Indian liquor brands' push for premium growth across the Hindi heartland resurfaces a June 2026 move
Radico Khaitan said premium labels contributed more than 70% of its IMFL sales value, in a June 2026 update now resurfacing, as spirits makers expand high-end portfolios, formats and distribution across northern and central Indian markets.
The brand move
Radico Khaitan said its premium portfolio contributes more than 70 per cent to its Indian-made foreign liquor sales value as liquor makers expand premium spirits and retail formats across Hindi heartland states.
The numbers
- 70 per cent
- 28.5 per cent
- 30.9 per cent
- 2025-26
- 20 per cent
Why it matters for the brand
Radico Khaitan’s premium mix surpassing 70% of IMFL sales value signals a potentially durable margin and revenue-growth runway for scaled Indian spirits players.
What to track next
- State excise policy, label-registration fees, outlet licensing rules and dry-day restrictions across north and central India.
- Premium IMFL value growth versus volume growth at Radico Khaitan, United Spirits, Allied Blenders and Pernod Ricard India.
- Share of premium and above segments in company sales mix, gross margin expansion and realization per case.
- Distribution additions in Tier-II cities, premium outlet openings and on-trade recovery outside metros.
- Consumer downtrading indicators: growth in 180ml/375ml packs, discounting, inventory buildup or slower discretionary spending.
The counter-case
Premiumisation may be overstated: value-share gains can reflect price increases, duty changes and a narrow base rather than sustained volume trading-up. Hindi-heartland demand remains highly price-sensitive, and Tier-II expansion faces fragmented distribution, state-specific excise regimes and uneven disposable-income growth. A softer consumer environment could quickly shift buyers back to lower-priced IMFL or illicit/unbranded alcohol.