ltd., a Diageo-owned entity, posted a 51.6% increase in net profit to Rs 391 crore. Its P&A volume grew 6.4%, excluding Maharashtra, while brands like Johnnie Walker, Black Dog, Black & White, VAT 69, Singleton, Smirnoff, and Tanqueray contributed to the growth. Allied Blenders and Distillers Ltd. reported an operating revenue increase of 5.8% to Rs 984 crore, though net profit dropped 18.65% to Rs 45.42 crore. Volume increased 6.2% to 9 million cases for Officer’s Choice Whiskey manufacturer ABDL. Sula Vineyards reported double-digit growth in Elite flagship brands, specifically The Source and Rāsā.
What This Means
The industry is relying heavily on high-end brands to sustain revenue growth as input costs and policy changes pressure profitability. Global supply chain interruptions had a temporary effect during the quarter, but businesses continued to prioritise premiumization and backward integration initiatives. Premium margins have become accretive for the first time in the past quarter, with the premium portfolio expected to be a significant contributor to profitability going forward.
Consumer Takeaway
The market offers a diverse selection of high-end options ranging from beer to spirits, including Heineken Silver, Kingfisher Ultra, and Johnnie Walker. For whiskey enthusiasts, Officer’s Choice Whiskey remains a primary brand for ABDL, while Radico Khaitan provides access to Rampur Single Malt Whiskey and Jaisalmer Indian Craft Gin. Consumers can expect continued focus on elite portfolios with double-digit growth in flagship brands like The Source and Rāsā from Sula Vineyards.
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