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INDSPIRIT 2025 – CELEBRATING THE GROWTH OF ALCOBEV INDUSTRY

•   Panel discussion on FTA seeks reduction in tariffs

•   Company of The Year is Allied Blenders & Distillers

•   Corporate Leader of the Year is Nilesh Patel of Global Beverages Group

•   Business leader of the Year is Davide Aiudi of Guala Closures India

•   Lifetime Achievement Award goes to Satpal Chaudhry who has held key positions in Mohan Meakins, United Breweries, Shaw Wallace, Empee Distilleries, Him Neel Breweries, and Khoday India.

With India’s alcobev sector showing exceptional growth, SAP Media Worldwide, the publishers of Ambrosia magazine among other publications, reached yet another milestone. On March 21 and 22, it hosted the 20th edition of INDSPIRIT 2025 at Le Meridien, Gurugram. The two-decade journey of INDSPIRIT is a highpoint, reflecting the challenges and opportunities the sector has been navigating all through. And when industry peers met to network, exchange ideas and to chill, it was truly a celebration.

INDSPIRIT is an amalgamation of conference, exhibition, networking and AMBROSIA Awards, organised by Ambrosia. This year the panel discussion was on ‘Free Trade Agreements: Gateway or Roadblock for Indian Alcobev Industry’.  The 20th edition also featured a consumer-day, to connect the industry with the end-consumer to taste the many different brands. INDSPIRIT 2025 was powered by Platinum Partner SNJ Group and supporting partners Diageo India and Pernod Ricard.

This year INDSPIRIT had an open consumer day on March 22 wherein consumers got to taste a variety of spirits. Lifting the spirits were DJ Veronika and DJ Zorin, followed by sumptuous buffet. It was day 1 of IPL 2025 cricket and SAP Media ensured that there was live coverage, adding to the zing.

Eminent Jury

The AMBROSIA awards were adjudged by an eminent panel of jury members and they included Stephen Beal (London) – Founding Sr. Consultant, Master of Whisky International Drinks Specialists; Bernhard Schafer (Germany) – A Whisky Expert, Spirit Consulting and A Master of Quaich; Ajoy Shaw – DipWSET Wine Maker & Consultant; Binod Maitin – Independent Technical Consultant; Julie Lee (Taiwan) – Industry Expert and Entrepreneur; and Katsuhiko Tanaka (Japan) – Director, Japan Import System Co.

The jury members for the Packaging category of awards were Prof. K Munshi – Industrial Design Centre, IIT Powai; Shekhar Amberkar – Asst. Director, Indian Institute of Packaging & Head of International Packaging Centre and Jigna Shah Oza – Communication Designer | Design Educator.

Panellists seek rationalisation of tariffs

The panel discussion was moderated by Bhavya Desai, Group Head and CEO of SAP Media Worldwide and the panellists were Suresh Menon, Secretary General of International Spirits and Wines Association of India (ISWAI); Ajay Srivastava, Founder, Global Trade Research Initiative; and Rajnish Singh of Dhvaen Law Practice and consultant on FTA to the Government.

The panellists were in consensus that tariffs on alcobev products are extremely high. Ajay Srivastava said that Donald Trump, the US President was right when he mentioned that India charged 150% tariff on alcohol-based products, followed by passenger cars, while agriculture products it ranged between 30 and 40% and industrial products between 7 and 12%. Trump, he added, was disrupting the world economy with a tariff war.

Suresh Menon said the FTA negotiations were ongoing with the UK and the position of ISWAI members has been that there should be a reduction in tariff on spirits in whatever form they were imported – either bulk or bottled. There was unwanted fear that there would be dumping by cheap Scotch whisky and that would disrupt the domestic market, he said and added that with the trend of premiumisation, this was unlikely to happen. Rajnish Singh advocated a threshold level of tariffs as to bar cheaper products from entering into the country, thus in a way protecting the domestic industry which has been investing substantially in the sector. He referred to the Economic Cooperation and Trade Agreement with Australia which has a threshold level to ensure that cheap wines are not dumped in the Indian market.

The panellists also referred to the Scotch Whisky Association which since 1915, stated that to be called Scotch Whisky, the spirit has to be aged no less than 3 years, malt or grain – replacing the old early 1900s limit of 2 years. The panellists opined that as the rule on 3 year maturation is not going to change and that Indian whisky manufacturers who wanted to export had to keep this in mind, even though the whiskies in India matured faster due to the hot climate.

