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India offers Pernod Ricard a bright future
India is now the largest market by volume and second-largest by value for Pernod Ricard, and the French spirits giant is tapping into the potential of the world’s most populous nation.
Pernod Ricard, the world’s second-largest wine and spirits company, is growing its business in India.
The country in South Asia is now its largest market by volume and second largest by value, India MD Jean Touboul said on Wednesday.
Its potential for the business, which produces global brands including Chivas Regal, Jameson and Absolut, is also growing. Pernod Ricard reported a 6.1% growth in net sales in the Indian market in FY24, and has become a “growth engine” for the business, according to Touboul.
Irish whiskey brand Jameson and Scotch brand Glenlivet have found a second-largest market in India, the company said.
Pernod Ricard’s Indian arm produces Indian whiskies including Royal Stag, Imperial Blue and Blender’s Pride. The company has said it will increase exports from India by taking its domestic whisky portfolio global. The French multinational’s Indian whisky portfolio is currently present in 40 countries worldwide, and the company plans to increase this to 70 markets, targeting the Indian diaspora.
“India remains a major growth engine for the company, and this has been confirmed year after year. Last year ending on June 30, 2024, we grew 6 per cent in India, which is quite robust if you compare with the rest of the world,” said Touboul, according to The Economic Times.
Pernod Ricard is building on a long-term strategy to grow the Indian arm of its business. In February the Government of Maharashtra and Pernod Ricard India signed a deal to allow the spirits company to establish one of the biggest malt spirit distilleries in India, in the industrial suburb of Butibori in Nagpur, Maharashtra.
India may offer great potential for the business, but it also poses its fair share of challenges. Pernod Ricard’s hopes of being allowed to resume trading in the Delhi region have been dashed, following its latest bid to have its licence restored.
The city’s authorities have rejected the French group’s latest bid to have its licence restored on the basis that investigations are ongoing into suspected violations of local alcohol sales laws. Read more here.
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