Pernod Ricard, the company behind popular brands like Chivas Regal, Glenlivet, and Absolut, has expressed its belief that India will surpass the United States to become its largest global market. Although no specific time frame was mentioned, India currently contributes over 10% of Pernod Ricard‘s global revenue of Rs 12.1 billion and nearly a third of its global sales volume.
According to Jean Touboul, the Managing Director of Pernod Ricard India, the country’s strong macroeconomics make it an attractive market for growth. He told ET that they are growing at a faster pace than many other affiliates within the group. “We are growing faster than many other affiliates in the group, and hopefully because we do a good job, but I don’t want to undermine my colleagues’ jobs in other countries. It’s a market where the gross potential is much higher,” he was quoted as saying.
Touboul highlighted the reasons for India being among the fastest growing markets, including favorable macroeconomics, a growing population of legal drinking age individuals, and a demographic dividend. He emphasized that India is considered one of Pernod Ricard’s “must-win” countries, alongside the US and China.
In the last fiscal year, Pernod Ricard’s revenue in India increased by 10% to Rs 25,142 crore, although net profit declined by 8% to Rs 1,343 crore due to higher taxes and promotional expenses.
Despite having a minimal presence in the mass segment, Pernod Ricard controls around a quarter of India’s overall whisky market. The company’s success is mainly driven by its premium and semi-premium brands, such as Blenders Pride, Royal Stag, Imperial Blue. The company also owns the highest-selling Scotch in India, 100 Pipers, which sells over 1.5 million cases annually. However, Pernod Ricard faces increasing competition from players like Diageo, Beam Suntory, and local brands like Amrut and John Distillers in the higher-priced segments.
Read From ET | Pernod Ricard India plans
Touboul acknowledges the complexities of the Indian market but remains optimistic about the competition. He believes that more players entering the market will enhance the offerings for consumers, which will, in turn, attract more people to their products.
“I don’t fear competition. I am happy that more players are entering and helping boost the offer for the consumer, and we can all together as an industry attract more and more consumers into our products,” stated Touboul.
According to Jean Touboul, the Managing Director of Pernod Ricard India, the country’s strong macroeconomics make it an attractive market for growth. He told ET that they are growing at a faster pace than many other affiliates within the group. “We are growing faster than many other affiliates in the group, and hopefully because we do a good job, but I don’t want to undermine my colleagues’ jobs in other countries. It’s a market where the gross potential is much higher,” he was quoted as saying.
Touboul highlighted the reasons for India being among the fastest growing markets, including favorable macroeconomics, a growing population of legal drinking age individuals, and a demographic dividend. He emphasized that India is considered one of Pernod Ricard’s “must-win” countries, alongside the US and China.
In the last fiscal year, Pernod Ricard’s revenue in India increased by 10% to Rs 25,142 crore, although net profit declined by 8% to Rs 1,343 crore due to higher taxes and promotional expenses.
Despite having a minimal presence in the mass segment, Pernod Ricard controls around a quarter of India’s overall whisky market. The company’s success is mainly driven by its premium and semi-premium brands, such as Blenders Pride, Royal Stag, Imperial Blue. The company also owns the highest-selling Scotch in India, 100 Pipers, which sells over 1.5 million cases annually. However, Pernod Ricard faces increasing competition from players like Diageo, Beam Suntory, and local brands like Amrut and John Distillers in the higher-priced segments.
Read From ET | Pernod Ricard India plans
Touboul acknowledges the complexities of the Indian market but remains optimistic about the competition. He believes that more players entering the market will enhance the offerings for consumers, which will, in turn, attract more people to their products.
“I don’t fear competition. I am happy that more players are entering and helping boost the offer for the consumer, and we can all together as an industry attract more and more consumers into our products,” stated Touboul.