India third largest alcobev market

Bhavya Desai talked about how India is the third largest alcobev market and was valued at over 52 billion dollars in 2024 and expected to touch 64 billion dollars by 2028, growing at a CAGR of 6.8%.

The panel discussion was followed by the much-awaited AMBROSIA Awards. In his opening address before the awards, the Managing Director and Publisher of SAP Media Worldwide, Trilok Desai said, “Despite operating in a highly regulated environment, the industry is witnessing remarkable growth. But with this growth comes a sense of uncertainty. Domestic players are increasingly concerned about the impact of reduced tariffs on Bourbon and the potential phased reduction on Scotch. The worry isn’t limited to premium Scotch—it extends to more affordable Bourbons and Tennessee whiskies, which could directly challenge mid-range IMFL brands.”

Global alcobev giants dominate

Desai added, “Currently, the Indian alcobev market stands at around 410 million cases, growing at a modest rate of 5%. The beer market is slightly larger at approximately 425 million cases, with a healthy growth rate of 8% to 10%, while the country liquor market is around 250 million cases. The world’s top nine alcobev companies operating in India hold a market share of over 52% by value and 43% by volume of the total Indian alcobev market.

Global alcobev giants operating in India bring deep experience from multiple international markets, significantly contributing to the industry’s growth. However, we shouldn’t overlook our own strengths. Indian companies are producing exceptional IMFL products, world-class single malts, and premium gins, along with competitive, high-quality beers that stand toe-to-toe with international brands. That’s something Indians should be incredibly proud of.”

Success of Indian single malts

Referring to the success of Indian single malts on the global map, Desai mentioned how they are inspiring even multinational companies to invest in producing premium spirits within India. “Many are now not only crafting outstanding single malts here, but also looking to export them globally — a true testament to the growing stature of Indian spirits.”

Talking about the AMBROSIA Awards, Desai said, “They are not just about recognition—they’re a celebration of the hard work, creativity, and dedication that have driven the industry forward over the past year.

Tonight, we honour excellence—from outstanding products and innovative packaging to groundbreaking marketing strategies. Over the past 30 years, Ambrosia has witnessed the transformation of the alcobev industry. What was once a market dominated by a few players has become a vibrant and competitive landscape, with Indian and multinational companies alike driving innovation and quality.”

He said that the AMBROSIA Awards have stood for excellence for three decades, thanks to a rigorous and unbiased judging process. “Each year, we assemble an international jury whose expertise ensures that only the very best are recognised. Their insights have highlighted significant improvements in product quality across various categories. Beyond the products, the jury has also acknowledged the remarkable advancements in packaging and design. From labels and bottle shapes to overall presentation, Indian brands are not just meeting global standards—they are often exceeding them.”

Ambrosia launches ASEAN Edition

Desai talked about Ambrosia magazine which has completed 33 years of successful publishing and in 2024 the ASEAN Edition of Ambrosia was launched. The ASEAN edition, launched from Singapore is being circulated across nine ASEAN countries—making Ambrosia the world’s largest combined circulated alcobev magazine. But we’re not stopping there. We’re also exploring the possibility of hosting an international exhibition and awards in Singapore—a significant milestone for the brand.

After Desai’s speech, the AMBROSIA Awards were presented by Air Marshal (Retd) Anil Chopra, a highly decorated officer of the Indian Air Force.

Quick recap of the Ambrosia Awards 2025

Pernod Ricard’s Resilient Performance

  • Q3 fy25 organic net sales decline -3% (-3% reported)
  • YTD organic net sales decline -4% (-5% reported)

Pernod Ricard has reported a resilient net sales performance in a global macroeconomic and geopolitical environment which remains challenging and very fluid with regards to tariffs. The quarterly sales are impacted by some phasing technicalities that will reverse in Q4: namely in India, the impact of new customs clearance procedures and temporary production interruption in one major state, which is now resolved; in Global Travel Retail, a very high comparison base; and in some markets, the impact of the later Easter.

Pernod Ricard said the balanced and broad-based geographic breadth and its diversified portfolio remain key in mitigating some of the impacts caused by the challenging environment. The company said it is continuously adapting its resources with agility, deploying its operational efficiencies and steering the organisation to fuel future growth and optimising cash generation.

The FY25 Q3 Net Sales was €2,278m an organic decline of -3%, and -3% reported. The FY25 9 months Net Sales was €8,454m, an organic decline of -4% and -5% reported, with unfavourable Foreign Exchange impact of -€145m, and a favourable Group Structure of +€3m. The three quarter volumes grew by +1%, while price/mix effect declined by -5% driven by a strongly negative market mix, it said.

