In a significant achievement, India has surpassed China to become Pernod Ricard's second-largest market. Alexandre Ricard, the company's CEO, credits this to a growing base of affluent consumers and increased sales of premium brands. With India now contributing 12% of Pernod Ricard's sales, the company is investing significantly in the Indian market. Pernod Ricard's success in India is driven by premium brands like Blenders Pride and Royal Stag, reflecting the country's growing preference for high-quality spirits. The trend towards premiumization is evident, with local distillers focusing on upscale products, aligning with shifting consumer preferences.
In a significant milestone for Pernod Ricard, India has surpassed China to claim the position of the second-largest market by sales, marking a momentous achievement for the French distiller. Alexandre Ricard, the chairman and CEO of Pernod Ricard, attributed this remarkable feat to a burgeoning base of affluent consumers and a surge in the sales of premium brands like Absolut vodka, Chivas Regal, and Glenlivet.
Expressing his optimism towards the Indian market, Ricard highlighted the favorable macroeconomic conditions, robust GDP growth, and the expanding middle and affluent class population. He emphasized the continuous influx of 25 million individuals reaching the legal drinking age annually, painting a promising picture for the company's growth trajectory.
Previously contributing 10% of Pernod Ricard's global sales, India now holds the second position after the United States, with China following closely behind. Despite being the largest market worldwide in volume terms for several years, India's ascent to the second spot underscores its growing significance in the global market landscape.
With Pernod Ricard's annual sales amounting to 11.5 billion euros, the Indian business segment translates to approximately 1.38 billion euros or around Rs 12,700 crore. The company's operations in India extend beyond a sole distillery in Nashik, Maharashtra, encompassing 24 bottling sites across the country. Noteworthy is Pernod Ricard's substantial investment of 200 million euros in constructing its largest Asian distillery in Nagpur, Maharashtra, underscoring its commitment to the Indian market.
Despite a limited presence in the mass market segment, Pernod Ricard commands a significant share of India's whiskey market, capturing a quarter of the market share. The company's success primarily stems from its premium and semi-premium brands like Blenders Pride, Royal Stag, and Imperial Blue, commanding half of the premium whiskey market share and 42% of the imported spirits market.
Ricard accentuated the strong foothold of premium-plus western-style spirits in India, noting the country's status as the world's largest whiskey market. With a consistent growth rate averaging 8% in the past five years, Pernod Ricard maintains a leading position in the market, boasting a diverse portfolio of brands that continue to evolve with innovative offerings.
The trend of premiumization in the Indian spirits market persists, with a growing emphasis on local brands alongside international labels. According to IWSR, local distillers are strategically streamlining their product portfolios to focus on upscale offerings, prioritizing value sales and margins over volume. This shift towards premium products has gained momentum, with Indian single malts gaining traction and closing in on the sales of single malt scotch, traditionally considered the pinnacle of quality in India.
Recently, Pernod Ricard introduced two new whiskies - Royal Stag Double Dark Peaty Whisky and Blenders Pride Four Elements Premium Whisky - as part of its premiumization initiative, following the successful launch of Longitude 77, the company's first Indian single malt. This move underscores Pernod Ricard's commitment to catering to the evolving preferences of the discerning Indian consumer base, symbolizing a new chapter in the company's growth story.
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