Diageo India, led by managing director Praveen Someshwar, remains optimistic about the demand for premium alcohol in India, which continues to thrive despite inflation and geopolitical challenges. The company, which controls United Spirits (USL), expects strong double-digit growth in its prestige-and-above portfolio by fiscal 2027, fueled by a young consumer base and rising incomes. In fiscal 2026, the prestige-and-above segment, excluding Maharashtra and Andhra Pradesh, recorded an 11.3% growth, while mid-prestige brands saw a 17.1% increase. However, the alcobev industry faces challenges as crude-linked inflation drives up costs for packaging materials, which could reduce gross margins by 1.25 to 1.5 percentage points in the current quarter, potentially costing the company up to ₹40 crore (approximately $4.8 million USD). To mitigate these pressures, Diageo plans to implement productivity gains and selective price increases, although prolonged geopolitical tensions may exacerbate margin challenges in the future.