Chivas Brothers, a prominent producer of Scotch whiskey, achieved a remarkable 27 percent increase in sales during the fiscal year 2023 within the Indian market. This growth was driven by the introduction of new Scotch enthusiasts and the elevation of the market’s premium offerings. According to Chairman and CEO Jean Etienne Gourgues, India emerged as one of the company’s most significant expanding markets in terms of value for the fiscal year 2023. Chivas Brothers adheres to a financial year that spans from July to June.
Chivas Brothers is a subsidiary of the French beverage giant Pernod Ricard. The company is engaged in the production of both single malt and blended Scotch whisky labels, which encompass well-known brands like Chivas Regal, Ballantine’s, Royal Salute, and The Glenlivet.
“It is a big growth. It is directly driven by the value and the organisation. Overall group’s performance in India is still high. It plus 13 per cent. Scotch whisky, the higher part of that is growing faster. Brands such as Glenlivet are enjoying very strong growth. The higher the brand, the stronger the growth,” Gourgues told PTI in an interview after the results.
Furthermore, he also mentioned that there exists a slight inflationary factor in India, although it is currently not of significant magnitude.
India falls within the Asia region, where Chivas Brothers experienced a strong growth of 21 percent during the fiscal year 2023. The company’s financial year follows the period from July to June.
“The Asia region has been particularly robust, with 21 per cent growth in FY23, and the number one contributor to growth overall. India (+27%), South Korea (+19%), Japan (+28%) and Greater China (+7%) have also seen exceptionally strong performances and are driving demand with new Scotch audiences,” said an earning statement from Chivas Brothers.
When asked about the brand-wise performance in the Indian market, Gourgues said, “All the brands have enjoyed double-digit growth In India.”
“Most of our brands in between Chivas and Ballantine’s performed both at the same level in India. It’s again very much value-driven, more than volume-driven,” he added.
The Luxury Blended Scotch Whisky from Chivas Brothers achieved triple-digit growth in India, highlighting the increasing desire for top-quality whiskey in the country.
Gourgues mentioned that the trend of premiumization continues within the whiskey market, accompanied by ongoing innovations.
“I think the growth driver was the overall trend of premiumisation, which means that consumers are purchasing a bit, sometimes a bit less but the higher quality and that has been the strong underlying factor for the growth.”
Chivas Brothers intends to introduce further innovations for its products in India over the upcoming year. However, specific details regarding these plans were not disclosed.
“It is a strategic market for us. So it’s definitely a market where when we do have innovation on Ballantine’s on Chivas on Royal salute, we will bring it to India,” he said
When asked about the short-term and mid-term outlook for the Indian market, Gourgues said, “It is very positive for the future. India is the largest market in the world in terms of whiskey consumption. So there is a huge consumer base of consumers of the IMFL.”
Now consumers want to trade up for the special occasion and even for the daily occasion as well, he said.
“And I think with this premiumisation trend, which has been very clearly demonstrated through the results, the appetite is very strong to go for a more premium product and definitely Scotch whiskey and our brands are very well positioned to capture.”
Over all Chivas Brothers reported the “strongest financial performance” in a decade with 17 per cent growth in global sales.
“Chivas Regal celebrated global growth of +25%, with impressive performance in markets such as India and Japan,” it added.