Focus - Pernod Ricard and Spirits in Asia
Pernod Ricard shone the spotlight on premium-plus western-style spirits in Asia
Earlier this week, Pernod Ricard invited the media and drinks industry analysts to Beijing for a day-long set of presentations on its positioning and potential in Asia. Here's a round-up of the headline facts and figures the company cited about the region.
In 2012, total wine and spirits sales in Asia were 2.8bn nine-litre cases. Of this, 373m cases were “western-style spirits” and 28m cases were imported spirits, just 1% of total wine and spirits.
“Premium-plus western-style spirits” are forecast to rise in volume terms from 83m cases last year to 129m cases in 2016 – a rise of 12%. In value terms, the segment is expected to increase from EUR4bn last year to EUR6bn in 2016 – a rise of 10%.
Pernod's Asia operations have seen sales rise sevenfold between 2002, when the Seagram's transaction was completed, and 2012. Profits in the same period have increased ten times, breaking EUR1bn (US$1.29bn) last year.
Five markets were highlighted as performing particularly well in the ten year period: China (sales up by 27 times, profits by 50 times), India (sales up seven times, profits by 11 times), Duty Free (sales up five times, profits by 7 times), Korea (both profits and sales up by seven times) and Vietnam (sales up by 21 times, profits by 29 times).
In Cognac, Pernod is the number two player by volume in Asia, and number one by value.
In Scotch whisky, Pernod is the number two player by volume, and number one by value.
In “premium vodka”, Pernod is the number two player by volume, and number one by value.
In “Premium Indian whiskies”, Pernod is the number one player by both volume and value.
Of the 15 Asian markets that Pernod operates in, it leads the “premium-plus western-style spirits” markets in China, India, Asia Duty Free, Malaysia, Singapore Vietnam, Indonesia, Taiwan and Japan. In The Gulf, Thailand, Cambodia, Hong Kong, Korea and The Philippines, it is second.
Pernod stated a “mid-term objective” of reaching 40% value share of “premium-plus western-style spirits”* in Asia by 2015. Current market share of the segment stands at 35%.
*“Premium-plus western-style spirits” was defined by Pernod as being priced at above US$7 per bottle.
All figures sourced from Pernod Ricard presentation, Beijing, 28 May 2013.
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