French spirits giant Pernod Ricard believes its India business could eventually grow larger than its US operations, driven by rising incomes, changing social attitudes, and the addition of nearly 20 million new young adult consumers every year—many of whom prefer premium alcohol brands.
“Looking at the macroeconomic trends, it will probably happen someday,” said Jean Touboul, CEO of Pernod Ricard India. He added that his focus is on expanding the company’s dominance in India rather than competing with its US division. India already accounts for 13% of the company’s global sales (as of June), making it Pernod Ricard’s second-largest market after the US.
Premiumisation Push
The company recently sold its popular mass-market whisky brand Imperial Blue to Tilaknagar Industries. This move is part of a broader strategy to streamline operations and concentrate on higher-margin, premium brands. Pernod Ricard is also rolling out a new range of premium spirits—whisky, vodka, gin, rum, and brandy—developed entirely in India for the country’s growing base of young legal-age drinkers.
Touboul said that about a quarter of the company’s future growth is expected to come from innovation, with the new India-developed brand projected to contribute 10% of that alone.
The company is directing more resources toward its strong-performing labels such as Royal Stag and Blenders Pride, along with international brands like Chivas, Jameson, Absolut, and Ballantine’s.
Short-Term Slowdown, Long-Term Optimism
Touboul acknowledged that a recent slowdown in the global economy—including in India—has affected business. Sales have fallen in major markets like the US and China due to inventory corrections, and India saw a temporary dip because of changes in Maharashtra’s excise policy earlier in FY26. Still, overall India sales grew 3% in the latest quarter.
“In the last five years, we have been growing in the high single digits,” Touboul said, noting that the company expects growth to accelerate again as India’s economy continues to outperform many others globally.
With the sale of Imperial Blue, Pernod Ricard is now even more focused on the premium segment in India. “And in India, because of premiumization, the higher the segment, the faster the growth,” Touboul added.
