Pernod-Ricard Predicts India Will Rise to Top Three Markets
on 28/02/11 at 2:50 pmIndustry
Pernod-Ricard SA, the maker of Absolut vodka, said India may rank among its top three markets in five years, along with the U.S. and China, as economic growth and rising incomes spur demand for its brands.
“India’s growth sounds very promising,” Chief Executive Officer Pierre Pringuet said in an interview in New Delhi today. “With more disposable incomes, people will move from the consumption of basic items to branded goods.” India is currently the Paris-based distiller’s fifth-largest market.
India’s economy may grow 9 percent in the fiscal year starting in April, Finance Minister Pranab Mukherjee said while announcing budget proposals in parliament today. India will be the world’s second-largest market for alcoholic beverages in 2013, overtaking Russia, International Wine and Spirit Research said on Nov. 10.
Pernod’s Indian unit competes with Radico Khaitan Ltd., the maker of 8PM whisky, and billionaire Vijay Mallya’s United Spirits Ltd., which sells McDowell’s No. 1 whisky and Romanov vodka. In Asia, consumers are buying more Scotch whisky and cognac, according to Pernod, which estimates it controls about half of the Chinese whisky market and 40 percent of the cognac market.
Vodka consumption in India may grow 12 percent between 2009 and 2015, according to International Wine and Spirit Research. Rising incomes and higher spending may make India the fifth- largest consumer market by 2025, according to a January report by Deloitte Touche Tohmatsu.