Kaushik Chatterjee in Calcutta on Monday. A Telegraph picture

Calcutta, April 30: United Spirits Limited is planning to phase out some low-cost whisky and rum brands.

These are in the regular, medium and cheap segments.

“We will look at a gradual exit from certain large-volume but low-value brands of whisky and rum. Most of these brands are localised and are available in the northern and southern parts of the country. With our large portfolio, it does not make sense to continue with brands that yield low revenues,” said Debashish Shyam, assistant vice-president, marketing, United Spirits.

The UB Group company has 150 brands in its portfolio.

Certain brands in the regular segment such as the Bagpiper, Director’s Special, Green Label and Diplomat are still quite profitable with a growth rate of between 11 and 12 per cent against the industry average of 4 per cent.

United Spirits is planning to launch a premium vodka at a higher price than rival Diageo’s Smirnoff. It is yet to decide whether the vodka will be launched as a different brand or as a premium variety of an existing one.

This fiscal, the company is expecting a 15 to 16 per cent growth in volumes nationally across all its brands.

In the east, the company’s six bottling units and its 10 franchisees are adequate to meet the current demand. However, if the growth rate remains as high as last year, it may increase the number of units, Shyam added.

United Spirits is also in talks with Reliance to push its brands when the Mukesh Ambani-controlled company gets the licence to sell liquor.

After the amalgamation with Shaw Wallace, the market share for the company in the east is 58 per cent compared with 48 per cent nationally. “We expect the market share in the east to rise to 60 per cent in the next two years,” Kaushik Chatterjee, chief operating officer, east, United Spirits, said.

The business growth rate in the east is 19 per cent against an all India figure of 15 per cent.

Around 28 per cent of the business in the east is generated from rum sales, 6 per cent from white spirits, mainly vodka, and the rest from whisky.

United Spirits is also in talks with liquor retailers to invest in outlets that would house all its brands under one roof.

The company today launched the Royal Mist whisky priced at Rs 330 for 750 ml. In the first year, United Spirits plans to sell 5 lakh cases of the brand nationally and 3 lakh cases in the east.