By regions, (Q3/YTD) – Americas +3% / -2%; USA +2% / -5%

Pernod Ricard said that the US Spirits market remains broadly stable. The Q3 Organic Net Sales are ahead of sell-out supported by wholesalers’ orders ahead of tariff announcements. The company’s ongoing focus on execution is illustrated by a steadily improving Sell-Out gap to market, on both volume and value. It reported improving performances on Jameson, Absolut, notably boosted by the success of Absolut Ocean Spray RTD and Kahlua.

It mentioned that Canada had strong growth YTD, driven by Bumbu, Absolut and Jameson and Brazil also showed continued solid momentum in Q3, with growth for Ballantine’s, Absolut and Chivas Regal.

Europe -7% / -3%

In France, the company registered solid growth YTD, driven by Ballantine’s, while in Spain it was soft performance, impacted by the later Easter timing. In Germany there was decline in an ongoing challenged macroeconomic context and lapping a high comparable basis. In Poland the performance was broadly stable YTD.

 India +1% / +5%

Pernod Ricard reported dynamic growth YTD with strong underlying market demand and continuing premiumisation trends in Asia. It said there was a softer Q3 sales, impacted by phasing technicalities, due in part to the implementation of new customs clearance procedures affecting sales of imported Spirits, and a temporary production interruption in a major state which is now resolved. It said there has been ongoing strong growth of Jameson, and good performance of Ballantine’s and Royal Salute. Similarly, the company said there has been good growth on Seagram’s whiskies, notably Royal Stag. The strong momentum was expected in Q4, including catch-up from Q3.

China -5% / -22%

The release said that in China the macro context remains challenging. The company registered a sharp decline on Martell, while experiencing very strong ongoing growth on Absolut, Olmeca and Jameson. It said that as expected, Chinese Yuan was very soft and Q3 sales benefitted from cycling a favourable comparison basis. The price increase of mid-single-digit for Martell was taken in February.

In Japan there was strong momentum YTD, with Perrier-Jouet in double-digit growth while Korea continuing weakness in an environment of political disruption.

Global Travel Retail -31% / -17%

The company said that on expected lines, there was sharp decline driven by suspension of the duty-free regime on Cognac in China Travel Retail, compounded with a high comparison basis in Q3. However, there was continued growth in Europe and the Americas, driven by good travellers’ numbers and growth from cruises.

By brands:

The Strategic International Brands showed -4% / -6%, while there was YTD good growth for Jameson, Chivas Regal, Ballantine’s and Absolut, declines on Martell and Royal Salute. The Strategic Local Brands -5% / experienced flat, solid growth for Seagram’s whiskies, Olmeca and Kahlua and  Specialty Brands reported -8% / -6%, with double-digit growth of Bumbu, good growth on Skrewball, soft performance for Aberlour.

FY25 Outlook
Pernod Ricard said, “In a context that remains very volatile, we are confirming our FY25 outlook of low-single-digit decline in Organic Net Sales while sustaining our Organic Operating Margin, supported by our programme of continuous operational efficiencies. This outlook incorporates the impact of expected tariffs in China and in the US based on the information we have today. 
A&P will be maintained at c.16% of Net Sales and strict discipline applied to structure costs. 
Maximising cash generation remains a core focus for the group. Negative FX impact on PRO for the full year is expected to be broadly similar to H1.”

Longitude 77 launched in Punjab

Pernod Ricard India has launched Longitude 77 in Punjab offering seekers of authentic, contemporary Indian luxury a memorable experience which was marked by a launch event at the 10th anniversary of EYP Creations. The launch was held at the 10-year celebration of EYP Creations, which specializes in handling Punjabi music artist. 

EYP Creations manages Punjabi artist like Parmish Verma, Jassie Gill, B Praak, Babbal Rai, and others out of which the event witnessed the presence of B Praak, Gurnazar, and Jassie Gill.

With the availability of Longitude 77 in Maharashtra, Goa, Haryana, Chandigarh, Rajasthan, Uttar Pradesh, Dubai, and at Delhi Duty Free, the brand is further making its way in the Indian markets with the launch in Punjab. It is aimed at providing a premium convivial experience while establishing a new benchmark for Indian whisky drinkers in Punjab.

