‹ All Posts
SHUBINVESTS I SEBI RA

2nd Jun 2025 · SEBI-Registered Analyst

🍾 Bottles, Brands & Bureaucracy: Inside India’s Alcohol Business

India’s alcohol industry is a curious mix — simple in production, but wildly complex in distribution, branding, and regulation. While making alcohol is mostly about mixing commodities like barley, molasses, or glass, the real game is outside the bottle — navigating state-wise rules, premium branding, and evolving consumer behavior. Let’s break it down through the lens of 3 players: 🟠 United Breweries (Beer King) 🔵 United Spirits (Whisky Giant) 🟢 Radico Khaitan (Premium Challenger) 🍺 Channel Strategy: Not Just Bottles & Bars United Breweries is pushing beer cans in car-drinking states like Rajasthan (aka Car-o-bar) while tripling investments in fridges to push chilled beer in Tier 2 cities.

UNITDSPR
is betting big on on-premise consumption (bars, hotels), where consumers are open to experimenting with new brands — key for habit-building.
RADICO
is playing the luxury card — tying up with golf events, BMW, 5-star hotels, and even the Palace on Wheels to position Rampur Whisky and Jaisalmer Gin as premium symbols. 💎 Premiumisation: The Big Trend Mass to Class: While cheap alcohol dominates volumes, companies are climbing the value ladder. United Breweries wants Heineken to be 7-8% of its portfolio. Radico is launching 2 new luxury brands and pushing Indian single malt standards via an association. United Spirits is rebranding even McDowell’s with a premium twist — introducing McDowell’s X (a single malt). Why? Higher margins, better brand loyalty, and pricing power. 🌍 Global Impact: UK Trade Deal With India set to cut duties on UK liquor from 150% to 75%, expect: Cheaper scotch → more volume for brands like Black Dog (United Spirits) Radico, instead, plans to pocket higher margins rather than cutting prices. Yet, despite this, India remains a goldmine for alcohol companies — because every sip here tells a story of aspiration, identity, and opportunity.

#StockInNews#FundamentalViews#HiddenGems#Miscellaneous#EquityResearch