Pernod Ricard India Sets Billion-Dollar Sales Goal For Blenders Pride, Royal Stag
The French multinational expects these two brands to join the coveted billion-dollar club alongside Chivas Regal and Ballantine scotch whiskies.
![<div class="paragraphs"><p>A bottle of Blenders Pride arrange for photograph. (Source: <a href="https://unsplash.com/@rupam118?utm_content=creditCopyText&utm_medium=referral&utm_source=unsplash">sanjoy saha</a> on <a href="https://unsplash.com/photos/blenders-pride-bottle-on-river-AwUKoSyufZ8?utm_content=creditCopyText&utm_medium=referral&utm_source=unsplash">Unsplash</a>)</p></div>](https://media.assettype.com/bloombergquint%2F2024-08-20%2F6i47582k%2Fsanjoy-saha-AwUKoSyufZ8-unsplash.jpg?rect=0%2C225%2C4278%2C2406&auto=format%2Ccompress&w=200)
Pernod Ricard, the world’s second-largest spirits company, has laid out bold targets for its Indian whisky brands—Blenders Pride and Royal Stag—capitalising on the unabated surge in demand for premium liquor. Within the next decade, the French multinational expects these two brands to join the coveted billion-dollar club alongside its international blockbusters such as Chivas Regal and Ballantine scotch whiskies, as well as Absolut Vodka.
"We're betting big on the India premiumisation story, and we are very confident of accelerating our growth over the next eight to 10 years," Kartik Mohindra, chief marketing officer, Pernod Ricard India, told NDTV Profit in an exclusive interview. He believes there is a significant consumer base, particularly at the lower end of the whisky spectrum. "We're going to see a lot of these consumers start moving up into categories, which are on the more profitable side of the business."
To cater to this growing demand, Pernod Ricard India is broadening its portfolio with its flagship brands, Blenders Pride and Royal Stag. It has launched two new whiskies—Blenders Pride Four Elements and Royal Stag Double Dark Peaty—to capture a larger share of the premium market. Depending on the market, a 750-ml bottle of Blenders Pride Four Elements will cost between Rs 850 and Rs 1,000, while a bottle of Royal Stag Double Dark Peaty Whisky will cost between Rs 650 and Rs 800. This represents a premium of about 10% over the existing base variants.
"These two brands together are the bedrock on which the company is built and leads in the Indian market," Mohindra said. "In line with our ambition to keep growing our position in this country, keeping in mind the evolution in the consumer cohort, particularly led by the younger audiences, we have a full-fledged innovation pipeline in place, and one of those is to introduce line extensions on both Royal Stag and Blenders Pride."
He emphasised that the new variants have been thoughtfully crafted to align with evolving consumer tastes, ensuring that both of these iconic brands appeal to a wider and emerging audience.
The rollout of both products will occur in phases, starting with Royal Stag Double Dark in Maharashtra, Assam, Haryana, and Uttar Pradesh. This will be followed by the launch of Blenders Pride Four Elements in Uttar Pradesh, Haryana, Odisha, Telangana, and Goa. The company anticipates completing the pan-India rollout by December.
"As we scale, we expect Royal Stag and Blenders Pride to achieve low but strong double-digit growth annually over the next 8–10 years, exceeding Rs 8,000 crore in net sales, which will serve as a significant benchmark for us."
India is the second-largest market for Pernod Ricard after the US, accounting for a tenth of its group sales. The company, which controls a fourth of the country's whisky market, reported a 4% growth in sales between July and December 2023. "We had a very strong year," Mohindra said, without giving financial details of the company, which follows the July to June fiscal year.
Its local whisky brands account for 80% of its net sales. The local distiller unit has already crossed the Rs 25,000 crore sales mark, driven largely by the premium portfolio. It is also aiming for a threefold increase in sales in the Indian market by the next decade.
While international scotches are growing at a fair clip, Mohindra said they are unlikely to overtake Indian whiskies in the near future. "In the urban-centric, or affluent sections, the international scotches have already become the norm and are expected to keep growing. But the base is still pretty small, and local whiskies make up easily 95% of the whisky pyramid."
Pernod Ricard is currently navigating regulatory headwinds in India, particularly in New Delhi, where it faces operating prohibitions. This region is critical for showcasing premium brands, making it essential for any liquor company. Despite this obstacle, Mohindra remains bullish.
Uttar Pradesh, Telangana, and Maharashtra are emerging as newer avenues of growth, which could help offset some of the potential losses in Delhi, he noted.
Recently, the Central Consumer Protection Authority has urged liquor companies to ensure compliance with regulations after identifying several instances of brands breaching surrogate advertising rules. Currently, direct liquor advertising is prohibited in the country. Hence, companies opt for surrogate ads. In response, Mohindra stated that Pernod Ricard's advertisements have not been found to violate the guidelines set by the government. "We have always been and will continue to be extremely compliant with the regulations of the central and state governments. We are also in constant conversation with them to find the best possible norms for the future."
Earlier this month, Pernod Ricard’s legal head in India, Bijoya Roy, resigned amid ongoing legal cases facing the company. The spirit giant, however, has denied any wrongdoing.
The company is yet to announce a successor to Roy's position.