The culinary experience featured Punjab’s bold flavours, reimagined in contemporary, experimental dishes. The event culminated in an exclusive Longitude 77 tasting experience, featuring serves along the Longitude such as Punjab Old Fashion that highlighted the finest local ingredients, recognized with GI tags for their exceptional uniqueness.

Watch our review of Longitude 77 here.

Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India said, “We are proud to bring Longitude 77 to Punjab, a region known for its deep appreciation of authenticity and grandeur. This launch marks an exciting chapter as we continue to share this unique spirit of India with connoisseurs across the country.”Nikhil Dwivedi, Founder & Director, EYP Creations said, “As we celebrate a decade of EYP Creations, it’s truly exciting to mark this milestone by partnering with such a prestigious brand like Longitude 77 for their launch in Punjab. The brand reflects the same values we stand for.”

Pernod Ricard India Launches Longitude 77, a New Indian Single Malt

Pernod Ricard India has entered the Indian Single Malt category with the introduction of Longitude 77, marking three decades of the company’s presence in India. The move reflects the increasing popularity of premium Indian spirits, with Longitude 77 aiming to pay homage to India’s rich heritage, craftsmanship, culture, landscape, and terroir.

Named after the line of longitude that runs through the length of India at 77° East, the brand seeks to symbolize India’s position on the world map. The launch event was recently held at DLF Golf & Country Club in Gurugram, showcased what was termed a ‘Reimagined India’, which was led by Arjun Rampal. The evening also featured contemporary Indian luxury elements, including a presentation of Indian soundscapes by musician Karsh Kale, a fashion showcase by designer Ashish Soni, and a culinary exploration by Chef Vicky Ratnani.

Produced in small batches in a distillery in Dindori, Nashik, Longitude 77 brings together locally sourced ingredients with a double-matured single malt is aged in American Bourbon barrels and wine casks, presenting a mahogany colour and a flavour profile described as smooth, full-bodied, and balanced, with hints of caramel, vanilla, and faint peat smoke.

The packaging of Longitude 77 features an indigo-coloured matte finish box and bottle, paying homage to the colour that India gave to the world. Both the box and the bottle depict the map of India with the Longitude 77° passing through, symbolizing the essence of the country.

Longitude 77 Bottle and Packaging

Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India, said, “As we celebrate 30 incredible years in India, our commitment to delivering quality brands and experiences gets enhanced with the launch of Longitude 77. Inspired by the line that runs through the heart and soul of India, Longitude 77 is a symbol of authentic contemporary Indian luxury. Our Master Distiller has carefully crafted an exquisite liquid to celebrate and showcase India’s rich culture, heritage, terroir and craftsmanship. We believe that Longitude 77 will give the world a taste of “India Reimagined”. We are confident that this exceptional addition to our portfolio will be embraced by whisky enthusiasts across the world and elevate their convivial experience.”

Longitude 77 Master Distiller, R Natrajan shared, “It is an exciting time for Indian single malts as whisky enthusiasts discover the beauty of home-grown spirits. Longitude 77 is an Indian single malt that’s proud of its provenance, crafted with utmost care and attention. Produced in small batches, it seeks to represent the best of India’s rich terroir and local ingredients. The liquid has been double matured and brought to perfection in American Bourbon barrels and wine casks. The result is an exquisite, full bodied single malt with notes of caramel, vanilla, and subtle peat smoke. Longitude 77 is more than just a single malt; it is our homage to the enchanting spirit of India.” 

The launch event also had a sipping experience of the whisky, featuring serves celebrating unique Indian ingredients with Geographical Indication (GI) tags. Currently the malt is available in selected regions, including Goa, Maharashtra, Chandigarh, Rajasthan, Haryana, Uttar Pradesh, and Delhi Duty Free, the brand aims to expand its presence in other markets, targeting a premium convivial experience for Indian whisky drinkers.

Consumers are slowly moving towards Eco-Conscious Choices

With the industry and consumer moving towards a more eco-friendly and sustainable future, alcobev manufacturers have also initiated their move towards reducing their footprint. As one of the biggest stake holders in the industry, Pernod Ricard also recently announced its move towards the removal of mono cartons from its brands. But how does the company intend achieving this? Bhavya Desai spoke to Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India about it and more. Excerpts:

What are the current trends in the Indian Alcobev market?

The alcobev industry is dynamic in nature and new trends emerge every six months, but 2022 witnessed disruption and innovation in more ways than one.

While premiumisation has consistently been a key trend over the past few years, it will continue in the coming years, but not in isolation. Consumers are slowly moving towards eco-conscious choices and are seeking brands and products that bolster a sustainable impact on the environment and planet. This has nudged the industry at large to evaluate its impact on the environment and integrate sustainable practices into their businesses.

