India’s alcoholic beverages industry is undergoing a decisive shift. Premiumisation is accelerating, consumer preferences are evolving rapidly in urban markets, and regulatory and cost pressures continue to test operational agility. Against this backdrop, SOM Distilleries and Breweries Ltd has emerged as a company navigating change with a balanced strategy—scaling premium offerings while protecting its mainstream volume base.
In this interview, Mr Deepak Arora, CEO of SOM Distilleries and Breweries Ltd, shares insights into the company’s performance in Q2 FY26, its approach to premiumisation, the growing relevance of brands such as Woodpecker and Mahavat, and how SOM is positioning itself for sustainable growth in 2026 amid policy shifts and changing consumption patterns.
Premiumisation is accelerating across India’s alco-bev landscape. How is SOM Distilleries balancing the growth of premium offerings with the need to keep its mainstream brands accessible and scalable across diverse markets?
We are actively participating in premiumisation while ensuring that our mainstream portfolio remains accessible and scalable. Our strategy is to build stronger premium brands and formats in markets where the willingness to upgrade is clearly visible, while simultaneously driving distribution efficiency, local sourcing and operational scale to keep mainstream SKUs competitively priced. This dual approach enables us to capture value growth in premium segments without losing the volume base that remains critical across many Indian markets.
Your Q2 FY26 results showed improved gross margins and a strong EBITDA uptick. What were the biggest learnings from this quarter in terms of channel mix, volume recovery and geographic performance, and how will they shape your strategy for the next two quarters?
Q2 validated that our channel mix is moving in the right direction, with premium beer contributing more meaningfully to margins. Volume recovery was strongest in key southern and central markets, reinforcing the importance of geographic diversification. We also saw tangible benefits from cost discipline and capacity optimisation. These learnings will shape our near-term strategy by driving deeper expansion in high-growth markets, accelerating premium SKU placements and maintaining a strong focus on operational efficiency.
Urban consumers are increasingly gravitating towards craft styles and experiential drinking. How is SOM leveraging this shift, and what role do innovation and new formats play in strengthening your presence in metros and Tier-1 markets?
We are aligning closely with this trend through craft-inspired profiles, wheat and flavoured variants, and modern packaging formats that appeal to urban consumers. Innovation plays a central role in our metro and Tier-1 strategy, supported by experiential activations, on-trade partnerships and limited releases. This approach helps us enhance brand relevance, attract younger drinkers and strengthen our positioning in high-opportunity urban centres.
Both Woodpecker and Mahavat have seen growing visibility in recent months. Could you share how these brands are performing, the consumer segments they are resonating with, and the strategic role they will play in SOM’s 2026 roadmap?
Woodpecker is performing strongly in the premium wheat beer category and resonates with urban millennials seeking smooth, approachable craft-style options. Mahavat is gaining traction in the value-plus segment among consumers who prefer fuller-bodied beers at accessible price points, particularly in Delhi NCR and Madhya Pradesh. Together, these brands form the backbone of our 2026 premium and value-plus strategy, enabling us to expand higher-margin segments while strengthening our presence in key urban and semi-urban markets.
Looking ahead to 2026, industry forecasts suggest modest volume growth but strong momentum in premium and craft segments. What opportunities and challenges do you foresee for SOM Distilleries, and which parts of the portfolio will drive the next phase of growth?
The key opportunity lies in the accelerating shift towards premium beer, craft-inspired formats and higher-margin IMFL categories. These segments will drive our next phase of growth as consumer preferences continue to evolve. The primary challenges will be managing input cost cycles and navigating regulatory variability across states. Our 2026 portfolio strategy is focused on strengthening premium beer, scaling craft-led innovations and expanding premium IMFL offerings to deliver sustained, value-led growth.
About SOM Group
SOM Group of Companies is one of India’s leading alcoholic beverage manufacturers, with a diversified portfolio spanning premium beers, spirits and ready-to-drink products. Headquartered in Bhopal, Madhya Pradesh, the group has a strong presence across multiple Indian states and exports to several international markets. With flagship brands such as Mahavat Whisky, Bhimbetka Single Malt, and popular beer labels including Hunter, Sunny Beaches, Power Cool, Black Fort and Woodpecker, SOM Group continues to focus on quality, innovation and long-term value creation as it shapes the future of India’s beverage industry.
