Diageo India bets on premium, United Spirits eyes double-digit growth
Diageo India is doubling down on premium alcoholic drinks, even as inflation and global issues make things tricky.
According to Managing Director Praveen Someshwar, more young adults are reaching legal drinking age and have extra cash to spend, so the company sees big opportunities ahead.
United Spirits (USL), their Indian arm, is aiming for double-digit growth in its prestige-and-above portfolio in fiscal 2027.
Inflation could cost United Spirits 40cr
USL's prestige-and-above portfolio grew by 11.3% in fiscal 2026, excluding Maharashtra and Andhra Pradesh, with mid-prestige-and-above brands expanded 17.1%.
But higher packaging and energy costs are squeezing profits.
CFO Pradeep Jain shared that inflation in materials like glass bottles could cut margins by up to 1.5% points this quarter (about ₹40 crore lost).
USL plans selective price hikes and productivity boosts to keep things on track, though ongoing global tensions might keep costs high.