Pernod Ricard, the world’s second biggest spirit-maker, is looking at low double digit growth in India, its third strategic market globally. White spirits – vodka and gin – are amongst the fastest growing segments here.
The French spirit-maker reported a 20 per cent growth in sales in India.
Growth drivers
Growth here is expected to be fuelled by changing customer demographics, rapid urbanisation and a demand for premium offerings.
“In India, part of the performance was also boosted by a weak base the previous fiscal year. For a low double-digit value growth, India is a great place to be, especially when you're a market leader,” Alexandre Ricard, Chairman, CEO and Member of the Executive Board of Pernod Ricard SA, said during an analyst concall.
Premium brands that the company sell in India include ‘Absolut’ in vodka, ‘Jacob’s Creek’ in wines, ‘Beefeater’ in gin, ‘Ballantines’ in malted whiskey, ‘Jameson’ in Irish whiskey, among others. Other super premium segment offerings include ‘Chivas Regal’ in scotch, ‘Royal Salute’ in whiskey and ‘Monkey 47’ in the gin category.
Mass to mass-premium categories include brands such as ‘Seagram’s Royal Stag’, ‘Seagram’s Blender’s Pride’, ‘Seagram’s Imperial Blue’, ‘Seagram’s 100 Pipers’, among others.
According to Ricard, a low double-digit growth is “long-term sustainable.” “In any case, it doesn't change the fact that underlying performance of Pernod Ricard in India is very strong,” he said.
“Acceleration of Seagram's Indian whiskies; leadership maintained with a little bit less than half of the market (45 per cent value market share); and acceleration of our strategic international brands portfolio with strong growth across the whole range are our targets for India. Also, it’s interesting to note the very strong growth of our strategic wines with Jacob’s Creek, which is market leader in India,” Ricard added.
A&P spends
According to Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India, marketing budgets are set for a 10-12 per cent growth as the spirit maker looks to push its premium offerings.
For instance, the company has recently unveiled its India-led global campaign, called “Colourless”, for the vodka brand Absolut.
“Marketing budget is expected to witness a 10 per cent growth over previous years. White spirits, we feel, will grow faster,” he told BusinessLine .
India, he said, continues to be strong whiskey market with brands like ‘Chivas Regal’ having strong off-take.
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