French distiller Pernod Ricard is delving into the potential of introducing high-end spirits brands in India, which may include whiskies, rums, and gins, as reported by the Economic Times. As a step forward, the company has already initiated the test-marketing phase of an Indian single malt in the vibrant cities of Mumbai and Goa.
Kartik Mohindra, Chief Marketing Officer and Head Global Business development at Pernod Ricard India, said, “We are evaluating other categories for premium brands, based on whether it will be profitable and have a sustained value. Some segments like top-end rum and tequila are unexploited markets right now in India.”
Mohindra stated that their primary objective is to appeal to discerning whisky consumers with the upcoming product, strategically priced at INR 5,500 to INR 6,000 per bottle. Additionally, the company is actively exploring prospects in other premium segments like high-quality rums and tequilas, which currently remain untapped in the Indian market.
Pernod Ricard has devised a strategic plan to export these premium Indian brands to international markets with substantial Indian diasporas, notably the Middle East, the UK, and the US. The objective behind this move is to effectively compete with Indian brands, including startups, that are endeavoring to elevate the quality of their portfolios. Simultaneously, Pernod Ricard aims to expand its footprint in the premium segment across various price points, a domain currently limited to their imported offerings.
After the US and China, India stands as the third largest market for Pernod Ricard. Within India, the company holds the position of the largest whisky producer, commanding a significant 25% share of the market with Indian brands like Royal Stag, Imperial Blue, and Blenders Pride. Moreover, Pernod Ricard also boasts ownership of India’s highest-selling Scotch, 100 Pipers, witnessing annual sales of over 1.5 million cases.
With a firm commitment to the Indian market, the company intends to allocate an annual capex investment ranging from INR 200 to 300 crore in the coming years. Their ambitious goal is to achieve double-digit growth in India for the mid-to-long term. Pernod Ricard holds a positive investment outlook for India and firmly believes in the country’s potential, being dedicated to making the necessary investments to capitalize on the opportunities presented.
