New Delhi: Pernod Ricard SA, the world’s second-largest distiller, reported 8% growth in India, its second largest market by sales, during the quarter ended 30 September 2016, backed by double-digit growth for brands like Blender’s Pride and Royal Stag, the French spirits group said on Thursday.
“Pernod Ricard India continued strong and robust growth at 8% albeit regulatory challenges in several States (tax increase in Maharastra, distributor change in Punjab, Bihar prohibition…). Ongoing premiumisation and innovation within Indian whisky range: double-digit growth of Blender’s Pride and Royal Stag. Good growth of imported brands. We stick to our long-term guideline for double digit topline growth in India,” Gilles Bogaert, managing director, finance and operations, Pernod Ricard Worldwide, said in an e-malied response.
Its quarterly growth, however, was lower than the 12% growth that Pernod Ricard reported during the full fiscal year ended 30 June 2016, the company said in its presentation to investors.
“The strategic local brands grew 5% thanks to Indian whiskies and Seagram’s Gin in Europe but difficulties for Imperial in Korea,” the company said in a statement.
Pernod Ricard’s global sales grew just 1% to €2.24 billion during the July-September quarter. Organic sales revenue, however, rose 4% beating analysts’ estimates at 2.7% due to higher demand for its Jameson Irish whiskey in the US market. Pernod Ricard sales in the Americas rose 8%, followed by Europe at 6%, compensating 1% dip in sales in China market where the company is seeing “early signs of improvement”.
Pernod Ricard, which markets brands like Absolut vodka, Chivas Rigal, Jameson, Ballantine’s, Glenlivet, Havana Club, Malibu, Beefeater, among others, has seen India emerge as a growth driver in the past few years.
The French spirits company saw India emerging as its second largest market by sales at the end of the fiscal year to June 2016 (the company follows July-June year), crossing China. US is the largest market for Pernod Ricard.
Pernod Ricard’s market share in India rose from 8.1% in 2010 to 11.2% in 2014, while shares of United Spirits, the local unit of Diageo, fell from 42.7% to 39%, according to market research firm Euromonitor International.