spot_imgspot_imgspot_img
10 C
Lucknow
Friday, February 3, 2023
spot_imgspot_imgspot_imgspot_img

Liquor Sales Rise: Liquor sales bubble over to 15% as demand increases for key segments

​​”Based on the last ten calendar months, the industry is expected to grow in double digits, largely driven by a secular trend in premiumisation across categories. We also see a full recovery in out-of-home consumption while off-trade continue its growth momentum since several quarters now,” said Bikram Basu, VP, strategy and marketing at Allied Blenders and Distillers (ABD), the largest Indian spirits firm.

Sales volumes of spirits rose 15% to 319 million cases between January and October, with demand increasing for all key segments – whiskey, brandy, rum, gin and vodka – industry executives said, citing latest excise department data.

The market, especially for premium products across categories, saw a sharp recovery during the first ten months of the year after a slump during the pandemic. Companies said India’s spirits market is expected to reach a record high volume of 390 million cases by end of the calendar year, outpacing 2019 levels when it sold 358 million cases.

“Based on the last ten calendar months, the industry is expected to grow in double digits, largely driven by a secular trend in premiumisation across categories. We also see a full recovery in out-of-home consumption while off-trade continue its growth momentum since several quarters now,” said Bikram Basu, VP, strategy and marketing at Allied Blenders and Distillers (ABD), the largest Indian spirits firm.

“At ABD, we understand this trend and have launched a slew of brands including Iconiq White Whisky, Srishti Premium Whisky and X&O Premium World grain whisky in the past few months in line with our premiumisation strategy.”

Related
Kolkata gets liquor delivery app Dooze for 'fast, hassle-free' booze at-home

Whiskey, which accounts for two-thirds of the overall market, grew 12.4% despite a high base while brandy, the second biggest category, expanded 16%. Rum and vodka grew 23% and 30%, respectively, and gin sales surged 73%, although on a low base, according to the excise data.

While in-home consumption of liquor increased during the pandemic, last quarter also saw alco-bev sales at bars and restaurants reaching pre-Covid levels for the first time in two years. For liquor firms, the festive season historically generates high sales, helped by frequent social gatherings and events.

“Marriages are back and how? We are seeing larger and larger marriages. So that’s pretty good for our demand forecast. Luxury and premium; we continue to see the double-digit growth that we have been seeing for a while. So, the premiumisation trend is continuing there. I would say even on the prestige side, we have seen pretty healthy growth,” Hina Nagarajan, managing director of USL, told analysts.

However, alco-beverages continued to face inflationary headwinds with raw materials including glass and extra neutral alcohol (ENA) prices staying high.

“In the light of persistently high glass prices in H2FY23, we expect margin pressures to stick in spite of a few states effecting price hikes,” said Abneesh Roy, executive director at Nuvama Institutional Equities.

The above news was originally posted on news.google.com

Promotion
close

Sign up to receive awesome content in your inbox, every week

Oh hi there 👋 It’s nice to meet you.

We don’t spam! Read our privacy policy for more info.

Related
Monkey opens liquor bottle and starts drinking like a boss

close

Sign up to receive awesome content in your inbox, every week

Oh hi there 👋 It’s nice to meet you.

We don’t spam! Read our privacy policy for more info.

Related Articles

Stay Connected

22,907FansLike
3,692FollowersFollow
20,500SubscribersSubscribe
- LATEST ISSUE -spot_img

Latest Articles

%d bloggers like this: