Allied Blenders Targets Premium Spirits Amid Inflation Concerns
Officer’s Choice whiskey maker targets premium spirits segment despite war-linked inflation worries
The Economic TimesImage: The Economic Times
Allied Blenders and Distillers, the maker of Officer's Choice whiskey, is focusing on the premium spirits segment for growth despite inflation linked to the Middle East conflict. The company's Prestige & Above portfolio now represents 47% of volumes and 58% of sales value, with expectations for EBITDA margins to rise significantly by fiscal 2028.
- 01The Prestige & Above portfolio includes brands like Millionaire Spirits and ICONiQ White.
- 02Allied Blenders anticipates a 300 basis point increase in overall EBITDA margins by fiscal year 2028.
- 03For fiscal 2026, EBITDA margins improved to 14.4%, up from 12.7% the previous year.
- 04Despite a 48% drop in net profit to ₹409.7 million (approximately $4.27 million), net export revenue increased by 14.1% to ₹2.35 billion (approximately $28.5 million).
- 05The company has resumed supplies to Middle Eastern markets after war-related disruptions.
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Allied Blenders and Distillers, known for its Officer's Choice whiskey, is shifting its focus towards the premium spirits market, aiming for growth despite inflationary pressures caused by ongoing conflicts in the Middle East. Managing Director Alok Gupta highlighted that the company's Prestige & Above (P&A) portfolio, which includes brands like Millionaire Spirits and ICONiQ White, now constitutes about 47% of total volumes and 58% of sales value. This strategic shift emphasizes profitability over mass volume sales. The company expects its overall EBITDA margins to expand by 300 basis points by fiscal year 2028, with margins for fiscal 2026 already rising to 14.4% from 12.7% the prior year. Although Allied Blenders reported a 48% decline in net profit to ₹409.7 million (approximately $4.27 million) due to a one-time charge, net export revenue increased by 14.1% to ₹2.35 billion (approximately $28.5 million). Supply disruptions earlier this year impacted shipments to key Middle Eastern markets, but restocking efforts are underway, indicating sustained demand in the premium segment.
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The focus on premium spirits may lead to higher-priced options for consumers, impacting their purchasing decisions.
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