Low-calorie drinks and lower alcohol by volume (ABV) spirits are likely to see a surge in demand, as we see this trend currently growing. To cater to the growing demand for low alcohol drinks, especially for our health-conscious consumers, we recently introduced a non-alcoholic wine ‘Jacob’s Creek UNVINED’ in two variants to further build the category. There is a palpable consumer attraction across India for these categories and Tier 2 cities represent an additional robust source of growth.

Digital disruption backed by new-age technological innovation will continue to enable and enhance consumer engagement. On-ground consumer experiences today have become more immersive, which enable brands to curate personalised and customised opportunities for consumer engagement. In the years to come, the metaverse will also dominate as a key trend for consumer engagement.

What is Pernod’s outlook for India in 2023? Any plans to expand product offerings etc.?

India is a winning market for Pernod Ricard, globally. Innovation is at the core of Pernod Ricard – across all functions and initiatives and we will continue to invest in insight-led innovation to enhance consumer experiences.

As part of an industry wide initiative, Pernod has also announced its sustainable approach recently. However there haven’t been specifics on the details. Can you tell us more about this initiative?

At Pernod Ricard India, we continue to strive towards a circular future, with people, planet, and community at the core of our business. Resources are finite and over the years, we have taken so much from the planet. We feel now it’s time for us to give back to the environment.

Keeping this in mind, we are aiming to lead by example in the industry with #OneForOurPlanet, which is a significant step in achieving our commitment towards zero waste to landfill contribution for permanent mono cartons by 2030. With this, we commit to remove 100% permanent mono cartons from our packaging across our brand portfolio.

We strive to be sustainable and responsible at every step, from grain to glass and are responding with agility to global ecological challenges with this major environment-first initiative.

We have introduced innovative ways to offer convenience to consumers as well as build awareness through recycled and recyclable neck tags along with QR codes in several markets, that will redirect consumers to a micro-site solely created around #OneForOurPlanet. Using an integrated approach through new-age channels of communication, we aim to raise awareness around the positive impact of this initiative.

We believe in ‘responsible hosting’ which entails ‘responsible retailing’ and ‘responsible consumption’ practices. Our customers are receptive to change and are helping us amplify this further. Together we can make a significant difference and we trust that our partners and customers will help us pave the way for a better future!

Are there specific products/category that will be focussed on initially? Could you give us a phased timeline on the same?

Since 2020, we have been working on pilot projects to test consumer acceptance on the removal of permanent mono cartons. In May 2022, we finally decided to integrate this into our business in a phased manner, starting with IMFL brands. The key challenge now is how to address the assumptions that exist with respect to packaging in the alcobev industry. Consumers typically would associate mono cartons with luxury and premiumness, which becomes a critical factor when deciding what alcohol to buy. 

#OneForOurPlanet was a bold move for us, especially with regard to taking that extra effort in changing consumers’ mindsets towards responsible consumption. And, with the way and the kind of agility we are moving ahead, we are confident to complete the removal of mono cartons by June 2023 or before.

What is the current market share for your Strategic Local Brands? Could you give the percentage of growth in 2022 for the Strategic Local Brands and forecast for 2023?

Royal Stag is Pernod Ricard India’s leading brand and the group’s largest by volume. It has the largest market share in the deluxe whisky category with volumes sales of 25 million cases in 2022. Imperial Blue, one of the world’s best-selling whiskies, is our leading brand in the value segment at 24 million cases sold during the period Jul’21-Jun’22 (Market share: 34%, YTD Jun’22).

Could you share details of import of your international brands into India?

We are globally strong and locally relevant. Our focus has been on developing world-class whiskies, gins, vodka, rum and engrossing wine culture in India, by successfully bringing global products to India and catering to the evolved preferences of the new-age Indian consumer. New innovations for us cater to the market in terms of products and experiences that tap into key category trends. Some of the recent premium innovations that we’ve launched in India include Havana Club 7, a super-premium rum and Jacob’s Creek UNVINED range which is non-alcoholic range introduced in two varietals – Riesling and Shiraz, with 50% less calories than regular wine of the same varietal. We also introduced super-premium Japanese and Italian gins – KiNoBi and Malfy respectively. Another recent addition was the launch of Ballentine’s 7YO Bourbon Barrel Finish Scotch whisky.

There seems to be an uptake in consumption of international brands in India, despite high import duties. Thoughts?

The uptake in the Indian economy combined with a strong propensity towards drinking less, but better brands leads to a belief that FY23 will also be another positive year for both our IMFL (Indian Made Foreign Liquor/BII) and imported brands portfolio, which are well-positioned towards the premium end of their segments, in keeping with our long-standing focus on premiumisation. This trend has been further amplified by a few states adopting a progressive policy towards imported products leading to greater consumer affordability.

India is a ‘structured’ premiumisation story. The kind of and the quality of growth we are witnessing, is unlike anything we have seen before and it’s happening differently for different categories. We are focussing on deepening and enhancing consumer experience through our premium portfolio of products and initiatives.

What are the major challenges of operating in India, apart from taxation? What can the government do to ensure that ‘ease of business’ is a reality?

The alcobev industry is one of the biggest contributors to the government exchequer and requires policy and regulatory support to the same extent as other industries in the country. The industry operates under stringent regulations and arduous licensing process, which impacts the ease of doing business. Single-window clearance for all documents relating to alcobev production, updating IT infrastructure and streamlining various state-level bureaucratic processes are, therefore, the need of the hour. Furthermore, it would help if annual registration processes were further streamlined. For instance, if there are no changes in labels and pricing, they should be deemed approved after successful payment of fee. Further, a deeper and wider expansion of the retail universe to cater to emerging cities will lead to greater efficiencies and revenue growth for the state exchequer.

What products do you export out of India and to which countries? What is the growth like and the reasons for growth (besides Indian diaspora)? Also, could you let us know the markets that you are planning to enter?

Globally, our products are relished in over 50 countries with a volume of more than 2 million cases annually. We are looking to grow at a CAGR of 15% over the next three years. Strong growth is projected from Sub Saharan Africa and the South East Asia region. Our vision is to establish Pernod Ricard India’s Seagram’s portfolio as a world leader by creating the best brands and experiences for the middle-class and affluent consumers. The growth levers for our strategy are scaling up consumer base in existing markets, expanding portfolio via innovation, and targetting strategic whitespace expansion.

Our strong portfolio of Seagram’s brands includes Royal Stag, Blenders Pride and Imperial Blue.

There seems to be an emphasis on premiumisation, could you substantiate in the Indian context what that would mean?

The last few years have seen premiumisation as a dominant trend in the alcobev industry. Consumers today are seeking ‘value’ and ‘convenience’ more than ‘volume’ and this defines the shift in consumer behaviour as well as their enhanced expectation from brands. Besides this, the pandemic led to a rapid transformation in consumer behaviour by breaking down societal barriers and taboos. Today, consumers have gravitated towards self-indulgence leading to premiumisation and a boom for our higher end brands like Chivas Regal, The Glenlivet and Royal Salute. In fact, with house parties becoming the norm and the cocktail culture further gaining popularity during at-home consumption, our premium offerings such as Absolut and our Gin portfolio led by Monkey 47 and Beefeater have truly become at-home bar staples.

Premiumisation will continue to be a key trend as consumer preferences evolve in line with growing disposable incomes of the millennials and as they adopt global trends.

Tell us about your sustainability journey in India? Specifically, the W.A.L initiative on how it has impacted lives and your company?

Sustainability isn’t new to Pernod Ricard’s operations in India. As a responsible corporate citizen present in India for over 25 years, sustainability is the key to Pernod Ricard India’s operations. The company continuously works towards an enriched value chain that is committed to supporting the UN Sustainable Development Goals, ensuring that our business is aligned with the ‘World’s to-do list’ to help reach prosperity for the planet and its people.

The four pillars of our roadmap – Nurturing Terroir, Valuing People, Circular Making, and Responsible Hosting – address all aspects of our business from grain to glass. We are consistently working towards water stewardship to save, store and replenish water, especially in our plant locations, with a stakeholder inclusive approach. We are water positive in our operations with replenishment strategies at extremely high-water risk sites.

With our CSR Programmes on W.A.L (Water, Agriculture, Livelihoods) vertical, communities in water-stressed areas have adopted a circular approach and eventually have become more resilient in their approach to water use while increasing their disposable income. 

Pernod Ricard to acquire Código 1530 Ultra Premium and Prestige tequila

Pernod Ricard recently announced the signing of an agreement for the acquisition of a majority shareholding of Código 1530 Tequila, a range of Ultra-Premium and Prestige tequila. This new investment into the fast-growing agave category, mainly driven by the US market, complements the Group’s very comprehensive portfolio across price points and occasions.

Founded in 2016 by Ron Snyder, Federico Vaughan and George Strait, the story of Código 1530 tequila, produced in the Mexican state of Jalisco, is based on the transmission of an ancestral tequila recipe following Los Códigos, “the codes” in English. Código tequila has positioned itself within a very competitive category, thanks to the unique quality proposition of its range of Ultra-Premium (Blanco, Rosa and Reposado) and Prestige products (Añejo, Barrel Strength Añejo and Origen Extra Añejo).

Código is already available within 50 states across the US and is at the early stage of its international development with a presence in over 30 markets. Thanks to Pernod Ricard’s distribution expertise in ultra-premium & prestige brands and its successful experience in collaborating with entrepreneurs, Código is now poised to accelerate its global development and reach new consumers.

Through this partnership, Pernod Ricard is expanding and diversifying the value proposition of its portfolio of tequila brands, which already includes Olmeca, Altos and Avion. The Group is also adding two new Mezcal references (Código Mezcal Artisanal and Código Mezcal Ancestral) to its market leading Mezcal portfolio built around the Del Maguey and Ojo de Tigre brands. The strengthening of the agave portfolio follows the Group’s recent investment in the sotol category through its acquisition of a minority stake in the ultra-premium Nocheluna brand.

Alexandre Ricard, Chairman and CEO of Pernod Ricard, said, “Código’s range of exquisite tequilas reinforces our offer of Ultra Premium+ agave products in the US, where the category is enjoying a very strong momentum. It is a privilege to partner with Ron Snyder, Federico Vaughan and George Strait with whom we share a common vision for Código 1530 and common ambition to strongly accelerate and strengthen the success of the brand.”

Pernod Ricard and JCDecaux sign an unprecedented Data Technical Alliance

Pernod Ricard and JCDecaux, recently launched an innovative digital partnership in data management through the roll-out of a solution called Data Portal. This solution enables a company to centralise, in a single point, all the data from its different entities around the world, facilitating their use and sharing. The Data Portal is aligned with the transformation objectives of both Groups, who have placed data at the heart of their business and growth strategy.

The tool has been developed since 2015 by the Pernod Ricard IT Data Center of Excellence team, which is already composed of 20 people and constantly growing. The Data Portal, a particularly easy-to-use and intuitive solution, is a true accelerator for digital transformation. Almost 7,000 Pernod Ricard employees find everyday information about sales or key figures for the development of their commercial strategies on it. Following initial discussions which started in 2020, the two Groups have decided to opt for an alliance between non-competitive partners, in order to enhance the Data Portal with their respective experience, co-developing technical ecosystems and benefitting from the cost synergies generated by combining their skills. This technology, which does not involve the exchange of data between the two companies, is conceded for free by Pernod Ricard, without any conditions or limitation of use. Each company then manages its data in line with legal data management requirements.

In a process of continual improvement, the collaborative and agile alliance between Pernod Ricard and JCDecaux will help accelerate the development of new data-related features and technologies and could then be opened up to other non-competitive companies, within the same legal framework and co-construction model. The project monitoring will be managed by Neoxia, a trusted third party, who will continue to ensure the platform’s developments and integration in line with the roadmap co-defined by Pernod Ricard and JCDecaux.

Alexandre Ricard, Chairman & CEO at Pernod Ricard, notes that, “The Data Portal is a wonderful asset for our Group. This solution, developed by our Data Center of Excellence, is a key tool for our growth mindset untitled the “Conviviality Platform” in which data is a major issue. The Data Portal facilitates our teams’ work in order to provide each of our markets with the right product, at the right time, at the right price, to the right consumer. We’re delighted to share this innovation with JCDecaux and to benefit from each other’s experience.”

Jean-Charles Decaux, Chairman of the Executive Board and co-CEO of JCDecaux, adds, “As a company that believes in the power of collaboration to grow business, we are delighted to enter this technological alliance with Pernod Ricard that is focussed on data management. Underlining the strength of our joint approach to digital innovation, JCDecaux will play an active role in the development of the Data Portal, enhancing it with new features. Designed via an open innovation approach, this solution will help us achieve our data strategy and fulfil our objective of developing shared data management platforms within JCDecaux. This will in turn allow business units to capitalise upon this innovation for the benefit of our customers and partners, media agencies, advertisers and local authorities.”   

