Allied Blenders and Distillers (ABD), the Indian alcobev company, is strategically evolving to capture a larger share of India's rapidly premiumizing customer base. The company's initiatives include brand acquisitions, partnerships, and a foray into the metaverse, all pointing toward a focused effort to establish a strong presence in the luxury spirits market.

ABD has made significant moves to augment its portfolio with super-premium and luxury brands. A key development was the acquisition of Fullarton Distilleries Private Limited, bringing brands like Woodburns Contemporary Indian Whisky, Pumori Small Batch Gin, and Segredo Aldeia Rum into the ABD fold. This acquisition strategically positions ABD to cater to the evolving preferences of India's discerning consumers. Woodburns is currently available in six states and union territories, with plans for further expansion, while Pumori and Segredo Aldeia have already established a presence in key markets like Maharashtra and Goa.

Recognizing the evolving digital landscape and the importance of engaging with consumers in innovative ways, ABD has also ventured into the metaverse with the launch of ABD MetaBar. This immersive virtual reality space aims to provide consumers with a differentiated experience of product discovery. As a first step in this virtual endeavor, ABD launched its new whisky, "ICONiQ White," on the metaverse before its physical launch in the market.

Furthermore, ABD has partnered with Bollywood actor Ranveer Singh in a new business venture focused on offering a portfolio of premium brands. This collaboration signals ABD's commitment to creating and offering premium and luxury spirits that resonate with the aspirations of the Indian consumer.

The Indian alcobev market is witnessing increasing premiumization, driven by rising disposable incomes and evolving consumer preferences. Aspri Spirits, a major player in the premium and luxury alco-beverage distribution space, has observed this trend, noting projections of a compound annual growth rate (CAGR) of over 18% through FY30 in the luxury segment. This growth is attracting significant investment and expansion from various distilleries. Piccadily Distilleries, known for Indri whisky, is investing substantially to expand its capacity, including establishing a distillery in Scotland. John Distilleries, the maker of Paul John single malt, is also expanding its Goa distillery.

Other distilleries are also amplifying their premium offerings, including Amrut with its Bella jaggery rum and Radico Khaitan with its Jaisalmer Gold gin. The success of brands like Indri and Paul John has inspired a wave of premium spirits innovation across India.

Pernod Ricard India, another major player, is also focusing on premiumization and innovation to achieve double-digit growth. The company is introducing new brands like 'Xclamat!on' to cater to the evolving preferences of younger consumers, offering a range of spirits at a unified price point.

ABD's strategic initiatives, including acquisitions, metaverse engagement, and partnerships, align with the broader trend of premiumization in the Indian alcobev market. By focusing on super-premium and luxury segments, ABD aims to capitalize on the increasing demand for high-quality spirits and solidify its position as a key player in the industry.