French spirit maker Pernod Ricard has reported a 4% increase in sales in the Indian market during the first half of the current financial year (FY24). Pernod Ricard, which follows a July to June fiscal year, expects further growth in the second half of FY24 from India, which is the company’s second-largest market globally after the US. This indicates a positive response from Indian consumers towards premium international spirits offered by Pernod Ricard. Additionally, the company’s Indian whisky portfolio, which includes popular brands such as Blenders Pride, Imperial Blue, and Royal Stag, also reported over 4% growth in sales.
The Indian market contributed 11% of Pernod Ricard’s global net sales during the first half of FY24, making it the second-largest contributor after the US, which accounted for 19% of the total sales. This highlights the significance of the Indian market for Pernod Ricard’s overall business performance. The company’s local unit in India has already surpassed the sales mark of Rs 25,000 crore, further emphasising the importance of the Indian market.
Globally, Pernod Ricard faced challenges, with a decline of 7% in sales during the first half of FY24, and organic sales down by 3%. However, the company’s premium portfolio continued to drive high-single-digit pricing in all regions, although it was offset by lower volumes and an adverse market mix. Despite the global challenges, the growth in the Indian market has been a positive factor for Pernod Ricard’s overall sales performance.
RTM Watch’s Take
Pernod Ricard’s robust performance in the Indian market amidst global challenges underscores the country’s significance as a key growth driver for the company. With a 4% increase in sales and a substantial contribution to global net sales, India stands out as Pernod Ricard’s second-largest market, demonstrating a positive reception to its premium international spirits and domestic whisky offerings. This success reflects the company’s adeptness in catering to the evolving preferences of Indian consumers and underscores the resilience of the Indian market amidst broader economic uncertainties.
