India's antitrust body, the Competition Commission of India (CCI), raided the offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev in Hyderabad, as well as some retailers in Telangana, over allegations of price collusion with retailers. This marks one of the largest recent crackdowns in the industry.
Pernod Ricard, the French liquor giant, fired at least six employees in India's Rajasthan state after an internal investigation into alleged discount malpractices. Triggered by a whistleblower complaint, the probe revealed employees misused funds meant for retailer discounts. This adds to Pernod's ongoing legal and regulatory battles in India, its largest market by volume.
India's single malt whiskey industry is rapidly growing. Indian distilleries are producing high-quality single malts, winning awards, and expanding their global reach. This growth challenges traditional Scotch brands, with Indian whiskey sales surpassing global giants. Major companies like Diageo and Pernod Ricard are launching Indian brands, signaling a shift in the global whiskey landscape.
Pernod Ricard, the global spirits company, is prioritizing the development of Indian single malts to compete on par with renowned Scotch, American, Irish and Japanese whiskies. Significant investments are made for distillery and warehousing in Nagpur. India emerged as the firm's second-largest market by sales, underscoring its strategic importance.
Ravi S Deol's Inbrew Beverages and TPG Capital are bidding to acquire Imperial Blue whisky from Pernod Ricard. Due diligence will begin soon, with final bids to follow. Imperial Blue, launched in India in 1997, is the country's third-largest whisky brand. The sale involves high valuation and the inclusion of assets and Scotch supply guarantees.
Pernod Ricard India will establish a malt distillery and maturation facility in Maharashtra, investing up to Rs 1,785 crore over the next 10 years. The project will be located in Butibori, Nagpur, generating jobs and benefiting local farmers. It is part of an agreement with the Maharashtra government signed in February 2024.
Pernod Ricard India has become the country's largest alcohol firm by revenue, surpassing Diageo. The company's growth is driven by higher sales of its scotch brand 100 Pipers and Indian-made foreign liquor brands Blenders Pride and Royal Stag. Despite consumer pressures, India's resilience has contributed to Pernod Ricard's strong performance.
Beam Global, the maker of Teacher's and Hibiki, experienced a slowdown in sales growth in 2023-24 due to increased competition in the premium liquor segment. Sales rose by 12% to ₹1,304 crore, while net losses increased to ₹329.3 crore. The company is focusing on long-term strategic investments and brand portfolio enhancement.
India has surpassed China to become the second-largest market by sales for French distiller Pernod Ricard, driven by a growing affluent population and higher sales of premium brands. The company controls a significant share of India's whiskey market and continues to invest in expanding its presence in the country.
Pernod's net sales in the U.S. declined by 9% and it saw an even steeper 10% drop in China. However, it said most other markets had seen a recovery in volumes in the second half and that it enjoyed decent growth in other key regions like India, where sales were up 6%.
Historically, Scottish and Irish distillers have used barley as their primary grain, while Canadians and Americans use corn, rye, and wheat. India does not have a dominant global indigenous liquor similar to Baiju in China or Japanese rice wine Sake. The market is dominated by locally produced and adapted versions of European spirits, called Indian-made foreign liquor (IMFL), despite nearly every state having its own version of distilled spirit.
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