Pernod Ricard Eyeing Local Brands Buys

In a bid to strengthen its presence in the Indian market, Pernod Ricard will consider acquiring a few local brands by the year-end.

However, the immediate thrust would be on consolidating and integrating the two businesses -- Pernod and Seagram, Richard Burrows, joint managing director of Pernod Ricard, said.

The company recently completed the acquisition of Seagram's business in India, which will be headed by Param Uberoi (of Seagram) in the South Asian region.

The acquisition will enable Pernod Ricard to expand its operations in Sri Lanka, Bangladesh, Pakistan and Nepal.

Last year, Seagram sold over 2.5 million cases of spirits and registered a growth of 50 per cent. Pernod Ricard will continue to operate in India under the Seagram India umbrella. "Seagram India has a huge equity in the market and we don't want to dilute it," Burrows explained.

 

He said that while the company would focus more on marketing and promoting key brands such as Royal Stag, 100 Pipers, Blender's Pride, it is expected to "de-emphasise" certain brands.

He pointed out that while the whisky segment in India is growing at around 5 to 6 per cent, internationally it has declined by 1 to 2 per cent.

Pernod Ricard is thinking of introducing spirits from its international stable in India. The company is also expected to launch a few of its ready-to-drink brands in the country. Some of the company's international brands in the ready-to-drink segment are Two Dogs, Wild Turkey Cooler and Suze Tonic.

"The ready-to-drink segment will be an important segment for growth," Burrows said, adding, "The launch would depend on the Indian government's decision to lower import taxes."