In an exclusive interview with CNBC-TV18, Hina Nagarajan, MD & CEO of Diageo India, outlined the company’s ambitious plans for the next decade. Diageo India, a powerhouse in the beverage alcohol industry with a portfolio boasting renowned brands like Johnnie Walker, Crown Royal, Smirnoff, and Baileys, is gearing up for a remarkable double-digit growth trajectory.
Ms. Nagarajan emphasized that the key to this growth lies in two strategic pillars: premiumisation and a foray into India’s thriving organised desserts market, with the iconic Baileys brand leading the charge.
While acknowledging an anticipated deceleration in volume expansion across the sector, Nagarajan highlighted the increasing importance of value expansion. She drew parallels between this trend and the premiumisation observed in other fast-moving consumer goods (FMCG) sectors.
“We want people to drink better, not more,” MS. Nagarajan affirmed, explaining that this shift towards value over volume is where the industry’s future profit lies.
Diageo India’s strategy hinges on its entry into India’s Rs 27,000 crore organised desserts market, with Baileys taking center stage. Baileys, renowned for its indulgent and creamy Irish cream liqueur, perfectly aligns with the desserts market, offering consumers a unique and indulgent experience. Nagarajan predicted that Baileys would become one of the leading brands in their portfolio within five years, thanks to the brand’s versatility for dessert pairings and culinary creations.
The company is also closely monitoring consumer preferences and exploring novel product categories. Guinness, with its growing popularity among Indians familiar with it during their travels to the UK, is showing promising results in the Indian market.
Additionally, Tequila, an emerging category in India, particularly in metropolitan areas, holds the potential to replicate the success story of gin. Diageo India is enthusiastic about introducing a range of innovations and revamps to cater to this growing market.
In this interview,Ms. Nagarajan provides further insights into Diageo India’s strategies and future plans, offering a glimpse into the company’s exciting journey ahead.
For more details, watch the below accompanying video