Business · Companies · 7 hrs ago
United Spirits’ lower-priced liquor sales fall as consumers face inflation
United Spirits is facing weaker sales of lower-priced liquor as inflation strains lower-income consumers in India.
The company, controlled by Diageo, said its lower-income “India 1” consumers are showing signs of fatigue, while higher-income groups are holding up.
Sales in its popular segment fell 22.7% to ₹181 crore in the September quarter, partly because of policy changes in Maharashtra and Karnataka.
Its prestige and higher-priced brands grew 6% and made up 94% of revenue, as the company focuses on premiumisation.
Higher costs added pressure, including about ₹50 crore linked to conflict in West Asia and rising prices for alcohol-making ingredients.
Lower Scotch import duties may offset ingredient costs next quarter, but the company said the impact beyond that period is difficult to predict, while an investigation into Scotch import classification is under way.
United Spirits’ popular liquor segment recorded a 22.7% decline in net sales value to ₹181 crore in the September quarter.
The company said inflation is weighing on lower-income consumers, who are a target audience for its lower-priced brands.
Adverse policy changes in Maharashtra and Karnataka also affected sales in the popular segment.
The company said it has no immediate plans to intervene in the portfolio, which largely comprises McDowell’s rum.
Its prestige and above portfolio grew 6% and accounted for 94% of revenue.
- Who
- United Spirits, the Diageo-controlled liquor maker.
- What
- Its popular segment’s net sales value fell 22.7% to ₹181 crore in the September quarter.
- When
- In the September quarter; the article was published on 30 October 2026.
- Where
- India, including markets affected by policy changes in Maharashtra and Karnataka.
- Why
- Inflation is squeezing lower-income consumers, while policy changes in Maharashtra and Karnataka added pressure.
This story does not have two clearly opposing sides.
United Spirits’ popular segment reported a 22.7% decline in net sales value to ₹181 crore.
Economic Times published its report on the company’s sales and consumer pressures.
- Popular segment sales
- Down 22.7% to ₹181 crore
- Popular segment share
- About 6% of revenue
- Prestige and above portfolio
- Grew 6%; accounted for 94% of revenue
- Policy changes
- Adverse changes in Maharashtra and Karnataka affected the popular segment
What people are saying
India 1, the bottom end, the India 1 consumer, which is a target audience for the lower half of the IMFL portfolio, is showing signs of fatigue due to the impact of inflation on their wallets
India 2 and India 3 are robust and holding up
The category will probably die a natural death, so as of now we don't want to make any interventions
Hopefully, this will be neutralised by the full effect of the FTA benefit