Sales Rise by 6% in Last Fiscal Year, Business Remains Resilient Amid Global Slowdown
Pernod Ricard India has overtaken Diageo to become the largest alcohol company in India by revenue, according to managing director Jean Touboul. This success is driven by strong sales in premium scotch brand 100 Pipers and Indian-made foreign liquor (IMFL) brands Blenders Pride and Royal Stag. Touboul announced that the Indian market grew by 6% in the last fiscal year, contributing 12% of the company’s global sales.
“India has shown remarkable resilience despite global economic pressures, including high inflation, which has impacted consumer spending worldwide,” Touboul told The Economic Times. “Even during the global slowdown, our business in India continued to grow.”
Comparing Revenues
Pernod Ricard reported sales of ₹26,527 crore for the fiscal year 2023-24, while Diageo’s sales dropped by 7% to ₹25,724 crore. This marks a significant shift for Diageo, which sold several lower-priced brands in recent years, leading to a decline in revenue. However, Diageo’s premium portfolio has grown significantly, now accounting for 87% of total sales.
India as a Key Market
India is one of Pernod Ricard’s top three “must-win” markets globally, alongside the US and China. During the company’s financial year ending in June, India became the second-largest market by sales, surpassing China. India is also the second-largest market for brands like Jameson and Glenlivet, driven by favorable macroeconomics, infrastructure growth, and a demographic boom with 25 million new legal-age drinkers.
Market Presence and Outlook
Despite a limited presence in India’s mass-market whisky segment, Pernod Ricard controls a quarter of the whisky market, with a stronghold in premium and semi-premium categories. The company holds 50% of the premium whisky market and 42% of the imported spirits market in India.
Diageo, though still a global leader with brands like Johnnie Walker and Smirnoff, has focused on premiumization in India, with its United Spirits’ prestige and above segment growing by 10.1% in the last quarter, outpacing Pernod Ricard’s 8-9% growth.
India’s increasing thirst for spirits is fueled by a burgeoning middle class, with annual sales growth surpassing the combined spirits consumption of the UK, France, and Spain since 2020. Despite a slight slowdown to 4% growth in 2023-24, the market remains robust, with India emerging as one of the most dynamic economies globally.