Indian market is a story of premiumisation, says Pernod Ricard India CEO

Jean Touboul, chief executive officer (CEO), Pernod Ricard India, speaks about India being one of the important markets globally

Pernod Ricard India, which houses brands such as Chivas, Absolut and Jameson, among others, expects to see premiumisation growth at all price points and also hopes to grow at a faster clip compared to the remaining market. In a video interview, Jean Touboul, chief executive officer (CEO), Pernod Ricard India, speaks to Sharleen D’Souza about India being one of the important markets globally. Edited excerpts: 

How do you see single malt whisky growing in India?

When you look at the Indian market, it is a story of premiumisation at all levels and all price points. So, this (Longitude 77) Indian single malt sits at price parity with some of the other imported products. This is a category, which will continue to grow. I must admit that our competitors have done a good job in starting it. We want to be the first to premiumise it further and elevate it. That's our commitment as a leader in whiskies in India and as the global leader in whiskies. We believe our role is to elevate the category in India and showcase Indian single malt to the entire world. It is already the second-largest market worldwide by net sales. And yes, it's fair to say that on long-term trends, it is growing faster than the rest. We have certain strategic markets — one is India and two others are the US and China. We believe this (India) is a market that will continue to grow in terms of importance for Pernod Ricard. Low double-digit is our long term algorithm. This financial year, we are in from July-June, and growth will be more of a high-single digit. It is a bit lower, given the global slowdown and the challenges we have seen globally. And, India has not been immune to that. But that's just a small blip in the long-term algorithm.

How do you see premium whisky brands growing in India?

We expect the premium part of the portfolio and the higher price points to grow faster than the lower end. This is something that we have been witnessing and actually also driving because this is part of the strategy of Pernod Ricard worldwide and India. It is to really bring premiumisation to our consumers, making sure that they trade up and elevate their consumption to better products. The drink less but drink better strategy is a good summary of what we do to elevate our consumers.

How is out-of-home consumption panning out at this point?

In-home consumption has picked up post the pandemic and is more acceptable. In-home consumption remains a dynamic trend. However, out-of-home consumption still remains a growth driver and even more for the most premium part of the portfolio. 

How do you see the Indian market growing for the industry?

We believe that we can deliver low-double digit growth. You can expect the market to grow a bit slower than that. We believe that we can gain share over the long term. So, the industry overall should grow a bit less than what we will deliver.

What is the rationale behind taking Longitude 77 to Dubai?

We launched the Longitude 77 brand in India a few months ago. Making it a success domestically is very important to have credibility and that's the biggest opportunity for now. Yet, we believe it's a brand that caters to the luxury lifestyle of India, and which we believe we can expose internationally.

Will you look to take Longitude 77 to other markets as well?

We will stick to Dubai and our first priority is to build success in the domestic market. Then, along the way, we will launch it in new markets, but there is no definitive plan yet.