What Is Diageo’s Position in India’s Alcoholic Beverage Market?

May 31st, 2016 by Trefis Team
+13.91%
Upside
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Market
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Trefis
DEO: Diageo logo
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Diageo

Diageo currently holds ~55% stake in United Spirits Ltd. (USL) of India, a leading alcoholic beverage company in India. USL has sales of over 90 million equivalent units of Indian Made Foreign Liquor (IMFL) and a significant market presence across India. IMFL already accounts for 8% of the total volumes for Diageo. However, the alcoholic drinks segment has witnessed a slowdown in the country, which grew just 0.2% in 2015 as a result of price hikes, bans, and distribution challenges in a few states. According to Euromonitor, the corresponding growth rates were 6% in 2014 and 2013, 9% in 2012, and 11% in 2011.

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USL owns the top selling beer in India – Kingfisher – which has a 41.3% share in the Indian market.

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Diageo has two of the top five most selling spirits in India in 2015. These are McDowell’s whiskey with 17.7% share (number 1) and Old Tavern whiskey with 4.1% share (number 5).

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Diageo.