Allied Blenders and Distilleries Ltd is changing its business strategy by moving away from mass-market alcohol brands and focusing more on premium and luxury spirits. This shift comes at a time when rising taxes in several states and slowing middle-class spending have affected sales of lower-priced liquor.
To tap into premium consumers, the Mumbai-based company has launched ABD Maestro, its luxury spirits subsidiary, in association with Bollywood actor Ranveer Singh. Through this move, Allied Blenders aims to cater to Indian consumers who are increasingly choosing high-quality domestic spirits instead of imported brands.
ABD Maestro will manage a curated portfolio of premium products, including small-batch gin brands Zoya and Pumori, Rangeela vodka, and the recently introduced Yello whisky. The company expects the premium arm to generate an annualised revenue of ₹100 crore by the end of FY26, with plans to double this figure in FY27.
Alongside the premium push, Allied Blenders is investing heavily in capacity expansion. The company plans to invest ₹525 crore between FY25 and FY27, which includes acquiring an additional neutral alcohol plant and setting up a single malt whisky distillery in Telangana, expected to be operational by 2029.
This move towards premiumisation reflects a broader industry trend, with competitors like Radico Khaitan also launching high-end products and partnering with celebrities. For Allied Blenders, premium and prestige brands now make up a growing share of its business, contributing over 46% of total volumes in the first half of FY26, compared to 37% in FY24.
At the same time, the company’s flagship mass-market brand Officers’ Choice has seen a sharp decline in volumes, dropping from 9 million cases in FY19 to 3.6 million cases in FY25. Despite this, the company remains focused on maintaining healthy margins of over 40% for the brand, even if that means exiting certain markets or accepting slower growth.
