Pernod Ricard India Brand
June 16 , 2015

India will be 3rd biggest market for Pernod Ricard

The Times of India

India Will soon surpass France to become French liquor giant Pernod Ricard's third biggest market as it looks to stabilize sales in its top two strongholds- US and China.

John.sarkar@timesgroup.com

Paris:India will soon surpass France to become French liquor giant Pernod Ricard's third biggest market as it looks to stabilize sales in its top two strongholds-US and China. "India is the number one growth driver for Pernod Ricard globally," said Alexandre Ricard,chairman and CEO of Pernod Ricard. "France which accounts for around 8% of our global sales,is a saturated market. We are in an investment mode in India and soon it will overtake France."

The company, which owns several brands including Chivas Regal whisky, Absolut Vodka, Jameson whisky and Martell cognac, said its sales in India grew by 19% in the first nine months of the fiscal yaer,driven by local whisky brands.

In the US, Which is Pernod Ricard's biggest market and the world’s largest for drinks, the company is struggling with its largest brand Absolute Vodka as consumers are moving towards more trendy drinks such as bourbon. Its business in China, which is crucial for its premium brands GH Mumm champagne add Martell cognac, has been hit by a government clampdown on extravagant spending.

In contrast, India has been a great success story. Here, the company, with annual sales of around 8 billion euros, sells brands such as, Blender’s Pride,100 Pipers, Fuel, Royal Stag and Imperial Blue among others. “The most profitable is the premium deluxe whisky segment. Over the next 10 years, India will provide 22 million consumers above the legal drinking age every years,” said Ricard. “We have been consistently hitting double-digit top line growth and are looking to amplify our value leadership in the country.”

For Ricard, the 43-year-old grandson of Paul Ricard, who helped created the French drinks major in the seventies organic top line growth is the top priority. He outlined four battlegrounds: US, China, India and Africa.

“We are looking at single digit growth in US and China and double-digit growth in India and Africa. We have identified four accelerators that will help us achieve this: portfolio management, digital acceleration, innovation and premium & luxury. These days, the consumer is not only focused on one brand. He is looking at different drinking occasions, “he said.

In India, apart from competition from Britain's Diageo, which owns brands such as Johnny Walker, Smirnoff and Ciroc among many other, Ricard faces regulatory hurdles. “Globally, e-commerce is a very important segment for us. We are yet not sure, how things are going to play out in India,” he said.

 

The writer was in Paris at the invitation of Pernod Ricard

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