NEW DELHI: French Spirits creator Pernod Ricard expects a triple jump in its sales in the Indian market over the next decade, led by macroeconomic tailwinds, favorable demographic dividends and growing premiumization in IMFL and imported brands here.
According to Jean Touboul, MD, Pernod Ricard India, the Indian market, currently ranked second globally, has the potential to become the leader in the next 10-15 years, replacing the US market, for the company.
“We are growing faster with the tailwinds in macroeconomics, demographics and India being the most populous country on the planet, I am personally convinced that yes, we will be the number one market at Pernod Ricard at some point,” Touboul told PTI.
However, he also added, “I can't say whether it will be in 10, 15 years, that's not easy to predict, but my conviction is that yes, one day India will be the number one market for Pernod Ricard.”
Pernod Ricard is seeing double-digit growth for both IMFL and strong double-digit growth for imported products here, he said.
“As far as net sales are concerned, it is obviously a key market in the current situation and even more important for the group's future growth and results because there is no doubt that India is an extremely favorable market,” he said.
Touboul also pointed to Indian regulations regarding alcohol trade, calling it “complex” that needs to be simplified to make it easier to do business here. “We are on a trajectory where we want to triple our net sales in the next decade. That is our ambition. And for that, we will go for more innovation,” he said.
Pernod Ricard's global portfolio comprises more than 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club and Jacob's Creek. It also owns IMFL brands such as Blenders Pride, Imperial Blue and Royal Stag.
Currently, Pernod Ricard's IMFL (Indian-made foreign liquor IMFL) brand contributes around 95% of its volumes and over 80% of our net sales.
“Today, the vast majority of our business in the Indian alcohol market is in IMFL. It is also where we are particularly strong with our three core brands – Imperial Blue, Royal Stag and Blenders Pride.
“And we are enjoying historic double-digit growth with these brands as they are delivering good results for us and the Pernod Ricard group,” said Touboul.
According to Touboul, Indians want to drink better and Pernod Ricard intends to offer them more premium quality products.
“There is premiumization because per capita income is increasing and it is a natural evolution for consumers, when they have more income, to boost their consumption towards a better product with higher price increases as well,” he said.
“We are here to follow this trend and accelerate it as much as possible, proposing an increasingly high-quality product that helps consumers negotiate,” he stated.
As part of the premiumization effort, Pernod Ricard will continue to innovate across key brands – Imperial Blue, Blender's Pride and Royal Stag.
“We will regularly come with line extensions for these products to re-propose within this type of Seagram quality product, some diverse experience with a diverse flavor, diverse finish, whatever twist we put on the product so that we can provide diverse experiences to our customers. consumers,” he added.
It would have a process of innovation and continuous investment in brands and would seek other initiatives to expand its portfolio, as it is launching a new Indian single malt Longitude 77.
“There is scope to develop more and more premium products, which are also made in India. Our Indian single malt is a great example of this. We are at a price point that is on par with an international 12 year old single malt, such as Glenlivet 12 in our case because we know that we are producing a high quality product in India”, he stated.
Pernod Ricard also owns Scotch whiskey maker Chivas Brotherswhich owns popular single malt and blended Scotch whiskey brands including Chivas Regal, Ballantine's, Royal Salute and The Glenlivet, and hopes that the UK-India Free Trade Agreement (FTA) will be a win-win situation for both states.
It will help “develop the possibility, in particular, of importing higher quality products into India at a more reasonable price” and would be more accessible to a larger part of the Indian population.
Furthermore, if duties on bulk imports of whiskey are waived, it will also help IMFL.
“In the IMFL that we do, we use Indian grain spirits and blend that with Scottish malt that we import from Scotland, obviously. So that's something where we could have a benefit if there were lower customs duties on that part of the business,” he said.



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