INDIA – India, now Pernod Ricard’s second-biggest market by sales, has surpassed China for the first time during the French distiller’s fiscal year ended June 2024.
According to Alexandre Ricard, Chairman and CEO of Pernod Ricard, the surge in India’s market share is driven by a growing population of affluent consumers and higher sales of premium brands such as Absolut vodka, Chivas Regal, and Glenlivet
“All of the lights are green for the Indian market. It enjoys very strong and favorable macro fundamentals, including strong GDP growth and an expanding middle and affluent class,” Ricard said during an analyst call.
Until the last fiscal year, India ranked third in global sales contribution for Pernod Ricard, trailing behind the US and China.
While India has been the largest market for the company in terms of volume for several years, it now contributes 12 percent of global sales, overtaking China’s 10 percent. The US continues to lead with 19 percent of sales.
Pernod Ricard currently operates a distillery in Nashik, Maharashtra, and 24 bottling sites across India.
The company recently announced a 200-million-euro investment to build its largest distillery in Asia, located in Nagpur, Maharashtra.
This move reflects the company’s strong commitment to expanding its presence in India, where it controls a quarter of the whiskey market despite minimal involvement in the mass market.
“There is a strong presence of premium-plus western-style spirits in the Indian market, which is also the world’s largest whiskey market. Over the past five years, we have averaged an 8 percent growth rate, in line with our forecast for India,” Ricard added.
He highlighted the company’s robust position in India, with a broad portfolio of brands that continues to expand through innovation.
Pernod Ricard is also capitalizing on India’s trend towards premiumisation, which is increasingly taking on a local flavor with the rise of homegrown brands.
As part of its premiumisation strategy, the company recently launched two new whiskies in India: Royal Stag Double Dark Peaty Whisky and Blenders Pride Four Elements Premium Whisky.
These additions followed the launch of Longitude 77, the company’s first Indian single malt.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE
