Pernod Eyeing Middle Class Mart

Groupe Pernod Ricard, the French wine and spirits major, plans to cork new brands for the growing Indian middle class market.

It also plans to import internationally successful brands for distribution through

duty-free shops at airports, leading hotels, up-market restaurants, bars and diplomatic missions.

Some of the brands that will hit the shelves include Clan Campbell scotch whisky, Dubonnet _ a wine based aperitif, Bisquit Cognac, Wyborowa vodka, Havana Club Cuban rum, and the much coveted Pernod and Ricard Pastis.

The company has acquired 74 per cent stake in United Agencies Ltd of Kolhapur, Maharashtra, and is currently bringing its facility on par with the Groupe's international standards.

The facility is being used to manufacture Indian made foreign liquor (IMFL)

brands, Santiago rum and Tilsbury whisky, which are already available in the retail market.

These are targeted at the large Indian middle class, said Albert Elgrissy, president, Groupe Pernod Ricard, south-Asia.

"Groupe intends to establish itself as a leading player in the IMFL market, and in future, use the extensive retail distribution network to introduce its international brands," Elgrissy said.

The company intends to establish absolutely new product categories such as French pastis, Irish whiskey and Australian wine in the country.

But the company will have to wait for the government to bring import duties in line with international standards and withdraw restrictions on import of liquors before introducing imported brands in the retail market, Elgrissy said.

"The current import duty rate of 210 per cent is probably the highest in the world. Even if it is brought down to say 75 per cent, the price of a bottle of scotch whisky will be nearly double the price of Indian whisky," he added.

The company, for the time being, intends to focus on the IMFL market which accounts for 64 million cases annually, and create a brand awareness through hotels, restaurants and duty-free shops.

"It will be a case of micro marketing wherein we will try to build strong consumer loyalty amongst affluent Indians who regularly travel internationally and reside largely in urban centres of India," Elgrissy said.

Groupe Pernod Ricard is the world's fifth largest producer of alcoholic beverages with turnover exceeding $3 billion.