USL to expand vodka range

United Spirits (USL), the UB Group's liquor arm, is planning to introduce more brands in the premium and mid-priced vodka segments within the next year.

This could include brands that are likely to be acquired by the group, said the company executives.

Apart from that, UB is also planning to launch Vladivar from the Whyte & Mackay (W&M) portfolio.

The UB Group acquired W&M earlier this year. Although USL is the market leader in the overall vodka category in India, it has no market share in the premium and medium-priced vodka segments.

"The new vodka brands that we are going to introduce could be from the Whyte and Mackay stable or through acquisitions. Currently, USL's White Mischief is the largest-selling vodka in the country and it dominates the regular- priced vodka market with an 83 per cent market share. However, we want to tap the premium and mid-priced segments, which are also catching up in India," said Debashish Shyam, assistant vice-president, marketing, USL.

In the mid-priced segment, USL would be competing with liquor major Diageo's best-selling vodka brand Smirnoff and the recently launched Shark Tooth vodka.

The regular and mid-priced vodka segments make up 90 per cent of the total market and the premium segment makes up the remaining 10 per cent. However, vodka consumption is growing at 30-40 per cent. North India is the leader in vodka consumption, followed by west, south and east.

The company is planning to increase its investments by 40 to 50 per cent in the category and spend it on the introduction of new brands. Currently, United Spirits has three other vodka brands under its fold "" Romanov, Alcazar and Red Riband.

All these are present in specific pockets in the regular-priced segments in India. However, these brands are not a part of USL's core business and has presence in some travel destinations.

Shyam said increasing awareness and rising incomes had fuelled vodka consumption in small towns more than that in the metros. Since more and more women were opting for vodka, the consumer base was expanding further.

Due to these factors, in the past four to five years, demand in the vodka market had surged, providing greater opportunities for investments, he added.

In the mid-priced segment, USL would be competing with liquor major Diageo's best-selling vodka brand Smirnoff and the recently launched Shark Tooth vodka.

The regular and mid-priced vodka segments make up 90 per cent of the total market and the premium segment makes up the remaining 10 per cent. However, vodka consumption is growing at 30-40 per cent. North India is the leader in vodka consumption, followed by west, south and east.

The company is planning to increase its investments by 40 to 50 per cent in the category and spend it on the introduction of new brands. Currently, United Spirits has three other vodka brands under its fold- Romanov, Alcazar and Red Riband. All these are present in specific pockets in the regular priced segments in India.

However, these brands are not a part of USL's core business and has presence in some travel destinations.

Shyam said increasing awareness and rising incomes have fuelled vodka consumption in small towns more than in the metros. Since more and more women are opting for vodka, the consumer base was expanding further.

Due to these factors, in the past four to five years, demand in the vodka market has surged, providing greater opportunities for investments, he added.