Chivas Brothers appoints new Chief Executive

Dumbarton-based distiller Chivas Brothers has a new Chief Executive and Chairman. Chivas Brothers which is part of the Pernod Ricard drinks empire, has recently appointed Jean-Etienne Gourgues as its new chief. Mr Gourgues replaces Jean-Christophe Coutures, who left the company in July after three years in the role. Mr Gourgues was most recently managing director of Pernod Ricard China.

The company said in a statement: “Chivas Brothers, the Scotch whisky business of Pernod Ricard, can confirm the appointment of Jean-Etienne Gourgues as chairman and CEO from July 1, 2021.

“Jean-Etienne joined Chivas Brothers from Pernod Ricard China, where he served as managing director. Previously, he was president and CEO of Pernod Ricard Japan, and he has also held senior positions at Martell Mumm Perrier-Jouët and Allied Domecq.“Jean-Etienne succeeded Jean-Christophe Coutures who will be returning to France after serving as Chivas Brothers Chairman and CEO for three years.“Jean-Etienne will be part of Pernod Ricard’s executive committee and will be based at Chivas Brothers London HQ, after relocating from Shanghai.”

Mr Coutures held senior roles with Pernod in Asia, Australia and Ireland before succeeding Laurent Lacassagne as chief executive of Chivas Brothers in February 2018. He arrived as Chivas was preparing to switch its Scottish bottling operation from Paisley to Dumbarton.

Pernod Ricard posts encouraging results than expected

The world’s second biggest alcobev manufacturer, Pernod Ricard posted its results recently and they seemed more encouraging than expected. The Q1 FY21 marked and improvement versus the Q4 FY20. The results were encouraging thanks to partial on-trade reopening and continued brand resilience in off-trade as India continues to be a resilient market for the company.

The total sales for the first quarter of FY21 totaled €2,236 million, which included an organic decline of -6% due to off-trade channel remaining resilient in the USA and Europe. Although there was a partial on-trade reopening, the report suggests that the channel is still disrupted with Travel Retail showcasing significant decline.

Results in India

Closer to India, which is one of the key markets for the manufacturer, continues to be in a double-digit decline. The growth in India revenues from its India operations grew only 6% in the year ended March 2020 against 27% jump a year earlier. The company recorded gross sales of Rs 21,424 crore in India in the year-ended March. However it recorded a 24% jump in its net profit for the year at Rs 1,612 crore as it focused more on premium brands. This was more than double of its larger rival United Spirits’ profit of Rs 705 crore during the year. Currently, India accounts for 11% of the manufacturers global sales. The company that follows a July-June fiscal globally, said that the Indian business declined 11% in the year ended June 2020 with heavy impact due to the pandemic. Alexandre Ricard, Chairman, Pernod Ricard informed investors last month that the fact that the business fell only 11% in the FY20 ‘despite the very strict lockdown disrupting the fourth quarter’ showed India’s resilience as a market. “We consolidated our leadership position with our market share still above 45%, and in fact, still growing slightly,” he added.

Results by Geography

With the festive season in the offing the results were strong in markets like USA and China, with strong shipments auguring well for the company. There was good resilience in the markets of Europe as well thanks to Off-Trade and ‘staycation’ over the summer. There was also strong dynamism in the UK and Germany with France nearing stability. However the markets of Spain and Russia showed decline.

By category, Sales were driven by

International Brands declined by -10% with significant declines for Martell, Chivas and Ballantine’s, primarily due to the restrictions in Travel Retail. But Malibu and The Glenlivet displayed strong growth with Jameson showcasing resilience. Local Brands saw a decline of -6%, with decline of Seagram’s Indian whiskies. But there was double-digit growth of Kahlua, Passport, Ramazzotti and Wiser’s. Specialty Brands saw an increase of +30%, thanks in particular to Lillet, Malfy, Aberlour, Avion, Altos and Monkey 47. Wines registered a growth of +9%, driven by double-digit growth of Campo Viejo and Brancott Estate with Jacob’s Creek growing by +8%. The overall reported sales declined by -10% due to unfavourable FX impacts, mainly from US Dollar and emerging market currencies. The Q2 is expected to still be strongly impacted by Covid-19, but Sales to return to growth in H2. Alexandre Ricard added that for FY21, “we expect continued resilience of our business in an uncertain and disrupted environment. I would like to take this opportunity to praise our teams, whose engagement and performance are exemplary

in these very challenging times. We will continue to implement our strategy, in particular accelerating our digital transformation. We will tightly manage costs while maintaining the agility to reinvest to adjust to market opportunities.”