MUMBAI: French drinks giant Groupe Pernod Ricard's Indian whisky Royal Stag is now the largest selling brand in its global portfolio of alcoholic beverages. It dislodged the iconic Absolut vodka to lead the volume chart in 2011, making it possibly the only local consumer brand topping a MNC business globally.
Royal Stag, a semi-premium blended whisky, sold 12.3 million cases last year, well ahead of Absolut's 11.3 million cases, to be the top volume grabber across Pernod Ricard's businesses. Ricard, an anise-based drink mainly sold in France, is the third largest volume brand for the global behemoth.
A Pernod Ricard spokesperson confirmed that Royal Stag emerged as the global volume leader last year. The brand was steadily built in the last two decades, initially by Seagram and then Pernod Ricard which acquired the former in 1999. HUL's Fair & Lovely-a brand with a franchise of about one billion women across Asia, Africa and Middle East-tops the worldwide fairness cream business of the Anglo-Dutch parent Unilever worldwide.
Royal Stag's rise to the top reflects the French behemoth's strong forays into emerging growth markets where it leads arch rival Diageo, which has struggled in markets like India and China. Pernod Ricard competes with Diageo Plc to dominate the world's lifestyle drinks industry with a slew of blockbuster brands, including Chivas Regal, Jameson and Ballantine's scotch whiskies. Vijay Mallya's United Spirits (USL) is the world's largest player by volume but has most of its business locked up in India.
Royal Stag along with Blender's Pride, a premium Indian whisky, are the mainstay of Pernod Ricard's local operations, which reported 24 million cases sales in 2011.
Both these brands have withstood strong challenges from USL. Royal Stag competes with USL's McDowell's No.1 whisky, while Blender's pride takes on Signature, Royal Challenge and Antiquity whiskies. USL replied with brand extensions of Signature and Antiquity, and repackaged Royal Challenge.
IDFC Securities MD Nikhil Vohra, some months ago, noted that the performance of Pernod Ricard showcased the inherent profitability of the liquor industry would lead to a structural de-rating of USL, which garners 70% of its volume from regular priced brands, but is still a cash cow for Mallya's alcobev empire
No comments:
Post a Comment