Festive cheer fuels premium push as alcobev cos bet big on launches, growth

As India remains in high spirits from Diwali to Christmas and New Year, alcoholic beverage (alcobev) firms are gearing up to raise a toast, backed by premiumisation, launches and buoyant consumer sentiment.

 

For Pernod Ricard India, this is a continuation of the festival season and the year-end festivities make for good business.

 

The maker of Absolut vodka and Jameson Irish whisky launched Seagram’s Xclamat!on earlier this month. This brings five premium spirits — whisky, vodka, gin, rum and brandy — under one brand at a uniform price point.

 

“We are bringing this right in time for the year-end festivities, designed for India’s next-gen consumer, who seeks both premium quality and variety for mixed-gender social occasions,” Jean Toubol, chief executive officer (CEO), Pernod Ricard India, told Business Standard.

 

Radico Khaitan continues to see the sentiment remain upbeat in the third quarter as well, which is traditionally its strongest quarter. It has strengthened its presence in the premium segment with the launch of Morpheus Rare Luxury whisky, The Spirit of Kashmyr vodka, and the recently introduced Rampur 1943 Virasat Indian Single Malt.

 

“Sales momentum has picked up meaningfully in the run-up to the festival period. We expect the year-end quarter to see strong growth, driven by premium gifting, on-trade demand and higher off-take across key markets,” said Amar Sinha, chief operating officer (COO) at the company.

 

“Premiumisation trends are firmly intact, and we are well-positioned for an exceptional finish to the year,” he added.

 

Mumbai-based Allied Blenders and Distillers expanded its premium subsidiary ABD Maestro with the launch of Rangeela contemporary vodka, conceptualised with actor Ranveer Singh, followed by Yello designer whisky.

 

“Demand momentum picked up from October — around the festival period — and has continued through the third quarter. Christmas and New Year are typically strong consumption phases for the sector,” a company spokesperson said.

 

The flurry of festival-season launches highlights a broader structural shift underway in India’s alcobev industry, driven by premiumisation, experimentation and expanding urban consumption.

 

According to Grand View Research, the Indian alcoholic beverages market generated revenue of $74 million in 2024 and is projected to reach $187.3 million by 2033, growing at a compound annual growth rate (CAGR) of 11 per cent between 2025 and 2033.

 

“We are optimistic about strong performance this year, driven by careful planning and the overwhelming response to our limited-edition and special releases,” said Rakshit N Jagdale, managing director (MD) of Bengaluru-based Amrut Distilleries.

 

Amrut Distilleries recently launched the Master Distiller’s Reserve Stout Cask Finish in collaboration with Geist Brewing Co, the Diwali-themed MaQintosh Silver Edition whisky, and Two Indies Rum, which blends Indian jaggery with Caribbean-style flavours.

 

While ultra-premium releases such as Expedition, India’s oldest 15-year-old single malt, are niche, they play a key role in strengthening brand positioning in India and overseas.

 

Riding on premium whiskies, rums, gins and collaborations, Amrut is aspiring to reach ₹600 crore in net sales by FY27 and expects to ship around 6.5 million cases in 2026.

 

To meet the rising demand, the company is revamping its distillation capacity from 1 million to 1.3 million litres, slated to be completed in 2026.

 

Tequila and agave-based spirits have emerged as a key festival-season trend. New York-born, Mexico-made Cristal Azul entered India in November with its Anejo, Reposado and Blanco variants, priced between ₹6,950 and ₹23,500.

 

The brand plans to sell 150,000 cases by 2026 and is targeting ₹150 crore revenue within two years.

 

“Since Cristal Azul launched in India at ProWine in November, we have seen strong early interest during the year-end season, with growing trials across hotels, restaurants, cafés/catering (HoReCa) markets,” said Aman Swetta, co-founder, Cristal Azul.

 

Loca Loka, co-founded by Sree Harsha Vadlamudi along with actor Rana Daggubati and composer Anirudh Ravichander, also entered India during the festival season, launching its Blanco and Reposado tequilas in Delhi, Mumbai and Hyderabad duty-free.

 

The company targets at least 1 million bottles over the next three years while expanding to two-three new states every month.

 

Beer makers, too, are betting on the festival quarter to accelerate expansion.

 

SOM Distilleries and Breweries is targeting revenue of ₹1,550-1,600 crore in FY26 and sees ₹2,000 crore as achievable in FY27, supported by geographic expansion and new launches.

 

Indore-based Mount Everest Breweries Ltd (MEBL) is aiming for over ₹850 crore in revenue by FY27 and expects to sell around 9.5 million cases in FY26.

 

In beer, SOM Distilleries entered Karnataka with Sunny Beaches Premium Beer in late September, targeting Gen Z and millennial consumers. The brand has already reached over 6,000 outlets in the state and is expected to sell around 1 million cases within six to seven months.

 

“Sales during the year-end period typically rise by about 20 per cent compared to preceding months, a trend seen across the industry,” said JK Arora, chairman and managing director of SOM Distilleries.

 

MEBL launched its flagship STOK beer in Bengaluru in late November and plans to expand to 18 states by FY26. “These launches are key to our growth plans,” said Vedant Kedia, whole-time director at the company.