Diageo India Expects Double-digit Growth from Premiumisation and Baileys


Diageo India is setting its sights on an impressive decade-long growth journey driven by double-digit figures, propelled by a keen focus on premium offerings and a strategic entry into India’s thriving organized desserts market with its iconic brand, Baileys. As a global leader in the beverage alcohol industry, Diageo boasts a portfolio featuring renowned brands such as Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness.

Operating in India as United Spirits Limited (USL), Diageo is publicly traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Hina Nagarajan, MD & CEO of Diageo India, revealed to CNBC-TV18 that while the industry might experience a slowdown in volume growth, there is a rise in value expansion. This shift is attributed to the ongoing trend of premiumization, echoing patterns seen in other fast-moving consumer goods (FMCG) sectors. Nagarajan expressed enthusiasm about this transformation, stating that the industry’s focus is on encouraging consumers to “drink better, not more,” leading to better value metrics.

Diageo India’s strategic direction involves delving into India’s organized desserts market, valued at Rs 27,000 crore. Baileys, known for its indulgent Irish cream liqueur, takes center stage in this endeavor. Recognizing the compatibility between Baileys and desserts, Diageo India aims to provide consumers with a unique and luxurious experience. Nagarajan highlighted Baileys’ versatility, ideal for complementing dessert pairings and culinary creations, and expressed confidence in its growth within the portfolio.

The company’s concentrated efforts revolve around catering to evolving consumer preferences and exploring new product categories. Notably, Diageo is assessing the reception of Guinness, which has gained traction, particularly among Indians familiar with it through travels to the UK. Tequila is also emerging as a promising category, mirroring the success trajectory of gin, especially in urban areas. Nagarajan expressed enthusiasm about introducing a range of innovative offerings and transformations to the Indian market.

In summary, Diageo India is positioned for a remarkable growth trajectory driven by a premiumization strategy and a strategic foray into India’s desserts market with Baileys. The company remains attentive to consumer preferences while exploring new product categories like Guinness and Tequila, reflecting its commitment to innovation and expansion.

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