Mumbai: Early signs of a demand recovery in spirits are emerging, Diageo India's managing director Praveen Someshwar said, cautioning that challenges in key states such as Maharashtra and Telangana continue to persist.
"At a macro level, we are witnessing consumption green shoots," Someshwar said on an earnings call. "The top end of the portfolio has delivered strongly in this quarter, helped by higher disposable income following tax relief measures, GST cuts and a good monsoon."
The maker of Johnnie Walker and Black Dog said consumers are spending on premium brands for social occasions and festivals, but remain cautious about daily purchases.
Over the past several months, domestic sales of spirits, including whisky, rum, brandy and vodka, have slowed due to distribution changes, increased taxation and pressure on discretionary spending, with many consumers cutting back on alcohol consumption.
While the festive seasonal pick-up and improved consumer sentiment helped sales during the quarter, policy changes in some large states weighed on volumes at mass-priced segments.
"At a macro level, we are witnessing consumption green shoots," Someshwar said on an earnings call. "The top end of the portfolio has delivered strongly in this quarter, helped by higher disposable income following tax relief measures, GST cuts and a good monsoon."
The maker of Johnnie Walker and Black Dog said consumers are spending on premium brands for social occasions and festivals, but remain cautious about daily purchases.
Over the past several months, domestic sales of spirits, including whisky, rum, brandy and vodka, have slowed due to distribution changes, increased taxation and pressure on discretionary spending, with many consumers cutting back on alcohol consumption.
While the festive seasonal pick-up and improved consumer sentiment helped sales during the quarter, policy changes in some large states weighed on volumes at mass-priced segments.
