Growth potential: The Pernod Ricard distillery in Emeishan, Sichuan. The company is keeping a firm eye on China’s growing middle class. — Bloomberg
Beijing: Pernod Ricard SA has launched its first China-made whisky as the alcohol giant looks to tap rising local demand for premium liquor despite the country’s sluggish economic recovery.
The Chuan Pure Malt Whisky, made in the Paris-based firm’s Mount Emei distillery in Sichuan province, commenced sales yesterdat, chief executive officer Alexandre Ricard told reporters during a tour of the facility earlier this week.
The spirit will initially retail at 888 yuan per 700ml bottle through Pernod’s key distributors in China and it will later be available on eCommerce platforms. Pernod will also sell two other types of whisky exclusively in the distillery’s retail store for 1,199 yuan and 1,488 yuan respectively. No exact time table was disclosed for when Pernod plans to make The Chuan available outside of China.
Global booze giants from Pernod to Diageo Plc are doubling down on efforts to court drinkers in Asia, especially China and India, after the region overtook the European Union last year to become the biggest buyer in the US$7.5bil Scotch whisky export market. In the first half of this year, six of the 10 largest export destinations for the vaunted spirit were in Asia.
In particular, Pernod – the maker of Absolut vodka and Perrier-Jouet champagne – has been expanding its footprint in China, opening its first distillery in the country in 2021.
Pernod is the first international firm to make whisky in China and committed one billion yuan as part of an effort to create a brand that would suit local tastes.
Pernod also started selling a 24-year-old Scottish whisky exclusively in China last year and plans to launch more products as demand for premium booze remains resilient even as the economy grapples with an ongoing property crisis and weak business confidence.
“The level of investment we’ve committed behind this project is important enough to show a very strong confidence we have in the potential of the Chinese market and its growth,” said Ricard.
“We will always have volatility and cycles in our industry and more generally speaking in the world. But what we do look at are the underlying fundamentals,” including the long-term premiumisation and a growing middle-class in the country, he said.Pernod’s Chinese whisky has an intense flavour to fit in with strong tasting local cuisine, including the hot pots and spicy food that mark out Sichuan food.
The Chinese consumer is becoming “increasingly sophisticated,” said Richard, who added that they are looking for “more diversified” experiences.
While Pernod’s China sales fell sharply in the last quarter, the company has said it has seen signs of improved takings in September and October. Pernod is also optimistic for the rest of the year as China celebrates its first festive season since the government relinquished strict pandemic controls a year ago. — Bloomberg
