New Delhi: French distiller Pernod Ricard expects India to surpass the US and emerge as its single-largest market, said a senior executive. The strong performance would be backed by rising incomes, shifting cultural attitudes towards drinking alcohol, and addition of nearly 20 million young drinkers every year who tend to prefer more premium labels over mass-market products.
"Honestly, when you look at the macro economy trends, it's probably going to happen one day," said Jean Touboul, CEO, Pernod Ricard India. He didn't give a timeline. "My objective is to grow in India and stay number one, not compete with my US colleagues," he said. India contributed 13% of Pernod Ricard's global sales in the last fiscal year ended June, cementing its status as the company's second-largest market after the US. India, previously the third-largest market, outpaced China in the year ended June 2024. Pernod Ricard, which recently divested its Imperial Blue whisky brand to Tilaknagar Industries, is preparing an aggressive push in the Indian market with new premium brands developed entirely in the country for its youngest legal-age drinkers.
The group has been streamlining its business and focusing on its core portfolio of premium products amid a sector-wide slowdown in India and globally, and to allocate resources more effectively towards high-growth brands in India such as Royal Stag and Blenders Pride, as well as international brands like Chivas, Jameson, Absolut and Ballantine's.
Towards this, the company launched a locally-made multi-category range comprising whisky, vodka, gin, rum, and brandy in the Indian market. Pernod Ricard said it expects a quarter of its future growth to come from innovation with the new brand alone expected to contribute 10% of that target. Touboul noted a slowdown in the macroeconomic scenario, which impacted its business though he said India is poised to accelerate and that its economy has been in much better shape than many other countries.
Pernod Ricard's sales declined in key markets, notably in the US and China given the impact of destocking, and in India, due to the Maharashtra excise policy changes in Q1 FY26. However, in India, overall sales grew 3% during the quarter. "Last five years, we have been growing in the high single digits," he said, commenting on the slowdown in the last few quarters.
He added that with the recent disposal of the Imperial Blue business, the company will be even more exposed to the higher, more premium category.
"And in India, because of this premiumisation, the higher the segment, the faster the growth," he added.
"Honestly, when you look at the macro economy trends, it's probably going to happen one day," said Jean Touboul, CEO, Pernod Ricard India. He didn't give a timeline. "My objective is to grow in India and stay number one, not compete with my US colleagues," he said. India contributed 13% of Pernod Ricard's global sales in the last fiscal year ended June, cementing its status as the company's second-largest market after the US. India, previously the third-largest market, outpaced China in the year ended June 2024. Pernod Ricard, which recently divested its Imperial Blue whisky brand to Tilaknagar Industries, is preparing an aggressive push in the Indian market with new premium brands developed entirely in the country for its youngest legal-age drinkers.
The group has been streamlining its business and focusing on its core portfolio of premium products amid a sector-wide slowdown in India and globally, and to allocate resources more effectively towards high-growth brands in India such as Royal Stag and Blenders Pride, as well as international brands like Chivas, Jameson, Absolut and Ballantine's.
Towards this, the company launched a locally-made multi-category range comprising whisky, vodka, gin, rum, and brandy in the Indian market. Pernod Ricard said it expects a quarter of its future growth to come from innovation with the new brand alone expected to contribute 10% of that target. Touboul noted a slowdown in the macroeconomic scenario, which impacted its business though he said India is poised to accelerate and that its economy has been in much better shape than many other countries.
Pernod Ricard's sales declined in key markets, notably in the US and China given the impact of destocking, and in India, due to the Maharashtra excise policy changes in Q1 FY26. However, in India, overall sales grew 3% during the quarter. "Last five years, we have been growing in the high single digits," he said, commenting on the slowdown in the last few quarters.
He added that with the recent disposal of the Imperial Blue business, the company will be even more exposed to the higher, more premium category.
"And in India, because of this premiumisation, the higher the segment, the faster the growth," he added.
