The changing dynamics of ‘alcobev’ industry

New Delhi, March 5 With increasing aspirations, disposable incomes and exposure to global brands, the Indian millennial consumers present an exciting opportunity for alcobev industry, says Kartik Mohindra, Chief Marketing Officer, Pernod Ricard India. However, in comparison to several global markets, theres higher incidence of taxation leading to out-of-reach end consumer prices; consequentially decelerating adoption and premiumization, he adds.

In a conversation with IANSlife, Mohindra speaks in details about his brand, the Indian market, the challenges faced and expansion plans. Read on.

Pernod Ricard recently introduced Chivas XV in a super-premium bottle, the ultra-premium gin Monkey 47, to meet the consumers” needs in changing market dynamics. Can you please elaborate on how multinational liquor companies are pushing for premium liquor in India, a country which is still a commodity-driven market?

Mohindra: Today, the Indian Scotch whisky drinkers are at par with their global peers, placing India among the top 10 markets for aged expressions of all major Scotch brands. The discerning Indian consumer is now more willing to move beyond the traditional, to explore novelty creations. The affluent, well-traveled Indian consumer is well versed with global trends in the category and the recent introduction of Chivas XV complements the consumers quest for an incredibly smooth and sophisticated scotch that boasts of being aged in Cognac barrels.

The consumers” willingness to expand horizons, born out of increasing affluence, experimentation and global exposure, has meant a growing interest in spirits such as Gin. We rose to the occasion by introducing the super-premium gin – Monkey 47 – a symphony of 47 botanicals that the new Indian drinker is keen to appreciate.

Pernod Ricard India will continue to successfully capitalize on the premiumization wave and provide a comprehensive portfolio of brands to cater to the consumers ever-changing and fast-evolving preferences.Which among the brands of Pernod Ricard have seen the maximum traction among Indian consumers and why?

Mohindra: At PRI, our domestic as well as international whisky portfolios are witnessing strong growth across categories, as we continue to drive premiumization. Broadly, we cater to every consumption opportunity with our expansive portfolio and drive up-selling in celebratory occasions like weddings. Our flagship brands like Royal Stag, Blenders Pride, 100 Pipers, Jameson, Chivas Regal, Absolut, Royal Salute, embody our constant endeavor to offer brands with purpose and values of authenticity, legacy and craftsmanship. What is the brand”s future plans on consumer-connect initiatives rolled out for international spirits like Absolut Vodka, Jameson and The Glenlivet?

Mohindra: Absolut has always championed creativity with a purpose and we are committed to work even harder with our progressive connectors who believe in a more open and inclusive world. We, at PRI, keep the consumer at the heart of all that we do. Hence, to take forward our brand beliefs, we will continue to strongly engage the consumer at all key touch points and bring to them new and varied experiences to suit their changing consumption preferences and be an integral part of their moments of conviviality.

Absolut will continue to vow our consumers with its wide range of flavors, Citron, Mandarin, Raspberri and the newly introduced Lime. Jameson Irish Whisky, with its triple distilled recipe, has grown exponentially in a short span of time and has made in-roads in a Scotch dominated market.

As a company that houses the No. 1 selling single malt in India, The Glenlivet, Pernod Ricard India has successfully capitalized on this increasing appetite for knowledge and diversity in choice by expanding our Single Malt portfolio. The new additions to our family include Aberlour, Scapa and Longmorn, allowing us to serve one of the strongest portfolios of single-malt whiskies in the country. As part of our strategy to engage with the consumer, advocacy continues to be a strong pillar. To connect deeper with our brands, we host The Glenlivet Sonic Whisky Tasting, which is an innovative multi-sensory educational experience, collaborate with lifestyle platforms such as Mahindra Blues festival and GQ Most influential young Indians. We also encourage consumers, trade and media influencers to visit our distilleries and educational centers in Scotland which provides an immersive and insightful experience of the history, craft and legacy of our brands.

Recently, Absolut introduced its campaign ”Born Colourless”, what is it all about?

Mohindra: Our brand Absolut has always championed purpose-led-creativity and instigated an open world. Through Born Colourless, we want to drive the message that a colourful world is a colourless one, where people need to drop their biases and look past superficial differences. Our brand Absolut has very powerful beliefs, it fosters a great vision of a ”Better world, Better tomorrow”. The campaign idea was incepted in India, in collaboration with our agency partners Lowe Lintas.

The brand is trying to populate the concept of ”responsible drinking”. Please elaborate on why it is important for a liquor company to discuss this in the public domain?

Mohindra: Consumers today, are increasingly leaning towards health and wwellness, giving preference to quality over quantity. As the number of drinks consumed per occasion are decreasing while the number of occasions are increasing, people are learning to enjoy drinks, rather than getting drunk. Consequently, responsible consumption of alcohol beverages is on the rise. PRI with its brand offerings will continue to offer bespoke experiences to the consumers, encouraging them to build convivial relationships. PRI continues to enable consumers to drink better and enjoy responsibly.

What are the major challenges that you face in India?

Mohindra: In comparison to several global markets, there”s higher incidence of taxation leading to out-of-reach end consumer prices; consequentially decelerating adoption and premiumization. The alcobev industry faces challenges of accessibility, in making the product available to the consumers due to varied duty structures and regulations in different states too poses a challenge for the industry. The industry has been continually stressing for digitization which would in turn bring more transparency and ease in doing business.

Do you have any expansion plans for the Indian market?

Mohindra: Globally, India offers one of the largest growth potential in spirits consumption. This leads to greater opportunities in a wider range of segments, both mature and emerging. We expect premiumization to continue strongly in the foreseeable future, due to a positive long-term demographic and socio-economic trends led by a young and growing consumer population, rising middle and affluent class and increasing purchasing power, rapid urbanization, and rise in alcobev consumption by women. PRI with its brand offerings will continue to drive premiumization across categories and price points.

How important is the millennial audience for Pernod Ricard?

Mohindra: With increasing aspirations, disposable incomes and exposure to global brands, the Indian millennial consumers present an exciting opportunity for us. Outburst of trends such as increase in cocktail explorations, and consumption of different liquor categories by the same consumer have exemplified the experimental nature of millennials. A strong and engaging experience is key to connecting with millennials. Add to this, the evolution of Food and Beverage (F&B) venues to international standards has led to a burgeoning demand for experiences that match the venue. To selectively cater to these new consumers, PRI”s portfolio has an offering of aspirational brands like Jameson Irish Whisky, Absolut Vodka, Monkey 47 and Beefeater Gin along with a strong portfolio of wines led by Jacobs Creek, Campo Viejo and Brancott Estate wine.

(Puja Gupta can be contacted at puja.g@ians.in)