Innovation Is Critical: Abhishek Khaitan, MD, Radico

On company's success mantra
During the last two decades, the company has successfully built a strong and growing premium product portfolio driven by consumer preferences with around 20 new brand launches. Radico Khaitan remains focussed on innovation, R&D and consumer centricity. The Company is well-known as one of the few companies in the country to have developed its entire brand portfolio organically with in-house capabilities.

On company's premiumisation strategy
Innovation is critical in today’s competitive global market, where consumers seek experiences that are authentic, distinct, and reflective of different cultures. Since 2019, the Company’s premium brands have grown 180 per cent coupled with a sustainable improvement in the realisation per case. In FY2024, Prestige & Above brands accounted for 45.6 per cent of the total IMFL volumes compared to 28.3 per cent in FY2019.

On what sets the brands apart
Quality Blending: Radico has a legacy of 80 years of spirit making. We have a strong blending team which has been able to deliver so many quality and successful brands over the years. Furthermore, our backward integration into the distillery also helps is maintaining the quality of the key ingredients. 
Strong Distribution: Over the years, we have been able to create a pan India distribution network which covers over 98 per cent of the retail universe of 100,000 plus retails stores in India.

On current trends driving premiumisation
Global consumers, especially the Gen Z and the millennials, are more open to experimenting with their drinks. They like to try out new things and are not tied down by conventions when it comes to alcohol, especially best-in-class spirits. They are more inclined to spend on premium brands that offer quality and innovation. Growth in sectors like luxury travel, fine dining, and high-end entertainment is contributing to the overall premiumisation trend.
 

Ashish Sinha

BW Reporters