**Pernod Ricard Sells Imperial Blue Whisky to Focus on Premium Brands**
Pernod Ricard has finalized the sale of its Imperial Blue whisky, one of India’s top-selling mass brands, to Tilaknagar Industries. This strategic decision, according to CEO Jean Touboul, allows the company to allocate resources towards higher-margin categories and accelerates its long-term shift towards premiumization. In an interview, Touboul emphasized that the sale of Imperial Blue and the introduction of the new spirits brand, Xclamation, are part of a unified strategy aimed at encouraging consumers to move up the pricing ladder.
Imperial Blue, which sold nearly 20 million cases annually and accounted for about 20% of Pernod Ricard’s net sales in India, was sold for ₹3,442 crore. Despite its high volume, the brand’s profitability was limited due to its lower price point of approximately ₹400 per bottle. In contrast, Pernod Ricard’s largest brand, Royal Stag, sells 32 million cases annually, while Blenders Pride sells 10 million cases.
With the divestment of Imperial Blue, Pernod Ricard is streamlining its portfolio to focus on the mid-premium segment, particularly brands priced between ₹700 and ₹1,100 per 750 ml, where consumer demand is growing rapidly. The new brand, Xclamation!, will offer a range of spirits including whisky, brandy, rum, vodka, and gin, priced at ₹700 in Haryana and ₹940 in Rajasthan. The company plans to launch Xclamation! in five markets by December and expand to 14 states by June of the following year, with a goal of reaching one million cases in its first year.
Industry experts note that introducing new brands can enhance competitive dynamics in the market. Karan Taurani, EVP of Elara Capital, highlighted that targeting the mid- to upper-prestige segment is a sound strategy, given the higher growth rates and better margins in this category.
As India solidifies its status as one of the fastest-growing alcohol markets globally, the industry saw a 9% increase in value in 2024, reaching nearly $40 billion. However, the sector faces challenges from fluctuating regulations, which could impact future growth.
**FAQ**
**What is the significance of Pernod Ricard’s sale of Imperial Blue?**
The sale of Imperial Blue allows Pernod Ricard to focus on higher-margin premium brands, aligning with its strategy of premiumization in the rapidly growing Indian alcohol market.
