Hina Nagarajan, Managing Director of United Spirits, noted that liquor demand in India picked up during the December quarter, showing stronger resilience compared to many other consumer goods categories.
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“Despite persistent food inflation, we’ve seen a rise in social gatherings and celebrations during the festive October-December period, leading to a notable improvement in alcohol demand,” Nagarajan explained to investors on Friday. “It’s also reassuring to witness continued premiumization in the market, although the high-end segment may take a few more quarters to fully regain its historical momentum. Importantly, we haven’t observed significant downtrading within our portfolio, which gives us confidence for further recovery in consumption moving forward.”
The alcohol industry had faced a 1% dip in demand during the September quarter, marking the first decline since the pandemic. This was attributed to economic challenges, flooding in some states, and increased taxes, which collectively dampened consumption across categories.
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However, during the December quarter, United Spirits rebounded with a 15% growth in overall sales. The company’s premium categories, including brands like Johnnie Walker and Smirnoff, outperformed with a 16% increase. The growth was fueled by strong consumer demand during the festive season and the rapid expansion of business in Andhra Pradesh.