After a sober quarter, liquor companies hope for a Patiala high in second half
Liquor demand in India remained unchanged while consumption of brandy and rum fell in the June quarter, amid a high base, election-related disruption in supply chain and sales, and consumers cutting back on lower priced tipple. A year earlier, the spirits market had grown 7% in the same quarter.
«Last year, we had very high growth quarters in the first half, and then there was a slowdown in the next half. And this year, we are kind of seeing the reverse. So, we are expecting the first half to be steady, a little muted, lower than our aspirations. There is hope that consumption will pick up this season,» United Spirits managing director Hina Nagarajan said on a recent investor call.
Whisky, which accounts for two-thirds of the segment, grew 0.4% in volume, while sales volume of brandy and rum fell 1% and 2.4%, respectively, industry executives said, citing latest excise department data. Both vodka (23.7%) and gin (1.4%) posted growth, but on a low base.
The country's spirits market posted sales volume of 412 million cases in fiscal 2024, up 4.2% from the previous fiscal year. The overall spirits industry, after 12-15% growth in the post-Covid years, has normalised to a steady state, experts said. However, premiumisation has continued across categories, driving faster value growth.
«Spirits sales (volume) have slowed in the past few quarters and are now in line with its long-term compounded annual growth rate of approximately 3%, on a FY24 base of 410 million cases of nine litres each. We see this trending
